HTC:The lack of core patented technology

The lack of the core patented technology will become the biggest obstacle to further development, especially in the face of Apple, Samsung, Motorola, Nokia mobile phone. So HTC 's future is not optimistic, even will face life difficult. The HTC company is the biggest problem in intelligent mobile phone market competition did not show enough of the competitiveness of core technology, the intelligent mobile phone market situation can be, but the product of the core technology, core parts are in the hands of others, and even the opponent. In the mobile Internet era, HTC if only positioning itself in pure hardware integrator, which with PC times no brand manufacturers like, too awkward situation.
sO,HTC, the lack of core patented technology will become an obstacle in the development in the future.

The critical problem with HTC should be the optimization of value chain. With the affluent capital, HTC can purchase patents or increase the investment on R&D to create its own intellectual property. However, it's not a easy job to find added value which is determined by price and cost. Under the fierce competition in smart phone industry, the profit margin derives from the advancement of technology and fashionable ui design, as well as the reasonably controlled cost. As we all know, the current cost structure of HTC consists of manufacturing, patent fees, commission to distributors and sales, administrative expenses, marketing expenses and materials/components procurement. Improvement on the process and expandability of value chain might be the efficient way for HTC to obtain more benefits.

I agree with you. I don't think technology advantage is easy to establish. It has relationship with corporate culture and human resource management. It might take a long time for HTC to be a high-tech company in the mobilephone industry. But it is important for HTC to improve its competitiveness in technology.

Shao_TianTian wrote:The lack of the core patented technology will become the biggest obstacle to further development, especially in the face of Apple, Samsung, Motorola, Nokia mobile phone. So HTC 's future is not optimistic, even will face life difficult. The HTC company is the biggest problem in intelligent mobile phone market competition did not show enough of the competitiveness of core technology, the intelligent mobile phone market situation can be, but the product of the core technology, core parts are in the hands of others, and even the opponent. In the mobile Internet era, HTC if only positioning itself in pure hardware integrator, which with PC times no brand manufacturers like, too awkward situation.
sO,HTC, the lack of core patented technology will become an obstacle in the development in the future.

Ironically, the function of patents has been changed against its nature in recent years. The original idea of patent is to protect the creative work and intellectual property. However, the definition of creative is vague, which makes many companies registering universal patents before a usable product hit the market. There is no feasible way to prevent a company register an imaginary technology, because the institute of patent registration cannot foretell an idea can be or cannot be implemented by the registrant. Many companies is making patent barrier for the new entrants. In the end, patent problem can be real problem for a creative company when it make a imaginary product into reality and find the product is based on the ideas that have been registered. For example, the new entrants of mobile handset industry, Apple, Google and HTC, have to pay a large fund of patent fee to the elders, such as Nokia, Motorola Microsoft and Qualcomm.

[quote=" the new entrants of mobile handset industry, Apple, Google and HTC, have to pay a large fund of patent fee to the elders, such as Nokia, Motorola Microsoft and Qualcomm.[/quote]

I'm not so sure about the license issue in mobile industry. If above example is a fact, the patent fee indeed a fix burden for followers. However, even though a certain technology can be protected by patent, the ideas coundn't be. For instance the innovation in product, process, business model can all carry good ideas to bring the company good profit. So, I think a succeed of a company is a consoidation of the succeed of all segments from business mobel implemented, design, production, distribution, marketing, partner...to customer.

HTC has to go carefully on the brand, first concentrate on building brand value—that is, more cutting-edge, innovative products such as the Diamond to earn the respect of the end users. Thinking about brand value—Apple equals simplicity, FedEx equals speed, RIM equals mobile e-mail, What does HTC stand for? So it is time for HTC to start brand strategy.