The first phase of HTC's growth, as mentioned earlier, consisted of making PDA as a subcontractor for computer manufacturers. Like most high-tech startups in Taiwan at the time, HTC sought subcontracting opportunities where its team had the necessary R&D experience and was confident of delivering end products with a reasonable value-to-price ratio to clients. Designing handheld devices was one of the areas of competence of its founding team of where they had worked together. between 2000 and 2002, the PDA business was HTC's primary source of income, generating 13.64 percent of gross profits in 2001 and 17.45 percent in 2002