HTC Corporation (TPE:2498), the consumer electronics company from Taiwan, has posted impressive revenue growth for the month of September. This is the first time they have reported sales growth this year.
HTC reported a 42 percent improvement from August, and a 31.3 percent year-on-year increase. Their revenue currently stands at TWD 9.33 billion or $20 billion. The company recently announced this in an official declaration. Analysts are saying that this increase is thanks to Google’s (NASDAQ:GOOGL) new smartphone Pixel. HTC had won the contract to assemble the smartphones for this technology giant. However, in the months leading to the launch, almost all of Pixel’s design features and technologies were leaked somehow on the internet.
The press release did not say anything about these Pixel smartphones, and how they helped HTC record a revenue jump, however, it is noteworthy how their revenue has jumped following the announcement of Google’s smartphones.
HTC Corporation Not Doing Too Well
It has been a long time since the business has been struggling to cope up with the growing competition. HTC makes beautifully crafted smartphones, but they are often too expensive, particularly with businesses like LeEco and OnePlus offering devices for about $300 or $400. Another popular complaint is that many of HTC’c products are not advertised well too.
September is the first time this year that the business has reported a growth in recent months. Their unaudited consolidated revenue between January and September stands at TWD 55.91 billion, which is close to $120 billion.
The release said nothing about the new smartphones of Google. But, for all practical purposes, there cannot be any other reason behind this sudden jump in HTC’s fortunes. Though the new phone has the mark of Google, but actually, it is HTC that has designed, advertised and also distributed them, which is quite a feat for this Taiwanese business.
It May Get Even Better For HTC
Any product of Google is usually a success, though there are exceptions such as their social media initiative, Google Plus. The business is now planning to employ their advertising expertise to sell the Pixel phones. This will surely be good news for HTC Corp (TPE:2498).
An increase in sales of Pixel will mean that HTC’s facilities will be used even more, which means that the revenues of this Taiwanese company will go up even more, making their investors happy. The HTC stock is likely to go up in the coming months.