Smartphone and Cellphone Wars

[Monseratto]

Will HTC be the first major Android OS player to go out of the Smartphone market???

In recent quarters, the Taiwanese handset maker has rapidly lost market share, and its market cap and profitability have likewise declined.

HTC's flagship smartphone, the HTC One, sold worse than the company expected last year, despite receiving rave reviews. Still, those buyers who did choose HTC's device instead of a Samsung-made handset likely did so because of its body. Writing for the now-defunct AllThingsD, Walt Mossberg, in his review of Samsung's Galaxy S4, lamented its plastic design while praising the HTC One's "handsome, sturdier, aluminum body."


With Samsung offering a metal version of its next phone, it should win over many of the buyers that opted for HTC's One instead. Given HTC's already dire financial situation, Samsung's Galaxy S5 could be something of a knock-out punch, weakening HTC further and perhaps pushing the company out of the handset market altogether.

In the process, Google could lose one of its Android partners. Samsung already dominates Google's Android, with about two-thirds of Android handsets having been made by the Korean tech giant. But its share could rise even further if it pushes HTC out. The Wall Street Journal reported last year that Google executives are fearful of Samsung's dominance, as the company could use its market share as leverage to negotiate a better deal.

If Samsung brings a metal phone to the market, HTC and Google could have the most to lose.

2 Companies That Should Fear Samsung's Next Phone (Apple Isn't One of Them) (AAPL, GOOG, SSNLF)