HTC: Open Strategy

In 2006, HTC changed from being another anonymous phone manufacturer to promoting their phones under their own brand, and expensive proposition that dramatically changed the structure of their business.

Like many other companies, HTC has chosen to get in line to try to beat Apple at their own game. This strategy has no hope of success. No other manufacturer can hope to beat the iPhone’s level of integration between hardware, software, and services. Despite their proven success in design and manufacturing, their direct assault on the market is doomed from the start. They need a different approach.

Here are 3 strategies HTC should consider instead:

Alternative Strategy #1: HTC Inside

das antiga by vcheregati

In the early days of PCs, Intel faced a similar challenge to HTC: How can an anonymous component manufacturer build a consumer brand? Their solution was Intel Inside: Give PC manufacturers a discount to co-brand products, which resulted in Intel becoming one of the most recognized brands in the world. Instead of direct advertising, HTC could do the same thing to promote their reputation as a world-class device design firm.

Alternative Strategy #2: Focus on Accessories

What's in my gadget bag by Neil T

HTC could leverage their expertise in hardware and firmware engineering to expand the connectivity of their phones. They could define a common docking standard (like the iPhone has), and a suite of high-quality accessories. This will allow them to establish a reputation for design and quality in a market they are able to dominate, then leverage that for the assault on phones.

Alternative Strategy #3: Focus on road-warriors

Marchard d'abat-jour, rue Lepic by George Eastman House

While everyone is busy trying to copy all aspects of the iPhone, from the touch interface to the App Store, millions of business customers are being ignored. Even RIM has caught iPhone envy and have taken their eyes off the corporate suite spot: Road warriors. For people whose livelihoods depend on high mobility, all-day working battery life, and real-time productivity, there are plenty of opportunities to improve over what the iPhone delivers. Real phone security would be a nice start. Tethering without hacks is another.

While virtually all road warriors depend on both a phone and a notebook PC today, they will be able to do more with just the phone in the future. Today, email is a basic feature, but it’s still difficult to access other corporate data from your phone; That’s slowly improving. Productivity will always be limited on small form factors, but there are opportunities to re-think how we can do more with less. For example, micro projectors allow you to present directly from your phone. What would it take to run a whole meeting with just your phone, with remote participants, notes, and slides? Wouldn’t that be a killer feature?

Taking advantage of iPhone tunnel vision

With everyone overly fixated on Apple, now’s the chance for an agile and innovative company to capture the corporate market. HTC has that opportunity, if they realize it in time.