Summary
Expect stiffer competition all the way through the 2009 holidays.
Analysis
HTC’s bad news is someone else’s good news. The good news is for Motorola, Palm, Apple, Google, Nokia, Sony Ericsson, etc. This means that an Asian juggernaut can falter.
What caused HTC to lose market share had more to do with new competitors taking market share away then HTC having an inferior product. Who knows what the next 2 quarter s will bring. I am not surprised that HTC had lower than expected sales in China. China is in the catbird seat right now. The Chinese government is going to ensure that no single vendor dominates its market unless it is home grown.
The question facing companies like Palm and Motorola is: What is Act 2 going to look like for these vendors?
The question HTC is facing is: What is Act 2 for HTC?
P.J. Louis consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
