Now, the two companies have decided to "reinforce and expand their strategic alliance," according to the HTC announcement.
HTC said it has signed a memorandum of understanding whereby it will acquire over 50 percent of Dopod's shares for an amount not to surpass US$150 million, and that subsequent to the transaction, Dopod will become an HTC subsidiary.
According to HTC, the combination "will make the synergy to provide the best service to operators and end users." Dopod and its eight subsidiaries in Asia have "successfully launched six Smartphones and nine PDA Phones in the region to help operators and users access and enjoy new wireless experiences," HTC added.
Most recently, Dopod unveiled the
StrTrk phone designed to appeal to Star Trek fans. The StrTrk is manufactured for Dopod by HTC. Other HTC-sourced Dopod phones have included the Dopod 585, based on HTC's "Amadeus" platform, and the
Dopod 818, based on the HTC "Magician."
The acquisition of Dopod is clearly an effort by HTC to strengthen its market position in Asian markets. According to HTC, "combining the world-class design, innovation, and engineering expertise of HTC with the brand awareness and marketing experience of Dopod, HTC will benefit from a much higher market and end-user awareness, and, in addition, its innovative products will reflect on Dopod's strong brand influence in Asia."
HTC normally operates behind the scenes as an
ODM, building devices for wireless carriers such as T-Mobile and Verizon, and for OEMs (original equipment manufacturers) such as Hewlett-Packard and Dell. HTC's acquisition of its own phone brand is likely to raise concern among OEMs who do not want to be in a position of having to compete with their device manufacturer.
HTC reported on May 10 that its total revenues for April 2006 reached NT$7,596 million (approx. US$237 million), up 48.59 percent year-over-year, and that its total 2006 year-to-date revenues were NT$31,608 million (approx. US$986 million), up 72.14 percent over the same period of 2005.
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