Results 1 to 3 of 3
  1.    #1  
    Looks like the days of naming 12 models in the title of a thread about a single phone are numbered.....

    Why HTC is closing cellular operators’ brands
    One Ring to rule them all, One Ring to find them,
    One Ring to bring them all and in the darkness bind them.


    FULL STORY: http://www.mobile-review.com/pda/art...brand-en.shtml

    A good ODM/OEM manufacturer should always consider possibility of building its own international recognizable brand.....

    -----------------

    Done with operator’s yoke!
    Before official announcement of new brand HTC’s executive director, mister Peter Chou held meetings with all key operators. He was giving clear allusion to fact that appearance of HTC brand on their devices is inevitable. Prior agreement was given by DoCoMo, Vodafone, Orange. T-Mobile managed to get a “time-out”, but this is temporary action. O2 operator, who has almost decided to look for alternative solution (take O2 XDA Atom as example, it was made by Quanta).

    Time to make an ultimatum for all operators was strategically ideal. On one hand company’s devices have proven to be good in perception of buyer and operator. Company has grown enough to convince operator that it is able to build and support its own brand relating on its own finances. On other hand HTC doesn’t have any direct competitors among Taiwan companies (those who are trying to position themselves as ones are lagging behind by 1 technological year from HTC, especially in terms of 3G), this means that even if operator has the will, he will not be able to make a switch of ODM/OEM partner. Direct competitors from Samsung, Sony Ericsson for HTC’s product are still missing. It turns out that even though there’s no big will for that, operators will have to agree to conditions put by HTC.

    ---------------------

    Faith in Victory
    HTC is super serious about entering market with one single brand. This decision is totally valid, a lot of diversified brands was turning into inefficiency of management, high cannibalization coefficient.

    By choosing right moment and time company made an ultimatum to operators about switch to HTC brand. Statements that operators and OEM business remain prior for company is nothing else but attempts to assure and relax investors. After few days since Dopod’s acquisition company has list more than 2 bn dollars in capitalization (share price dropped by 20%). Investors have the right to be aware of short-term perspective of sales drop.

    I-Mate’s fate has not been announced yet, but this player has no better conditions than operators do. Either it will agree on HTC brand or will have to look for new ODM/OEM operator, and that’s what the company is doing at the moment.

    Situation with Dopod is uncertain. It should also be moved into new brand, but at the moment it takes leading positions on domestic market with strong AD support and lack of competitors.

    Company has targeted into conquer of market share on mobile terminals market. Single brand is the only valid decision which is approved in long-term perspective. In short-term perspective it will affect negatively on sales, several operators will decide to drop the idea of switching to this brand, consumers will have to learn about new brandname (investor’s reaction to this action is a confirmation of this fact). Company has margin of safety it can even go into negative numbers for some time. Last year’s net profit was 363 mln USD.

    Side effect is this – new HTC’s policy will allow a lot of Taiwan manufacturer to try taking vacancies in model line-up of international operators like O2.
  2. Silver5's Avatar
    Posts
    529 Posts
    Global Posts
    553 Global Posts
    #2  
    Regardless of whether it is seen as being fair to operators it is certainly a smart business move by HTC. Well, it is a good move as long as they keep building reliable and advanced devices, as they're brand name recognition will be huge if they don't get dropped by a lot of carriers.

    I just hope they don't go the way of HP. They took the most advanced PPC brand with the iPAQ and have wasted its potential. I guess they just got too comfortable with being #1.
  3. #3  
    I think it is a good thing to unbundle the phone from the provider.

    Subsidized phones are just a way to hide the true cost from us. It's just like those silly deals that GM is doing now if you'll buy one of their SUVs--"free gas"--which of course is B*l*s*it in a Bottle.

    More competition = better for us.

    And if HTC pulls a HP on us, there are probably some up-and-coming Korean/Taiwanese/Chinese/Malaysian/Whatever companies that will fill the gap. Or that Apple place maybe?

    One more reason to go GSM -- drop your SIM in the new phone and go.

Posting Permissions