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Htc Faces Huge Competitive Pressure

With the maturing of the smart phone market, HTC may also face greater competitive pressure

. All three major U.S. carriers now are distributing Apple's iPhone. HTC lacks brand awareness like Apple, Samsung, Sony and other Android handset makers. In addition, HTC is also faced with the competition of Nokia mobile phones and RIM BlackBerry that use Microsoft's new Windows operating system.

Although the data show that HTC in the third quarter debut the top spot in the U.S. smart phone market, but the analyst thinks that HTC may not be long to maintain its leading position in the United States. Now HTC will face a strong competitor which has maintained a very strong position in the market so far.

HTC will adhere to the existing principle. This strategy helped HTC establish a strong relationship with the U.S. operators to help the company's revenues nearly doubled in the last year. Its profit has set a record for five consecutive quarters.

To create a high-profile brand is indeed difficult. HTC has no experience and resources in the development of a global brand. It must maintain a friendly attitude. It has a good relationship with its partners.


HTC was created in 1997. HTC started as a foundry, like many Asian businesses. It produces electronic products at low price for Western high-tech companies. The company once produced laptop computers and personal digital assistants for Compaq.

In 2002, Chou signed an OEM agreement with Microsoft to begin production of Windows Mobile. Soon it became the world's largest Windows Mobile manufacturer. In 2008 it also produced the first Android phone. Now it produces both Android phone and Windows phones.

By quickly integrating the latest technology to produce customized mobile phones, HTC has become the world's fourth-largest smart phone maker, behind Samsung, Apple and Nokia.

Android phone is being increasingly welcomed by the market. The sales grew faster than Apple's devices. This trend benefits HTC a lot. Android smart phone's market share reached 44%, an increase of 6% in the chain. Apple s market share is 27%.

HTC and the carriers have a long-term relationship to help them create a market of their own, which can be traced back when the operators invested heavily in building 3G networks to promote their own brand and service. HTC is clear that this model can not be sustained, so HTC take measures to build an international brand and innovation to enhance awareness among consumers.

by: Amanda Xia
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