HTC’s smartphone business is clearly in trouble, leading the Taiwanese company into the red for the first time in its history. The company could use a powerful partner, and Microsoft is apparently ready to take on that role. The software giant reportedly wants HTC to add the Windows operating system to some of its smartphones.
Microsoft of course has its own smartphone business, having agreed to purchase Nokia’s mobile device unit last month. But with Android currently controlling almost 80% of the smartphone market, and Windows less than 4%, Microsoft sees which way the wind is blowing. The Windows operating system may have a better chance of uptake onboard Android phones than on Windows phones.
There are roughly five times as many Android apps available for download as Windows apps, so consumers have a compelling reason to choose Android regardless of the hardware specs. Corporate buyers, on the other hand, are more interested in security and interoperability than in the app ecosystem and many are increasingly interested in Windows devices. But many companies find their employees bringing Android devices to work and trying to connect them to the corporate network. A Windows/Android hybrid could be a solution for companies and their employees.
For HTC, Windows-on-board could be a way for the struggling smartphone maker to differentiate its phones from the Samsung competitors that are dominating the market now. HTC and Samsung have both made Windows phones in the past, and HTC said after the Microsoft/Nokia deal was announced that it will continue to make some Windows phones. But the company is clearly focused on Android.
The HTC One flagship got good reviews when it was launched at Mobile World Congress, but component shortages delayed the phone’s launch in some key markets. By the time some major carriers got the HTC One, Samsung’s Galaxy S4 was grabbing headlines and subscribers. Now the upcoming HTC One mini is said to be facing similar shipping delays. But the design and performance of the phones continue to rate well with buyers. Perhaps a partnership with Microsoft would help HTC rate better with component suppliers.
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