HTC is to double its smartphone production to meet soaring demand, the handset manufacturer revealed at its fourth quarter results last week.
The move is on the back of HTC predictions that its sales will soar from a record 25 million handsets in 2010 to an estimated 40 million units in 2011.
HTC CEO Peter Chou said HTC will inject extra investment of £20m into its subsidiary, HTC Electronics (Shanghai), in eastern China, to increase its monthly capacity from one million smartphones currently to two million.
Chou added that HTC will also expand the monthly capacity at its factory in northern Taiwan to more than four million smartphones.
The manufacturer is also considering outsourcing production, Chou said, to allow flexible use of its capacity.
In its latest quarterly results HTC predicts shipments of 8.5 million smartphones and consolidated revenues of £2bn for the first quarter of 2011, decreasing by 6.9% and 9.6% respectively on quarter but rising by 157% and 147% on year, according to the company.
These estimates are conservative with analysts predicting a more bullish outlook for HTC of between £2.17bn and £2.39bn for the period.
Of HTC’s consolidated revenues for 2010, 50.6% came from North America, 32.3% from Europe and 17.1% from Asia and other emerging markets, the company said.
Chou said HTC would continue its evolution, which has seen it move from a contract manufacturer to an own-brand vendor with in-house production. Chou said HTC was embarking ahead of schedule on the third phase which will focus on brand management to raise even greater awareness of the HTC brand and to deepen consumers' preference for HTC.