HTC gets tied down with Facebook

As Mark Zuckerberg
unveiled the new Facebook Home at the
company’s headquarters in Menlo Park,
California, a Taiwanese tech boss was on hand
to cheerlead. Peter Chou, CEO of smartphone
maker HTC, told attendees how great
Zuckerberg’s new phone will be.
“It’s clear Facebook has created a truly unique
service,” he said. While he sang Facebook’s
praises, Chou must have had mixed feelings.
HTC got its start as an anonymous outsourcer
making devices for others, but unlike
Taiwanese electronics companies like Foxconn
that have succeeded by churning out gadgets
for big brands like Apple, HTC has spent the
last five years building a consumer brand of its
own. And for a while, the strategy worked: by
2010, HTC was an Android smartphone leader
and the third most valuable Taiwanese
company, with a market cap of $18 billion.
“We just want to come up with our own
innovations, our own flavour,” Chou said in an
interview in 2010. The Facebook alliance is a
step backward for HTC’s campaign to stand on
its own, but the Taiwanese company needs the
help. As Samsung has soared to become the
world’s No. 1 smartphone maker, HTC has lost
market share. It’s unclear how much HTC will
gain by partnering with Facebook. If
consumers take to Facebook Home, the
Taiwanese company might get a boost.
But if it does prove popular, Zuckerberg is
unlikely to stick with just one supplier. So far,
investors seem to be cautious about HTC’s
California deal, giving HTC’s Taiwan-listed
shares a modest 1.4% bump after Chou’s
appearance at the Facebook Home debut.

This is definitely a big partnership for HTC, this partnership might bring them some much needed profit and share in market in smartphones section. They will be hoping that this becomes a big hit but it doesn’t look like that because Facebook phones have been tried before and it was a big flop in India as well as all the European markets. And they will be challenged by Samsung and other big companies in Facebook phones area. We will just have to wait and see what happens.


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