HTC One (M7) Competing Galaxy S3 and iPhone 5

HTC-One-97HTC launched its new flagship model “One” (previously known as M7) on 19 February. Compared with ‘Butterfly’, One features a smaller size screen (4.7-inch, versus 5″), more powerful AP (1.7 GHz quad core, versus 1.5 GHz), higher resolution (468 ppi, versus 441 ppi), metallic feeling (aluminium unibody casing, versus polycarbonate), better sound quality (dual front-facing speaker-box) and bigger battery capacity (2,300 mAh, versus 2,020 mAh). Weight/thickness are similar to Butterfly.

It has an impressive HD voice (positive for AAC). Its “ultrapixel” camera seems to deliver decent picture quality, but it remains debatable if this is as good as the 13 MP found in most flagship models. The aluminium unibody design makes the device a bit warmer than others, which mostly used polycarbonate casings. We believe the 4MP large pixel sensor allows HTC One to have better picture quality in low light environment and much better shutter speed. The lower resolution is unlikely to hurt the image quality as the human eye won’t be able to detect the difference between 4MP and 8MP on a 5 inch screen.

The new HTC “One” is a decent product, competition could remain intense in 2Q13, as most flagship models have a similar design (FHD, thinner design, and customised camera functions). With iPhone 5 demand continuing to be weak, we think HTC One has a chance to achieve decent volume if HTC can solve the yield rate problem of its camera (OIS, Optical Image Stabilizer) and come out with the right marketing message. However, we believe HTC’s problem lies more with its marketing muscle than its product.