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Hey Microsoft, want to compete against the iPhone? Here’s an idea…

May 14th, 2008 Posted in Editorial, Gadgets, Tech News by Justin Flood

Most people who know me, know that I was never a fan of the proposed Microsoft – Yahoo merger. It just seemed like there would be a serious clash of cultures, that there would be too many cooks in the kitchen so to speak, and that it would end up being a colossal waste of 40 billion dollars in the long run.

But there is one company that no one has really mentioned, that would represent a FAR larger bang for Microsoft’s buck, and a chance to really compete in the burgeoning mobile space. Not to mention it’s a company that they deal with on a regular basis anyway.

That company is HTC:

HTClogo.jpg
HTC or Hi Tech Computer Company, is a Taiwanese cellphone maker. More specifically they are pretty much THE best designers of Windows Mobile phones. They are also the one company who has been able to take the generally kludgy and obtuse WIndows Mobile OS, and mod it into some very attractive and useful implementations on phone’s like the T-Mobile Shadow, the HTC touch, and the recently announced (and gorgeous) HTC Touch Diamond.
The current trouble with HTC, is that they are a member of Google’s Open Handset Alliance, and is in the process of creating beautiful Android based phones as well. Depending on how well Android is embraced by the public, it isn’t out of the realm of possibility that HTC would go all-Android, leaving Microsoft without the best designer of Windows Mobile phones, though I’d admit that’s an extremely unlikely scenario.
The best thing Microsoft could do (from Microsoft’s point of view), would be to acquire this company in it’s entirety, and remove it from the O.H.A. Following that, putting the HTC software team onto the task of developing the next version of Windows Mobile. I mean if you’ve seen the Touch Diamond videos, you know that HTC is capable of doing some really neat things with Windows Mobile as it is now. If you haven’t seen it, check out the video below.

Really cool. I have to say, I’m impressed. Now just imagine if that team was actually in charge of WIndows Mobile as a whole! You’d start to see absolutely gorgeous software coming out of Redmond. And bringing the hardware design teams from HTC in house would allow Microsoft to create a line of high-end, sexy, and truly innovative Microsoft branded phones that challenge the notion that Microsoft can’t do hardware. Of course the now HTC-infused Windows Mobile OS would still be licensed to any phone maker that wanted to use it, but having a line of their own would give them partially an Apple level of control on the hardware, and the ability to really start competing in the space with some really cool devices.
Money-wise, it would be a far better deal for Microsoft as well. I can guarantee you that HTC wouldn’t cost anywhere in the REALM of 40 Billion, and in my opinion, focusing on the mobile space would be a far better strategy than trying to out-Google the big G on ad-networks and search.
Now you may ask, “Do you really want Microsoft to DO this!?” The answer is no. I’m a big fan of Free and Open Source software, and I’m really interested to see what HTC’s talented team of developers can do with the Android OS. But you can’t deny that from Microsoft’s point of view, my argument makes a lot of sense.
I may not have an MBA or millions of dollars (yet), but it doesn’t take a genius to see that more and more data, social networking, and messaging is going to done through cellphones and small mobile computers as opposed to the device that’s locked to your desk. The iPhone is just the first step towards that. Any company that really wants to survive in the future has to be playing the game towards that goal. And Microsoft’s purchase of HTC would be a great first step on that path.

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