HTC Needs…Something

Back in the day, the company could do no wrong. Today, it’s a different story…

htcI’ve been an HTC device user for years. Back in the day, HTC made devices for a company called imate. imate was a device OEM out of Dubai, UAE, and back in 2004…they were the BOMB. Their devices were unlocked, well designed, high performing, high margin products. I remember saving money for an entire YEAR so I could buy an imate PDA2k, a Windows Mobile 5 powered, EDGE based, smartphone. It cost me $930. Unfortunately, the review of the PDA2k I wrote and posted on 2005-06-09 seems to evaporated. There’s nothing left but a small shot of the actual device. It’s too bad. It was a great device and a good review, too.

It turns out that the company behind all of imate’s devices at the time was HTC. Since then, the company came out on its own, established its own brand, made a huge splash in the market and was a total success. Lately, however, they’ve hit some really hard times.

Samsung seems to be able to introduce new Android devices every time it sneezes. Their Galaxy S line of smartphones is a worldwide success, despite any disputes with Apple or accusations of patent infringement. The competition they have been providing in the Android camp is pretty stiff.

As such, it’s been difficult for HTC to gain much traction in this space. I saw an interesting article on WSJ.com, indicating that HTC may need to consider a merger if it wants to survive.

htc_one14

Many analysts that share this point of view have suggested either Huawei or Lenovo as potential merger partners. It’s unclear whether HTC will consider partnerships with either organization. Both companies are Chinese, and a Chinese partner could really open up sales opportunities for a struggling HTC, who posted their first operating loss on record. Unfortunately for HTC, this loss, coupled with a “gloomy third quarter forecast” is powering an eight year low in HTC’s stock price. Many brokerages are targeting a NT $100 share price in recent weeks. HTC was priced at NT $160 as of early this morning, 2013-07-31.

HTC’s problems aren’t engineering based. Their devices are well designed, and well manufactured. The HTC One is simply stunning by all accounts. HTC’s issues are sales and marketing related, and its seems that a merger may be the best and easiest way to resolve those issues and hitch a ride on someone else’s well-oiled machine.

Any way you slice it, it’s clear. HTC needs…something. If they want to stay relevant and stay in business, they better figure out what that is and get it done, or the HTC One may be the One and Only.

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  • Duane Craig

    The hunter becomes the hunted? HTC spent a lot of money in 2011 buying companies to expand its patent portfolio and even expand into content, and design and marketing. Maybe straying that far from the core business by buying S3 Graphics, headphone maker Beats and Inquisitive Minds wasn’t a good idea.

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