Most high-end smartphones will offer the same set of features like Wi-Fi, 3G, Bluetooth, and GPS capabilities. In order to stand out in an increasingly competitive smartphone market, companies have to focus on the operating system, and the physical design of the handset.

With that in mind, HTC has acquired design firm One & Co for an undisclosed amount to focus on the aesthetics of its smartphones.

"Design is key, it is why you love or hate something," said Horace Luke, chief innovation officer at HTC, in a statement. "Integrating iconic design into HTC products is an inspiring and dynamic challenge that requires a unique combination of consumer insight, creativity, innovation, and an appetite to take risks."

One & Co is an industrial design company that has worked with a diverse group of clients including Apple, JanSport, Microsoft, Nike, and TiVo. The company has been working with HTC since 2006 and was involved in the creation of the HTC Touch Diamond, Touch Pro, and the S740.

"One & Co is excited to bring our lifestyle, user-focused approach to HTC and we look forward to creating iconic, compelling products together," said Scott Croyle, partner of One & Co, in a statement. "Knowing about HTC's cutting-edge technology and proven track record of innovation, we are excited to collaborate with HTC as a global lifestyle brand."

The deal appears to be a prudent one, as the Touch line of smartphones has helped turn HTC from a relatively obscure brand into a significant player in the smartphone market. The company is gaining traction in the United States, and the Touch Pro has already been picked up by AT&T, Verizon, Sprint, and Alltel.