HTC: All eyes on China with first CDMA Android phone

Taiwan smartphone maker HTC is eyeing to expand its reach in China even as it launched its first Android-powered phone supporting the CDMA (Code Division Multiple Access) network. HTC’s Wildfire S CDMA, which features a 3.2-inch touchscreen and Google’s Android, will go on sale in Taiwan through Asia Pacific Telecom Co., Taiwan’s Central News Agency reported. “Asia Pacific Telecom now has more than 3 million subscribers, who also have strong demand to replace their present phones. Our new phone will be able to meet such a demand at the time," said Jack Tong, president of HTC North Asia, at the product launch. As early as July, he said the new HTC CDMA phone had hit stores of China Telecom Corp., the smallest of mainland China’s three telecommunications carriers and the only player that runs a CDMA network in China. “China’s CDMA phone market has been dominated by Korean brands in the past. With the launch of our CDMA model, it will be our great chance to tap into the market by strengthening ties with operators and distributors," Tong added. In terms of HTC’s growth in North Asia this year, Tong said sales in the region have been “on the right track" with the company’s internal guidance. He also noted North Asia will become an “exciting" market in 2012. J.P. Morgan had expressed downside concerns about HTC’s future growth, lowering its rating to “Neutral" from “Overweight" and cutting its target price to NT$800 (US$27) from NT$1,450. “In recent weeks, we believe HTC has seen order weakness in three out of four U.S. operators, namely AT&T (big order cuts for ChaCha), Verizon (poor transition from Evo 4G to Evo 3D) and T-Mobile," it said. A possible launch of a low-price iPhone will become another downside risk for HTC, J.P. Morgan said. It added HTC’s R&D expenses in new Windows Phones and its expansion in the service business may also take a long time to recoup its investments. — TJD, GMA News