Amazon and HTC partner on a new smartphone project

After 2 years of rumors, The Financial Times claims that Amazon, one of the world leading e-commerce company, would team up with HTC Corporation to release a new smartphone. One of the three devices discussed by both companies has moved into a more advanced stage and should be released in 2014. Rumors about Amazon’s entering the smartphone market have been circulating for years by now. However, Amazon representative refused to comment their mobile ambitions. HTC refrained from any comments on Amazon, but said to be very open to new opportunities with other brands. HTC already teamed up with web giants such as Facebook or Google. It would be no surprise to see them to collaborating with Amazon, another leading web company.

A necessary partnership, especially for  HTC

This partnership would embody a promising business for the Taiwanese company, as HTC reported a quarterly loss in July, the first-ever in their history (with a net loss of $101 million on revenue of $1.6 billion). This could be explained by some selling low points. Indeed, even though HTC had proven skills in producing some leading hardware in the business (HTC one), some deficiencies in selling them have also been highlighted. HTC is often pointed to have serious issues in sales strategy due to not sufficient marketing efforts. Also, HTC clearly faces an overwhelming competitive environment with Apple and Samsung, both brutal in their global development strategy. In that way, HTC turns towards collaboration with web-services brands in order to ensure their sustain as  leading phone builders.

HTC familiar with partnerships

Actually, this would not be the first time HTC would develop partnerships in order to boost their sales. On April 2013, they released the HTC First, the first Android device to be pre-loaded with Facebook Home, a special user interface designed by the social network itself. One month later, AT&T reported only 15,000 units sold due to dysfunctions in the software. The price also had to be decreased from $99 to $0,99 on a two–year contract.

As the partnership with Facebook did not obviously ended up in a great success, hopefully the one with Amazon (once it’s officially confirmed), would turn out well for Taiwanese mobile builder HTC.

SourcesFinancial TimesThe Verge