HTC Looking to China As They Warn of Up To 17% Drop Revenue for Q1 2013
We all know that HTC didn’t have a good year last year and that if something doesn’t give soon, the Taiwanese company could be in deep trouble, real soon. The company tried their best to limit the amount of devices shipped in 2012 through the One Series but, as the summer of last year came to a close, more and more devices were coming from the company. With a strategy that looked very much like the HTC of 2011 – release a lot of phones and just hope for the best. That sort of attitude is something they will have to cut loose as 2013 gets started. The fledgling company has given a bleak forecast of what’s to come, concerning their Q1 financial results, stating that they would be flat or as bad as 17% lower than the past three months.
HTC are hoping that China – and other developing markets – could become a much needed money spinner for the company. HTC Chief Financial Officer Chang Chia-Lin told a conference call of investors that they would be looking to sell phones at a lower price in China. Chia-Lin told investors that they would be looking to sell phones for less than 1,999 Yuan ($320) which is currently their lowest-priced phone in China. However, he went on to say that they’re “going to go down, but not below 1,000″ which could point to HTC looking to sell more budget-minded devices without sacrificing their trademark quality. Getting the balance right between selling devices at low-prices and making a decent profit is difficult and, right now HTC look like they need some profits.
In the West, HTC will be looking to the upcoming M7 to bring back some lost market share but, it could well be too little, too late.
They’re not the only company that’s looking to China to further develop growth, as Tim Cook, CEO of Apple, has said that they are looking to Greater China for new growth. China is the fastest growing sector for smartphones and consumer electronics, and there’s a lot of money to be had. HTC are perhaps at an advantage when compared to Apple, knowing the regional market will help them but, there’s no denying the strong brand that Apple has, not only in the US but Globally. We’re hoping that whatever HTC does, they continue to deliver quality phones here in the West.