[Sticky] Why HTC failed in the smartphone race

Why HTC failed in the smartphone race is one of the most fascinating stories in modern tech history.

Back in the late 2000s and early 2010s, HTC wasn’t just another Android manufacturer — it was *the* Android manufacturer. The company was behind the world’s first Android phone, pioneered features that are now industry standards, and once commanded nearly a quarter of the global smartphone market. Yet, just a few years later, HTC’s presence all but vanished. So, how did a brand once valued higher than Nokia, Motorola, and even Blackberry, lose everything?

The Early Days: A Contract Manufacturer Turned Innovator

HTC was founded in Taiwan in 1997 by Cher Wang, Peter Chou, and HT Cho. Originally called High Tech Computer Corporation, the company started off making portable computers but soon pivoted to mobile phones. At first, HTC didn’t sell under its own brand. Instead, it manufactured devices for companies like Compaq, HP, Palm, and Sony.

By the early 2000s, HTC had become a leading player in the emerging smartphone space, especially with Windows Mobile devices. Their strength wasn’t flashy branding but solid engineering. That reputation set the stage for what was to come.

The Golden Age of HTC

In 2006, HTC finally started selling phones under its own name. While its early designs leaned heavily on Blackberry and Palm aesthetics, HTC began to gain recognition. Then came the iPhone in 2007, which shook the industry. HTC needed a response, and it found one through Google.

In 2008, HTC partnered with Google to create the world’s first Android phone: the HTC Dream, also known as the T-Mobile G1. It wasn’t perfect, but it marked the beginning of a new era. HTC quickly refined its designs and released iconic devices like the Magic, Hero, Desire, and Evo.

By 2010, HTC had introduced the first 4G smartphone in the U.S., the HTC Evo 4G, and just a year later, the HTC Thunderbolt became one of the best-selling smartphones ever. 2011 was HTC’s peak: it held 24% of the global smartphone market and was the third-most valuable phone maker behind only Apple and Samsung.

The Fall of HTC

The company’s success didn’t last. In 2011, HTC was hit with patent lawsuits from both Microsoft and Apple. To settle, HTC agreed to pay licensing fees on every device it sold. Combined with costly patent purchases (over \$300 million for S3 Graphics alone), this cut deeply into profits.

At the same time, HTC made a strategic blunder: chasing the budget phone market. Devices like the HTC Wildfire and Chacha weren’t innovative — they were mediocre and forgettable, often with gimmicks like a dedicated Facebook button nobody wanted.

Worse, HTC entered a “scramble mode,” pumping out too many devices with confusing names and inconsistent quality. Customers were overwhelmed, brand identity eroded, and loyal fans drifted away. Meanwhile, Samsung outspent HTC in marketing by billions, cementing its dominance.

By 2012, HTC was bleeding money, distracted by poor acquisitions, and losing relevance fast. Features users loved — expandable storage, replaceable batteries, premium UI — disappeared. Within two years, HTC’s 24% market share had collapsed to nearly zero.

The Attempted Comeback

In 2013, HTC tried to reboot with the HTC One. It was a true flagship: sleek aluminum body, dual front-facing speakers, and a refined design. Critics praised it, and the phone sold millions in its first months. For a brief moment, it seemed HTC could bounce back.

But instead of building on this momentum, HTC stalled. Future phones reused the same designs with few risks or innovations. By 2017, HTC had signed a \$1 billion deal with Google, transferring much of its R\&D talent to the Pixel division. Essentially, HTC returned to what it started as: a contract manufacturer for others.

Even later attempts, like releasing a “crypto phone” in 2019, felt more like gimmicks than serious efforts.

Where HTC Stands Today

HTC still makes phones, such as its U series, but production is limited and sales are low. The company has found some stability in manufacturing for others, particularly Google. Many of its engineers continue to shape the Pixel lineup today.

While HTC never fully recovered, its legacy is undeniable. The brand pushed Android into the mainstream, pioneered features that shaped the modern smartphone, and left behind a loyal fan base that still reminisces about the HTC One, Evo, and Desire.

HTC’s downfall wasn’t caused by a single mistake, but by a combination of lawsuits, poor strategy, weak marketing, and a loss of identity. Once a global leader, it fumbled just as the smartphone market exploded, leaving Apple and Samsung to dominate.

Today, HTC survives in the background, a shadow of its former glory. But for many, its devices remain unforgettable — a reminder of a time when smartphones were truly exciting.