Is Htc's Competitive Position Sustainable? How Or Why?

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Is HTC’s competitive position sustainable? How or Why? (10 pts) HTC’s competitive position is not sustainable. In fact, the disappointing financial performance in Q1 2012 and the increasingly decreasing operating margin all points to a slower growth. Besides the statistics, HTC also face several imminent threats, such as the popularity of Samsung and Apple’s smartphone offering, the increase in competitors in the smartphone market, the shift in market, from operator push to brand pull, and the ongoing patent war with Apple. However there are also opportunities HTC can take advantage of to keep its competitive position. The opportunities are presented in the high growth rate of Smartphone Market, 61% in 2011, and the lack of well made Android Tablet. HTC faces stiff competition with Apple and Samsung. Apple’s iPhone is considered as the benchmark of the industry and operators such as Spring is willing to pay $15.5 billion dollars to Apple just to have the right to sell iPhone. These demonstrates the popularity and the strength of iPhone. Furthermore, Apple’s iOS has much higher number of application downloads and higher revenue for the developers than the Android system. This signifies that developers with limited resources might only release their newest application for iOS. This is shown through the number of available apps for iOS against Android, with iOS having around 200,000 more apps than Android. This makes iOS more attractive than Android to the consumer. This in

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