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

We may earn a commission when you click links to retailers and purchase goods. More info.

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



Collapse Show Comments