Yesterday, HTC surpassed Nokia in market valuation. This result is indicative of the exploding smartphone market in which HTC has become a leader.
Part of HTC’s success has stemmed from its ability to produce cool phones that move at lightning speeds and have user friendly touch screens. But what may be even more critical to its growth is its successful adoption of the Google Android operating system.
Fred Wilson, a NYC-based venture capitalist, writes a daily blog that has become popular within the YouRenew office. This year he has dedicated several posts to explaining why he thinks Android will become the dominant mobile operating system. To his credit, he had predicted Android’s rise back in October, and has so far been right. (If you have not read his blog, it is insightful and a pleasure to read. I would suggest checking it out.)
But HTC’s success has also been a result of worldwide growth in the smartphone market. While Nokia was making cheap durable phones that were, until recently, popular in the developing world, HTC was producing high-end smartphones like the HTC Incredible. Global shipments of smartphones have grown at more than double the pace of the greater mobile device market according to Gartner (72% and 32% growth, respectively), creating opportunities for HTC as a leader in the smartphone space.
In a previous post, I wrote about the developing world’s current transition to smartphones from cheap phones with no internet access. This has largely been because these countries have an insignificant PC legacy and people in these markets have begun using mobiles as the primary means of accessing the internet. At YouRenew we have seen the growing international demand for used smartphones and do not expect this growth to recede anytime soon.
Nokia has been struggling to compete in the smartphone market, which should make their future uncertain as the rest of the world follows the developed countries in adopting the use of high end devices. The company has noted this weakness and has recently partnered with Microsoft in an attempt to improve their smartphone products.