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Taiwan smartphone maker HTC forays into Chinese market
By Channel NewsAsia's Taiwan Correspondent Christina Lo | Posted: 29 July 2010 2035 hrs

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TAIPEI : A new battle is taking shape in the world's largest mobile market.

The Taiwanese smartphone manufacturer High Tech Computer Corporation (HTC) is making a foray into the Chinese mainland market.

It is launching its own brand of smartphones in China, with four models lined up for later this year. Some analysts say that will make it a strong competitor to the likes of Apple and Samsung.

In the second quarter of this year, HTC booked an almost 60 per cent increase in sales from the same period a year ago, thanks to strong demand from North America and Europe.

And eyeing the some 800 million mobile phone users across the strait, it has also announced a partnership with China Mobile.

So far, HTC has marketed its products in China under the Dopod brand. But there's already growing awareness of the HTC brand in the country.

Analysts say they are expecting smartphone sales in China to pick up in the next two years.

Lin Boa Chi, industry analyst with Market Intelligence & Consulting Institute says: "There has to be enough users switching to 3G system. From there, they will buy smartphones. The growth is not yet there. Now, China Mobile's penetration is still low. I expect to see a significant growth in 2011 or 2012.

And HTC is also seen as having a good global sales strategy to help grow its market share.

"Taiwanese makers are excellent at integrating software and hardware. Also, their time-to-market is faster than competitors. Like HTC, it launches several models at a time, showing its ability of fast product development," comments Lin.

HTC sold some 11 million phones worldwide in 2009. Analysts said the company's strong branding and fast expansion in the mainland are very likely to boost sales to over 60 million units in 2012. - CNA /ls

 


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