Analyst claims HTC will not launch another flagship in the US


We reported a few days ago that HTC has something special to share with the world on January 12, right after Consumer Electronics Show (CES) 2017 trade fair. It could be a new flagship smartphone, a smartphone, or even a VR headset for phones.

However, if it's going to be a new flagship smartphone, HTC might not launch it the United States, Cliff Maldonado from handset research firm BayStreet Research says.

According to him, the Taiwanese company doesn't have the resources required to launch a new high-end smartphone across carriers in the US next year.

The main reason is the restructuring process that HTC is going through right now, including the fact that the company laid off most its field sales force.

But that doesn't mean that HTC will sell its smartphone business. Instead, Maldonado says that the Taiwanese handset maker will adopt an ODM (original design manufacturer) business model. This means that HTC may continue to design and manufacture smartphones as specified and even rebranded by another company for sale.

A good example would be Google's Pixel smartphones, which were manufactured by HTC. Also, the HTC Bolt smartphone that was launched last month at Sprint could be another example of how an ODM business model works.

Maldonado claims the Bolt at Sprint is a collaboration between HTC and the US-based carrier, “with Sprint committing to guaranteed volumes in return for better pricing.”

Even HTC's officials point to a different business model for the mobile division. The company's CFO (Chief Financial Officer), Chialin Chang said during HTC's third-quarter conference call that the recent devices like the smartwatch for Under Armour are part of the company's strategy of building “powered by HTC” devices.

Chang went on to say that “powered by HTC” is a slightly different model than “a traditional ODM thing.” These predictions make HTC's January 12, 2017 announcement even more interesting for both the media and consumers.

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8 Comments

1. tokuzumi

Posts: 1865; Member since: Aug 27, 2009

Kind of a bummer, but considering none of the carriers offered this phone, it's understandable. I hope HTC gets their pricing in check on future smartphones. With the likes of OnePlus, ZTE, Axon, HTC doesn't have the luxury to sell their devices at top dollar.

5. Carl3000

Posts: 240; Member since: Oct 11, 2014

Good now Sony just has to stop selling in US to and it'll be the battle of Apple vs Samsung.

6. nebula

Posts: 1009; Member since: Feb 20, 2015

In my humble opinion there is third very strong player Huawei. Which is third largest OEM in US as far as I know.

8. newbey123

Posts: 700; Member since: Mar 19, 2012

Well that will suck. Was planning to get the new HTC flagship but if this is true guess it will finally be time for me to head over to the IPhone.

9. LanjaKodaka

Posts: 219; Member since: Sep 27, 2016

Their financial situation should improve. They make the best underrated devices on the market. My HTC 10 is going solid these days...

11. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Wiat. HTC made Flagships? Which ones? the 10? That's not a flagship. The best phones they have every made after the TouchPro 2, was the HTC Droid Incredible, HTC Evo and the HTC One S (T-Mobile), HTC Droid DNA, Droid Thunderbolt (VZW), HD7 and the Nexus One.

13. combatmedic870

Posts: 984; Member since: Sep 02, 2015

Dude... the thunderbolt was horrible. The 10 is a great phone. This is really not good news

12. T-Dizzle

Posts: 152; Member since: Jul 21, 2015

HTC makes flag ship phones? Who knew? I thought they gave up after the original Droid Incredible.

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