Patent Headache Not Slowing HTC, Smartphone Sales More Than Double


Credit: Tom Krazit

Despite the uncertainty around its patent situation, Android continues to prove very lucrative for companies like HTC, which reported soaring revenue and profits Friday on the back of a 123 percent increase in smartphone shipments.

The company reported (click for PDF) an after-tax profit of NT$17.52 billion, which at current exchange rates works out to $608 million in profits for the second quarter. Revenue was NT$124.4 billion, or $17 billion in U.S. dollars, and smartphone shipments came in at 12.2 million, a 123 percent increase over last year’s second quarter and a 24 percent increase compared to the first quarter of this year.

HTC is the top Android vendor in the U.S. market according to Nielsen but trails Samsung overall around the entire world. It has been involved in many key Android launches and has phones on all four major U.S. carriers.

But it is smack in the middle of the mobile patent disputes that have engulfed this industry, and may be forced to give back some of those profits as royalty payments to Apple (NSDQ: AAPL). HTC has already signed a patent-licensing deal with Microsoft (NSDQ: MSFT), and is in the process of acquiring S3 Graphics in order to build out its patent portfolio.

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