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Taiwan's economic affairs ministry says HTC should focus on mid to low-range phones

Posted: , by Alan F.

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Taiwan's economic affairs ministry says HTC should focus on mid to low-range phones
HTC says that the low and mid-range areas of the smartphone market have been its downfall this year. While the HTC One has apparently been selling well, the company did manage to recently report a quarterly operating loss for the first time in company history. Meanwhile, the Taiwan based firm has seen its share of the global smartphone market decline from 10.7% in 2011 to a current 4%. How can HTC get its market share back on an uptrend?

A division of Taiwan's economic affairs ministry says that despite the problems that HTC is having in the low to mid-range area of the smartphone market, that is exactly the segment of the market that HTC should be aiming for. In a report released on Tuesday, the agency said that markets were saturated with high-end phones in the second half of this year. Thus, HTC's top-shelf models like the HTC One mini, HTC One max and HTC Butterfly S could not do well, leading to losses for the manufacturer in the third quarter. The report said that to lift market share in this time frame, HTC had to push out its HTC Desire model handsets. 

One one hand, moving away from the upper crust of the smartphone world would mean avoiding those penthouse dwellers like the Apple iPhone 5s, Samsung Galaxy S4 and LG G2. On the other hand, it would mean having to compete with Nokia's low-end stud, the Nokia Lumia 520/Nokia Lumia 521.

"Although HTC in the first half of the year promoted its flagship models, in the second half promoting high-end models such as the One mini, Butterfly S and One Max, because the flagship models came out late and mature markets were saturated, HTC sustained losses in the third quarter. So in the third quarter it strengthened low-priced and mid-priced models to lift market share."-Quarterly review from the economic ministry’s Industry & Technology Intelligence Services

Nomura Securities analyst Peter Liao, stationed in Taipei, says that if HTC were to ramp up production of Desire-like models that sell for under $300, it could score some growth in developing countries like China. In that case, Liao says that the ministry's report makes sense. Another smartphone analyst in Taipei, the appropriately named Johnny Yen (we don't make this stuff up guys!) says that sales of the HTC Desire would go up in developing countries if HTC could get some support from the carriers in the region.               

The economic affairs ministry report mirrors one released in August from Taiwan’s Industrial Economics and Knowledge Research Center, that said that Taiwan was better served  if HTC would drop the focus on high-end models and concentrate on the low to mid-range handsets.              

source: Forbes                             

15 Comments
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posted on 19 Nov 2013, 01:07 1

1. Droid_X_Doug (Posts: 5534; Member since: 22 Dec 2010)


Mid and low end phones in the U.S. would be an almost certain fail. Of course, HTC hasn't exactly been able to get traction in the U.S. for a while now. Mainland China seems to have their own internal manufacturers dominating, so don't know if HTC can get traction there either.

posted on 19 Nov 2013, 01:45 3

8. woodshop20 (Posts: 459; Member since: 14 Sep 2013)


The amount of success the Moto G brings in the US market will show whether there is a market for budget/low end phones or not. But then again, HTC are really keen on overpricing their phones.

posted on 19 Nov 2013, 07:11 1

14. jaytai0106 (Posts: 1197; Member since: 30 Mar 2011)


Honestly, we are at the point that a mid end phone is still powerful for everyday usage. Next year, the S600 processor will be in every mid end phone and no one will ever think a mid end phone is useless anymore. Even with S4 processor in Nexus 4, I rarely notice any lag or slow down.

posted on 19 Nov 2013, 01:08

2. LiyanaBG (Posts: 288; Member since: 07 Nov 2013)


no there is so many mid-range/lower range HTC phones and no one is buying theme. we all want the very high end HTC phones with the best/latest specs. HTC need to fix there camera issues they need to stop with the ultra pixel thing or make the picture Quality like other phones out there, like the LG G2 or Note3. not one needs 4mp or ultra pixel camera we are not in 1970's. make phones with 8 ultra pixel cameras and up or don't make phones.

posted on 19 Nov 2013, 01:12 1

3. oNEWorld (Posts: 140; Member since: 01 Aug 2013)


put a snapdragon 400 processor or s4 pro in a device with 720p screen and price it accordingly. $250-$300 price range would help them sell phones. oh yeah and stop rehashing the design of the ONE for gods sake and come up with something slick and new. Let's go HTC do something right to help u get back to the top.

posted on 19 Nov 2013, 01:17 5

4. darkskoliro (Posts: 935; Member since: 07 May 2012)


What they need is the next nexus...I would chuck money at my screen until it appeared.

posted on 19 Nov 2013, 01:22 2

5. LiyanaBG (Posts: 288; Member since: 07 Nov 2013)


that would be amazing if they make the next Nexus it would be a hit.

posted on 19 Nov 2013, 01:24 5

6. oNEWorld (Posts: 140; Member since: 01 Aug 2013)


HTC Nexus SIX phablet

posted on 19 Nov 2013, 01:27 2

7. LiyanaBG (Posts: 288; Member since: 07 Nov 2013)


YUP i would buy 2 or 3 of them if this comes true :)

posted on 19 Nov 2013, 01:48 1

9. woodshop20 (Posts: 459; Member since: 14 Sep 2013)


HTC doesn't get the idea of making a phablet like Samsung does. A phablet is not supposed to be only a blown up phone, but they need to make use of the screen space with multi-window and stylus support

This is why the One Max is such a massive failure.

posted on 19 Nov 2013, 03:04

10. darkskoliro (Posts: 935; Member since: 07 May 2012)


Just my opinion, but I prefer stock android on smaller screens :( and plus I wouldnt go above 5" anyway...N5 size sounds very good.

posted on 19 Nov 2013, 03:11 1

11. GeekMovement (Posts: 1499; Member since: 09 Sep 2011)


i loved htc's top end flagships.

posted on 19 Nov 2013, 03:27

12. zuckerboy (Posts: 898; Member since: 22 Dec 2011)


maybe they r right. bcuz nokia survived bcuz of sales of low end devices...

posted on 19 Nov 2013, 06:27

13. tiara6918 (Posts: 1322; Member since: 26 Apr 2012)


Htc has so many mid range devices in china but I don't think they're selling very well though

posted on 19 Nov 2013, 11:40

15. Taters (Posts: 2592; Member since: 28 Jan 2013)


HTC needs to work on the range where they don't produce garbage. Unfortunately, they seem to have lemons whether it is low, mid, or high end.

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