HTC is targeting smartphone shipments of 13.5 million units in the third quarter of 2011, an increase of 98 percent year-on-year, increasing its revenue by around 80 percent to TW$137 billion (US$4.75 billion), the company said. The company has been growing its shipment volumes steadily during the most recent quarters, reaching 12.1 million in the second quarter of 2011, from 9.7 million in Q1. It said that devices such as Sensation (pictured) and Evo 3D “strengthen HTC’s leadership in the super-phone segment,” while devices including Wildfire S and ChaCha “bring smartphones within the reach of a wider market.”

Against a backdrop of increased competition in the smartphone market, the company is seeing its operating margins squeezed. In the second quarter of 2011, its operating margin was 15.5 percent, down from 15.8 percent in Q1 and from 16.1 percent at the end of 2010. The company said that this was due to “product mix changes” – it ramped up production of a number of entry-level devices during the quarter – and said that it will “continue to enhance operation efficiency to sustain operating margin.” Handset average selling price of US$349 in Q2 was down from US$359 in Q1, again due to the increased proportion of entry-level devices, although up from US$340 in the second quarter of 2010.