Launch of Samsung Galaxy S IV a ‘non-event’ for HTC: Nomura Holdings


CNA

TAIPEI — Taiwanese smartphone vendor HTC Corp. should focus on improving its component supply, rather than worrying about the impact of rival Samsung Electronics Co.’s newest flagship model, analysts at Nomura Holdings Inc. said Monday.

South Korean electronics giant Samsung launched its latest flagship phone on March 14 in New York, the Galaxy S IV, which is equipped with a larger display and a number of unconventional features, such as eye tracking and gesture controls.

“While all eyes are on the debut of the Samsung Galaxy S IV, we think it is a non-event for HTC,” Nomura analysts wrote in a research note to clients.

The Japanese brokerage noted that HTC’s current scale is very small compared with Samsung’s, which means HTC could easily gain future market share as long as consumers like the features in its new HTC One phone and, more importantly, the component supply issue can be resolved.

Nomura kept a “neutral” stock rating on HTC and believes that “the company’s strategy to take a path that is different from its peers’ is correct.”

Unveiled Feb. 19 in London and New York, the HTC One sports a 4.7-inch display with full-HD resolution of 1920 x 1080 pixels, a 1.7-gigahertz quad-core processor and a revolutionary “UltraPixel” camera that enables ultra-sharp photo shooting and video recording.

Further, HTC claims its UltraPixel camera can take in 300 percent more light than those cameras found on average smartphones, making the new HTC One ideal for taking pictures in low-light conditions and overthrowing “the myth of mega-pixel concept.”

In another matter, the Taoyuan-based company confirmed March 13 in a statement that HTC One shipments would be delayed in certain markets, without explaining the reason for the delay.

The statement came after Taipei-based KGI Securities said in a March 6 research note that HTC is facing production bottlenecks because of shortages of HTC One’s voice coil motor and compact camera module on its UltraPixel camera due to low yield rates.