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

FEATURED VIDEO

57 Comments

1. tlsmithsr

Posts: 81; Member since: Sep 28, 2010

To Late

2. eDiesel

Posts: 142; Member since: Mar 17, 2012

LOL!!

3. tlsmithsr

Posts: 81; Member since: Sep 28, 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

5. mafiaprinc3

Posts: 585; Member since: May 07, 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!!

4. wendygarett unregistered

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

11. wendygarett unregistered

sorry should be $99 :)

24. thelegend6657 unregistered

Get desireC

6. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

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

35. kanagadeepan

Posts: 1259; Member since: Jan 24, 2012

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

7. Sangeet

Posts: 232; Member since: Apr 21, 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.

8. mas11

Posts: 1034; Member since: Mar 30, 2012

To me that comes off as being elitist.

41. ardent1

Posts: 2000; Member since: Apr 16, 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.

9. Vedang

Posts: 1; Member since: Jun 13, 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.

10. JcHnd

Posts: 280; Member since: Apr 30, 2012

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

12. Whateverman

Posts: 3295; Member since: May 17, 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.

13. groupsacc

Posts: 232; Member since: Feb 28, 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.

27. Lucas777

Posts: 2137; Member since: Jan 06, 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..

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.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.