Tuesday 17 April 2012

Hard times ahead for HTC amidst increased competition, CFO-ousting?

The HTC One series has me excited for an HTC smartphone again. The One X (or, Evo 4G LTE ) matches HTC's notorious styling with top-notch innards, and a toned-down version of the popular HTC Sense custom UI. Similarly, the One S and One V phones are stellar phones for the mid-range market, and should easily steal customers away from the competition. In a way, the One series is a make-or-break product for the Taiwanese manufacturer. Over the past year or so, HTC has continued to lose market share to Apple and Samsung, the latter of which is not resting on it's previous successes. A huge deal between HTC and Beats Audio has left the company with a financial bottleneck that has just seen the ousting of HTC's CFO Winston Yung after just a year on the job. Yung is being replaced by former Goldman Sachs partner Chia-lin Chang. What's worse, Samsung is about to take the spotlight off of the One series, just as the HTC One line begins to go on sale in the United States. Samsung will soon take the wraps off their next flagship device, the Galaxy S III, and if sales of the Galaxy S and Galaxy S II lines are any indication, the Galaxy S III will sell phenomenally well when it launches later this quarter. These two situations spell potentially bad news for HTC, and HTC's shares have taken a tumble this morning as a result, shedding over 5% in early trading. We're sure this will even out over time, and we hope that sales of the HTC One X and S smartphones in the U.S. will give HTC the boost it needs to remain successful in the Android handset market.




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