Case Study : Htc's Performance

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Evaluate HTC’s performance to-date. Provide qualitative and quantitative analyses (10 pts) HTC was founded in May 1997 by HT Cho and Cher Wang in Taoyuan County, Taiwan. HTC initially manufactured notebook computers, however high production cost, technical glitches, and lack of a brand recognition lead to increasing loses. This prompted HTC to focus on handheld computer device instead. Discovering that Microsoft was developing Windows CE, a new OS that runs on small PC devices, HTC offered to make a portable device that runs on Windows CE, and created the world’s first Microsoft pocket sized pc in late 1998. Then in 2000 HTC post its first profit in due to the popularity of iPAQ, a PDA HTC engineered for Compaq Computer. This success allowed HTC to go public in Taiwanese Stock Exchange in 2002. Even though PDAs represented 80% of HTC’s revenue in the early 2000s, HTC ‘s new product development was shifted towards mobile telecom market. This lead to the production of XDA, the first Window-based smartphone in 2002. HTC had two contract manufacturing business in the early 2000s, Original Design Manufacturer (ODM) for branded handset companies and mobile phone manufacturer for wireless network operators. In the mobile phone manufacturing business HTC differentiated itself from competitors such as Nokia by producing heavily customized phone based on network operator’s need. Carriers embraced this approach, and HTC’s business boomed with major operator clients expanding to

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