Monday, July 30, 2012

Why it's not doom and gloom for HTC yet










HTC CEO Peter Chou shows off the HTC Rezound at an event last year.




(Credit: Sarah Tew/CNET)

It's a little too soon to write off HTC.




With Apple and Samsung Electronics cornering more than two-thirds of the industry's sales and nearly all of its profits, it's easy to dismiss every other handset manufacturer. That includes HTC, whose descent from industry darling to embattled company seemingly happened overnight.




The rapid reversal of fortunes have many skeptical about HTC's ability to make a comeback. But there's still a lot to like about the company. It remains profitable, even if those profits are in decline; it still has a recognizable brand and loyal base of customers; and as demonstrated by its One line of phones, it can still make a good product. Just as important, HTC stands in the way of the industry transforming into a handset duopoly run by Apple and Samsung.




"HTC remains the only contender to be a profitable No. 3 smartphone vendor in what we believe cannot become a two-supplier market," Pierre Ferragu, an analyst at Sanford Bernstein, said in a research note today.




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