Windows Phone is important to HTC. While HTC have Android devices, Samsung's Galaxy devices are incredibly stong in the Android space, adn Windows Phone gives them an opportunity to have a breakout device, such as the Windows Phone 8X.
Both companies need a hit. Microsoft, two years after completely overhauling its mobile software, risks being shut out of the growing market by smartphones based on Google’s Android software and Apple’s iPhones. HTC, which also makes Android phones, in October forecast its lowest sales in 11 quarters as it loses Android customers to Samsung Electronics Co.
But there are more parties in this relationship, Nokia being the other current major player in Windows Phone:
As Microsoft and HTC forge closer ties, at least one company that stands to lose is Nokia. Through last year’s deal, Nokia switched its smartphones to Windows in exchange for marketing and development funds. That agreement was crafted by Nokia CEO Stephen Elop, a former Microsoft executive. “We view Android and Apple as our primary competition,” said Doug Dawson, a spokesman for Nokia. “As such, we welcome the momentum behind the Windows Phone ecosystem.”
It's important for Microsoft to keep in mind the needs of all their partners as well as the health of Windows Phone as a whole. A strong competitive ecosystem is important for the platform, and allows the hardware partners to have something to measure themselves against and aim higher for the next generation of devices.