Let’s talk HTC, how much trouble are they really in?

Ineffective  marketing campaigns

2013 will go down in the history of HTC as a year to remember. We are not ready to see HTC become the next embattled Canadian phone-maker BlackBerry, as this year the company  has focused on making expensive, but unsellable phones. I don’t think the flagship HTC One would be the last premium handset from HTC but looks like the CEO Peter Chou failed to keep up to his promise of massive advertising of his company’s products in the same manner Samsung does with its Galaxy line of phones. This comes despite the company’s expensive and ineffective  marketing campaign, which features the iron man himself Robert Downey J as we see in the video below.

[youtube url=”http://youtu.be/4DLMOzqcMpk”]


HTC predicts a challenging holiday

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The Taiwanese company has this year seen a fair share of issues from top executives quitting, to being sued by Nokia for infringement, to stealing of trade secrets by top designers , and  the on going declining profits despite the sales of the HTC One flagship. The story doesn’t end there early this week,  the company confirmed it slumped to a $102 million loss for the
third quarter of 2013. Its clear the launch of the mini and max versions of its HTC One flagship have filled gaps
in its product line but have not been sufficient enough to get HTC out the the danger financial zone.  One the bright side the HTC One continues to outsell last year’s equivalent smartphone, the HTC One X, and is expected to do so next quarter as well but that not good enough.HTC says it needs to improve both its market share and general profitability and change strategy all together.

Sounds like dejavu, as HTC goes back to low end phones

Today HTC confirms that it would shift focus on manufacturing affordable phones to return to profitability by the end of 2013 by offering consumers lower-priced handsets to regain its shrinking global market share. For me all that sounds like dejavu, its true that the low end phones back in 2011 made HTC a great deal of money, until recently when HTC thought they would pull an Apple move and make only One phone to last it the entire year. I only wonder if their new future focus on low end devices  will work with the flooding low end galaxy phones we see gushed out by Samsung on a weekly basis.

HTC acknowledges that Chinese consumers are inclined toward less expensive units, explaining why Apples iPhone 5C is unpopular in that region and i think that also Applies to Africa. As people would prefer to buy more affordable phones, for example in China where the local brand Xiaomi could sell 100,000 units of its low-cost handsets in 82 seconds.
However, with the shift in focus, there looms a potential shortage of its premium units such as the HTC One, HTC One Mini and HTC One Maxx,especially for the Christmas holiday shopping season. Yes its true HTC is not in a good position right now, this is emphasized by the fact that we don’t see them making any Windows phone in the near future since Nokia seems to be the sole OEM for that platform. But all hope is not lost, we are yet to see if this new localization on low end devices strategy will kick off and take HTC back to the top.