Taiwan Today

High Tech Computer Corp., the leading maker of smart cell phones in Taiwan, has made tremendous gains in entering the U.S. market. According to recently released documents, out of 19 made-to-order cell phones requested by AT&T Inc., the largest telecommunications firm in the U.S., three are to be made by HTC. This represents a marked improvement over last year, when HTC received orders for only one made-to-order cell phone. According to reports, HTC’s third generation Google Android phone “Lancaster” will reach markets in August. It is reported that HTC will cooperate exclusively with AT&T for six months, with Lancaster being the first Android cell phone released by AT&T. One of the main reasons why the iPhone by Apple Inc. has been able to capture such a large share of the market in recent years is due to the fact that it was heavily promoted by AT&T. Whether Lancaster will achieve a similar success due to the promotional efforts of AT&T remains a question of great interest. In addition to Lancaster, two other feature phones being released by HTC have been chosen by AT&T. These are the “Pro2” and the second generation of “Diamond” phones. Pro2 will be renamed “Fortress,” while the Diamond phones will be renamed “Warhawk.” They are expected to reach markets by the end of May and end of August, respectively. According to Lu Chia-lin, an analyst specializing in technology stocks at the Macquarie Securities Group, it represents an important penetration into the U.S. market for HTC to reach contract agreements with three types of cell phones this year, as opposed to one last year. HTC raised its presence in the U.S. via collaboration with T-mobile on introducing the G1 phone at the end of last year. Now HTC is making further inroads with telecommunications giant AT&T: this indicates that HTC’s efforts with Android phones have begun to show results. According to Lu, Lancaster should hit the markets between September and October. He estimates that the number of Lancaster phones sold in the first three to four months should be between 50,000 and 100,000 units per month. HTC’s monthly sales of cell phones range between 1 and 1.2 million units. Last year HTC had roughly the same sales revenue figures in the Asian, North American, and European regions. Sales in Europe accounted for almost 40 percent of total revenue; in North America, for roughly 36 percent; and in Asia, for roughly 25 percent. Approximately 10 percent of HTC sales revenues were generated by the selling of products produced as an original design manufacturer, and most of this 10 percent was to firms in the U.S. This indicates that in terms of operating under its own brand name, there is still a significant difference for HTC between the European and North American markets.