HTC has no other choice but to go brand its smartphone_LuoJia 2011960700

From the very beginning, there is a debate whether HTC should go brand. In my opition, HTC actually has no other choice but to brand its smartphone. Taiwan is one of the biggest computer and consumer electronics manufacturer base, where there are many giant ODM companies.Compared to them, HTC's manufacturing capacitiy is much smaller, and lack of scale of economics. If HTC keep doing ODM business, they will be disqualified from the heavy capital game. Maybe HTC could keep earning from the operator business, but the success will mainly stay in US. In such a mature and highly competitive market, the potential of growth is very limited. Meanwhile, HTC's presence in Europe and Asia market was very low, coz these two markets are quite brand oriented.

In order to survive, HTC have to fight, and the means is to raise its brand value, and become a OBM company, though market share may not be HTC's most focus. Though HTC's technology leadership is established through years of smartphone development, they can not make sure offer cut edge technology ahead of others. Each technology revolution could eliminate all HTC's accumulation. A valuable brand is as important as technology for HTC to keep staying competitive.

the strategy to branding HTC's own product is correct at that time, but i don't really agree with you about this is the only choice. The material told us that HTC did a success in its ODM and business operating service, so this means HTC has the capability to compete with ODM giants in Taiwan. If you doubt HTC's product capacity, i shall tell you that the ODM is a developing direction as well as branding, if the company choose to mainly focus on ODM business, it can invest the money(which now we know eventually spend on the branding strategy) into the ODM business to grow up it's capacity and R&D. It can also be a success business i guess 'cause Foxxcon did this and gain a great success. The reason HTC went branding is because the senior management believe they have the ability and resource to do this and it also might gain much higher profit margin, but that doesn't mean branding is HTC's only choice at that time.

Just my opinion, welcome for the discussion.


Chen Yun.

I like this topic, so, after your comments below, I would like to add my opnion here.
To me, I think OBM is not the the only choice, but it is indeed a better choice than the ODM at the time, because:
1. HTC has been ODM for a longtime, while it is not like the tradiotional ODM, it already go beyond them. HTC provide customized mobile phone to the operators according to the final market requirement. that means, it techonology and the images already be build into the opeators and even the final customer.
2.The HTC have a strong hardware technology, its capability is comparable to the other phone company, and the margin and longterm porfit is really depends on a individual brand company instead of the ODM, that means, join the OBM is a good suggestion or trend.