AH HTC ONE REVIEW 5

HTC Looking Ahead, Shifting Its Focus Towards Cheaper Phones

February 9, 2014 - Written By Orlando Lambert

 

HTC is hurting pretty bad right now. Even with the release of the HTC One, all of their efforts haven’t gone all that well. They have consistently been a company that pushes out truly exceptional high powered top-tier Smartphones. But they are having to learn a pretty hard lesson lately. No matter how many great phones you release, if you can’t make a profit from it, then there is very little that a person can do to make things better. I personally can say that I love my HTC Smartphone and I hope that HTC continues to do well as a company. However, I hate to say it but HTC has not been able to generate the kind of sweeping wind behind it that the companies like Samsung and Apple have been able to generate. They have been making strides and big efforts with the HTC One, but seemingly that is not enough. HTC has been struggling to make a profit and have losses that have been growing and growing. Worse still, that profit struggle has lasted two years. Sales have suffered to the staggering amount of a drop of 80 percent in that same two year time frame, which is definitely not good for HTC. The positive thing is that leadership over at the Taiwanese company has been paying attention. In an interview with Reuters, the Chairwoman and co-founder Cher Wang had a few things to say about the company’s situation.

Wang admits the company has not been taking in the bigger picture saying, “The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market.” That’s a shame as it seems like all the other companies were getting on this sales page. Samsung with their Galaxy Mini’s is going after the low-tier market, and Apple has their iPhone 5C to boast for bringing them into the mid-to-low tier market as well. The champion of Windows Phone, Nokia, has their Lumia 520 to capture the attention of the mid-to-low tier group. You would think with the competition going this direction, HTC would take notice and do something to curb any losses incurred. Apparently they didn’t, hence their current issues.

So what’s HTC’s game plan? It appears they have one. HTC’s Chief Financial Officer, Chailin Chang, gave some information on what the company is planning to do about it. He says that HTC will move to sell more products between $150 and $300 dollars in price for the developed and emerging markets. Chang and the gang at HTC hope that this will help to reverse the slump caused by focusing too much on high-end devices. Chang goes on to state that while focusing on the mid-to-low tier market, they will not give attention to the “very, very low-end market.” They plan to release a new flagship instead and thus deal with the mid-to-low and high-end markets simultaneously and therefore make a stab for becoming profitable again. Wang and Chang hope that this new strategy works as the company has been suffering from the blows, having had two consecutive quarters of losses, and a market share that has weighs in at just 2 percent based on information supplied by Neil Mawston, an analyst for Strategy Analytics. Wang also states that she realizes advertising was weak last year and HTC needs to improve saying that HTC “didn’t do well” with marketing and advertising. This is a gross oversight when compared to how much marketing has come out of the competition lately. HTC only went so far as to hire big-time actor Robert Downey Jr. to help market the HTC One, but it wasn’t enough to bring in additional sales.

So, the heads at HTC hope that by focusing more on the mid tier while releasing another flagship, the company can get its act together. Having phones that cost too much is apparently an issue for HTC as they have 53 phones on sale via their website with 20 of them costing more than $500 and only two of them cost less than $150 dollars. Does that sound a little off to you? It does to me.  They most certainly should lower some prices and then advertise the price change. I’m sure that might get consumers attention. With the HTC One, I would begin to wonder just how much money the company has placed into the pot for it. If they don’t get all of their ducks in a row to market and advertise along with having all the necessary features available to make the phone the best, they will wind up with more losses. Everybody knows that what matters in this competition for the hearts, minds, attention and, ultimately dollars of consumers is what your device brings to the table that sets it apart. HTC has been trying, but, have they been trying hard enough? That remains to be seen with the competition by the likes of Samsung and Apple dominating the space. So, what do you think of HTC’s plan? Do you think it will work? Leave your interesting comments below or on our Facebook, Twitter, and Google Plus page. Keep it locked to Android Headlines for more news and reviews.

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