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HTC will not produce low-end phones and destroy its brand image says Peter Chou

Posted: , by Alan F.

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HTC will not produce low-end phones and destroy its brand image says Peter Chou
In an interview with the WSJ, HTC CEO Peter Chou repeated his desire to protect his company's brand image by not producing super low-end handsets just to increase shipment numbers. While HTC has recently released high-end models like the HTC One X and the HTC EVO 4G LTE, it also has produced models like the HTC One V. The latter might be considered low end in the U.S., but not in some other locations around the globe. For example, in China HTC phones start at 2,000 ($313 USD) yuan while a competitor like Motorola might sell a phone for 1,000 yuan. Chou says that at that price, you won't find good products.
"We don't want to destroy our brand image," Mr. Chou said. "We insist on using better materials to make better products that offer premium experience. Many consumers like that."-HTC CEO Peter Chou
According to Gartner, HTC's market share was only 3% in China last year while Apple had 9.9% of that market and Samsung 18.6%. Nomura Securities Aaron Jeng said that last year was a tough one for HTC in China and that 2013 could be tougher. Chou said that HTC's shipments to China will triple this year.

The HTC One V might be low-end in the U.S. but mid to high-range elsewhere

The HTC One V might be low-end in the U.S. but mid to high-range elsewhere

In the U.S., HTC was at one time the most popular non-Apple name in handsets before losing that title to Samsung. And while Chou says he wants to improve HTC's numbers in Europe, the Middle East and Africa, he also would like to make up the sales in China lost to Apple and Samsung. HTC is also losing share to upstart Chinese manufacturers like Huawei and ZTE that offer feature rich models at low prices. RBS analyst Wanli Wang says that there is enough room in China to support many different segments. Wang says that HTC needs to identify the segment it wants to be in and then execute the strategy.

China is an important region for HTC and many Chinese are now switching to low-end smartphones according to Nomura's Jeng. Jeng says that with all of the features now found in cheaper phones in the country, many Chinese smartphone buyers say that the cheap models are good enough for them to use.

source: WallStreetJournal

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posted on 13 Jun 2012, 22:17 8

1. tlsmithsr (Posts: 81; Member since: 28 Sep 2010)

To Late

posted on 13 Jun 2012, 22:19 6

2. eDiesel (Posts: 142; Member since: 17 Mar 2012)


posted on 13 Jun 2012, 22:22 5

3. tlsmithsr (Posts: 81; Member since: 28 Sep 2010)

LMAO @ "The HTC One V might be low-end in the U.S. but mid to higher-range elsewhere" I guess we can say the same for the Nokia 3310

posted on 13 Jun 2012, 22:33 8

5. mafiaprinc3 (Posts: 543; Member since: 07 May 2012)

lmao good one.i think the company should keep a balance set of handsets, a few low,mid & high end phones,not everyone will have the finance to buy their high end phones like one x.

look at samsung,lg,sony & motorola they're all serving off a balance diet, htc will starve!!

posted on 13 Jun 2012, 22:31 2

4. wendygarett (unregistered)

htc please make your oneV price at $199 in us...
Not 1year later... I MEAN NOW!!!

posted on 13 Jun 2012, 23:36 5

11. wendygarett (unregistered)

sorry should be $99 :)

posted on 14 Jun 2012, 00:55

24. thelegend6657 (unregistered)

Get desireC

posted on 13 Jun 2012, 22:45 9

6. RaKithAPeiRiZ (Posts: 1488; Member since: 29 Dec 2011)

Htc should be reminded that some mistakes in the flagships also ruins the company's image

posted on 14 Jun 2012, 02:49 2

35. kanagadeepan (Posts: 930; Member since: 24 Jan 2012)

Yes.. The multi-tasking issue in OneX... NON-Removable battery and no external SD card options are few....

posted on 13 Jun 2012, 22:45 8

7. Sangeet (Posts: 232; Member since: 21 Apr 2012)

If the same thing continues then India and other Asian countries will forget that there is even a company named HTC, cuz in India many people can't even afford HTC Explorer and that is their cheapest device for now here. Only a few people have high end phones here in India as there is no contract system, we have to buy it for unlocked prices and hence they costs us very much.

Therefore no chance of HTC in India if they don't make budget phones.

posted on 13 Jun 2012, 23:07 3

8. mas11 (Posts: 1034; Member since: 30 Mar 2012)

To me that comes off as being elitist.

posted on 14 Jun 2012, 09:06

41. ardent1 (Posts: 2000; Member since: 16 Apr 2011)

You mean like how android fans think Android OS is the best and the rest like Windows or Blackberry et al is just crap.

posted on 13 Jun 2012, 23:34 4

9. Vedang (Posts: 1; Member since: 13 Jun 2012)

hTC was my first choice, few month back.
But there market strategy is below level.
they should not price their device higher and then reducing drastically after 4 or 5 mnths.

posted on 13 Jun 2012, 23:36 5

10. JcHnd (Posts: 97; Member since: 30 Apr 2012)

Greedy people... I mean they dont have millions of sheeps as @ppl3... so their plan can't work right now

posted on 13 Jun 2012, 23:40 6

12. Whateverman (Posts: 3269; Member since: 17 May 2009)

HTC makes damn good phones IMO, but they all look alike and the little tweaks to Sense just aren't enough. Get rid of that damn clock, redesign it or something. It's looked exactly the same on every phone except the Rhyme. Please, please change it up so I can stop walking past your phones every time I go into a store. I actually have the Razr and I still stop to look at the other Razrs they have on display.

posted on 13 Jun 2012, 23:50 2

13. groupsacc (Posts: 232; Member since: 28 Feb 2012)

Sounds like a plan. Like Ferrari of smartphones. But first you need a phone that kicks all other phones' a$$'s. Like Ferrari 458 kicks all other cars in their a$$'s. You can't become a luxury brand making Toyotas.

I think it'd be better to target low and mid range markets also, but reserve a series of models to target the high-end, like the One X series. Like what Toyota does with Lexus. You can't just barge out of nowhere and only make Ferraris, that kind of cockiness will leave the company in financial ruins.

posted on 14 Jun 2012, 01:23 2

27. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

eh the mp4-12c destroys the ferrari 458... just saying... but i think the one x is a fabulous phone... they need a but more advertising though... i never see htc commercials on TV for their prime phones...

and yes u are right there is no reason to not make low-quality phones... it work for apple and samsung... and those two brands often are seen to have higher quality than htc... they just need to actually create and market some products instead of just idealizing their "tripling shipments in china" which is not a huge accomplishment considering how fast the market is growing there..

posted on 13 Jun 2012, 23:59 4

14. schecter7 (Posts: 99; Member since: 20 Apr 2012)

HTC has been making high end phones from the very beginning. That's what they are good at. Unlike Nokia and Samsung, they don't have experience and resources for developing low end phones. Instead of jumping into something new, they decided to get things right with the existing business model - which is pretty wise in my opinion. One X is certainly a step towards the right direction.

posted on 14 Jun 2012, 00:13 6

15. remixfa (Posts: 14255; Member since: 19 Dec 2008)

thats bull crap.

they are no different than any other manufacturer. They make low end phones just as much if not more than the next guy. they can scream "premium" all they want, but when they pack the phone with bloatware and "Sense" to the point that it makes it laggy and has very low memory for the user to install apps on.. I call that "low end". Besides, not but a few months ago it put out the HTC Wildfire which had a 528mhz processor and specs no different than the mytouch 3g they put out in 2010. LOW END is a good margin of HTC's business.

And again, thats no different than anyone. HTC, Samsung, APPLE, Moto, LG, ect, they all have phones that fill out the "low end" segment.

posted on 14 Jun 2012, 00:20 4

16. schecter7 (Posts: 99; Member since: 20 Apr 2012)

You certainly don't know a shiit about cell phone history. Your knowledge can't seem to go beyond 2010 (it's related to Samsung I think). HTC was manufacturing $700 -800 sets in 2004/2005. Obviously you did not see those. You are stuck with the garbage phones tmobile sells here. It really doesn't matter what you consider as 'low end'. In the true low end market, your Samsung is the true king - historically. And they lag more than anything else.

posted on 14 Jun 2012, 00:26 3

17. schecter7 (Posts: 99; Member since: 20 Apr 2012)

Sense is garbage - I'll give you that. Touchwiz is just another garbage. But they are gonna be there and they will evolve and will become crappier over time. We just have to live with that.

posted on 14 Jun 2012, 00:32 7

18. groupsacc (Posts: 232; Member since: 28 Feb 2012)

Wow.. why so angry man.. chill out. Sense and TouchWiz, they are both good UIs. If you don't like them, you can always use Apex or Nova launchers, or even install a custom ROM. That's the beauty of Android.

posted on 14 Jun 2012, 00:36 3

20. wendygarett (unregistered)

you never appreciate the beauty of android :)

posted on 14 Jun 2012, 00:37 5

21. groupsacc (Posts: 232; Member since: 28 Feb 2012)

For sure, Sense and TouchWiz were clumsy and cumbersome in the early years; but check out One X and Galaxy S3, they are so much morre refined now. It'd be a difficult choice to install third-party launchers over them.

posted on 14 Jun 2012, 00:44 2

22. wendygarett (unregistered)

some of my friends having htc
However they hate the boring sense and say that its nothing but a breakfast sausage. So they root it instead but few weeks later, they say they miss sense, but they dont know how to unroot it back, so they keep remind me that when you have htc, dont root it :(

posted on 14 Jun 2012, 00:56 1

25. schecter7 (Posts: 99; Member since: 20 Apr 2012)

lol - I agree. They are part of the beauty - ironically :). So are the launcher apps :) . But you know when you see 200 MB of free memory left (Out of 1 GB) and you've already rooted the s**t out of it and you keep flashing half-baked custom ROMs without full satisfaction, then you really want Google to speak up and shove those crappy UIs up those wannabe HW companies ass. Just my 2 cents :)

posted on 14 Jun 2012, 03:09

37. groupsacc (Posts: 232; Member since: 28 Feb 2012)

Well, they can't satisfy everyone. A Nexus phone with stock ICS for you buddy.

posted on 14 Jun 2012, 00:33 5

19. remixfa (Posts: 14255; Member since: 19 Dec 2008)

ok, other than your an ignoramus that just makes snap judgements... something tells me that i was using cell phones before u got out of diapers. so back up.

i know more about the cell industry than most here. I dont need to waive it around like a flag though. HTC used to sell as A CARRIER BRANDED PHONE for 500 bux UNLOCKED which was nearly unheard of back in the windows 5/6xx days. Before Android it was A RARITY to see an HTC phone actually say HTC. One of the few I can think of that didnt completely suck is the HTC 6800.

And i cantell you.. FROM EXPERIENCE that those old HTC phones were giant POS's because they would come in more than ANY OTHER brand to be repaired, replaced, or wiped and rebooted. How do I know? Because I worked the darn industry when it was going on.

What I CONCIDER low end, is what is low end. Period. I hold no preference to any brand. Not a single brand pays me for a biased opinion and I will not give one. Just because you dont like it, doesnt mean IM the one with the issue. Here's a mirror, look at it closely.

posted on 14 Jun 2012, 00:49 3

23. schecter7 (Posts: 99; Member since: 20 Apr 2012)

Actually HTC was making even higher ends for UK carriers like O2. Those were the most expensive phones back in 2004/5. I always use imports so I know how behind US market was before iphone came in. Pretty much any high end phone was a rarity in the US, but not in the rest of the world. And those were not POS as you are trying to picture. 2004 phone with 500 MHz processor, wifi, etc can't be a POS - so I'd not buy your diaper reference.

Low end is not HTC's main segment like they way you're screaming. Their recent finances will tell you much better about that.

Let's share the mirror and see what we're missing :P

posted on 14 Jun 2012, 01:08 3

26. schecter7 (Posts: 99; Member since: 20 Apr 2012)

Oh come on now. At least man enough to admit how obviously you're in love with Samsung. We've talked earlier and it was just blatant. It's ok to have preference. By the way, I've been using Samsung phones along with other brands for a long time. Yet I just hate Samsung fanboys as much as I do other brands' fanboys.

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