HTC Looking to China As They Warn of Up To 17% Drop Revenue for Q1 2013

| February 4, 2013 | 2 Replies

htc-logo-sign-legendWe 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.

[Source: Reuters]

Category: Android News, Android News Worldwide

About Tom Dawson ()

For years now I've had a heavy interest in technology, I grew up with 8-bit computers and gaming consoles and have been using Linux for years now. Android saved me from the boredom of iOS years ago and I've loved every minute of it. As a big reader and writer nothing pleases me more than to write about the exciting world of Android and technology as a whole.
  • craig0r

    You know, a year ago, HTC acknowledged that they had a branding fragmentation problem. So, they launched the One series. But the screwed it up SOOO bad! The One X in Canada/America is not the same device as it is in the UK, and that same US/Canada phone is called the One XL in Australia, and again that same devices is called the Evo 4G on Sprint. Then there’s the Butterfly and the DNA. So basically, they recognized the problem and did NOTHING to fix it. This year, from a branding standpoint, looked just like every other year for HTC. If you’re going to acknowledge your marketing problems, you should fix them. I love HTC and will buy HTC phones until I no longer have that option, but someone high up in HTC’s marketing department needs to be fired. Branding is the one thing Samsung does better. Galaxy. Enough said.

  • craig0r

    Seriously, Samsung’s phones have been the “Galaxy” for the past, what, three years? The only question you need to ask someone when you see them with a Samsung phone is, “Is that the Galaxy 2? Or the Galaxy 3 you’ve got there?”