Sony and HTC have both been in the news recently, with regards to their financial performance but with different results.

HTC warned that for the first time, it is likely to make a loss in the last quarter results. Sony on the other hand blasted past analysts expectations. And yet both companies have produced some of their best handsets this year, so why is HTC not performing like Sony.

If we remove competition threats from Apple and Samsung, other companies like Nokia and smaller companies ZTE or Huawei are eating away at HTC market share. But that’s not all. Apple, Samsung and Nokia have larger Eco systems. And so does Sony.

Sony sells other devices apart from phones and tablets. It also owns Sony Music and Sony Entertainment Network, so can offer a range of devices that are all designed to work together. Buy the Sony Z Tablet and you are shown the matching TV, headphones and more , all of which are designed supposedly to work effortlessly together. And this is why HTC is struggling. It only sells phones.

I sense a merger or purchase in the next 12 months. But who will succumb?