HTC is having a hard time making an impact in the smartphone market that is now divided between Samsung and Apple. Given that HTC was the first company to make smartphones using Google’s Android software; this is a sad state of affairs for the once-trendsetting company. HTC’s smartphone line started way back in 2006, with the Taiwanese company find favour with consumers due to its low prices, competitive design and the customized Sense UI. However, due to its rivals moving much quicker in the fast-paced smartphone industry, HTC’s sales have been hit badly since the second half of 2011. By trying to cater to a wide range of customers, HTC missed out on the ‘must have phone’ tactic that Apple relies on.
On Friday, HTC reported a 79 per cent drop in third quarter profits, now down to 99 million dollars, its fourth consecutive quarterly profit loss. And it could get worse, reports say. Despite pre-Christmas buying sprees and new Windows Phone 8 devices, revenue is expected to drop even further. Analysts at the Taiwan Industrial Technological Research Institute agree that while the design capabilities and technology employed by the company is still top-notch, the company has failed to implement its ideas in a practically useful manner. HTC has been unable to keep up momentum in western markets of the US and Europe, and now Apple is fast encroaching upon its dominance in eastern markets as well.
HTC achieved its peak performance in the first quarter of 2011, when it shipped over 12 million phones across the world. However, all hope is not lost for the Taiwanese company, according to analysts, if it can form an alliance with TV and tablet manufacturers to share media across different devices. China also remains an untapped market for HTC, given that the trade between the two countries (Taiwan and China) has been rapidly increasing. This will provide new avenues of growth for the company if it can design phones with features that the Chinese consumer desires. It is estimated that the sale of smartphones in China is up 36 per cent from last year, of which HTC has less than 10 per cent of the total sales volume. By focussing on the design of only a few models that are targeted towards particular prospective clientele, HTC might be able to turn the tables on Apple and Samsung.
