LAS VEGAS -- The launch of Google's Nexus One smart phone appears to have been a mess of customer service mishaps, delayed international launches and lower-than-expected sales figures. Nevertheless, HTC Chief Executive Peter Chou, whose company designed the Nexus One, considers the device a success.
In an interview Wednesday at the CTIA Wireless conference in Las Vegas, Chou said the Nexus One's innovative design would help HTC attract new business, regardless of its consumer reception. The phone, which Google ( GOOG - news - people ) is selling direct to consumers through an online store, was the first device to feature Google turn-by-turn driving directions and carry the latest version (2.1) of Google's Android operating system, among other features.
Chou says the experience will improve HTC's other Google Android phones. "We can quickly leverage that credit to show that we are the top Android brand," he contends. Google is also satisfied with the phone, according to Chou. "[Google's] goal with the Nexus One was to really show how good Android can be," Chou said. "In that regard, I think it has been an achievement."
Earlier this month, mobile analytics firm Flurry estimated that the Nexus One had sold fewer than 150,000 units since its January debut. Analysts at Goldman Sachs ( GS - news - people ) have also said the phone didn't meet sales expectations. Chou declined to comment on sales, saying only, "Considering Google didn't do [standard] retail or marketing for it, the Nexus One is doing pretty well."
Indeed, these days, HTC seems chipper about everything, including a patent lawsuit from Apple ( AAPL - news - people ). In early March the iPhone maker charged the company with infringing 20 of its technology patents. HTC has said it will vigorously defend itself. (See "HTC Vows To Fight Apple Suit.")
The suit didn't stop Chou from enthusiastically introducing HTC's newest phone, the EVO 4G, on Tuesday at CTIA. Chou was equally upbeat about Microsoft's ( MSFT - news - people ) updated mobile operating system, Windows Phone 7, describing himself as "thrilled" with the many changes Microsoft made to the software. "They're putting in tremendous effort to make Windows Phone 7 very appealing and competitive," he said. HTC expects to release a Windows Phone 7 device before the end of the year, Chou added.
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Even as it turns its attention to Windows Phone 7, HTC plans to keep supporting older versions of Microsoft's mobile operating system. "Windows Mobile 6.5 and 7 will coexist," said Chou, explaining that corporate users in particular are likely to keep using the older software.
One high-profile example is HTC's HD2, a feature-packed, Windows Mobile 6.5 handset that T-Mobile USA began selling on Wednesday. Jason Mackenzie, vice president of HTC's North American division, says the company was pleased with first-day sales and expected the device to be "viable" for the rest of the year.
Mackenzie says HTC also expects to launch two Android phones with No. 2 carrier AT&T ( T - news - people ) in coming months.
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Labels: Android , Google , HTC
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