HTC has scrapped plans to produce a large-screen smartphone using Microsoft's operating system because the screen would have had lower resolution than competing models, a person familiar with the project has revealed.
The Windows software doesn't support resolutions as high as that on Google's Android platform, said the person, who asked not to be identified because the information isn't public.
Chief executive Peter Chou's decision to halt the project using Windows Phone 8 software leaves HTC with only Android for phones measuring larger than 5 inches diagonally, dealing a blow to Microsoft in its efforts to win share from Google and Apple.
HTC had planned to introduce the device next year to claw back share from Samsung, which offers Galaxy Note devices with larger screens using Android.
Windows Phone 8, released in October, supports screen resolution of 720 horizontal lines, lower than the 1,080 lines in displays available on Android phones and tablets. Microsoft also limits which processors can be used with manufacturers' devices.
HTC concluded that a larger-screen Windows Phone 8 phone wouldn't be competitive against Android devices from HTC, Samsung and others, the person said.
The company's stock declined 3.2 per cent to NT$274 in Taipei trading today, extending its decline this year to 45 per cent.
HTC's share of the global smartphone market dropped to 4.6 per cent in the third quarter from 10.3 per cent a year earlier, while Samsung's lead widened, according to data compiled by Bloomberg Industries. HTC's share of the US handset market fell to 3.6 per cent from 11.6 percent, according to the data.
HTC is regaining US market share by offering larger, 5-inch screens and full HD resolution, with its Droid DNA being the first model listed as a flagship product by Verizon Communications in almost two years, Fubon Financial Holding Co. analyst Jeff Pu wrote in a November 29th report.
Android snared 72 per cent of the market in the third quarter, while Apple's iOS software had 14 per cent, according to Gartner.
Last month, Microsoft said it is selling four times as many Windows phones as this time a year earlier, helped by the new version of its software.
Bloomberg
