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HTC Focuses on Mid-range Handsets, the Mega and Click are Coming Soon

HTC will be focusing their development budgets on mid-range smartphones for the rest of this year, due to the keen competition from other high-end smartphones on the market.

According to HTC’s CEO Peter Chou, shipments of mid-tier smartphones would account for 50 to 60 percent of the Taiwan-based manufacturer’s total handset shipments in the second half of 2009. Such models are expected to carry a retail price tag in the range of US$300, which include the two upcoming smartphones to be unveiled toward the end of the third quarter: the Window Mobile 6.5 powered HTC Mega, and the HTC Click running on Google’s Android operating system.

Both handsets are expected to help the handset maker in the fourth quarter, as analysts predict its revenue will gain by 11 percent, while shipments will increase by 19 percent for the next three months if things go as planned.

On the other hand, HTC revealed that the company’s second Android-powered smartphone, the HTC Magic, has sold more than 1 million units since its launched in late April 2009. Another highly anticipated model, the Windows Mobile powered T-Mobile Touch Pro2, has also recently joined the market in the U.S. Meanwhile, the HTC Hero, the first Android handset that sports a browser equipped with flash, is just launched in Taiwan on August 11. It is reported a CDMA model of the Hero could be coming to the U.S. Sprint later this year as well.

Unfortunately, not all the news is good. HTC’s revenues and shipments for the second half of this year are forecast to decline by more than 20 percent from the first six months. Although the sale of the Magic has met HTC’s expectation, demand for the manufacturer’s high-end smartphones are still weakened by the economic recession and strong rivals like Apple’s iPhone and Palm’s Pre, which explains why HTC decided to switch their focus to the cheaper mid-range handsets.

For customers who are big fans of HTC, they may have to wait for a while to see HTC apply their magic on another top-of-the-line smartphone.

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