HTC To Launch Five Windows Smartphones

HTC Corp of Taiwan is set to launch five new Windows phone 7 supported smartphones (2498.TW), thus signalling its intention to continue developing mobile phones based on Windows mobile technology, even though the company's Android phones proved to be massive hits with users recently.

The new range of HTC smartphones, combined with the latest Windows smartphones from other companies including LG (066570.KS) and Samsung (005930.KS) will be available in stores in Europe later this month, and in the US in November, as part of efforts by Microsoft to win back its popularity in the smartphone industry.

Earlier in October, HTC announced a near two-fold increase in its earnings for the third quarter thanks to the introduction of new models as well as the collaboration with Google to develop phones for GOOG.O.

HTC has been developing Windows based phones during the past decade, although the free Android OS is rapidly becoming the number one choice of most low-end smartphone developers.

"Microsoft's advantage is on professional users and Android is popular with individual consumers", according to Arthur Hsieh of UBS who rates HTC a "buy".

UBS has set HTC's one-year target share price at T$882, which is 25% higher than the current price.

HTC is competing with a much larger phone developer Samsung Electronics to become the fourth biggest smartphone developer. Other major competitors include Nokia Oyj (NOK1V.HE), iPhone developer Apple Inc (AAPL.O) and Blackberry developer Research in Motion (RIM.TO).