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Home > Mobile News > HTC News > HTC Evo Shortages Hinder Sprint 4G

HTC Evo Shortages Hinder Sprint 4G


By Allen Tsai | Mon Jul 12, 2010 1:40 am

Shortages to the HTC Evo, Sprint's maiden fourth-generation, or 4G, phone are eating into its first-mover advantage in the super-fast technology.

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HTC Evo 4G

HTC Evo 4G

The Overland Park, Kan.-based company, which still offers the country's only 4G network, had hoped that its new network would give it an advantage in attracting data-hungry smartphone users looking for faster speeds for data and video.

But tight supply of the Evo, which maker HTC blames on a lack of touch screen panels from Samsung -- the same parts responsible for pushing back shipments of the Incredible from Verizon -- have limited potential sales and allowed rival carriers to gain ground before launching their own speedier networks.

"We thought we would have more of a head start than we'll end up having," said Dan Hesse, Sprint's chief executive. "Because of the recession last year, general high-tech capacity was taken offline and now it needs to be brought back up."

Samsung is building a $2.2 billion facility to make more display units, but the factory wouldn't start production until 2012.

In the meantime, Verizon plans to roll out its new 4G network starting the end of this year, while AT&T will turn on its new technology early next year.

Sprint, which has only sold 300,000 units of the Evo, recently tied executive compensation more closely to 4G -- boosting the weight calculations for bonuses to 20 percent from 10 percent -- highlighting the importance the company places on the success of its new network.


Posted In: HTC (203) | Problems & Issues (600) | Sprint (444) | 4G (175)


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