Development of the new smartphone operating system is part of an
attempt by HTC to tap the growing demand for smartphones in China, as sales of
its Android-based devices dwindle in other parts of the world.
It is not clear whether the operating system will be built from
scratch or on top of Android, but according to the Wall Street Journal, the software will offer
deep integration with Chinese microblogging service Weibo, helping to build its
appeal among Chinese consumers.
HTC's new operating system will play into broader efforts by the
Chinese government to develop a local software ecosystem and reduce reliance on
US tech giants like Google and Apple.
In March, China's technology ministry said that the country's
mobile industry is too dependent on Google's Android operating system, praising
Chinese internet giants Alibaba and Baidu for creating their own systems.
However, Taiwanese PC maker Acer was forced to cancel the launch
of its smartphone running Alibaba's software last year, after Google accused
the operating system of infringing on Android and threatened to stop working
with Acer. Alibaba has denied the allegations.
HTC’s profits have plummeted over the past two years and the
company is now predicting its first loss in history as it continues to lose market
share to Samsung. However, the company’s Chinese market share grew from 2.6
percent in the first three months of this year to 6 percent in the second
quarter.
Samsung leads in China with a 19.4 percent share of the
smartphone market, according to Strategy Analytics data,
while Chinese handset makers Lenovo, Coolpad and ZTE each have between 9.7
percent and 12.3 percent. Huawei holds 9.6 percent, and Apple had 3.4 percent.
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