peter-chou-phones

HTC Looking Towards Mid-Tier Phones, But Has Tough Competition

July 30, 2013 - Written By Alexander Maxham

If there’s one thing HTC is good at, it’s making mid-range devices. I have to say, they probably make the best mid-range phones out of all the manufacturers. Samsung’s mid-rangers are almost useless, the specs are really poor. LG was kind of the face of the mid-range. HTC hasn’t made many mid-range phones for the US. But over in Europe, their Desire line has been really popular. And even their One SV from last year was a great mid-range. Not sure of anyone else who puts a 720p display on a mid-range phone these days.

The Taiwanese manufacturer said during their earnings call on Tuesday that they are planning new products for mid-range that are going to arrive either late Q3 or early Q4. “These series of mid-tier products will help us to regain market share and momentum,” said Peter Chou, the CEO of HTC. The company just recently announced the HTC One Mini, which is one of the better “mini” phones.

HTC’s sales did rebound a bit last quarter, largely in thanks to the HTC One. Since the Butterfly S isn’t available yet. The company said that they expect a further dip in sales for Q3 in large part due to the weakness in the mid-range and low-end market.

The company believes that Q3 sales should dip to about $1.67 billion to $2 billion. Which is down from the $2.36 billion the company made in Q2. Profit margins are also taking a relatively large hit, the company has failed to see hoped-for reductions in building for the HTC One.

Seeing HTC make more mid-range phones will definitely put a smile on my face. I think we need a bit more competition in the mid-range and low-end markets for smartphones. Right now you have a bunch of phones that have “left-over” parts that the OEMs aren’t using. For instance the Galaxy S4 Mini has a 4.3-inch qHD display compared to the 720p display on the 4.3-inch HTC One Mini. Samsung definitely has the high-end market down, but they need to work on other areas as well. Some people do buy midrangers and low-end devices.