HTC To Focus On Cheaper Handsets In Attempt To Reverse Financial Woes--Again
Call it the “Little Caesars’ approach”, if you will: If you’re struggling against the competition on the high end, do an end-around and tackle the low end. That’s the approach HTC is reportedly attempting with its smartphone portfolio as the company slogs through continued dismal financial performance that has seen the once-dominant handset maker hemorrhage market share over the last two years to competitors, most notably current industry juggernaut Samsung.
"The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market," co-founder and Chairwoman Cher Wang told Reuters.
But if that refrain sounds familiar, that’s because the company said it would do just that back in July 2013. At the time, HTC’s Peter Chou said, “We suffered a little bit in this mid-tier market share from the end of last year so far, in terms of competition. However, with this new range of mid-tier products we will address those challenges."
Since then, HTC America laid off 20% of its workforce and HTC endured its first quarterly loss in 11 years. It doesn’t seem as though the mid-tier strategy has worked. HTC is in big trouble.
"The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market," co-founder and Chairwoman Cher Wang told Reuters.
But if that refrain sounds familiar, that’s because the company said it would do just that back in July 2013. At the time, HTC’s Peter Chou said, “We suffered a little bit in this mid-tier market share from the end of last year so far, in terms of competition. However, with this new range of mid-tier products we will address those challenges."
Since then, HTC America laid off 20% of its workforce and HTC endured its first quarterly loss in 11 years. It doesn’t seem as though the mid-tier strategy has worked. HTC is in big trouble.
