Taiwanese manufacturer HTC reportedly will be snubbed by Microsoft as the software giant plans to keep it away from making Windows 8 tablets to compete against Apple's iPad. Reports suggest that there are concerns about HTC's device sales numbers and also its experience with tablets.
Microsoft's decision will keep HTC, maker of the first Google Inc.-branded smart phone, away from participating in the electronics industry's latest attempt to erode rival Apple's lead in tablets. HTC, whose stock has dropped 67 percent in the past year, is also facing shortages from chipmaker Qualcomm Inc., which shows the challenge HTC is facing against industry leaders such as Apple and Samsung.
"Every consumer knows about Samsung's Galaxy platform and the iPhone, and you are starting to see consumers coalesce around them," said Matthew Thornton, an analyst at Avian Securities LLC, who has cut his rating on HTC to negative. "Things just get worse from here. It's a very bleak outlook."
Microsoft plans to release its next Windows operating system, the first to run on chips with technology from ARM Holdings Plc, in time for the holiday shopping season. The ARM version of the new software, designed for tablets that compete with the iPad, is called Windows RT. Other tablets and computers will be made using chips based on Intel Corp.'s technology. The software, also called Windows 8, will appear in devices made by companies like Toshiba and Asustek later this year.
In an e-mailed statement, Frans Show, a spokesman for Microsoft said that HTC is a strong partner now and for the future. But he did not go into any details. HTC intends to support future versions of Windows and isn't commenting on the details of its product plans, said Sally Julien, a U.S.-based spokeswoman at HTC, in an e-mailed statement.
"Every consumer knows about Samsung's Galaxy platform and the iPhone, and you are starting to see consumers coalesce around them," Thornton told Bloomberg. "Things just get worse from here. It's a very bleak outlook."
CNET reported last month that only a handful of Windows RT devices will appear at first with chipmakers Nvidia, Qualcomm, and Texas Instruments initially getting two "slots" each for devices.
According to Bloomberg, HTC engineers vied to build a Windows device that would have a customized home screen typical of its other devices, but Microsoft refused. However, HTC still might release a Windows device in the second round of products that are scheduled to be coming out next year.
In recent times, HTC has placed more emphasis on its better-selling Android phones, and Microsoft has developed a closer relationship with HTC competitor Nokia. Still, HTC has seven Windows Phone models on sale globally. So what will actually be the future of HTC's relation with Microsoft still remains a speculation.
