HTC partnering with ST-Ericsson to develop CPU for low-end devices
The relationship between HTC and Qualcomm took another hit today. Multiple reports claim that HTC and ST-Ericsson have signed a memorandum of cooperation with plans to co-develop a CPU for low-end HTC devices. Over the years, HTC has partnered closely with Qualcomm (which owns a minority stake in HTC), but HTC may be looking to cut costs in order to get the company back on track.
HTC’s partnership with ST-Ericsson is expected to produce CPU’s for lower priced devices sometime in 2013. While HTC has always dominated the high-end smartphone market, Samsung, ZTE and other OEMs have saturated the low-end market with devices which cost less than $250. Phones like the HTC Wildfire have always been more powerful and better equipped than their direct competitors, but HTC’s sales of those devices have always languished due to the disparity in price.
With a Tegra 3 chip powering the HTC One X and this new CPU partnership with ST-Ericsson, it appears HTC is focusing on the future. We’re not sure how much money HTC will be investing into lower-end smartphones, but we hope the strategy pays off.