HTC is losing grip in US 4G market

HTC is losing grip in US 4G market 

Increased demands for LTE devices in the US are expected to intensify competition as AT&T, Sprint Nextel and Verizon Wireless are adopting new approaches for the purchase of 4G models. In this melee, it was speculated that HTC could be removed from its number one position of both LTE and WiMAX sectors due to competition from Samsung Electronics, LG Electronics and Motorola Mobility, according to industry analysts.

The HTC headquarters in Taoyuan, Taiwan.

Prior to the third quarter of 2011, HTC Corporation (TWSE: 2498) a Taiwanese manufacturer of smartphones and tablets has been the top vendor for 4G devices in the US market but this position has been challenged by Apple, Samsung, LG and Motorola since the fourth quarter of last year, the sources indicated.

Based on information from data collected by NPD  which indicate that the ratio of sales on 4G models including models that support LTE, WiMAX, and HSPA+ in the US has reached 35% in the fourth quarter of 2011 as compared to a mere 6% a year earlier.

Subsequently in the fourth quarter, HSPA+ models led by Apple’s iPhone 4S amounted to 22% of total smartphone sales. This is followed by LTE models at 7% and WiMAX models at 6%, the data indicated.

Back in 2011 Canaccord Genuity analyst Mike Walkley explained that as Apple and Samsung continued to dominate the U.S. smartphone market, RIM and HTC both are beginning to lose market share. “Our December (2011) checks indicated weaker sales trends for both RIM and HTC, with these OEMs facing increased competition from broader iPhone distribution and new Android smartphone launches,” Walkley wrote.

The analyst continued, “Our checks indicated HTC has lost significant share in the U.S. market the past several months following the iPhone 4S and Samsung Galaxy S II launches. In addition, our checks indicated continued soft BlackBerry sales due to high-end share losses combined with lower-priced Nokia feature phones and sub-$200 Android smartphones adversely impacting sales in emerging markets.”

To quell off competition, HTC has come up with new models such as the recently launched LTE smartphone, the HTC Titan II in cooperation with AT&T. The firm also plans to unveil another model, the LTE-enabled HTC One XL in second quarter, the sources pointed out.  HTC is also expected to continue to cooperate with T-Mobile USA in the HSPA+ segment.

| Via: Digitimes | Source: 1 2 3 | Image credit: 1 |

HTC is losing grip in US 4G market