HTC preparing to develop its own processors

For a company that’s committed to ‘doing less, but doing it better’ – in the wake of two consecutive quarters of poor financial results – news of HTC’s latest plans may come as a surprise to some. The company is apparently preparing to develop its own line of processors for its mobile devices, starting – for now at least – with its lower-end handsets.

China Times reports that HTC has signed a memorandum of cooperation with chip maker ST-Ericsson, with the intention of beginning volume shipments of devices with the new CPUs at some point in 2013.

HTC has so far built an extensive portfolio of mid-range and higher-end handsets, but its entry-level offerings have been notable largely by their absence. The company has apparently struggled to establish a clear strategy for the lower end of the market – two years ago, for example, it looked like the company planned to focus its entry-level devices around Qualcomm’s BREW (Binary Runtime Environment for Wireless) platform, when it launched the HTC Smart.


It wasn't big, it wasn't clever, but it was the HTC Smart.

Meanwhile, HTC’s competitors, most notably Samsung, established a strong presence at the lower end with Android, a strategy that has evidently paid off in a way that has left HTC playing catch up.

HTC will no doubt be hoping that its latest plan to establish tighter integration over the component supply chain for its cheapest devices – thereby also reducing its reliance on third-party vendors such as Qualcomm and NVIDIA – will lead to the improved margins that it needs.

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Will they do an Apple and just slap a name on a Samsung processor and call it revolutionary and magical or will this HTC processor be actually different from the rest?

sam232 said,
Will they do an Apple and just slap a name on a Samsung processor and call it revolutionary and magical or will this HTC processor be actually different from the rest?
Apple does design the processor in-house. Samsung is just the manufacturer of their processors.

Phouchg said,
And new OS (and market), too, please. Because we don't have enough already.

They didn't say anything about making a new platform(I noticed the sarcasm). Creating their own chip seems to be a good idea. It would cut costs and give them the option to stand out from other companies, while offering android as OS with all it's features. Atm. you got qualcomm and .. samsung(?) producing 50%+ of the chips for smartphones. It's a reason that 99% of smartphones are identical

Graimer said,

They didn't say anything about making a new platform(I noticed the sarcasm). Creating their own chip seems to be a good idea. It would cut costs and give them the option to stand out from other companies, while offering android as OS with all it's features. Atm. you got qualcomm and .. samsung(?) producing 50%+ of the chips for smartphones. It's a reason that 99% of smartphones are identical

and that's exactly what android needs... more fragmentation.

Phouchg said,
And new OS (and market), too, please. Because we don't have enough already.

You do not need to create a whole new architecture and instruction set when you make your own processor. For example, Intel and AMD both use the x86 architecture. The only thing that is different is how the silicon processes the code.

rajputwarrior said,

and that's exactly what android needs... more fragmentation.


Just read the post below yours.. New CPU doesn't equal more fragmentation. Just shows how little you understand about this. HTC will only do what apple did. Use arm cpus to make their own chip.

Graimer said,

They didn't say anything about making a new platform(I noticed the sarcasm). Creating their own chip seems to be a good idea. It would cut costs and give them the option to stand out from other companies, while offering android as OS with all it's features. Atm. you got qualcomm and .. samsung(?) producing 50%+ of the chips for smartphones. It's a reason that 99% of smartphones are identical

Excuse me, but how will creating a new chip will cut costs? Doesn't that assume logistics, design and manufacturing costs?

Ad Man Gamer said,

You do not need to create a whole new architecture and instruction set when you make your own processor. For example, Intel and AMD both use the x86 architecture. The only thing that is different is how the silicon processes the code.

didn't think of that... good call.