HTC Takes A Ride On Androids Coat Tails

Taiwan handset maker HTC posted earnings which nearly tripled last quarter to $513 million. The firm owes a substantial share of its success to Google. A very large portion of the HTC smartphones are powered by the Android OS which is quickly becoming the most popular in the world.

Credit HTC with catching the trend of Android success early. The company produced models years ago that ran Palm software and early versions of Microsoft (NASDAQ: MSFT) Windows. Those did not sell well, which kept HTC in the position of a niche provider as Apple (NASDAQ: AAPL), Research-In-Motion (NASDAQ: RIMM), and Nokia (NYSE: NOK). Now HTC is seen as a competitor to Apple. HTC already has 4G products in the market. Apple does not.

The HTC news shows that luck often plays an out-sized role in business success. HTC may have figured that Android would do well, but two years ago, that was nothing more than an educated guess. Android was also open source and free, which gave it a special attraction financially.

Whatever the reason, HTC has moved to the top of the smartphone business and left giants like Samsung, LG, and Nokia behind.

Douglas A. McIntyre