Wireless VantageTM Monthly telecom insights from Compete
HTC: WHITE LABEL OR BOLD NEW BRAND?
By: Elaine Warner & Eleanor Baird
September 23, 2008
On September 23rd, T-Mobile announced that it
would start selling the T-Mobile G1, a phone previously referred to in
many tech blogs as the HTC Dream and the first to use
Google’s Android operating system, in about a
month. Anticipation around this new phone comes at a time
when HTC, a ten-year-old company that has traditionally manufactured
“white label” wireless devices branded by the
carriers, has recently begun the process of building its own brand with
consumers.
With so many strong manufacturer and handset brands already on
the market, can a new entrant get any traction with consumers? Does
launching the T-Mobile G1 as a white label device help or hurt the HTC
brand? We looked at some search data that suggests brand building is
possible, and HTC seems to be succeeding, but with strong sub-brands.
Search is a barometer of brand awareness, providing insight into what
consumers are thinking about and looking for on the web. In
the last several months, there have been dramatic increases in the
number of people searching at major search engines using terms that
included the HTC brand name, as shown in the graph on the
right. We can see large increases in volume between April and
July of this year, with a steady upward trend since July 2007. A key to
HTC’s success could be in the strength of its individual
products and the marketing supporting them, that create strong
sub-brands.
STRONG SUB-BRANDS MAY BE THE KEY TO KEEPING HTC TOP OF MIND
Taking a more detailed look at the search terms we charted in the first
graph, we see that terms including ‘HTC Touch’
performed well in the last year, making up an average of nearly 60% of
HTC-related searches.
What could this mean? The HTC Touch and the marketing around it has had a substantive impact on consumer consciousness, capturing a large proportion of searches performed that relate to HTC.
Consider
the two charts together. First, we see large increases in total
HTC-related searches between April and July. The peak of ‘HTC
Touch’ in terms of searches occurred in March and levels off
in the 50-60% range between April and July. So it seems that overall
knowledge of the brand is increasing, but high-profile product names
still remain crucial to keeping a place in consumers’
minds. HTC has clearly had some success in building a brand,
a valuable asset at a time when OEM
sites have become an increasingly important factor in the
handset research and shopping process. When the T-Mobile G1 is
available in a few weeks’ time, we’ll see how this
high-profile white-label phone will have an impact on the OEM brand.


