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HTC One sales outpace last year's flagship devices

That's the word from HTC, which says the new hero handset has helped the company regain ground in key markets, including China. But operating margins could feel a squeeze.

HTC's One, left, alongside the Galaxy S4 and iPhone 5.
HTC's One, left, alongside the Galaxy S4 and iPhone 5.
Josh Miller/CNET

The latest HTC One has proven to be a more popular smartphone than those the mobile firm launched last year.

In a statement released Tuesday, HTC said that the latest-generation One has "performed...better than that of our hero products for the same period last year." The company didn't say how well the device is performing by sales units, but indicated that its success has helped the company regain "superphone market share across major markets, including China."

The HTC One launched in April, and sold roughly 5 million units in its first month of availability. In an interview in May, an unidentified executive told the Wall Street Journal that demand was outstripping supply.

Despite the HTC One's success, the third quarter doesn't appear to be one to write home about for the company. HTC says that it expects to post revenue of between NT$50 billion (US$1.7 billion) and NT$60 billion -- well below the NT$70.7 billion it posted in the second quarter. HTC expects its operating profit margin to fall between zero and minus-8 percent.

Still, HTC had a somewhat strong second quarter, posting a profit of NT$1.25 billion.

To help bolster its performance in the coming quarters, HTC has designs on launching some new devices. In a statement today, the company said that it has "plans underway to launch a range of innovative and competitive mid-tier products in the coming months."

Now playing: Watch this: Unboxing a hot, new smartphone, the HTC One