HTC Repents For Its High End Smartphone Hubris!
Many observers are asking the question: is the end of honeymoon for the Taiwanese Handset maker HTC nigh?
Not long ago, HTC attempted to raise its Smartphone game to match that of the likes of Samsung and Apple. Little did the company know that the playing field at that level is not the same as the one it is used to be.
It seems there is no way HTC is going to dislodge Samsung and Apple from the summit of Android Smartphone’s. Not that the HTC One and HTC One (M8) makes are inferior, but because it doesn’t have enough financial muscles to compete for the market share and make HTC a household name.
For instance, Apple spent $350.9 million on marketing in the United States. Samsung spent $363 million, while HTC spent just $75.8, about a quarter of what her competitors had spent. It is, therefore, evident that HTC may not gain momentum with this kind of budget.
HTC’s financial accounts have not been impressive in the past two years.
It has posted a record of 27 consecutive months of plummeting revenues as well as dwindling market share. It can be recalled that HTC used to supply 1 in every 10 Smartphone’s sold around the globe, yet in 2013, its global market share dropped to 2%. Latest sales figures show that HTC’s sales are 36% lower than the last year’s.
Following this dismal Smartphone market share performance, HTC seems to be retreating to its lower-end of the Smartphone market with analysts saying HTC One is HTC’s make-or-break product. The problem is that the retreat might be too late because it might find other players such as Levono and Huawei have moved steps up and are new kings in the cheap phone market.
But let’s not be so quick to dismiss HTC because it is trying to put a show, and who knows?
It might as well pull a comeback with its new flagship Smartphone launched on March 25th 2014. The new Smartphone is an upgrade to the award-winning HTC One (M8), and has received raving reviews by those who have used it.
The HTC One (M8) has been praised for its sleek features as well as improved camera technology. It also features updated software from its predecessor and a faster process, the company said. The new phone, with a premium metal body, is clearly better than last year’s HTC One.
But this does not mean HTC One was a flop. It just didn’t receive the attention in the market.