HTC Weekly Overview

HTC overview

HTC’s financial outlook is looking good, at least according to the Financial Times, and with Android exploding in popularity and Windows Phone 7 just around the corner, industry bloggers are feeling optimistic about HTC’s future. Justified, given the ‘Oprah Effect’ boost the HTC EVO 4G received this week.

On the Android front, T-Mobile introduced the myTouch 3G Slide this week. The qwerty-sporting successor to the myTouch 3G received generally favorable reactions from the blogosphere, with most focused on the software enhancements designed to appeal to a mid-range general consumer audience.

Meanwhile, stocks of the DROID Incredible by HTC were quickly snatched up on launch day, and late arrivals had to wait a week for their very own device. Reviews posted this week remained a bit mixed in terms of the hardware design but found performance and functionality impressive.

This was a busy week in competitive news. HP’s purchase of Palm remained a strong conversation, and an emerging discussion was the potential impact on Windows Phone 7. Additionally, the Microsoft KIN phones hit the market, inciting a batch of highly skeptical reviews.

key trends

HTC

 A Finacial Times article on HTC’s record revenues in Q2 2010 led to blogger comments that HTC is “taking the smartphone market by storm.” The exploding popularity of Android was largely cited as the reason for HTC’s “massive” growth in the past year. As Engadget explained:

When looking around at choices, it's the Android OS backed by Google's cloud-based services and the 50k app-strong Android Market we usually find underpinning the sexiest and most powerful hardware on the market. And guess who's making the hardware? Right, HTC.

Speaking of new Android phones, T-Mobile this week introduced the “next evolution of the MyTouch line,” the myTouch 3G Slide. Described as the “true successor” to the T-Mobile G1, bloggers called the myTouch 3G Slide an “incremental upgrade” in terms of hardware, but loaded with “enough software tweaks to make you consider it even with all the other high-end Android handsets hitting the market.”

Although the “roomy” keyboard and “pretty sweet” specs got favorable early reviews, the software was clearly at the heart of the discussion about the myTouch 3G Slide. According to reports, the interface, a custom version of the HTC Sense experience, was created to appeal to new smartphone owners. CNET noted:

We got some brief hands-on time with the myTouch 3G slide when T-Mobile came to visit us last week, and we were pretty impressed with what the company had done with the interface. It takes HTC Sense and gives it a more consumer-friendly look and feel, so we can certainly see it attracting new customers.

MobileCrunch agreed with this assessment, calling the device “one of the best feature phones I’ve seen in a long time” and again emphasizing ease of use:

In a perfect world, every phone would be like the T-Mobile MyTouch Slide. It’s small, it’s light, it has a keyboard, and it’s easy enough for almost everyone to use even if it’s running one of the most powerful mobile OSes out there.

Perhaps the most buzzed-about feature of the myTouch 3G Slide was the addition of a Genius Button, powering a voice-search application from Nuance. Engadget noted that the app “put Google’s stock voice recognition to shame,” and Gear Diary agreed:

Global voice to text is already available on devices like the Google Nexus One but that phone uses Google’s voice to text engine and, as a result, it is mediocre at best. The fact that Dragon Dictation and its superb accuracy is used for voice to text on the 3G Slide will mean that people who get the phone will actually use the functionality.

Initially impressions of the myTouch 3G Slide were not all positive. SlashGear called the design “monochrome and slightly odd looking,” while Gizmodo expressed some concerns about Android fragmentation and software integration:

The myTouch 3G Slide could go either way: A family-friendly Android phone with an awesome Sidekick-y keyboard, or, much like its name, a godawful conglomeration of disjointed parts.

In other Android news, the DROID Incredible by HTC made its much-anticipated debut on Verizon last week, though fans had to act quickly to get their hands on a device described as “basically Google’s Nexus One made even slicker.” Existing stock was quickly snatched up, leading Boy Genius to quip: “in the world of mobile technology, the early bird gets the phone.” Stocks were expected to be replenished by May 4^th. SlashPhone was annoyed with HTC for the “pretty big wait”:

HTC just short-changing these places, these wireless carriers, simply hoping that the demand for these powerful devices isn’t as high as everyone would suggest? Or, are there really that many people going out and ordering this phone? We’ll have to wait until we hear any kind of official stock checks, but right now, this doesn’t look bad for Verizon; this looks bad for HTC.  

Beyond this criticism, most bloggers took news of the stocking delay in stride. An impressive unboxing and disassembly video made the rounds and offered a worthy distraction during the wait. JKOnTheRun also posted a photo gallery as a teaser for an upcoming review, calling the device “FAST” and “the best phone on the Verizon network.”

In a thorough, multimedia review, PocketNow gave the DROID Incredible 4.5 out of 5 stars, saying, “it actually does a great job of living up to its name.” Although the device’s battery cover has been somewhat controversial, PocketNow’s CJ Lippstreu felt the design was highly usable and would gain acceptance with time:

The topographic map-like back plate is a risky design move as many people probably won’t be too thrilled to part ways with styles more familiar to them. I like to think of it as an acquired taste; you may dislike it now, but find that it grows on you later on. Three quick reasons why it’s a positive thing: improves grip, allows room to breath for the speaker, and it’s original.

Other high points included a “blissfully responsive” user experience, “fantastic” call quality and a “gorgeous” display. The battery life was perhaps the low point of this review, with tests getting only about a day of use before requiring a recharge. 

PhoneArena had mixed reactions to the DROID Incredible in its review. The hardware design came under fire for “cheap feeling materials” that were a disappointment compared to past HTC products:

Up until this point, we've been treated to some spectacular designs from the Taiwan based manufacturer, but the HTC Droid Incredible just doesn't breathe in anything remarkable in its build to substantially give it the cool factor – something that the Nexus One clearly wins over the Droid Incredible. Rather than utilizing premium materials and a futuristic design, the handset's design approach is lackluster due partly to its mundane clean slate form factor that doesn't scream the industrial designs that made HTC's products stand out.

Performance received higher marks, variously described as “lightning fast” and “like a cheetah”:

The peppy nature of the HTC Droid Incredible just makes the experience of using Android such a pleasure; especially when there are few instances of it crawling to a standstill.

Despite negative comments about the design, Phone Arena gave the DROID Incredible an overall score of 8.8 out of 10 and put it on par with the Nexus One and HTC Desire. However, the review concluded that “with the HTC EVO 4G on the horizon, it'll have a small window of opportunity to make its impact.”

Rumor has it that HTC Hero owners on Sprint might be getting an Android 2.1 upgrade soon. Sources on XDA Developers reported this week that the HTC Hero and Samsung Moment would be receiving Android upgrades on May 7^th. Although Engadget noted the rumors were “turning into a serious boy-who-cried-wolf kind of situation,” a leaked Best Buy document indicated that the May 7^th date could be correct.

Rounding out HTC news this week, it is not often that mobile bloggers will admit to watching Oprah, but a few were clearly turned in last week, because word quickly got around that Oprah showed off her very own HTC EVO 4G. The segment was actually focused on the “No Phone Zone” campaign to reduce texting while driving, but it was hard to miss Sprint’s much-anticipated Android powerhouse in Oprah’s hands. IntoMobile suggested the Oprah Effect could have a serious impact on sales of the device:

Once the device is out and unleashed into the world, it’s completely possible that Winfrey could endorse the Evo. This isn’t confirmed, but it’s likely that we’ll see the device again on the segment since Sprint is helping sponsor the campaign. If you thought Motorola (NYSE: MOT)’s Droid advertising campaign last year got users’ attention – which’ by the way, cost a lot of money – just having Winfrey saying that the Evo 4G is a good device would garner it more attention than the Motorola Droid ever had. In theory at least, it is the Oprah Effect after all.

Platform

There never seems to be a dull moment with Apple lately and this week was no exception. Although news calmed a bit on the iPhone prototype saga, Apple and Adobe continued to butt heads on the legal front. In response to Adobe’s decision to discontinue any development efforts for the iPhone OS, Steve Jobs wrote an open letter blasting Adobe’s “closed system” appraoch to development.

Pocket Lint was intrigued by what almost seemed like praise of Google, who has also been a supporter of HTML5 over Flash:

The blistering assault on Adobe's technology is a painful read, but looking between the lines a little, the one company he mentions a few times but never criticises is Google, heaping praise on its Chrome browser. Has Jobs thawed a little on the other one-time Apple ally whose relationship has soured of late?

Not to leave Jobs with the last word, Adobe CTO Kevin Lynch, wrote a blog post entitled “Moving Forward” in which he essentially said that Adobe would play nice if Apple would. Meanwhile, Adobe is rewriting the iPad version of Wired Magazine that was originally written for Conde Nast using Flash. Neither Adobe nor Apple would comment.

Meanwhile, the New York Post published an article saying that the U.S. Department of Justice and Federal Trade Commission were “locked in negotiations” as to who would take the helm in an antitrust inquiry into Apple’s recent changes to the iPhone Developer Program License Agreement, specifically its blocking of third-party compilers or, as Boy Genius Report termed it, their, “totalitarian control over their development ecosystem.”

Although the squabbles between Adobe and Apple have been the focus of much of the commentary about the rumored inquiry, the changes to the developer agreement in Section 3.3.1 impact compilers developed by other companies as well. Still, neither the DOJ nor the FTC has confirmed that there is or will be an inquiry and, even if there is one, it may not result in an antitrust investigation. Even if the feds continue to look into the situation, there’s some doubt that Apple’s actions would be found to smack of antitrust.

Competition

KIN One and KIN Two launch this Thursday, May 6^th on Verizon. With a mail-in rebate and a new two-year agreement, KIN One will cost $49.99 and KIN Two will be $99.99. The total cost of the phones has caused consternation, however, as Verizon is requiring a full Smartphone data plan for $29.99 a month in spite of the fact that the KIN handsets are arguably more of a hybrid between an feature phone and a smartphone.

Reviews of the KIN models this week were mixed. SlashGear gave the phones a very positive review, trying to keep teenagers, the target audience, in mind. Boy Genius Report also kept in mind that the phones are aimed at “the young Justin Beiber generation” for whom they think the phones “definitely do pack a punch.” Ina Fried thought that the phones were “different.” Also at CNET, Bonnie Cha and Jasmine France liked some of what the phones had to offer but didn’t like the fact that there weren’t calendar or IM apps and thought the user interface could be “overwhelming and has a bit of a learning curve.” Gizmodo gave the handsets positive reviews…for a feature phone:

So, you've probably sensed some tentativeness. I like the Kin. I like what Microsoft is doing with it, and even if the launch features are a bit thin, I think it's probably—no, almost definitely—the best feature phone I've ever used. Here's the problem: It's not a feature phone.  Who says? Cue Verizon

Phonescoop and Engadget, on the other hand, gave the phones scathing reviews. Engadget found “obvious limitations” that are exacerbated by the fact that the pricing ended up relatively high. They suggested a number of other handsets one should consider if looking at the KIN models before concluding:

In the end, we're left with two orphan devices -- phones that feel like they should have been killed before they made it to market, but somehow slipped through. It's clear to us from conversations we've had with Microsoft that there are people at the company with good ideas about what phones should and shouldn't do, but we don't feel the Kin is representative of those ideas. The execution (or lack thereof) on these products makes us legitimately concerned about what the company will do with Windows Phone 7.

Speculation about the future of Windows Phone 7 also cropped up around the announcement that HP is acquiring Palm. HP was slated to be one of the major hardware partners for Windows Phone 7, but now bloggers are wondering if that will still be the case in light of HP’s expressed commitment to developing the WebOS.  Phone Arena acknowledged the doubts but felt reassured after hearing HP's VP of Strategy and Corporate Development, Brian Humphries, say that HP “’will continue to be a strategic partner for Microsoft.’” MS Mobiles interpreted the quote differently, pointing out that it may just mean HP will continue licensing Windows 7 for its PCs while abandoning development of Windows Phone 7 handsets.

Bonnie Cha at CNET, suggested HP may have been hindered by their choice of Microsoft as a platform partner while commenting about her excitement regarding the potential of the deal. Pocket Lint pointed out that the merger could result in webOS-powered slates and netbooks in addition to smartphones. jkOnTheRun was similarly optimistic about what the union could bring to the market:

A few companies had been mentioned in the press as interested in Palm, but no one gave HP a thought. The merger of HP and Palm is probably the best possible scenario for Palm, and it will be fun to watch the process. HP has the resources to make the most of Palm’s technology, and experience at taking over innovative companies (remember Compaq?).

Still, some skeptics such as Adrian Kingsley-Hughes wonder if this is “too little, too late,” citing many developments in the mobile industry that will come ahead of anything tangible to come out of the acquisition.

Not to get lost in the shuffle, the LG Ally showed up in Iron Man 2 commercials, sparking a bit of excitement and speculation about when the handset would hit stores. LG then came out and officially announced the phone would be coming May 20, probably to Verizon, with an augmented reality app and a special edition Iron Man 2 comic book, thanks to its partnership with Marvel. As part of the somewhat unconventional approach, there is an interactive though not especially informative microsite for the phone. The LG Ally runs Android 2.1 and features a slider QWERTY keyboard. Although there are not as many specs available yet as some would like, at least Into Mobile doesn’t think it has what it takes to “sway someone away from the Droid Incredible.”

General Mobile Tech

There were a couple of developments on the 4G front this week. Sprint, Clearwire, Comcast, and Time Warner Cable have partnered to bring WiMax 4G to more markets this summer including Nashville, TN;  Daytona, Orlando and Tampa, FL; Rochester and Syracuse, NY; Merced, Modesto, Stockton, and Visalia, CA; Wilmington, DE; Grand Rapids, MI; Eugene, OR; and Yakima and Tri-Cities, WA.

Meanwhile, T-Mobile is seeking a partner to help it develop a 4G network. Harbinger Capital, a New York hedge fund, owns LTE-suitable wireless spectrum and has been cited as the primary candidate.