To Compete With Samsung, HTC Must Advertise

By Doug Ehrman – May 6, 2013 at 9:00PM

NASDAQ: GOOGL

Alphabet

Market Cap

$2,138B

Today's Change

(10.22%) $15.95

Current Price

$171.95

Price as of April 26, 2024, 4:00 p.m. ET

Advertising has become the secret to the smartphone wars, and if HTC wants to get in the game, it will need to open its wallet.

The introduction of the Samsung Galaxy S3 effectively changed the smartphone market from a duopoly between Apple (AAPL -0.35%) and Google (GOOGL 10.22%), to a more open conversation. While Samsung devices run on Google's Android, before Samsung became so influential, iOS versus Android was what most consumers debated. With a solid device and a huge advertising budget, Samsung changed the conversation.

Now, as Nokia (NOK 0.28%) and Microsoft (MSFT 1.82%) -- the hardware/ software team behind the Lumia Windows Phones -- get into the ad game, HTC may be sitting on the best Android device available today and getting very little attention. Ad dollars have become critical and if HTC wants to return to its former glory, it must charge into the fray.

In the video below, Fool.com contributor Doug Ehrman discusses HTC's current position and what it can do to better its market share.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.