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.
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The Mobile Phone Browser Has A Huge Development Space
In recent years, the rapid proliferation of mobile Internet and smart terminals has brought the mobile browser great development opportunities. According to the latest data, China’s mobile browser users reached 215 million, accounting for 67.6% of the mobile phone users. There is no doubt, the mobile browser, relying on its advantage of fast and easy to use, has become the most popular application of the user.
As the most important portal of the mobile Internet, mobile browser is contested. The industry believes that the future experience of mobile browser will be better than PC browsers. It will be more mobile and smarter. The users’ demand on the mobile browser for online shopping, online payment, online video, upload and download will certainly increase, so manufacturers should enrich mobile browser’s applications, transform it to one-stop Internet service platform.
In recent years, the domestic development momentum of the mobile Internet is very fierce. According to the report, in the first three quarters of this year, China’s Mobile Internet market is growing fast. In the third quarter, it even exceeded 10 billion yuan. And this growth trend is still evident in the fourth quarter of this year.
Through the rapid development of the mobile Internet and intelligent terminals, China’s mobile browser market size is also expanding. According to the latest data, China’s mobile browser users reached 215 million, accounting for 67.6% of the mobile phone users. In addition, the data show that as of the end of 2010, China’s users of the third-party mobile browser is about 203 million people and the number of active users reached 123 million people.
The rapid development of the domestic mobile browser market makes the parties have stepped up the layout. On the one hand, the competition among domestic Internet companies fiery.
Not long ago, the war between Tencent and the mobile browser giant UCWEB got the concern of the industry. On the other hand, foreign companies are also gearing up to gain share in the local mobile browser market. The overseas giants Opera mobile browser is quietly starting the localization strategy. It initiated a number of human and material resources to improve the Opera browser in order to better adapt to the domestic environment.
The analysts of the industry said that in the face of the enormous development space of the domestic mobile browser, the mix is just the tip of the iceberg, the future will have more companies to join the fray.
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Why Does HTC Avoid Promoting Smart Phones Around One Thousand RMB?
Except the high-end smart phone market share occupied by Apple, currently there are large domestic market of smart phones around one thousand yuan, which makes Motorola, HTC, Samsung and other foreign brands’ product lines face a choice.
HTC’s CEO Peter Chou has repeatedly announced that it will expand in the emerging markets, but HTC will not give up their “high-end brand” image to introduce low-cost mobile phones. “Consumers are willing to spend more money to buy high-end products. This is the reason why its business grows four times this year in the mainland market, suggesting that the consumers share its high-end philosophy.
The three mainland enterprises ZTE, Huawei and Lenovo significantly accelerated the volume and frequency of new product launches. With the active subsidies of the three operators, they rapidly occupied the market share of smart phone about one thousand Yuan.
Recently, Motorola’s senior vice president of mobile technology in Greater China clearly stated that “For Motorola, we do not have deliberately stressed what must be done in the next quarter. Whether it is doing the smart phones or feature phones, the ability of every business to produce consumer electronics is limited. We will not follow others.” Motorola positioned three major product lines. Than simply the pursuit of a particular price segment, the improvement of the brand’s image and the user experience may be more meaningful for Motorola.
HTC is not easy to be involved in the practice of smart phones around one thousand Yuan. Some one said that it will miss a vast smart phone market in the second and third tier cities and smaller cities in China.
The analyst said that it is not a must that as mobile phone manufacturers must produce products from the low, mid to high end like Nokia. For the HTC which always insist the high-end market, rushing into the one thousand Yuan mobile phone market may affect its original brand positioning, resulting in the loss of high-end customers.
According to the data, HTC’s shipments in the last quarter were more than BlackBerry’s RIM, officially becoming the world’s fourth-largest smart phone manufacturer.
From the perspective of brand positioning, HTC and Motorola are currently taking the high-end line. The profit margin is much higher than the low-end market. From the point of view of operator resources, they need to distinguish between the international market or domestic market. In the domestic market, it is clear Huawei, ZTE, Lenovo and other domestic manufacturers have more advantage.
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Five Reasons That Apple’s Siri Can Not Threaten Google
Although Apple’s Siri is welcomed by the users, it is not enough to constitute a real threat to Google. It is true that Siri can change the way we interact with mobile products, but Siri is difficult to shake Google’s position. In the short term, there is not any product technology that can beat Google.
The following are five reasons that Google does not have to worry about the threat of Siri, provided that Google develop their own related applications in the next 24 months.
First, it is almost certain that Apple will not authorize any other smart phone manufacturers to use Siri. If Siri still only supports iOS system, then its market share is not enough to constitute a real challenge on Google. Can this application take away a lot of Google’s income? I think not. At most, the application can only cause interference to Google, but not enough to threaten Google’s status.
Second, Android products have been sold sell in the market. Although I do not plan to give up my iPhone and replace with Android product, but there are still many people will buy Android phones. The voice applications that Google develop do not have to so cool or good like Siri, it is fine as long as it is practical.
Third, Siri is difficult to be widely used by a variety of groups. Apple has never been a popular brand of civilians because of its higher prices. If you are not fans of Apple products, then you do not think Siri application is so wonderful like the iPhone users. But its imperfect function may soon allow users to feel some troublesome.
Fourth, Google has to understand the needs of users and have the required data. Google has the ability to launch better voice applications, at least better than Siri in the data function. But the challenge that Google face is to understand how to make the application understand the users’ questions.
Fifth, at present Google’s search functions have only a few cross with Siri’s applications. Siri is not the application that is able to replace Google’s search function. In the world of Google, the user will get a number of results after the search and make choice. The Siri is very convenient to search in the mobile world. It reduces the search scope and results and improves the smart phone features such as voice dialing. Siri is not enough to constitute a real threat to Google.
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China Mobile Is The Key To Apple’s Success In China
The analysts said that for Apple, China is the land of opportunity, rather than the United States. To succeed in the Chinese market, Apple also needs to cooperate with China Mobile, which is an inevitable transaction.
It is reported that, although having not yet officially signed the cooperation agreement with Apple, China Mobile now has 10 million iPhone users. Now China Unicom is Apple’s only official partner in China. But this did not prevent consumers taking the risk to unlock iPhone so that to be used on China Mobile’s network. This is the same with that some U.S. consumers use the iPhone on the T-Mobile network, although AT & T is the exclusive service provider.
The current iPhone does not support China Mobile’s 3G network, which means that the China Mobile users that unlock the iPhone can only run on 2G networks. They have to sacrifice download speed to unlock iPhone. It shows consumers’ obsession for the iPhone. Compared with T-Mobile, Apple has more reason develop an iPhone for China Mobile’s network, especially in the context that Verizon and Sprint become the new service providers of Apple.
The analysts said that as of the end of the September of this year, China Mobile has 630 million users. Many users are still using traditional voice and SMS services. They have avoided the high cost data services. But the speed to build China’s 3G network is very fast. In the previous quarter, the number of 3G users in China grew 172%.
In any case, with the rapid development of smart phones, China Mobile is the key to Apple’s success in the Chinese market. After all, China Unicom has only 189 million users, while China Mobile’s users are 3 times of China Unicom.
The rumors about China Mobile and Apple’s co-operation have been commonplace. Apple’s CEO Tim Cook even visited China Mobile’s headquarters. China Mobile’s Chairman Wang had also said that in the issues of the development of 4G TD-LTE iPhone, Apple has given a constructive answer. In view of that China Mobile has a huge opportunity and the fact that Apple has only six stores in China, Apple really should expand investment in China.
The analysts said that once this inevitable cooperation is officially reached, the effect is obvious. Chinese high-end mobile phone users are around 100 million to 125 million. The insiders expected that the size of the potential revenue is about $ 70 billion.
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