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HTC Jumps to 58% Increase in Revenue Through Android OS Sales

The union of HTC smart phones with the Android operating system has resulted in the creation of very successful smart phones. HTC sales reports have shown a 33 percent income increase after the second quarter of last year and a revenue increase of 58 percent compared to the previous year. HTC is expecting the new ‘Evo 4G’ smart phone to maintain the boost in revenues for the rest of 2010. According to Wall Street Journal, on the 6th of July, HTC announced their profits for the second quarter of 2010, which was reported to be 268 million dollars. For HTC, this is one of the biggest profits since 2007. A total of 33 percent increase in net income and an increase of 58.45 percent in revenue is a great success indeed.

Getting to know Android

As suggested earlier, the key component of their success happens to be the Android mobile operating system that was created by Google. While the Microsoft OS is used in some of HTC smart phones, it’s smart phones like ‘Evo 4G’, ‘Driod Incredible’, ‘MyTouch 3’ and ‘Nexus One’ (which all use the Android OS) are the ones that have caught the customers’ attraction for HTC worldwide. IDC, a market research company reports that by 2013, the Android OS will be in 2nd place for popularity in the field of mobile operating systems internationally. Earlier reports from AdMob, a mobile advertising network, stated that the Android OS is currently the most used mobile OS. It is also the fastest growing OS with a 24 percent increase in requests in February alone. Last year, Android phones only amounted to 2 percent of the requests reported by AdMob.

HTC and Android

HTC has also converted from ODM to OEM branding, allowing it to associate with widely successful products. “HTC has actually done a pretty good job of coming out of the gate as a brand, the products look good, they’ve got a good environment, they’ve chosen good fonts for the name—they’ve hitched their products to Android, which has paid off.” That was a comment made by Roger Kay, principal analyst for Endpoint Technologies.

HTC’s latest ‘Android-powered’ phone

While the 6th of July’s finance report dated back to the 31st of March, the company is expecting its latest smart phone ‘Evo 4G’ to keep elevating the boost in revenue for the remaining of the year. The following are some features of the Evo 4G:

  • A 4.3 inch display (800 x 480 pixels)
  • A primary camera (8 megapixels)
  • A secondary camera (1.3 megapixels)
  • Hotspot capability for up to 8 devices
  • Operating system upgradable to ‘Andriod 2.2’
  • Adobe Flash support
  • The first smart phone to run on both 3G and 4G networks in United States.

Android OS has proven to be a vital component in the strong sales of HTC products, making the manufacturer a major player in the mobile device market. Perhaps you should consider this choice if you are looking to buy a new smartphone or looking for a smart phone that is advanced enough to compare with the new iPhone 4G.

HTC Acquires Abaxia

HTC, the Taiwanese Smartphone designer and maker, has just confirmed that it has successfully acquired Abaxia, the company based in Paris France that develops mobile phone applications and software solutions. Abaxia has over 22 million deployments across 36 countries on 60 different phone models for different network carriers and manufacturers of handsets.

They design software that would allow the handset manufacturers to have customized features on the home screen of the handsets so that the look and feel of these phones would be consistent. Among its customers include:

• Samsung,
• Motorola,
• Nokia, and
• HTC

According to HTC, they acquired Abaxia so that they can already do their own mobile software development themselves and they can innovate at a faster pace than before. HTC is also in the process of deepening and broadening their capabilities in the area of software development and the purchase of Abaxia does just that. The reason for the purchase was published in a statement made by HTC CEO Peter Chou.

Abaxia’s CEO Cedric Mangaud, on the other hand, says that the recent acquisition would really allow both companies to grow and complement each other more since they were already able to work closely before and with huge success.

Some of Abaxia’s software offers include this application called the Mobile Portal. It is an application that enables the user to get quick access to a variety of services and information with just one click on the phone’s idle screen. Others include the Mobile Finder Search All and the Abaxia Open Platform.

Earlier in 2008, HTC also acquired the famous design firm One & Co. Design. HTC’s purpose for this was to create a unique look and feel to HTC handsets under the professional eye and expertise of One & Co. Design.

The year 2009 was considered quite rough for HTC which might be due to the recent financial and economic crisis. But they are really optimistic for 2010 and are expecting a huge turnaround with the addition of new and innovative products in its portfolio.

They are expecting the huge turnaround to come from their latest product, the new EVO 4G, from which they really expect the demand to come from. The new EVO 4G just launched late last week and is considered to be the first 4G Smartphone in the United States.

Both companies refuse to disclose the financial terms of the sale but reports have said that HTC bought Abaxia for 11 million Euros or about 13.1 million US dollars. The Wall Street Journal reported that a close estimate of 13.2 million US dollars was paid for Abaxia but HTC won’t confirm it.

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