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HTC Looking to Achieve Profitability by Focusing on Low-End Devices and Better Marketing

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It’s no secret around the industry that HTC’s profitability and market share have declined in recent years, thanks to a few unsuccessful launches and a public unwilling to completely adopt its hardware as much as Samsung’s. While speaking to Reuters ahead of HTC’s earnings guidance presentation, executives outlined a new two-tier approach that will place greater emphasis on low-cost devices and effective marketing.

Under the guidance of co-founder and Chairwoman Cher Wang, HTC aims to offer more products in the $150 to $300 price range. The higher-volume sales of these cheaper devices are expected to offset losses on premium, $600-and-up devices, which the company expects will only see “incremental” growth this year.

Marketing, an area HTC has historically struggled with, will see a big push this year both stateside and abroad. In China, where the highest-growth price bracket are devices that cost less than $150, the company will aim to aggressively compete with offerings from LG and Huawei.

The new strategy doesn’t mean high-end HTC smartphones are going away anytime soon. In fact, Wang said the company plans to send out invites to a press event for its HTC One successor in a few weeks. However, HTC’s new focus on the profitable low-end will probably result comparatively few high-end offerings. As anyone familiar with Samsung’s confusing myriad of Galaxy variants will tell you, that’s probably not a bad thing.

Via: Reuters
  • Blue Sun

    HTC, you want to build a customer base? Try supporting devices promptly & longer than 15 months.

  • Godzilla

    Like i said…….last ditch effort

  • carl rainey

    My wife had both the Thunderbolt and the Rezound. Sorry HTC never again

  • AbbyZFresh

    Sorry HTC, Samsung and the Moto G already have that market on lock. Try the mid-range.

  • EC8CH

    Any chance when they go belly up next year Google buys them and pulls a Moto job on them, replacing all of their gimmicky features with awesome ones before quickly selling them off again? It’s like Google kicking android manufactures in the pants and telling them to get their $h!t together before booting them back into the real world.

    • Ajmobileguru

      Wouldnt that make all phones look exactly similar software wise? Where is the differentiation?

    • 4g63mark

      Google sold off an American company to China. HTC is not an American company so the impact wouldn’t be the same for Americans……… I think this is a good move by HTC. I refuse to purchase any phone above 4.7 inches. It’s just too big for 1 handed use. Give me more phones like the Moto X and Droid Mini and I’ll show you profit.

  • Chris

    Get rid of the ceo and htc may stand a chance.

  • Alec

    I think it’s a good idea that they are focusing on low-end devices now as well. At this time, it’s just too hard to only compete with Samsung and Apple on the high-end “flagship” devices and HTC has learned that the hard way(millions in losses). I hope they can make a rebound and stay in the smartphone game because they still do make quality software and excellent hardware.

    • ButThatsJustMe

      If you concede the high end market to Apple and Samsung, how will HTC even get back in? Everyone will just see them as “that budget manufacturer”. People spend 300-500 every 2 years on their phones already, 300 dollars isn’t much for something you use everyday. If HTC can’t convince people to pay 300, they aren’t going to survive on free on 2 year contract phones.

      • Chris

        By this time next year I have a felling we will no longer have two year contracts

        • ButThatsJustMe

          Ok then it is 800 over 2 years (33 a month) or lets say you want a new Galaxy S* every year (66 a month), that is 1 night of sashimi for 12 months of a top end phone. If phones start replacing keys, credit cards, etc, there will be no reason to get a budget HTC phone.

      • Alec

        I don’t exactly know where you are coming from. Apple and Samsung are the only companies not losing money on smart phones (that’s a fact). I don’t ever expect HTC to be on the same level as them (and I don’t think they do either) which why they are focusing on lower end devices as well now because it’s a market that anyone has a shot at right now.

  • jb

    I’m still holding a tech-grudge from the Thunderbolt. HTC deserves their low market share for crap like that.

    • carl rainey

      I would also add the Rezound to the grudge list. Is the built in Beats any better than it was or does it still only work with the stock app, heat the phone up, and use a ton of battery? HTC took forever to update it to ICS.

      • TC Infantino

        While I did like my Rezound for it’s screen and it’s great built in speaker. You hit the nail on the head with the overheating and horrible battery. If you played any game, or watched videos on the Rezound it would heat up almost too hot to hold comfortably. I went through 3 warranty replacements for overheating. And the battery….I quickly learned that I needed to buy an extended battery if I wanted any kind of use out of the phone without it being plugged in. And not long after, I bought two more extended batteries, and used them to swap out because they still wouldn’t give me the life I needed to get through the day with even medium use of the phone. It was a great phone if you could have it plugged in all the time, and had a stand so you wouldn’t burn your hands. /s

    • Ajmobileguru

      I hear u bro! Thunderbolt was an industry first and got the terrible step motherly treatment from HTC and frankly the early adopters of the first LTE phone deserved a better deal.

    • crazed_z06

      Agreed. I will never forgive HTC for the thunderbolt.

  • SynGuest

    Unless they start to support the phones they make, I’ll never sail the HTC seas again. I only fell for that trick once with my Tbolt.

    • The Narrator

      HTC One on all carriers is getting or has gotten 4.4.2.

      • SynGuest

        Do you think the One will get any further updates? I think I got a major update for my Tbolt once too.

        • The Narrator

          Possibly. HTC has been committed to updated it’s flagship on time. I don’t know what’s after 4.4

          • SynGuest

            Considering they said the one X was going to get 4.4, then turned around and said 4.2.2 was as far as they were going… Basically all of their phones get one major update despite promising more. If you’re lucky that major update is only a year old.

          • wade_county

            Exactly this. I feel sorry for HTC One owners because it will be the last update they’ll ever get. HTC will promise you that it will get the next version only to get your hopes up that it will NOT 8 months later.

      • Cael

        They have more phones than just the One….

      • alzeis

        I have 4.4.2 I got it last weekend on Sprint. PS I love HTC phones always have and always will

  • Good_Ole_Pinocchio

    HTC. You said that about Marketing last year. Then you wasted money on Iron Man. Hope they have better ideas. Quite frankly if they were serious about Marketing they would have had the M8 ready to go, and have a launch AD during the SuperBowl.

    • rawr

      How did Hipster Troll Carwash not sell you on a HTC phone?

      Also Mclaren, Lotus, Ferrari, Pagani, Tesla, etc don’t have budget cars and they all seem to be doing fine. HTC has bigger problems than not having cheap phones for sale.

      • The Narrator

        You’re comparing auto makers to phones?

        • rawr

          Yes

          Are they not both items you use every day to do things?

          • The Narrator

            Yes, but not a $500,000 car. You compared it to high end cars.

          • rawr

            Well Lotus and Tesla are only ~80k, regardless the point was that selling volume of cheaper cars isn’t necessary to make money, high end only can work..

          • 4g63mark

            Tesla will soon be selling their lower cost higher volume model. They expect to profit most from this model.

    • Chris

      Robert Downey Jr.

    • Cael

      HTC is going to get Superman or Wolverine this year.