80% of WinMo Devices Made by HTC

[Vincent Ferrari]

<div class='os_post_top_link'><a href='http://www.roughlydrafted.com/2009/02/18/microsoft-htc-has-made-80-of-all-windows-mobile-phones/' target='_blank'>http://www.roughlydrafted.com/2009/...-mobile-phones/</a><br /><br /></div><p><em>"While playing up the fact that 50 phone makers around the world have licensed the company's Windows Mobile platform, Microsoft inadvertently let it slip out that a full 80% of all Windows Mobile phones ever made have actually come from a single maker: HTC."</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/at/auto/1235135125.usr18053.jpg" style="border: 1px solid #d2d2bb;" /></p><p>Why did I pick to post this?&nbsp; Shortly after the first iPhone was released, Don Reisinger of C-Net did an interview with someone from the Windows Mobile team at Microsoft who reminded us that Apple was the only maker of devices with the iPhone OS, but Microsoft had tons of licensees that would develop a wide range of diverse devices.&nbsp; The only problem is that 20% of the devices are being built by 49 out of 50 of those licensees.</p><p>I bring this up because this is yet another time that the iPhone and Apple were criticized for something when out rolls another device or company with the same shortcomings.&nbsp; For another shining example, see the Palm Pre and its web apps compared to the iPhone and its initial web apps model.</p><p>Microsoft loves the diversity of its platform, but no matter how you look at it, one company making 80% of your handsets isn't a diverse market.</p>

[doogald]

For another shining example, see the Palm Pre and its web apps compared to the iPhone and its initial web apps model.

I think it's important to note that the Palm Pre is very different. While it is true that their apps are using web technologies, they are not web apps in the same sense that the pre-API iPhone apps were. The apps will be installed and run locally on the Pre; they will not require internet access in order to run.

All of these numbers, though - who knows if they are completely true? Microsoft never came out and said that HTC made 80% of the devices - people are taking two different comments which could be (and likely are) taken out of context. (In other words, it could be that WM reached the the 50 million number quite some time ago; the 40 million made by HTC may not all have been sold to consumers but still be in the channel. And clearly Microsoft was talking about the number of WM phones, while it is not so clear that HTC was talking about phones - they said that they had sold 40 million WM devices, and he talked about doing so over 12 years, and there were definitely no WM phones in 1997/1998.) And if HTC is making a WM phone under contract for another manufacturer, does that necessarily mean that HTC designed it? Could it be that they are just manufacturing to spec for the brand owner? And it is certainly true that there are two iPhone models that I can buy today that are essentially using the same interface, UI and form factor (and it is onle two if Apple has any first gen models available for resale), while there are a truly great variety of WM phones in a number of form factors.

(All that said, I am counting the days until December 14 when I can ditch my WM phone for an iPhone . . .)

[WyattEarp]

I think it's important to note that the Palm Pre is very different. While it is true that their apps are using web technologies, they are not web apps in the same sense that the pre-API iPhone apps were. The apps will be installed and run locally on the Pre; they will not require internet access in order to run.

I don't think the issue was with whether or not apps could be run locally so much as the fact that there was no ablility to actually develop standard third party apps.

All of these numbers, though - who knows if they are completely true? Microsoft never came out and said that HTC made 80% of the devices - people are taking two different comments which could be (and likely are) taken out of context. (In other words, it could be that WM reached the the 50 million number quite some time ago; the 40 million made by HTC may not all have been sold to consumers but still be in the channel. And clearly Microsoft was talking about the number of WM phones, while it is not so clear that HTC was talking about phones - they said that they had sold 40 million WM devices, and he talked about doing so over 12 years, and there were definitely no WM phones in 1997/1998.) And if HTC is making a WM phone under contract for another manufacturer, does that necessarily mean that HTC designed it? Could it be that they are just manufacturing to spec for the brand owner? And it is certainly true that there are two iPhone models that I can buy today that are essentially using the same interface, UI and form factor (and it is onle two if Apple has any first gen models available for resale), while there are a truly great variety of WM phones in a number of form factors.

(All that said, I am counting the days until December 14 when I can ditch my WM phone for an iPhone . . .)

Even if 80% isn't exactly correct HTC does make and design the majority of WM devices. And while there were no WM devices in in 1997, HTC has been making and designing the majority of Windows based mobile devices since it's earliest incarnations in 1996 as Windows CE and Pocket PC for other companies such as Palm, iMate, HP/Compaq, etc. So, not quite Apple but similar in nature.

[Vincent Ferrari]

I don't think the issue was with whether or not apps could be run locally so much as the fact that there was no ablility to actually develop standard third party apps.

That's my point.

[Vincent Ferrari]

And it is certainly true that there are two iPhone models that I can buy today that are essentially using the same interface, UI and form factor (and it is onle two if Apple has any first gen models available for resale), while there are a truly great variety of WM phones in a number of form factors.

Touch Screen, Smartphone, and Touch Screen with Slide Out Keyboard, almost all of which except for some minor tweaks are pretty much the same device.

You know, there has been lots of chatter about the stagnation in the Windows Mobile world. Maybe part of it is related to the fact that HTC has a near-monopoly on production of WinMo devices? Just a thought.

[Steven McPherson]

Hi Vincent,

Interesting point, but I'm not sure what point you are trying to make. It seems as though you are trying to imply that because 80% of the winmo devices are made by HTC that on some level that's a bad thing or that its not a diverse market. I'm really not sure how that's the case. At the end of the day, there are still 49 other vendors out there building and innovating on the Microsoft platform. This is tremendously more powerful then one vendor attempting to dictate the market which Apple tries to do with its own innovations.

The iPhone is made by Apple and Apple alone (and done very well I might add), but that will always be the the issue that Apple has. Right now, they control the hardware, they control the OS, they control the apps. While this makes for a highly reliable and extremely high quality product at the outset, history has demonstrated that a "diverse market" (your term) not only improves the quality of the product but also almost assures its victory in the market place over time.

Don't get me wrong, I love my iPhone but unless Apple starts to understand how they win this challenge is to become more open and drive a diverse channel of hardware and application partners (not one that's limited or hampered by their own control), Microsoft has already won.

I would love to see this change happen.

Flame on if you must, but this is really a non-point and huge weakness in Apple's long-term strategy.

[ptyork]

I don't think the issue was with whether or not apps could be run locally so much as the fact that there was no ablility to actually develop standard third party apps.

But that IS the point. The Pre has an API based on web technologies. The iPhone had no API, JUST HTML and basic JavaScript. The Pre will have standard libraries that allow access (surely limited, but real access) to the hardware. The fact that the apps use HTML for rendering and JavaScript for programmability makes little difference. Resource files and Objective-C are effectively the SAME THINGS, just using different languages--and given that Palm will no doubt pre-compile the JavaScript in the application packages, there is probably going to be little performance difference, either. There will be local storage and local access to GPS, accelerometer, clipboard and other means of inter-process communication, etc. The API will also provide standardized UI elements, which is STILL unavailable from Apple (which is why all web apps on the iPhone are so inconsistent in their user experience). This is all VERY different than the original iPhone model. The only (admittedly large) initial omission from the API will be direct access to the video hardware which would be necessary to create 3D games and the like. And obviously there's going to be some means of allowing such access since Adobe will be developing a Flash interpreter for the platform.

Even if 80% isn't exactly correct HTC does make and design the majority of WM devices. And while there were no WM devices in in 1997, HTC has been making and designing the majority of Windows based mobile devices since it's earliest incarnations in 1996 as Windows CE and Pocket PC for other companies such as Palm, iMate, HP/Compaq, etc. So, not quite Apple but similar in nature.

HTC may be the ODM for 80% of the devices, but does not provide design specifications for many or most of these. Just because one device manufacturer has developed specialized skills in assembling mobile devices and has been chosen by numerous nameplates to run their manufacturing lines doesn't in any way equate to the single design/manufacturer model is the iPhone. Palm, iMate, HP, etc. all made vastly different incarnations of WinMo devices because THEY supplied the design specifications to HTC and then customized the software to provide (somewhat) unique user experiences. So, yes, HTC does MAKE the majority of the devices, but I challenge that they DESIGN a majority of these devices.

That said, as with o2kman, I fail to see a real point here. I disagree with o2kman that the single manufacturer is a huge disadvantage for Apple. It is their model and a successful one. I'm confident that they will continue to innovate and will continue to command a large and loyal following by adhering to this model. But I also fail to see that HTC serving as the primary ODM for WinMo is a significant advantage or disadvantage. For better or worse (and I might argue worse here), there IS a huge diversity in form factor and user experience in the WinMo ecosystem regardless of whether they are manufactured by one or one thousand manufacturers.

[jdmichal]

ptyork again hits it right on the head here. I'm a little disappointed to see the spread of FUD against the Pre's programming model continued here.