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HTC workforce up 46% as Android mobiles defy slump

HTC Corp (宏達電), Taiwan’s largest vendor of mobile phones, increased its workforce by almost half last year as handset sales helped the company weather an economic slump that’s forcing electronics makers to cut jobs worldwide.

HTC, maker of the first phone using Google Inc’s Android software, increased its headcount 46 percent to 9,353 by the end of last year, the Taoyuan-based company’s said in its annual financial report. Revenue climbed 29 percent while profit slipped 1.3 percent for the period.

Microsoft Corp, Sony Corp, and NEC Corp are among companies planning to eliminate tens of thousands of jobs as the global recession drives down demand for TVs, cameras and other consumer electronics. The bigger roster may help HTC produce more models as it seeks to boost sales worldwide.

“They made a lot of investments last year to expand their portfolio, including the move into Android handsets,” said Lu Chia-lin (呂家霖), who rates HTC “outperform” at Macquarie Group Ltd in Taipei.

He estimates the company will release as many as five new Android-based phones this year, compared to the one it introduced last year.

HTC released its G1 handsets using the Android operating system last October with a forecast to ship 1 million units by the end of December.

The company hasn’t published actual G1 shipments.

More engineering, production and marketing staff allowed HTC to boost shipments 21 percent last year and sell those handsets at an average 6 percent higher price, HTC said on Feb. 6. Global mobile phone shipments grew by 3.5 percent last year, researcher IDC said.

Microsoft, the world’s biggest software maker, will cut as many as 5,000 jobs, while Sony said in December it would cut 16,000 workers and NEC, Japan’s largest computer maker, announced last month it would eliminate 20,000.

Taiwan’s unemployment rate climbed to 5.31 percent last month from 5.03 percent in December, the Directorate-General of Budget, Accounting and Statistics said on Thursday, as companies fired workers following the economy’s record contraction last quarter.

Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest custom-chip maker, and Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics manufacturer, are among companies locally that said they would reduce their work forces.
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