HTC is a company that builds quality devices, and is known for their designs. However, the company has had a difficult time pulling themselves out of the financial hole they’ve been in for the last 2 years. Their latest device may have been an attempt to start that climb, but according to analysts from a financial firm-Canaccord Genuity- sales are on the decline.
HTC has made many attempts to turn the company around and their latest flagship-the HTC One M8-may not have been able to save the company. The M8 wasn’t expected to turn the company completely around, but at least get them pointed in the right direction. The biggest issue for HTC continues to be advertising and their budget allocated to that very important element of any business. Getting movie stars like Gary Oldman for the M8, and Robert Downey Jr. for last years M7, may seem like advertising gold. However, HTC’s biggest competitors simply have more money to spend on advertising. Where we see a few commercials with Gary Oldman sporting the M8, Samsung is busy renting out billboards, and sponsoring events.
The market for mobile devices is one of the most fierce markets around. Technology is constantly moving, growing, and companies have to keep up with each other in every aspect. That competition is one of the biggest reasons HTC’s M8 sales may be slowing down. Michael Walkley, an analyst from Canaccord Genuity says the reason behind the slowdown in M8 sales is “intense high-tier Android smartphone competition.” Companies that use Google’s Android operating system have enough competition between themselves, but they aren’t the only competition in the market.
So far we’ve seen flagship devices from most of the major companies for 2014. Though there’s still the second half of the year and we expect to see Apple come strong with the iPhone 6. So while HTC has to be concerned with other Android device manufacturers, they also have to be concerned with Apple. This is what makes competition in the market so strong-the diversity. While advertising is one of HTC’s weak points, their devices are far from weak.
The HTC One M7, and now M8 are praised for their design and build quality. Some of the more attractive devices come from HTC, which if sold correctly could make that turn around more smooth. HTC is still expected to release a smartwatch later this year, and possibly bring some of their lower end devices into the US. These efforts combined with a stronger ad campaign could turn HTC back into a highly profitable company.