HTC

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

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.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.

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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57 Comments

56. jroc74

Posts: 6023; Member since: Dec 30, 2010

This isnt hurting Samsung. They have alot of low end, mid range phones out. Ppl complained about Motorola releasing so many phones...in reality Samsung has them beat. Its just that the Samsung phones arent all on Verizon. And Moto has basically stopped doing the lower end phones. At least less than Samsung.

39. mercorp

Posts: 1045; Member since: Jan 28, 2012

Peter,you lost a BIG oppoturnity to get back at samsung and apple. Now the galaxy y,mini,ace and pocket are the rage among the developing world and teens. And your htc one v is pwn by the ace 2. I want to see a updated one v with a duo core novathor (at least),and a phone with specs comparable to the mini 2.

36. tiara6918

Posts: 2263; Member since: Apr 26, 2012

Or if they don't want to make low end devices with the logo "htc" which could ruin the image of their company in their opinion, why not just create another line up of phones but this time with a different brand name. Like what nokia did before with vertu(I don't mean for htc to copy nokia by selling an expensive phone that's not worth it). Make low end devices with a different brand name(like a sister company or something)because many people still use and can only afford low end devices and they can make a profit out of this especially if they could convince most buyers. About that many people in China are now switching into low-end phones, that is not what I see. When I went to china, almost all the phones I can see are high end ones(iPhone,galaxy s2,note,etc.)I rarely saw low end ones(the only type of people I can see holding these phones are usually the old ones).

38. groupsacc

Posts: 232; Member since: Feb 28, 2012

Yep. Just like Toyota with Lexus, Honda with Acura, Nissan with Infiniti, ......

31. darkskoliro

Posts: 1092; Member since: May 07, 2012

Unfortunately its the low end phones that make the money for companies. I see most of my android friends with low end samsung devices, never a high end one

30. jopancy

Posts: 78; Member since: Apr 25, 2012

With the rate technology is advancing, today's high-end phones are tomorrow's low-end phones. So whether HTC likes it or not, they are already ''destroying their brand'' by producing tomorrow low-end phones!!

33. schecter7

Posts: 99; Member since: Apr 20, 2012

LMAO - no one can disagree with you on this.

14. schecter7

Posts: 99; Member since: Apr 20, 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.

15. remixfa

Posts: 14605; Member since: Dec 19, 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.

16. schecter7

Posts: 99; Member since: Apr 20, 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.

17. schecter7

Posts: 99; Member since: Apr 20, 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.

18. groupsacc

Posts: 232; Member since: Feb 28, 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.

20. wendygarett unregistered

you never appreciate the beauty of android :)

21. groupsacc

Posts: 232; Member since: Feb 28, 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.

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 :(

25. schecter7

Posts: 99; Member since: Apr 20, 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 :)

37. groupsacc

Posts: 232; Member since: Feb 28, 2012

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

19. remixfa

Posts: 14605; Member since: Dec 19, 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.

23. schecter7

Posts: 99; Member since: Apr 20, 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

26. schecter7

Posts: 99; Member since: Apr 20, 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.

42. remixfa

Posts: 14605; Member since: Dec 19, 2008

im not in love with jack. There is a difference between looking at the playing field and saying "this is the best out", and saying "i really love this brand and will buy it for the name". Ive only ever bought 1 samsung in my life, which is my SGS1. Yet ive bought handfuls of HTCs from the MT4g all the way back to the windows 5x days. Ive bought quite a few LG's and Motos and Blackberrys as well. So, how does buying 1 samsung (i won an omnia and sold it because it was junk) make me a samsung fanboy???? tell me. what a stupid go-to argument. "you disagree with me, so u must be a fanboy of XXX". And just for the record, until Samsung came out with their high end processors and screens in the bundle called the Galaxy S line, I considered them a junk phone maker. Yup, that's a real fanboy for ya. And again, I wasnt talking about perceived build quality or processors, I was talking about reliability. Older HTCs were NOT reliable compared to competitors like RIM, which is why RIM ran away with the smart phone race until Apple and Google came along. International or not, I saw more HTCs than any other brand come back with issues for the longest time. And at the time RIM was outselling windows 10 to 1. It's not like there is something magical about it being "international" that makes it better. Most of the time it was the same international phone, just rebranded as a carrier phone in the US.

43. dmn666

Posts: 244; Member since: Oct 19, 2011

I think you both are right in your own ways. There were some off-topic discussions though. It's true that making low end phones is not really simple. HTC simply doesn't have that skill. Remember you need 'brand image' in low end segment too. People can just walk in and grab a Nokia because they just don't die. It's not like Nokia is a cheap brand. They made super highends as well and those were awesome. But HTC certainly doesn't have that big of a workforce. If they really want to make loweneds they better take some time and do it right.

44. ngo2dd

Posts: 896; Member since: Jul 08, 2011

We all know you are the fanboy because you show it everyday on the forum. It is funny that you base your opinion as fact. You Say you work for t-mobile and after Verizon. But most of the window mobile are in fact been on ATT and Sprint beside the HD2. It is also funny that you bitch about S3 chip but in fact you have yet to own any of them. So you are still full of s**t.

45. schecter7

Posts: 99; Member since: Apr 20, 2012

RIM was outselling Windows and Symbian was wiping the floor with both in the rest of the world. That's what you missed in the US market. Before Apple came in, all us carriers were selling garbages here. It's complete waste of time arguing over that. Anyone who has used pre 2007 international and us smartphones will tell you the same thing. International phones were SIGNIFICANTLY better than the ones we had here. It still holds true to a somewhat lesser extent. Anyways, it was off-topic. Point was HTC just doesn't know how to make good SUPER low-ends. Why the heck would they jump in and start over considering their recent financials? It's something they can't do overnight. Their CEO is simply saying the same thing.

47. remixfa

Posts: 14605; Member since: Dec 19, 2008

ok.. lets start here.. what do you consider super low end? I consider 528mhz processor in 2012 super low end. Yet HTC makes a few phones in that range. The HTC Wildfire on Tmobile immediately comes to mind. It has the exact same internals as the G1/Hero, and it was launched in the last year. HTC has plenty of know how in the low end. Thats ludacris to say they dont. Theyve been there for years. They have a lot less time in the "recognized" high end of the spectrum than they do in the low end. As far as pre 2007, yes there were some very advanced models outside of the US for a while. Most of the higher end HTC models ended up in america though as carrier branded phones through VZW and ATT. The craziest stuff wasnt from HTC. And the old windows 5x/6x phones were on all carriers.. most of them were on ATT and VZW, not sprint. If HTC were to say "Hey, were going to consentrate on premium models now and just kill off our low end sets because we need to get our financials straight", that would be cool.. and it would be honest. Saying "we dont want to mess up our brand with low end sets" is completely dishonest.

51. schecter7

Posts: 99; Member since: Apr 20, 2012

Rebranding an old model for the lowend segment only tells they are not willing at all to put any effort there. Check some of their recent financials and average selling price http://www.phonearena.com/news/HTC-announces-final-Q2-results-12.1-million-phones-shipped-349-average-selling-price_id20762 http://www.gsmarena.com/htc_profit_soars_number_of_phones_shipped_triples-news-2578.php Should tell you where they make the money from. Ok - dishonesty - I'll give you that - it's just a business talk. That's how they talk - what we can do about it.

46. schecter7

Posts: 99; Member since: Apr 20, 2012

You're not a fanboy? talking about GS1? That already proves it. I had two of those garbages (Captivate). A UI that stank like a cheap wannabe iOS knockoff, broken GPS, crappy camera, horrible audio, pathetic battery life, a horrible resolution pentile display, worst upgrade support from Samsung - and that's what you're calling the 'best out'. You've already proved your fanboyism.

49. remixfa

Posts: 14605; Member since: Dec 19, 2008

so because I like a phone that you had a bad experience with, that auto makes me a fanboy? are you that retarded? seriously? first off, samsung sucks at software. They always have. Who still has an SGS1 on original software? Mine lasted 2 days from purchase before I modded it. Samsung makes it notoriously easy to mod, which is why so many people love it. Ive been running ICS since december. What have you been running? A properly modded SGS runs as fast or faster than any S3 device, which is one of the reasons why I never got an american SGS2.. it was pointless. the SGS1 also has a more powerful GPU than the crapdragon S3. Battery life? I get incredible battery life. I get 2 days worth with regular usage. How about you? I dont know too many single core phones.. hell i dont know ANY phones that get 2 days with regular usage. Kinda sounds like you got tons of personal issues. Again, here is a mirror, look at it. And just because I know sooner or later the battery thing would be brought up, and stupid trolls like NGO would try to say I was full of it, I took a nice screen grab of it yesterday. Look and weap Its not fanboy to say "X does this the best" when its true. Its called a fact. its not that hard to tell the difference. https://plus.google.com/photos/100459156021696505642/albums/5754024788249880689?authkey=CJqh7PyOhsKWoQE

52. schecter7

Posts: 99; Member since: Apr 20, 2012

Sure - everyone sneaks around XDA and are running customs on their GS1. I wonder why XDA server is not down yet. You're the one with issues - trying to cover up GS1's downsides with XDA. Maybe Samsung should start paying those guys to cover their as*. Don't show those pathetic snapshots like those morons making quadrant videos on youtube. With a custom ROM, ANY phone can run two days. I mentioned a lot more stuff beside battery life. Unfortunately XDA can't cover those up.

53. schecter7

Posts: 99; Member since: Apr 20, 2012

modded GS1 vs S3 device? That was just ridiculous. Try to use an Xperia S (stock) and super modded GS1. You'll laugh at yourself.

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