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In fact, it was HTC that actually created Hewlett-Packard’s handheld iPAQ computer. But that all changed in June 2006, when HTC revealed its hand, and its brand, to the world. It made its biggest splash as the creator of the Google-enabled “Droid” smartphone, thus far widely regarded as the only serious competitor to Apple’s iPhone. The competition is so heated, in fact, that Apple (Fast Company’s #1 pick in the Consumer Electronics category) filed a patent infringement lawsuit in a U.S. court against HTC in March 2010. HTC says it will “fully defend itself."
HTC is unusual in many respects. The Taiwanese company, founded in 1997 and chaired by a woman, developed partnerships with the leading five mobile operators in Europe, the top four operators in the U.S., and several Asian operators. It also managed to impress Microsoft with its first smartphone, which led to the development of a Windows-based handset. Instead of diversifying like many of its competitors, the company is laser-focused on its expertise, manufacturing only wireless devices.
HTC prides itself on being a pioneer. It created the first Windows PDA in 1998, the first color palm-size PC in 1999, the first Microsoft pocket PC in 2000, the first Microsoft-powered smartphone in 2002, and the first Google Android smartphone in October 2008. HTC recently designed the Google-branded Nexus One smartphone – the first consumer electronics device Google sold directly to consumers.
Since launching its own brand, HTC has introduced dozens of HTC-branded products around the world, including the HD2 and the HTC Hero, both well received. In late 2009, HTC debuted its first global ad campaign. Using the brand positioning, “Quietly Brilliant,” the multi-media campaign showcased the company’s phones surrounded by the word YOU and supported by the tag line, “You don’t need to get a phone. You need a phone that gets you.” The company says the campaign was designed to create visibility for HTC’s “unique brand promise – that it’s all about YOU, the consumer, and in fact not the device.”
HTC’s latest innovation is the Droid Incredible, introduced at the end of April to rave reviews. It “combines a brilliant screen, Google’s Android operating system, a great camera and slick design in a thin, light package – all the ingredients for a fab phone,” said the Associated Press. PC World added, “Other than some minor design qualms, this smartphone truly lives up to its name… The HTC Droid Incredible might be the best Android phone available.”
April was a busy month for HTC. In addition to launching the Droid Incredible, the company broke ground for its new headquarters in Taipei, which will be completed by the end of 2011. It will include 17 floors on the ground, and five floors for parking below the ground. Eleven of the seventeen floors will house research and development.
Also in April, HTC pulled out of its possible interest in acquiring Palm, the struggling maker of the Pre and Pixi smartphones. At the end of the month, HTC and Microsoft announced a patent licensing deal that essentially protects HTC from a potential lawsuit by Microsoft stemming from HTC’s use of the Google-designed Android operating system. Obviously, HTC doesn’t want to repeat the legal hassle it is having with Apple.
With a robust product line and new worldwide headquarters, where does HTC go from here? Possibly into software. Bloomberg recently reported that HTC was “studying whether to equip phones with its own operating system” in an effort “to reduce its reliance on outside developers.” Competitors like Apple and Research In Motion, maker of the BlackBerry, have platforms of their own.
Still, HTC faces significant challenges, including, of course, the Apple lawsuit. An Apple victory could hurt the company – HTC depends on the United States for about half of its revenue. But a resolution of the case isn’t expected for well over a year. In the meantime, HTC certainly isn’t slowing down its U.S. product introductions or reducing its worldwide marketing programs.
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Barry Silverstein has been a frequent brandchannel contributor since 2007. He has thirty years of advertising and marketing experience and is currently a freelance writer and marketing consultant. He founded and ran his own direct marketing agency and held executive positions with Epsilon, a leading database marketing firm and Arnold, a major ad agency. Silverstein is the author of three marketing books, including the McGraw-Hill book, The Breakaway Brand, which he co-authored with Arnold CEO Fran Kelly.
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Jul 30, 2010
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Stella Artois - Premium Chic -- Yew Fei Chan
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With a stylish branding campaign and a new label, Stella Artois Black, Stella Artois is upping the stakes in its bid to make the brand the sophisticates' bewitching cold brew of choice.
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Jul 23, 2010
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Alibaba - Online Riches -- Barry Silverstein
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Alibaba.com, the Chinese business-to-business global trade platform that went public in November 2007 with a record-breaking IPO, continues to break down barriers.
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Jun 18, 2010
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Canon - Picturing a Future Beyond Cameras -- Barry Silverstein
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While many consumers still know Canon for its legacy cameras, perhaps even more recognize the name from the company’s other products, which include calculators, scanners, office copying machines, computer printers, LCD projectors, and medical equipment.
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Jun 11, 2010
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IV-7 - The Next Generation of Germ Defense -- Sheila Shayon
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As the BP oil spill and Gulf Coast disaster continues to grip the headlines, public debate about our increasingly toxic environment and the efficacy and safety of disinfectant products continues to rage. Enter IV-7, a new non-toxic disinfectant.
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Jun 4, 2010
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BYD - Driving China Electric -- Barry Silverstein
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As Chinese brands continue to grow on a global scale, brand names previously known only within China’s borders are now generating worldwide awareness. BYD is one such company, having risen from relative obscurity to a brand that has caused quite a stir because of its new electric car, the e6.
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May 7, 2010
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Habbo - virtual mall -- Shirley Brady
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Habbo, which bills itself as the largest virtual world for teenagers, boasts more than 16.5 million unique visitors and a selling proposition for brands.
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