HTC Corp. this week, with its silent brilliance, outdid the market capitalization of Nokia Corp., the Finnish phone giant who collaborated with Microsoft to use Windows Phone 7 (WP7) in all its future smartphones.
With an estimated US$33.8 billion on Wednesday’s market close, the Taiwanese smartphone manufacturer exceeded the US$33.4 billion capitalization of Nokia, clinching the spot as the world’s third largest phone maker behind Samsung Electronics Corp. and Apple Inc.
While HTC’s market cap plunged faintly beneath Nokia before, it is bound to change sooner than later, as both companies move in completely opposing directions for years.
Nearly anonymous to investments three years back, HTC started most of its success as the first beneficiary of Google Inc.’s Android mobile platform, highlighted by the first “Google Phone”, the HTC Dream, in October 2008, and had exclusive use of the operating system for one and a half years.
With shares tripling since end of 2007, technology investors took notice of HTC’s success, such that it became a household name, and with its recent successful launching of its latest Android creation, the HTC Thunderbolt, the company posted record sales profit on Friday.
On the other hand, Nokia has seen rocky decline of share values for years as it continues to slip in a rapidly growing smartphone market to Apple’s iPhone and Android-based devices, especially HTC, Motorola and Samsung.
Moreover, HTC manufactures WP7 smartphones as well, expanding its established array of Android devices.
This is a Blow that will take Nokia a long time to recover as the Symbian phones they are making aren’t good enough to row their boat to the shore before it Sinks, and their stubborn behavior to not to use android or Meego and to dump more Symbian Phones in to the Smartphone market will leave them asking for a Miracle by the time they launch windows phone Handsets.
IDC has predicted that by 2015 Android will be the most used OS followed by WP7 so if Nokia don’t get their Act straight in time they may lose the opportunity to Capitalize and could turn out to be a low and mid range feature phone manufacturer and out of the smartphone race (Although with currently what they have to offer they are out any way)