For a several years now HTC have struggled to regain the mobile market space that they once dominated. With companies like Samsung throwing huge budgets at their smartphone portfolios, the once mobile giant has found it more than difficult in recent years. Recently HTC’s profits have been on the rise thanks to some internal cost cutting strategies and clever device redesigns. These are, however, marginal compared to how the company once performed.
Unlike the other major players in the smartphone sector, HTC do not have a portfolio of other technology devices to fall back on or keep shareholders happy; they rely solely on smartphones, software and professional services with the later two being considered almost negligible for the Taiwanese company.
A report today by GSMDome, and later carried by Softepedia, suggests that the struggling (yet currently profitable) company could well be set to join the TCL family which currently owns the Alcatel brand in Europe; RCA brand in North America; and TCL in Africa, Asia, Australasia, South America and Russia.
“Although the return of the HTC Cher Wang year’s time, but it was not like Steve Jobs like this brand back to life. HTC Dopod era from the beginning, has been insisting on the development direction of smart phones, and Apple at the same time he set foot in this industry.” *Google Translation
Whilst there is no clear indication that TCL will buy out HTC, it’s certainly no surprise that HTC could be the focus of attention for a company that also features a large non mobile electronics portfolio, especially when their current mobile sector is the Alcatel branding which is considered cheap in a number of countries throughout Europe and has struggled to make a name for itself outside of France.
Whether or not a complete takeover is on the cards it goes without saying that the mobile market has ever decreasing profit margins. This is, in part, the result of the likes of 2 year carrier contracts and the removal, several years ago, of carrier subsidised devices. Whether HTC could survive the next 5 years without additional investment or a complete company redesign remains to be seen. I certainly wouldn’t be surprised if the company was bought out in part or full over the next few years.
