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MaxShockeR

04/24/13 3:37 PM

#3953 RE: Globaltrnr #3952

Apple, Facebook, $NOK: Goodbye, HTC

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The final straw? Most recently, Nokia Corporation (ADR) (NYSE:NOK) has scored a preliminary injunction against HTC in the Netherlands over a microphone component inside the One. At issue is STMicroelectronics N.V. (ADR) (NYSE:S*M) providing HTC certain microphone components for the One -- components that were invented by and manufactured exclusively for Nokia.

The Finnish smartphone maker said it was just the latest in a long string of cases where HTC was using Nokia Corporation (ADR) (NYSE:NOK) technology without consent, citing over 40 patents that Nokia Corporation (ADR) (NYSE:NOK) has asserted against HTC throughout the world.

HTC said it's still looking into how big of an impact this could have on its business and is exploring "alternative solutions immediately." While STMicroelectronics N.V. (ADR) (NYSE:S*M) is headquartered in Switzerland, it is organized under the laws of The Netherlands, which suggests that this injunction could potentially be a major blow to the One. HTC could overcome the setback, possibly by switching components, but that may cause even further delays, and this could be the final straw when considered alongside the other recent fumbles.

Farewell Everything is going wrong for HTC right now. Even after acknowledging the importance of marketing, the company is already making missteps. The component supply chain isn't giving HTC any respect and is also now a battleground where rivals are trying to stifle its access to crucial ingredients.

CEO and founder Peter Chou said in March that he would step down if the One failed to turn the tide. I would have liked to see HTC mount a turnaround on the strength of a high-quality device like the One, which is garnering impressive reviews from the broader tech press. Sadly, quality products aren't enough. Marketing and supply chain management are just as -- if not more -- important.

Goodbye, HTC.

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GLTA

$NOK