HTC could very easily go down the path of BlackBerry, as their management just cannot seem to take a stand on what direction they should go. They hit a home run with the HTC One, but even with that, there were many foul balls – lack of parts to produce enough phones and delayed launches in key market areas.
The phone was well received, but a one-trick pony can hardly be expected to make much of a profit. HTC's 2nd quarter earnings were minimal and they are already predicting losses as much as 8-percent for the 3rd quarter. But even with little to no earnings, they are still the 3rd most popular manufacturer in the U.S. with 8.5-percent share of the market, behind Apple's 39.9-percent, and Samsung's 23.7-percent.
With the popularity of Android carrying 52.0-percent of the U.S. market share versus Microsoft Windows Phone's 3.1-percent share, HTC may decide to drift away from manufacturing Windows Phone 8 (WP8) and concentrate solely on Android's more popular and profitable platform. This is exactly what sources at Digitimes are predicting.
Prior to Nokia and Microsoft's agreement, HTC was the number one vendor for the Windows Mobile and Windows Phone based smartphones. However, Nokia has now taken an 80-percent share of WP8 phones with Samsung as the second largest producer, leaving HTC with less than 5-percent of the WP8 market.
HTC shifted its focus to Android OS as its popularity was increasing, but then tried to regain its share in the Windows Phone market by introducing its new Windows Phone 8X the 4th quarter of 2012. It debuted with great reviews, but the sales were just not there as it competed against a new line of Nokia models and heavy advertising that seem to paint the brand Nokia synonymous with the Windows Phone.
Rather than sit back and watch any erosion of the headway it made with the HTC One, the company seems to be turning its attention toward Android and allowing Nokia to handle the WP8 market. The analysts are strongly suggesting that even Nokia begin to manufacture Android smartphones if they hope to see their company increase its market share and consequently its profits.
Let us know if you think HTC should concentrate on Android and drop WP8 altogether.