HTC overtakes Nokia in market cap

HTC Corp Asia's second-largest handset maker has overtaken Nokia Oyj's market value as consumers prefer to go for more powerful, feature-rich phones rather than the Finnish company's simpler models.

The Taiwan-based company's market value surged to $33.8 billion as its shares rose 5.3 per cent yesterday. Nokia's market values  stood at $33.6 billion as its shares gained 1.1 per cent to €6.26

The HTC stock has tripled over the past year with smartphone shipments growing over twice the pace of the wider market for mobile handsets. Nokia shares were down 19 per cent this year amid growing competition for basic phones and as its Symbian operating system for high-end models lost ground to Apple Inc (AAPL)'s iOS and Google Inc (GOOG)'s Android.

According  to analysts, smartphones had changed the mindset of consumers. They say that earlier people would walk into a store and ask for a Nokia or LG but now they ask for Apple and HTC.

Global shipments of smart phones were up 72 per cent last year, which was more than double the 32 per cent growth in the wider mobile devices market according to research firm Gartner Inc said in a 9 February statement. It added that smartphones formed 19 per cent of shipments for the year, it said.

HTC's 33-per cent surge in market value this year puts it behind only Apple, maker of the iPhone and iOS operating system, and Samsung Electronics Co., which uses both Android and Windows in its handsets, among smartphone manufacturers.