HTC, the Taiwanese manufacturer that is well known for its unique and innovative smartphones was once at the helm of the market but has recently lost a lot of the market share to rivals like Samsung and Motorola. In addition, it has experienced a drastic fall in the value of its share prices leading to speculation that it might be taken over by companies looking to enter the high end smartphone market in a big way. HTC was the first company to release an Android phone back in 2008 with the G1 on T-Mobile and its executives are now constantly discussing about making a comeback in the industry.
While the general perception about the company is that its decline was caused because of competition from giants like Apple and Samsung, the reason for its inability to bounce back appears to be more internal than anything else. In an internal email from the CEO himself, which was leaked recently to the press, it is revealed that too much bureaucracy in the company is preventing quick decision making and formulation of efficient strategies.
HTC has already changed its strategy with respect to the number of models it releases every year. Previously the company would go on a spree of releasing phones which are very similar but in the past year, it went with the “One” branding of phones and stuck to just a few models in the lineup. Moreover, HTC has been trying to market the integration of its phones with Beats audio effectively. There are a few other things that HTC is doing to keep its phones going but it needs to pick up the pace to get back in the game. For example, HTC is currently offering Ice Cream Sandwich updates to its older phones and if it is smart, it will release Jellybean updates as soon as possible. Moreover, HTC normally releases new devices in the fourth quarter which means that the One X is likely to see a faster and more powerful successor. In addition, the introduction of a tablet and phone hybrid should do the company some good.
Finally, HTC seems more intent on emerging markets like South Asia but it has to realize that the margins are low in the segment. It is best for HTC if it can go back to focusing on high end markets with the right products at hand.
