HTC has used Qualcomm processors in their mobile phones for many years, even using them in the HTC Wildfire back in 2007. All of its flagship international devices have used top-of-the-line Snapdragon chips made by Qualcomm.
That’s about to change, though, as the company moves to other chip manufacturers in an effort to cut costs. HTC announced four new phones yesterday for the Taiwan market, three of which do not use Qualcomm CPUs. The single-SIM Desire 300 is the only one which uses Qualcomm with its Snapdragon 400.
According to a news report from Focus Taiwan , HTC is attempting to cut costs by using different CPUs. The new phones announced yesterday are the beginning of this effort and use chips from Spreadtrum, Broadcom, and ST-Ericsson. HTC is expected to continue using partnering with these other companies, especially for their lower-cost devices.
The Taiwanese firm is mulling a similar strategy for its high-end or flagship products in light of an industry trend of launching more low-cost phones with premium specifications, said Jack Tong, head of China and North Asia President at HTC.
The report also notes HTC’s recent losses:
HTC, which reported its first-ever loss in the third quarter since going public in 2002, is shifting its focus to mid-range phones while aiming to stay competitive in the high-end segment.
If HTC is able to source cheaper components and optimize their software appropriately, this could be a good move for them. The new Desire phones announced yesterday, while appealing to some are still priced a lot higher than other entry-level devices like the Moto G. If HTC hopes to succeed with lower cost devices, they need to drive prices down to match the competition. Motorola set the bar with the Moto G and is getting lots of press attention because if it HTC needs to take a page from Motorola’s book and do the same. The new Taiwan Desire models are a good first step
Ultimately, the average user simply doesn’t care what type of CPU is inside their phones, they just want it to work. Hopefully HTC can use this new initiative to save money and to continue making the high quality devices they are known for.