Abstract
After a its success in ODM[1] and mobile operator business[2], HTC decided to sell handsets under its own name in 2007. Despite having a very innovative product line resulting from substantial R&D expenses, HTC had not yet established a distinctive brand value. To reduce costs and build its image with high-end products, we recommend that HTC not only cooperate more closely with Google's OS, but also penetrate the "unlocked" European and Chinese markets quickly, to leverage economies of scale, before its massive launch in US with the support of operators.
HTC observed the fast growing trend in the brand new Smartphone market (global sales rose 22% in 2010 and were expected to reach 350,000 in 2012) and launched the first touch screen Smartphone under the company's name in Asia and Europe. This ambitious decision implied that HTC would encounter a new landscape (See the diagram in appendix 3). Firstly, it was now in direct competition with leading handset manufacturers. The major producers of smart phones included Nokia (39.3% market share), Blackberry (20.8%), Apple (17.1%) and Samsung (3.2%) [4]. Among them, Apple was the most aggressive one [5] and targeted a consumer segment which was most similar to HTC [6], while Nokia was more eminent in the areas of phones with multiple feature, and Blackberry was in state of relatively stable development.
Except Samsung, all the handset manufacturers mentioned above had developed their own operating system; such as Apple's OS X, RIM's BlackBerry OS, and Nokia's Symbian. In addition, Microsoft's Window's Mobile and the latest Google's Android were also powerful operating systems. Overall, all these system operators had a user interface and a specific application store, which were evaluated as more or less "user friendly". Therefore, it was crucial for HTC to choose the most suitable operating system for its future products.
Tags: Marketing strategy of HTC; Smartphones; HTC OS
