Another handset manufacturer turning to the mobile internet to boost sales. Today, at a splashy launch at the smart Soho Hotel in London, Peter Chou, president and CEO of Taiwanese handset maker HTC, declared 2008 the year of the mobile internet as he brandished the company's latest device, the HTC Touch Diamond, which promises one touch access to a number of features, including the mobile web, photos and music among others, but will in most consumers' eyes appear to be another iPhone knock-off.
That's not to say the handset, which runs on Windows Mobile latest 6.1 version, isn't a worthy contender. The device sports a 3D user interface, a 2.8 inch display that allows users to zoom in on content with the touch wheel or tilt it by turning it on its side, is a mere 11.5 mm thick, making it even thinner than the iPhone, and includes a 3.2 megapixel camera and 4 GB of storage. The handset's designers were challenged with building a device that would be worthy of a place at the Museum of Modern Art and be instantly recognizable from across the street. They did this by creating an uneven surface of diamond shaped panels on the back of the phone. It certainly is recognizable, though it's a matter of personal taste whether its MOMA-worthy. More importantly, it beats the iPhone in the speed department, and runs on HSDPA networks.
The company obviously has high hopes for the Touch Diamond, which it claims has been in the works starting in November 2006 and launches in Europe and Asia in June. HTC's Chief Innovation Officer Horace Luke believes the device could help the company gain market share, and pointedly told Moconews that it was the company's "culture of innovation" that separated it from the struggling Motorola (NYSE: MOT). Will it be able to set itself apart from the iPhone and the growing number of iPhone killers on the market? HTC has done a good job securing a number of operator deals, having worked closely with them to tweak the phone to their liking. In the UK alone, the phone will launch with all five of the country's biggest networks. Orange, which was at the launch as a partner, says it plans to roll out the phone across all 27 of its country markets.
Still, its not hard to see how the HTC Touch Diamond and the growing number of credible iPhone knock-offs, such as the Samsung Instinct, steps up the pressure on Apple (NSDQ: AAPL) to innovate even further, and possibly even to reconsider its distribution model. Earlier today, news surfaced that Apple was not doing its usual exclusive deal in Italy, and had signed agreements with both Vodafone (NYSE: VOD) and Telecom Italia to carry the iPhone. No details have emerged on what this means for the fat revenue share Apple usually wrings from operators to get the iPhone. But rumors have been bubbling up that Apple's European operators have not been happy with the way the Cupertino-based company bosses them around. France's Orange was said to be more than annoyed with Apple's insistence that they cut prices to boost sales—though the network would be eating the loss. Finally, Apple is obviously not Motorola, but it's still an important point to note that Motorola was, in part, brought to its knees when LG (SEO: 066570) and Samsung quickly trotted out knock-offs of its hit handset the Razr.
