HTC has forecast a doubling in its handset shipments and revenues in the second quarter, as the Taiwanese mobile phone company continues to benefit from strong demand for its Android phones. In the first quarter, the company shipped 9.7 million phones, up 192 percent year-on-year and 6 percent more than in the fourth quarter. This was better than its earlier outlook of 8.5 million phones shipped. The average selling price rose 6 percent from a year ago to USD 359. For the second quarter, HTC expects shipments to increase to 11.0-11.5 million units, equivalent to growth of 103-113 percent year-on-year. Revenues for Q2 are forecast up 97 percent to TWD 120 billion, after an annual increase of 174.5 percent in Q1. The growing scale of its operations helped push the first-quarter operating margin to 15.8 percent from 14.9 a year ago, and HTC forecast a Q2 margin of around 15.5 percent. In the current quarter, HTC will launch the new video service HTC Watch, as well as start the third phase of its branding campaign, aimed at building brand preference. The company said it has also acquired 82 issued patents and 14 patents in application from ADC in an effort to boost its portfolio, and invested in expanded manufacturing capacity in Taiwan and mainland China in Q1.
