HTC aims to differentiate itself from Android rivals by seeking new content deals, in a move that may also strengthen its fight against Apple.
The Taiwanese company's CEO Peter Chou cited consumer demand for a "holistic experience of hardware, software and content" as the impetus in seeking more content deals, saying HTC will use the integration with media to stand out and become the best-known smartphone brand.
Cash-rich HTC is open-minded about future buyouts, according to Chou to Financial Times, although he said the company will keep using the already-profitable Android and Windows software rather than purchase a new OS.
HTC has already embarked on its content acquisition strategy, boasting connections with video streaming service Saffron, Onlive mobile gaming, and has a stake in online music company KKBox. The company earlier formed a deal with Kobo, a Canadian e-book company, and in June last year paid $13 million for Abaxia, a French mobile software developer.
The acquisitions suggest an attempt to build brand awareness and differentiate itself in the market, in a move to compete aggressively not only against rival Android makers like Samsung but also against mobile leader Apple.
Differentiating itself from other Android makers with different content options may help HTC further make its mark in a large field of Android makers, and boosting brand awareness takes a page out of Apple's book and gives HTC its own identity and connection with consumers.
Apple's success in integrating iTunes with its handsets, for example, may have provided a successful model for HTC to adopt using KKBox.
The Taiwanese company has lately stepped up its game against Apple in general, releasing eight new Android phones in August to compete with the iPhone 4S and even calling its rival's signature handset "less cool."
HTC moved into manufacturing Windows phones this year as well, producing the Radar and Titan, which now make up nearly one-third of its sales.
"We believe that Windows Phone 7 will eventually be better than other platforms and will give Android a run for its money," said HTC's Singapore manager Melvin Chua, suggesting Microsoft's OS may help the company differentiate itself from both Android competitors and Apple.
HTC may succeed in its attempt to best Apple and Samsung if it continues its winning streak. The company made $600 million in profits and $4 billion in revenue during the second quarter, with expectations set even higher for the holiday season.
HTC appears to recognize, however, that high sales volumes alone may not be enough to cement its position in the long run. Tying in content may help distinguish HTC in the market, but market leader Apple is already a master at the strategy and continues to build in this direction.
Apple is in talks with movie studios to provide streaming services, posing a threat to HTC's Saffron film service and spurring the Taiwanese company to acquire other resources. Further content acquisitions may help the company stand out, but competition remains fierce in the increasingly cutthroat smartphone market.
