HTC has bought or invested in at least six companies this year, many of which provide technologies to improve how users consume and share content on its devices. It's a big change for the Taiwanese manufacturer, which focused for much of its existence on hardware, leaving software and content to its partners.
Times have changed, however, with rivals like Apple and Nokia building whole ecosystems around their products, including app stores and content delivery systems. HTC has shifted its focus before, moving from contract manufacturer for Microsoft's smartphones to selling its own HTC-branded devices. It must now evolve once more.
"It is no longer enough to focus only on hardware innovations," said Ryan Lee, an analyst with Taipei-based Topology Research Institute. HTC's acquisitions, which include both technology and patents, "pave the way for HTC's greater competitiveness," he said.
HTC ranked fifth in worldwide smartphone sales during the second quarter, behind Apple, Samsung, Nokia and RIM, according to IDC. But HTC was among the fastest-growing vendors, more than doubling its shipments to reach 11 percent of the market, up from 7 percent a year earlier.
HTC's latest investment came Aug. 11, when it said it would pay US$309 million to acquire 51 percent of Beats Electronics, the maker of headphones endorsed by rap producer Dr. Dre. HTC said the deal would enable it to put "recording-studio sound quality" into its smartphones and reach a younger audience of users. It also put it directly into the market for phone accessories.