There are a lot of ways to interpret a report like this...

Android-powered HTC Hero smartphones in tight supply, says HTC executive

Some of the interpretations are good news for the firm involved. But, most are not...

1. Sales are so spectacular, that manufacturing can't keep up with demand
2. Someone really messed up initial sales projections
3. There is a big supply chain problem that needs to be fixed
4. The firm created an artificial shortage to fuel interest and demand
5. They have a manufacturing process problem

If there aren't any viable competitors, all of the possibilities offered above can lead to driving up interest and customer demand.

But, from what I can see, this isn't the case with HTC Android devices. HTC may have a lock on the market right now, but Motorola and other manufacturers will be releasing very competitive Android products before the end of the year and just in time for the holiday gift buying/giving season. And, pent-up customer demand may lead them straight to very capable non-HTC Android phones.