In the last mobile market update series I wrote of the evolution of market share, the shift in where dollars are spent, the tale of ASP erosion, profitability ratios over time and EBIT share over time.
I did not include all vendors for various good reasons. The first survey (market share) did include an “others” category that made the volume data complete, but in the financial data sets, I chose to include the top 7 vendors that make up 80% of device volumes.
One noteworthy vendor that was not included was HTC. HTC is an important vendor for several reasons:
- it’s a pioneer in smartphones having made the first Windows Mobile devices and the first Android devices
- at one point it sold 80% of all Windows Mobile devices
- even if it did not brand its devices, it was the name behind many re-branded or white-label operator branded phones
- it has a brand of its own today and is expanding its reach
HTC has been around building devices since 2001 and so it would be a pity to exclude them from any analysis of the effect of iPhone on the market or any discussion on the effect of smartphone disruption on feature phones.
The challenge with HTC was that historically their branded devices and white label devices were not reported by the company separately. This matters because white label devices are valued differently. Typically these devices are not marketed by the original manufacturer so SG&A is not applied to their cost base. Operating margins, ASPs and hence profitability is not directly comparable with other OEMs.
But HTC has recently changed its reporting. Thanks to a reader I discovered that, since 2008, HTC has been listing its ASP and Operating Margin making direct comparisons possible. I still don’t have all the data, but enough to add HTC to the analysis.
So, here are the 5 industry performance criteria, now with eight vendors listed.