HTC Develop New Processor For Their Low End Smartphones

HTC would seem to follow in the footsteps of Samsung and Apple to develop their own mobile device processor.

 

According to a report from China Times, it is mentioned that the Taiwan origin HTC manufacture has signed a memorandum of cooperation  with ST-Ericsson to develop a brand new processor chip which is will be used on HTC's low-end smartphones next in 2013.

 

There are some reasons for HTC to develop their own processor. This joint venture will help HTC to reduce their dependence on Qualcomm processor and an NVDIA which are currently adopted in many of HTC Smartphone products.

Also that HTC is reporting lower selling than expected for its first quarter, and could include a whopping 36% drop in revenue when compared to Q1 of last year. Revenue in the last 3 months fell from around 101 billion Taiwanese dollars to around 66 billion (OUCH).

Samsung on the other hand, has reported record profits for the 4th quarter of 2011, and doesn't appear to be slowing down anytime soon

In the last five months HTC's market share is reported to have declined by more than 60%. It is thus making the smartphone manufacturer boards to rethink the strategies that will be done in the future.

HTC focus during this time was their desire in the high-end smartphones  market share  and it may be perceived as the cause of the decline in sales of smartphones.