HTC Joins Apple With Fingerprint Sensor in One Max Handset (1)

HTC Corp. (2498), the Taiwanese handset maker which posted its first loss on record last quarter, unveiled a new handset with fingerprint sensor, joining Apple Inc. (AAPL:US) in featuring the security technology.

One Max has a 5.9-inch (15 centimeter) full high-definition screen and can run on fourth-generation Long-Term Evolution networks, it said in a statement yesterday. The device, using Qualcomm Inc. (QCOM:US)’s Snapdragon 600 processor will debut in China, U.K. and Taiwan before starting U.S. sales, Chief Marketing Officer Ben Ho said in an interview today.

HTC’s largest phone, featuring Google Inc. (GOOG:US)’s Android 4.3 operating system, is part of efforts to revive sales as it struggles to regain share from Samsung Electronics Co. (005930) and Sony Corp. (6758) Apple last month unveiled its iPhone 5s with a fingerprint sensor to boost security and aid shopping while HTC said its handset can automatically start an application according to which finger is scanned.

“Large-screen phones have been picked up in Asia more than in Western countries, and the trend for larger is definitely there,” Ho said by phone. One Max is HTC’s last major product release this year ahead of the next One device expected in the first quarter, he said.

HTC shares gained 1.2 percent to NT$127.5 as of 10:19 a.m. in Taipei and have declined 58 percent this year.

Third-quarter sales dropped 33 percent to NT$47 billion ($1.6 billion), missing analysts’ estimates for NT$54 billion. The net loss of NT$2.97 billion was more than the NT$1.71 billion average of analysts’ estimates compiled by Bloomberg.

The phone will be officially unveiled at a press conference today in Beijing and becomes the latest model to be first shown in China. Various models of its Desire series as well as China-specific phones have been released first in that market, Ho said.

One Max will be released by the end of this month featuring HTC’s UltraPixel camera technology, first unveiled with the HTC One in February. Its fingerprint sensor is on the device’s back while Apple’s is on the front.

Samsung Set For Another Quarter Of Record Profits As HTC Falters

Samsung has impressed analysts and investors with its latest guidance for operating profit in the third-quarter, saying it expects to have earned between 9.9 trillion won and 10.3 trillion won ($9.2 billion and $9.6 billion). That’s up from 8.06 trillion won last year and marks another record performance in operating profit. It had posted an operating profit of $7 billion in the second quarter of 2013.

Samsung derives the majority of its earnings from making and shipping smartphones, and one of its main challenges has been in competing against cheaper smartphone vendors in China.

Yet the faltering profits of HTC, a leading smartphone maker from Taiwan, will probably give Samsung some more breathing room. HTC also revealed today that it had lost 2.97 billion Taiwan dollars (101 million) in the third quarter, marking its first-ever quarterly loss.

Bernstein Research analyst Mark Newman said that till now, investors have been skeptical of Samsung’s ability to maintain its profit growth because the business for selling smartphones has become increasingly saturated, particularly in markets like the U.S. and Western Europe.

“These fears were proven wrong today,” Newman said. “We continue to believe that Samsung’s diversity of profit streams plus strength and scale in all price tiers of smartphones helps them to continue to grow profits.”

HTC Offers iPhone Owners $150 to 'Trade Up' to the HTC One

HTC, with a "Here's to Challenge," is offering $150 or more to owners of iPhones and other devices who buy the One by Sept. 30.

HTC says it will pay $150 or more to owners of the iPhone 4S and iPhone 5 who trade in their smartphones for the HTC One by Sept. 30.

The Apple iPhone 5C—and the C, ahem, stands for colorful, not costly, as has been suggested—will be available for preorder tomorrow, Friday, Sept. 13. Along with the higher-end iPhone 5S (speedy? super-duper?), it will go on sale Sept. 20.

But to those owners of older iPhones who are open to new ideas—and cash—HTC says: "Here's to Challenge." And, can we interest you in the HTC One, about which no shortage of reviewers have said nice things?

In an example of "and more," HTC will pay $250 for a 16GB iPhone for the AT&T or T-Mobile networks. The top "trade-up" offer is $300.

Really, HTC will accept all kinds of phones for trade-in—and also pay well below $150, if sometimes nothing, for older ones. (BlackBerry Bold 9930, $59. HTC Evo 4G, zippo.)

Still, it's a nice offer, and another example of HTC hustling to attract attention to its flagship device in a market that couldn't be more competitive.

HTC earlier this year revamped its marketing efforts and in August released a campaign starring actor Robert Downey Jr. and playing off the initials in its name—the actual provenance of which hasn't been made known.

(HTC has said that that while High Tech Computer and Happy Telephone Company are good guesses, they're not correct.)

During the second quarter of 2013, smartphone shipments grew 47 percent annually, from 156.5 million to 229.6 million, according to Strategy Analytics.

In a Sept. 12 report, the Market Intelligence & Consulting Institute reported, "The share Apple, Samsung and HTC have lost in the high-end smartphone market is mainly taken over by second-tier branded vendors. The lower entry barrier to the high-end market and a lack of differentiation has freed the high-end sector from the dominance of Apple, Samsung and HTC."

Samsung, the market leader, is nonetheless in excellent shape, and while Apple's sales have dipped, they're expected to shoot back up with the release of the iPhone 5S and 5C.

HTC, however, continues to struggle to find buyers who are willing to consider devices not made by Samsung or Apple. During the second quarter, the pair together controlled 47 percent of the market, while third-ranking LG claimed just a 5 percent share—up from 4 percent the quarter before.

HTC saw profits dive more than 80 percent during the second quarter.

"My leadership team continues to focus on execution," HTC CEO Peter Chou said in a July 30 statement. "We are seeing expected results as we fill the channels and meet demand for the new HTC One."

On July 18, HTC introduced a tinier version of the One, the One Mini, which was in and out of headlines. Chou added that in the second half of 2013, HTC is "looking forward to delivering great products and results."

To take advantage of HTC's offer, consumers must purchase an HTC One or One Mini by Sept. 30 and send in their their trade-up device by Oct. 12.

HTC Desire 601 is a budget mobile with HTC One stylings (hands-on photos and video)

With its all-metal design and Full HD screen, the HTC One is a stunning piece of kit, whether you're a hardened tech nerd or a casual phone fan with deep pockets. If your budget is a bit tighter -- or you simply have better things to spend your money on -- The Desire 601 might be more up your street.

It has a 4.5-inch display, a dual-core processor, LTE connectivityand a 5-megapixel camera, all wrapped up in a body that's taken design cues from its big brother. HTC hasn't announced pricing or availability yet, but the 601 is being touted as "affordable" so don't expect to pay the big bucks for it.

Design

With the dual front-facing speakers, it's easy to see the family resemblance to the HTC One phone. Add to that the touch-sensitive back and home buttons beneath the screen and it would be easy to mistake the 601 for its more expensive sibling.

Turn it round though and it looks more reminiscent of the earlier HTC One X. Instead of metal, the Desire 601 has a plastic body with a black, rubberised finish. The back panel is broken by the HTC logo, a large camera unit with metal surround and the red Beats audio logo on the bottom. It might not have the same luxurious look and feel of the metal One, but it's still quite attractive and the stiff plastic feels like it can take at least a few knocks.

At 4.5-inches, it's slightly smaller than 4.7-inch One, making it marginally easier to hold in one hand. If you need something even more hand-friendly than the 4.3-inch HTC One mini might be more suitable. Its 960x540-pixel resolution won't satisfy tech addicts, but it's plenty for everyday tasks.

Around the sides you'll find a volume rocker, power button, micro USB port and 3.5mm headphone jack. Whether the dual speakers are capable of the same big sound of the HTC One's remains to be seen.

Inside the phone is a dual-core 1.4GHz processor. That's a far step down from the powerful quad-core chip of the One, but should have plenty of power for social networking, web browsing and a spot of light gaming.

It's running on Android 4.2.2 Jelly Bean, which has HTC's Sense 5 interface slapped over the top. It's the same interface as you'll see on the One, so if you've had a play with one in a shop, there'll be no surprises here. As well as the large, minimalist menu icons, you'll find the same Blinkfeed scrolling news aggregator to the left of the homescreens. If you don't use service like Flipboard then Blinkfeed's constant presence might become annoying, but it's at least an interesting way to keep track of your social networks.

A 5-megapixel camera sits on the back of the phone. The HTC One might only have 4-megapixels to its name, but its pixels are apparently bigger and therefore let in more light for better pictures. How the two cameras measure up side by side will be seen in the full review.

Outlook

With stylings and software taken from its more expensive, more luxurious big brother, the Desire 601 might be a good choice for those of you after an HTC but don't want to splash top dollar on the flagship. Let's hope that HTC sticks to its "affordable" price promise.

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