Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
HTC To Emphasize Mid-Tier Smartphones After Declines

HTC To Emphasize Mid-Tier Smartphones After Declines
By Seth Fitzgerald

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market," said HTC Chairwoman Cher Wang in a Reuters interview. That statement was in contrast to HTC's direction in 2012, when CEO Peter Chou said HTC did not plan any worthwhile devices on the cheaper end of the market.
 


Moving to the high end of the smartphone market is never easy. Many manufacturers that have attempted to make a dent in the high end have found it impossible when faced with competition from Samsung and Apple. Surprisingly, the HTC One has remained one of the best premium phones for the past year and some reviews have placed it above equivalent devices from Samsung. While the phone may still be popular, profit margins from the device were not enough to sustain HTC and the company now plans to return to mid-range devices.

HTC is getting ready to release its next flagship device, the M8, which will take over the One's flagship position. Moving forward, however, HTC has announced it will be focusing on mid-range devices in order to recoup the losses that it suffered during its move on the high end of the market.

A Bad Record

During the past 27 months, HTC has repeatedly come back with falling revenues and decreases in market share around the world. Even though the One has been an immensely successful Android smartphone, HTC has concluded it focused too heavily on its one high-end device, which was not enough to sustain the company.

HTC's $10.2 million net profit in the fourth quarter was barely enough to avoid another quarterly loss. Shortly after HTC released the One, it reported the first quarterly loss in the company's history. While Samsung was able to pull out $9.4 billion in profits during Q3 2013, HTC was stuck with a $101 million loss.

Marketing Issues

HTC Chairwoman Cher Wang has recognized that many of the issues that the company encountered during 2013 were the result of marketing mistakes. With the success of the HTC One, the company decided to focus too much on marketing its flagship while moving away from other sectors that were more important to the long-term success of HTC.

"The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market," said Wang in an interview with Reuters. Wang's admission near the end of 2013 was in stark contrast to HTC's public direction in 2012, when CEO Peter Chou went so far as to say that HTC would not have any worthwhile devices in the cheaper areas of the smartphone market.

Chou told The Wall Street Journal that HTC "won't have good products" at less than 1,000 Chinese yuan, or about $165)....We insist on using better materials to make better products that offer premium experience. Many consumers like that."

Now that Chou and HTC's other executives have gone through one of the company's worst years to-date, it makes sense that a shift in focus toward the mid-tier is necessary for HTC to regain its market share around the world and recoup losses from 2013.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Glass Adds Voice Access to Contacts
2.   Samsung, B&N Partner on Nook Tablet
3.   Acer Desktop Box Rides Chrome Wave
4.   Apple Stock Soars Ahead of iPhone 6
5.   HTC One M8 Windows Phone Unveiled


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.