HTC announced a rise of 31% in its handset sales in the third quarter. However, profits declined by 4.9% in comparison with 12 months ago, reflecting a squeeze on margins.

The handset manufacturer’s revenues increased from £510m between July and September 2007, to £663m during the same financial period in 2008.

The company claims that shipments were slower than forecasted due to ‘typhoon weather' in September.

The Taiwanese manufacturer is responsible for the production of T-Mobile’s G1 handset, which commentators are predicting will capture 4% of the US smartphone market in the fourth quarter. Its best-selling handsets this year have been the Touch Diamond and Touch Pro.