Thursday, 7 April 2011

HTC surpasses Nokia in market capitalization

HTC surpasses Nokia in market capitalization
Just a couple of years ago, you might not have even heard about this Taiwanese company called HTC. Now, riding the success of its smartphone lineup, the quietly brilliant company has surpassed Nokia in terms of market capitalization reaching $33.8 billion, more than Nokia's $32.8 billion. It's also well ahead of BlackBerry maker RIM, which has $28.5 billion worth of market value.

HTC's market value skyrocketed with growth of over 30 times in the last five years – all due to flourishing mobile business. A recent Goldman Sachs report suggested that HTC hasn't reached its peak just yet and will continue growing. What's behind the growth? “A very unique business model and ecosystem strategy,” the report underlines.

HTC surpasses Nokia in market capitalization
We've seen HTC pick a very successful approach in focusing mostly on high-end devices. Actually, if you look at statistics for the last quarter of 2010, you'll see that the Taiwanese phone maker has one of the highest average selling prices in the industry – $364 per handset in the last quarter of the year. In comparison, Nokia's average handset selling price for the same period was around $210. For the Taiwanese, it all started with the company's Windows Mobile handsets, but the true success came with Android and the HTC Sense skin, which promises to deliver an even better experience with interactive lock screens in its latest 3.0 version. But what's next for HTC? An event scheduled for April 12th in London might unveil HTC's new dual-core flagship, so stay tuned.

source: Bloomberg

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