Smartphone maker HTC has recorded its first quarterly year-on-year sales and revenue growth in more than three years. The Taiwanese company rode new mid-range headsets and devices targeted at developing markets such as India to a sales rise of NT$5 billion ($156 million) year-on-year — sales rose to NT$47.9 billion ($1.5 billion) in the fourth quarter of 2014, up from the NT$42.9 billion ($1.34 billion) HTC posted in Q4 2013.

HTC has struggled to maintain a strong presence in the contested smartphone market in recent years, with slumping sales and an exodus of executives boding badly for the company's future. But by selling mid-range devices, HTC products have found a space between Apple's iPhone 6, Samsung's huge slate of smartphones, and cheaper handsets from fast-growing companies targeting developing markets, such as Xiaomi.

HTC has found a space between Apple and companies like Xiaomi

Operating profit also rose for the quarter. Analysts expected a loss of NT$30.4 million ($950,000), according to Bloomberg, but the company was able to post an operating profit of NT$180 million ($5.62 million). The turnaround doesn't mean that HTC has completely reversed its fortunes — 2014 still saw the company's whole-year revenue decline for the third year in a row — but as it has success with mid-range handsets, the future looks a bit brighter for the maker of one of the most handsome phones on the market.