Dashwire to help HTC fill cloud portfolio gap: analyst

by admin on August 9, 2011

Taipei, Aug. 7 (CNA) Taiwanese smartphone maker HTC Corp. was responding to pressure to expand its product portfolio in the mobile market when it decided to acquire mobile-web application company Dashwire Inc., a Taipei-based analyst said recently.

“It’s the right direction,” Joey Yen, a senior analyst at International Data Corp. (IDC), told CNA.

“HTC has grown to a scale that could not be supported only by existing research and development manpower, so the company had to expand its technological power and patent portfolio by merging or acquiring other firms.”

Facing fierce competition from rivals Apple Inc. and Samsung Electronics Co., the move will also save HTC RD expenses in launching ready-to-use products or services in the growing cloud market, she added.

HTC announced on Aug. 5 the acquisition of Seattle-based Dashwire for up to US$18.5 million (NT$536.7 million), saying that mobile communications and cloud computing technologies hold the key to the company’s future development.

Founded in 2006, Dashwire offers a range of consumer, social and device management software services for mobile operators, device makers and retailers. Its platform is available for Google’s Android, Microsoft’s Windows Mobile, Nokia’s Symbian and RIM’s BlackBerry.

Earlier in July, HTC purchased California-based graphics chipset designer S3 Graphics Co. Ltd for US$300 million (NT$8.64 billion) to expand its patent portfolio following a legal battle against Apple.

In February, HTC announced the acquisitions of London-based digital content provider Saffron Digital and U.S.-based on-demand gaming service provider OnLive, for 30 million British pounds (NT$1.4 billion) and US$40 million (NT$1.18 billion), respectively, to attract more customers through added services.

“These acquisitions may help HTC differentiate products in the cloud era and maintain a leading position over other Android device manufacturers,” Yen said.

The analyst doubted, however, whether HTC could offer as integrated a service as Apple’s iCloud service because Apple has created a closed ecosystem in which its supply-chain partners have to follow its own product customization rules.

(By Jeffrey Wu) ENDITEM/ls

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