HTC Could Hurt iPhone, Nokia in China After Strong Push (AAPL, NOK)

Smart phone maker HTC is potentially a very serious threat to Apple’s AAPL iPhone in the Chinese market, writes the Wall Street Journal. At a press conference yesterday, HTC announced it is launching four smartphone models under its own name in China in an effort to establish its brand in the world’s largest cell phone market. Apple has been slow to launch its new products in China, and has a fairly small presence, with just a 7.1% share of smartphone sales in the second quarter. The only version of the iPhone 3GS available in China is a non-Wi-Fi version. Apple hasn't indicated when it would release a WiFi version of the phone or the new iPhone 4. Should HTC follow through on its plan to make a strong push with its own models, it could pose a big threat for Apple, according to analysts. CK Cheng, who is an analyst at CLSA, said HTC is the main beneficiary of China’s carriers looking to offer handsets that can compete with Apple's iPhone. “The biggest problem now for HTC is that their relationships with carriers are relatively weak” in China, where the market is controlled by state-owned carriers. In the U.S. and Western Europe, HTC’s high-end phones have benefited from high carrier subsidies, Cheng said. HTC has not yet announced plans for how much these handsets will cost. Nokia NOK is the leading smart phone maker in China and according to HTC CEO Peter Chou, Nokia’s version of a smartphone is, “a feature phone with a touch screen.” HTC thinks smartphones should give users a “strong Internet experience” and lots of mobile applications. If HTC were to push strongly in China, Nokia's dominant position could fall as well. Shares of Apple are currently trading at $264.02, fractionally lower on the day.