Apple Inc. (AAPL), Facebook Inc (FB), Nokia Corporation (ADR) (NOK): Goodbye, HTC

The Finnish smartphone maker said it was just the latest in a long string of cases where HTC was using Nokia Corporation (ADR) (NYSE:NOK) technology without consent, citing over 40 patents that Nokia Corporation (ADR) (NYSE:NOK) has asserted against HTC throughout the world.

HTC said it’s still looking into how big of an impact this could have on its business and is exploring “alternative solutions immediately.” While STMicroelectronics N.V. (ADR) (NYSE:STM) is headquartered in Switzerland, it is organized under the laws of The Netherlands, which suggests that this injunction could potentially be a major blow to the One. HTC could overcome the setback, possibly by switching components, but that may cause even further delays, and this could be the final straw when considered alongside the other recent fumbles.

Farewell
Everything is going wrong for HTC right now. Even after acknowledging the importance of marketing, the company is already making missteps. The component supply chain isn’t giving HTC any respect and is also now a battleground where rivals are trying to stifle its access to crucial ingredients.

CEO and founder Peter Chou said in March that he would step down if the One failed to turn the tide. I would have liked to see HTC mount a turnaround on the strength of a high-quality device like the One, which is garnering impressive reviews from the broader tech press. Sadly, quality products aren’t enough. Marketing and supply chain management are just as — if not more — important.

Goodbye, HTC.

The article Goodbye, HTC originally appeared on Fool.com and is written by Evan Niu, CFA.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple and Facebook. The Motley Fool owns shares of Apple and Facebook.

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