HTC to cut back on phones, spending and jobs

Turning around HTC requires more than just unveiling a new phone. Ever since CEO Cher Wang made the announcement that the company would be redesigning its next flagship handset, fans of the brand have been hoping that the phone, dubbed the HTC Aero, would turn out to be a true "Hero" phone. By that, we mean that not only would the unit be as fully-spec'd as possible, but would also rescue HTC from the financial mess it has found itself in. With the value of the company (as seen by its publicly traded shares) down by 51% this year, HTC has been forced to come with a plan to reverse the current downtrend.

In a chat with the press, CFO Chialin Chang said that HTC will be cutting back on three things. Spending will be cut, jobs will be cut, and the number of smartphone models will be cut. The executive added that the job cuts would be significant and would be "across the board." HTC does have some pockets of strength. Chang noted that in India, the company sells 20% of the handsets priced between $250 and $400.

According to tipster Evan Blass, the HTC Aero will end up in the U.S. at AT&T. While a full list of specs is unknown, the handset is rumored to be equipped with a 1440 x 2560 QHD resolution screen, and a rear camera that comes with an aperture of f/1.9 and supports RAW photography.

HTC has been squeezed from both ends this year. At the top are phones like the Samsung Galaxy S6 and Samsung Galaxy S6 edge, while on the bottom are low cost handsets made by smaller Chinese manufacturers. The latter, despite their low cost, are often packed with innovations such as large battery capacity or iris scanners.

Right now, HTC's main focus should be on designing a spectacular handset, working on creative marketing (a perennial weak link for the company) and getting the Aero out in time for the upcoming holiday shopping season.

source: Reuters