HTC: Your next fave smartphone?


The largest smartphone maker you've never heard of wants to capture the hearts – and dollars – of the U.S. consumer.

Motorola's (MOT) Droid phone is getting a ton of buzz, and that’s by design. Verizon Wireless (VZ) chief Marketing Officer John Stratton has said the marketing htc_logocampaign behind its iPhone competitor will be the largest in its history.

But the Google (GOOG)-powered device isn't the only smartphone the company is likely to begin selling at the start of November. Though no one has officially confirmed, the carrier is expected to announce a second device that will also run on Google's  Android operating system at half the price: the HTC Droid Eris.

Haven’t heard of HTC? You aren't alone.

Since 1997, the Taiwanese smartphone maker has built a business out of creating "white label" devices for companies like T-Mobile (DT) and Palm (PALM) to brand and distribute. It’s been lucrative. After Apple (AAPL) and RIM (RIMM), which together command 73% of the North American market according to IDC, HTC ranks third. That's right: No. 3.

Though it only has 7% of the market, that figure doesn’t tell the whole story. Until recently, HTC simply never put its name on phones it made. (For example, most of the devices represented by T-Mobile, which has six percent of the market, are made by HTC.)

From "white label" to consumer brand

But as the market heats up, HTC wants to be more than a white-label hardware provider. Jason MacKenzie, who runs HTC’s North America operations out of Seattle, calls it a “major shift in strategy.”

So last December, HTC bought the San Francisco-based design firm One & Co, so the designers could work more closely with its engineers. HTC’s latest devices sport the company’s logo. And this fall, HTC made its largest investment ever, pouring millions of dollars into an ad campaign that includes everything from bus stop billboards to prime-time TV spots that tout the slogan “HTC: quietly brilliant.” The first three will go live on October 29.

If HTC hopes to remain competitive in this market, this move is crucial. When the company made its brand debut last year, as the hardware device behind the T-Mobile G1 with Google, it was the only Android device on the market. But within the year, more than 20 Android devices will be go on sale. As is evident with the Motorola Droid, not all of them will get equal marketing treatment by the carriers.

Devices trump carriers

At the same time, consumers’ buying habits are changing. They no longer go to a preferred carrier like AT&T (T) or Verizon Wireless to review different phone models. Instead, they increasingly ask for phones by name, most often requesting an iPhone or a BlackBerry.

So will a “quietly brilliant” phone impress consumers enough to have them seeking out HTC devices over the iPhone? IDC analyst Ramon Llamas is skeptical. “I’ve got to tip my hat to these guys because the devices are very good,” he says. “But branding oneself takes time, you don’t get instant street cred.”

MacKenzie expects to spend time. He says the marketing investment is the first of many to come.

The android market will take over the iphone market for a couple of big reasons. Its not limited to one service provider, Its an open OS, its not limited to one phone and depending on the hardware of the phone it can have different uses.

Posted By Alex, Orlando FL: November 2, 2009 9:41 PM

The android market will take over the iphone market for a couple of big reasons. Its not limited to one service provider, Its an open OS, its not limited to one phone and depending on the hardware of the phone it can have different uses.

Posted By Anonymous: November 2, 2009 9:41 PM

HTC is a company that has let me down in the past with the ATT tilt. It was supposed to be a new phone that had improvements from its earlier model. It was slower and ran poorer then its predecessor. It mostly came down to a video hardware they never made or gave out drivers for. As a tilt owner I have been irked that I cant even run videos, take photos or surf the web well. Phones 3 years earlier can do a better job.

As a customer I feel this is an chance to mold buisness by deciding to buy or not by a product from a company based on past performance actually helps this economy.

HTC let me down in the windows based phone market. If you are looking for a regular phone I would think they would be fine/great. I just think its upsetting when a company bails on its consumers like that. I guess the market is about selling the next phone and not supporting the past

Posted By tilt2 Upstate NY: November 2, 2009 1:54 PM

HTC stands for High Tech Computer. It sure does not sound like a mobile phone manufacturer.

Posted By Rain2 Seattle WA: November 2, 2009 1:16 AM

I switched from an iPhone to an HTC Touch Pro 2, after my kid who has a touch pro showed me that his phoen could do five x as many things and better.
The Touch Pro 2 has double the battery life of my iphone, double the screen resolution (it is beautiful) works from LA to Lagos (it is a combo CDMA AND GSM) has GPS that works worldwide (unlike iPhone) and MORE apps than iPhone!
Its build and quality is better than the iPhone as well.
Guys in my company with Blackberries cannot believe how much more my HTC TP2 can do than their phones and it makes the storm look like very old technology

Posted By J.Jaston, Washington, DC: November 1, 2009 9:13 PM

I'm a satisfied HTC G1 user. Why am I satisfied? Because I didnt have to overpay for a good phone and continue paying out more money for apps.

I'm not saying apple is bad. But I generally feel its the choice of the less informed tech consumer.

Posted By David, Seattle, WA: November 1, 2009 7:47 PM

I used an HTC Touch Pro for three months and after one already decided this was the phone from Hell. Slick looking but the engineers who designed it must live on Mars. Switched to a Blackberry and am now in smartphone Heaven. They got it right.

Posted By Lee Pantas, Asheville NC: November 1, 2009 7:41 PM

htc hd2 is 1ghz – by far the best phone – and it's out in 10 days!

Posted By harry, london, uk: November 1, 2009 6:56 PM

I think HTC does a great job designing their devices… So far I've owned and worked with HTC Mogul, Diamond, and now Hero. I loved the manila offered exclusively by HTC and the system hardware. The HTC devices are very fast compare the iPhone; my HTC Hero (Sprint) has faster processor, more ram, and better camera resolution than Apple iPhone.

Not only that HTC HD2 (Leo) that's offered in Europe right now has 1 GHz of system processor. This foreshadows a great future for this brand.

Posted By Ario, El Dorado Hills, CA: November 1, 2009 6:04 PM

Had an HTC S621 (I think) and it was awesome. Had to get rid of it when Unicel was bought out of the market here. It was a super phone. HTC is a brand to be reckoned with.

Posted By Frank: November 1, 2009 4:43 PM

I truly believe HTC to be the best phones on the planet, not because of some stupid blind brand-loyalty, but because the phones just do it all.

I bought an unbranded T4242, aka Touch Cruise II, about 10 months ago. Best money ever spent and let me tell you why.

It uses a removable sim card, so I can use T-Mobile's monthly plans with no contracts. It has a built-in GPS chip and comes with TomTom, so it's also a handheld navigator with turn and turn voice directions, and it works with Google maps! All WITHOUT using the carrier's data plan!

It has a built-in WiFi chip, again, internet without data plan. (To be fair, you CAN sign up for data plans and the internet will always work.)

It has a 3.2GB built in camera with video. It has a cool feature called "Footprints" that when I take a picture of anything at all, it can automatically log the GPS coordinates and save them for me…. I can even cross reference those with Google maps to come up with addresses.

It can handle up to 32gb in flash memory!! Runs Windows Mobile 6.1 so it has full windows support, including MP3 and video. Comes with so many extras, it's awesome.

But, the best reason I love my HTC? Support. I can call HTC anytime for support and I get a live, english speaking person immediately without a wait. No stupid selections, just call, and someone picks up the phone. And there's more! They don't ask your name… They don't ask for your serial…. They don't ask anything other than how can they help you!

Posted By Brian, Vancouver, WA: October 31, 2009 9:30 PM

I tried the Sprint HTC Touch Pro after disasterous result from the iPhone wannabe, the Instinct. After not having much luck with the touch screen, applications, Sprint TV and other reliability issues, I switched to a Blackberry. It was the best phone decision I ever made.

Posted By Ken, Philadelphia, PA: October 31, 2009 9:15 PM

The only manufacturer that will beat iPhone is Apple itself.

Posted By Englan, Richardson, TX: October 31, 2009 6:21 PM

wow i can't believe this writer implies no one has never heard of htc. everyone i know has a diamond or pro, i have a wing i got on ebay for 100 bucks. motorolas are boring and nokias are hard to use, in my opinion. my friend upgraded the rom to 6.5 a while back. i love the side slider for texting. htc is the iphone at a reasonable price. love it!

Posted By cathy, clovis, nm: October 31, 2009 2:27 PM

I'm an HTC Tilt 2 for AT&T (Touch Pro 2) user and I have been impressed with it's features and capabilities. I have my corporate email setup with Direct Push to Outlook Mobile on Win 6.5

HANDS DOWN better hardware configuration than BB or iPhone. It has the best of both worlds.. A touch screen AND a slide out QWERTY keyboard that is actually big enough for adult humans to operate !!

And for all of you WinMo haters: get over it.

Posted By SZ, Newark, DE: October 31, 2009 11:54 AM

I love my G1…it is the first phone I've had that I want to keep forever.

The only way I would get a new phone, would be if HTC comes out with a newer version of the G1.

Posted By Lynn, Derby,KS: October 31, 2009 11:21 AM

Worst Phone Manufacturer Ever

I bought an HTC phone in Japan two years ago, the X02HT, which is basically a imitation of a blackberry. But at the same price. In two years I have had to send my phone for repairs 3 times, twice in the last 4 months. First, the screen just lifted up, then the phone would lose its charge after one phone call. I sent the phone to the maker to have it repaired but they sent it back to Softbank (provider in Japan) saying that nothing was wrong. They told me the adaptor was the problem. I tried to buy a new adaptor but they had none in stock and could not tell me when a new one would become available. Finally, when I got a new adaptor the same problem recoccured and I had to send in the phone for repairs again. I am now, again, using a replacement phone for the time bieng while they try to fix my phone yet again. Thank god I bought the insurance package. I'M hoping softbak will just wise up and give me an Iphone. HTC has makes poor quality phones. this is only surpassed by their horrid service.

Posted By Levi Athan, Tokyo, Japan: October 31, 2009 7:27 AM

The iPhone is the clear winner in this category.

Posted By Craig Marker: October 30, 2009 9:50 PM

At least this thread is majority Phone specific comments and not pro shareholders comment like the other threads are. I don't think most of you hold shares of HTC except Google. But most of the comments are the phone design and function so its more accurate not some share cheerleading or bashing.

Posted By Alex T.O.: October 30, 2009 9:09 PM

I have an HTC Touch with Sprint. I loved it when I first got it. It does everything. Then the love wore off… and the screen sensitivity wore off… and the ability to text wore off… and the ability to dial wore off.. and the ability to turn the phone off wore off… and the ability to keep the phone off wore off. Then it got worse.

Don't. Bad choice. Just put it down and walk away.

Posted By Charlie, Phoenix, AZ: October 30, 2009 8:18 PM

I love my Sprint HTC Hero. Best phone for the money in my eyes.

Posted By Keith Davey: October 30, 2009 8:14 PM

HTC phone are superior technology; that is until you run Windows Mobile. I dont know how windows gets away with making that garbage. All the people responsible for windows mobile should jump off a clif.. And the really terrible thing is the fact that you cant return the OS. Its sad to see the company the Gates built turn into such a POS. Sigh

Posted By samuel, tallahassee, fl: October 30, 2009 7:40 PM

I had an IPhone and then purchased the G1 … by far the G1 won. Just like the Iphone, performance has to do with the apps you download.. if the apps are POS then the phone runs like a POS.

Posted By Rey, Colorado Springs, co: October 30, 2009 3:45 PM

I love my HTC smartphone…and I look for them by name

Posted By Rich, winter springs fl: October 30, 2009 3:42 PM

HTC makes good phones, it's what OS (operating system) that runs on those phones, a lot of the frustrated people in the comment section had HTC phones that ran Windows Mobile which, to put it bluntly, sucks. Now HTC phones are running Android which get really good reviews from both editor's and consumers, I could be wrong but it's probably the OS on the HTC phones in the past that has people angry with HTC.

Posted By Preston, Plano, TX: October 30, 2009 3:13 PM

I have the HTC Hero and love it. I was going to get the Palm Pre, but when I heard the Hero was coming out, I did the research and decided to wait. So, yeah, I did specifically chose HTC's brand because of rave reviews on the HERO. It may take time, but I think they could be #2 to the iPhone.

Posted By Beth, Overland Park, KS: October 30, 2009 12:53 PM

I owned a HTC Touch Pro 2 and it was a big POS. The biggest problem was that when you used the phone for too long, 2+ hours, the battery would drain even if you had the power cord plugged in. Eventually it would die and power off and drop the call. If a smart phone can't succeed as a phone first, it's worthless.

Posted By Mike, Washington DC: October 30, 2009 11:56 AM

have been a fan of windows mobile so got an HTC Pure 2 weeks ago..had so many problems with it I gave up in frustration and went to iPhone…sad but performance and fuctionality was not there on the HTC…it may be the "extras" but as a consumer, I don't want to have to struggle to get it up and running….I do IT support all day, don't want to do it in my spare time too….

Posted By Cindy, Glastonbury, CT: October 30, 2009 11:53 AM

I've had the new HTC Imagio for a couple of weeks. Not a "droid" but a Windows phone with 5 MP camera. So far I have no complaints although heavy use can drain the battery pretty quickly and you have to make sure you shut down apps when not in use. Touch screen is great and the screen itself is a beauty.

Posted By Michael, Fullerton, CA: October 30, 2009 10:49 AM

I've been using HTC since they first came out with the P3300 (Artemis) and haven't changed yet. Currently I have the HTC Diamond2 and couldn't be happier.
If you want a toy, buy an iphone. If you want a smartphone buy a HTC or Droid phone.

When you purchase a HTC, there is no App Store to drain your money or hassle you with the stupid iTunes. Basically its like having a USB key with you at all time with almost all the functions of a netbook. Compare HTC Diamond 2 to iphone and… well why?

Posted By Gregory, Baltimore MD: October 30, 2009 4:50 AM

wanted to get a HTC previously but so far, things weren't that great. My friend with a HTC says its really laggy and touch screen isnt very responsive. Never heard much about it then. I've seen the newer designs, very cool and stylish. I believe it can be the iphone killer but marketing strategies gone wrong? google sniper

Posted By James L, Perth, Australia: October 30, 2009 3:41 AM

I have an unlocked HTC Touch VIVA that I purchased in Singapore 6 months ago. I use it on the AT&T system and except for the not being 3G compatible, it has worked flawlessly. It's an excellent "entry level" smart phone.

Posted By Bill H., Carmel, IN: October 30, 2009 12:08 AM

9 out of 10 smartphones in Taiwan are HTC. It's simply the best choice in smartphones (not due to lack of competition).

Posted By James Chang, Taipei, Taiwan: October 29, 2009 11:57 PM

I love my HTC Touch HD which I bought last December in London. I can't wait for the HD 2 to arrive next year – it's the iPhone killer!

Posted By Anthony Cowlam, New York, NY: October 29, 2009 10:48 PM

I agree with drew about performance issues. My HTC Touch Pro (AT&T Fuze) was terribly slow out of the box, but that's because of all the junk AT&T put on it. You have to be able to (CAREFULLY) install a clean and/or tweaked ROM for your particular HTC model to realize its full potential. Now I'm running WinMobile 6.5 with HTC's newest version of touchflo interface, and it's beautiful AND fast.

Posted By igsciurus, Auburn, AL: October 29, 2009 4:51 PM

Rob in FL….yes, HEARD of Lenovo; mostly IBM (It's Been MOVED! – BOUGHT, actually, by the Chinese) ….so still, my point stands, Rob, but appreciate your effort.

Posted By robert Puget Sound,WA: October 29, 2009 3:53 PM

@Robert in WA: have you heard of Lenovo?

Posted By rob, tampa, fl: October 29, 2009 12:50 PM

Nice to see somebody finally recognizing HTC. I've had a T-Mobile Dash (aka HTC Excalibur/S620) for nearly three years. It's been great and does all I could ask and more.

Posted By Steve, Atlanta, GA: October 29, 2009 12:44 PM

I've had 3 HTC devices in the last 3 years and while I have been very happy with all of them, like any other device out there, they have their issues. However, most of the problems seem to be centered around the carriers customizing them. It also sucks when the device offers a certain feature but the carrier disables it for whatever reason. Its amazing how much better they are once you strip out the crap added by the carriers.

Posted By Drew, wilm, de: October 29, 2009 12:12 PM

of course they have a website, it's:

http://www.htc.com

some people just don't bother to search…

Posted By frader, SA, Texas: October 29, 2009 11:41 AM

Outside of Acer and Nautica (now owned by non-Chinese interests), NO Chinese firm (China, Taiwan, Hong Kong and Singapore) has produced a North American/European BRAND name product. The Chinese are MASTERS of production, but rarely design and marketing. These Chinese firms DO ALL the PRODUCTION WORK for American and European Brand names, but so far, no Global Winners…..perhaps HTC will be the 1st.

Posted By robert Puget Sound,WA: October 29, 2009 11:28 AM

The problem is at least until now their offerings have been lacking in the features power users like me want. They only have lackluster processors and skimp on RAM and ROM. The N900 will be nipping at their heels in the near future, so they need to step up their game. Right now the Droid offers the speed and features I want, so TMo needs to either get better phones or lose customers.

Posted By N.R. Bovee, Chicago, IL: October 29, 2009 11:26 AM

The person who called the touch pro 2 a "brick" with a clunky interface. Clearly didnt know how to use a smart phone. The touch pro 2 is the best smart phone i have owned. Very powerfull and usefull if you understand the windows mobile operating system.

Posted By Cumberland RI: October 29, 2009 11:24 AM

I hope HTC has finally fixed the problems all of their other 'smart'phones have struggled with.

Before buying any HTC phone, read about all of the lagging issues, the crashing issues, and the low-durability issues they've had (especially with the at&t-tilt and the htc-fuze)…

I love the interface HTC has molded for us, but i can't stand waiting 3 seconds for the buttons to catch up with me whenever I try to do anything.

And before I get beaten up – yes, all other programs are closed. yes i called and talked to reps (who said that is normal). yes, I've done hard and soft reboots. yes after that I tried using cleanup programs available on various websites*****

Posted By Andrew, Halethorpe, MD: October 29, 2009 11:23 AM

It simply isnt politically correct in the media circles to appear with anything but Apple and iPhone, anyone who dares to compete or dares not to submit to the role of Apple's subservient, gets subtly ridiculed or outright offended, aided by an army or brainless drones who comment how they seen the light the moment they bought Apple products.

So I was surprised that this article was quite fair, no subtle barbs and snubs, innnuendoes that Apple is by far the XXXest or most profitable, loved, revered etc. Well done, really.

Posted By Asher Pat, London: October 29, 2009 11:20 AM

Well, I love Apple products, including my iPhone, and I might be considered a Mac fanboy by some, but I do hope the Droid is every bit as good as the hype. If no one gives the iPhone a run for its money, Apple won't have much incentive to keep improving it, or lower the price. Competition and choice is good.

Posted By Nick, NYC: October 29, 2009 11:13 AM

I tried an HTC Touch Pro 2. What a brick. Interface was clunky and the phone was heavy. I'm not an Apple fanboy, but the Iphone is the real deal. Those apps change the way you use a cell phone. I'm using a Palm Pre right now (work eval). It is in some ways better than the Iphone and in some ways worse. HTC is a joke….

Posted By Chris, Jax, FL: October 29, 2009 11:04 AM

HTC is sold by Rogers in Canada. I use the HTC Dream. It is flat out, the best smart phone on the planet. Gave up my Blackberry (happily) for The Dream. And now, I'm livin' it!

Posted By Mark Schoewnberg, Toronto, Ontario: October 29, 2009 11:01 AM

Next week Jessi will tell us about another unknown company called International Business Machines…

Posted By sg, California: October 29, 2009 10:51 AM

HTC? Sounds made up. Thank you for bringing this brand new 10+ year old company to our attention.

Do you know if they have their own website? That would be a huge deal if they could somehow get on the worldwide web (or what many call "the internet").

Jessi – you're a real gem!

Posted By sg, California: October 29, 2009 10:49 AM

Zee, Boston, MA: "Is this a paid advertisement?"

Zee,
I know you posted under wrong news article. You meant to post this under one of the Apple articles..

Posted By Atlanta: October 29, 2009 10:27 AM

I took a chance and ordered a HTC Ozone (Verizon) instead of the Samsung phone that was suggested. I have far fewer issues with my HTC. I would have no problem choosing HTC again.

Posted By John, Poughkeepsie NY: October 29, 2009 10:25 AM

I kinda agree.

Those who know smartphones, know HTC

Those who only know iphone.. dont know anything anyway.

Recent HTC touch pro 2 – has far exceeded most smart phones and the release of things like the HTC Hero.. are sure to dominate.

Posted By Jabberwolf, San Francisco CA: October 29, 2009 10:18 AM

Wow. Fortune acutally posts an article about something that isn't Apple-related and people drop comments about it being a "paid advertisement". Zee must be a MAC fanboy.

Posted By Rufus, Toldeo OH: October 29, 2009 9:59 AM

I bought an HTC Touch when they first came out, even though I knew that the soldiers on the front line get shot first, and boy did I. What a POS. And the carrier know they were and would nothing for me. iPhone here I come as soon as Bell has them.
Unfortunately, I know them all to well, even when they were called Audiovox.

Posted By Colin in Halifax NS Canada: October 29, 2009 9:43 AM

Is this a paid advertisement?

Posted By Zee, Boston, MA.: October 29, 2009 9:03 AM

"Haven’t heard of HTC? You aren't alone."

Hmm a little condescending Jessi. Anyone with a slight interest in tech definitely knows who they are. For one they were the leading producer of Windows Mobile phones which is why they have been suffering of late.

It is interesting though that a non-US company using US designers and technology (using Google Android is "free") is being hailed by Fortune. I'm just saying.

Posted By RattyUK, Naples, Florida: October 29, 2009 7:07 AM
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Jessi Hempel

Jessi Hempel
Jessi Hempel is a New York-based technology writer for Fortune. She has written extensively about digital media, online advertising and social networking. Before joining Fortune in July 2007, Hempel worked at BusinessWeek and most recently served as their innovation department editor. Hempel is a graduate of Brown University and received a Masters in Journalism from The University of California at Berkeley.
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