By Roger Cheng
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Verizon Wireless unveiled Thursday its second device running on Google Inc.'s (GOOG) Android, the Droid Eris, a smartphone getting less fanfare than others but one that is significant to its manufacturer, HTC Corp. (2498.TW).
For the Taiwan-based HTC, having a device with the full support of Verizon Wireless is a huge step towards getting the company's name in the consumer consciousness. The company recently began running commercials touting the HTC name in an effort to build a brand similar to Apple Inc. (AAPL) or Research in Motion Ltd.'s (RIMM) BlackBerry.
The company's challenge, however, is a steep one. HTC not only has to battle other better-known, well-funded smartphone companies for consumer attention, it also has to fight for carrier support. For example, the Eris hits store shelves Friday along with Verizon Wireless' other Android phone, Motorola Inc.'s (MOT) Droid, which has received more fanfare than Eris but comes with a higher price tag--one of the points HTC hopes to exploit.
"We win on design, we win on pricing, and our user experience is already popular," said Jason MacKenzie, HTC's North America unit vice president, said in an interview.
HTC has created unique products such as the HTC Touch Diamond and those using the Windows Mobile operating system, but its support of Google's Android has raised its profile. The company created the first Google phone, G1, as well as its successor in the MyTouch 3G. It also makes the Hero for Sprint Nextel Corp. (S).
The Hero gained some prominence because it was the first device to use HTC's Sense user interface, which is a customized "skin" that runs on top of Android. HTC has used the appeal of its unique user experience and Android to raise its prominence among carriers.
"Our goal is to have a flagship device at every operator," MacKenzie said, adding that it's a slow path to that goal. A year ago, HTC phones had little support from a carrier like Verizon Wireless.
The Eris will sell for $99, suggesting a strong subsidy from Verizon Wireless, jointly owned by Verizon Communications Inc. (VZ) and Vodafone Group Plc (VOD). The Hero, which runs the same Sense and Android software, sells for $180 at Sprint.
While the Droid likely will draw consumers into stores, MacKenzie hopes many will end up snapping up the Eris. He hesitated, however, to make a call on which Droid phone would sell the best.
While HTC's support of Android has put it more in the public spotlight, the company still creates phones using Microsoft's Windows Mobile software. With the attention given to Android, many wonder if HTC isn't better off dropping Microsoft's software, much like Motorola did when it narrowed its focus.
MacKenzie reiterated HTC's support for Windows Mobile, and said he believes HTC phones using that software will remain competitive.
In addition to the broader HTC marketing campaign, MacKenzie said the company will start running commercials for specific handsets. Unlike years past, the company will get marketing support from the carriers.
How HTC's phones fare in the coming smartphone battle this holiday season will go a long way into how the company's future products get positioned by carriers. MacKenzie is unfazed by the unprecedented amount of flashy devices hitting the market and the intense competition.
"The fourth quarter is a launching pad to making HTC a household name," MacKenzie said. "It won't happen overnight, but it's something we're committed to investing to."
-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com