HTC

HTC's Wang blames lack of communication for sales slump

HTC's Wang blames lack of communication for sales slump
HTC Chairwoman Cher Wang says that communication between the company and consumers needs to improve. Over the weekend, Wang told a television audience during the Asia-Pacific Economic Cooperation conference in Bali that "We really have the best technology and the best product." The Taiwan based manufacturer saw its global share of the smartphone market drop by more than 50% in the second quarter despite offering its best received model in years, the HTC One. While a smaller HTC One mini has already launched, the company is expected to soon unveil the HTC One Max, a phablet sized version of its flagship model with a fingerprint sensor on back.

HTC had hoped that its new ad campaign starring Robert Downey Jr. would give a boost to sales, but the spots really were unfocused and did not necessarily "communicate" with phone buyers. That probably won't stop HTC from trying to use the actor in future spots. Wang says that the public likes Downey because they see him as a "change maker." But HTC is in the business of selling phones, not cute slogans, which leads to a major disconnect between the company's ultimate mission and the commercials. Since the actor is believed to have signed a two-year contract worth $12 million, the manufacturer might feel compelled to continue starring the movie star in more ads.


Last week, HTC reported the first quarterly operating loss in company history and Wang says that the current quarter is going to be a challenge. Another worry for HTC is that its stock price has dropped so much, the company could be the target of an unwanted takeover attempt. Some companies mentioned as being interested in HTC include China's Lenovo, Huawei or ZTE.  Wang does expect her company to control 20% of the high-end smartphone business in China next year and her job will be to get HTC to that level in other major markets, including the U.S.

source: Bloomberg

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34 Comments

1. MrTzr unregistered

I blame their Ultrapixel camera.

3. amats69

Posts: 1527; Member since: Nov 12, 2012

Its not the "ultrapixel" its the 4mp they use for the ultrapixel camera..ultrapixel really is a great move by htc..but using 4mp is not enough to get more details on picture

14. chandra7894

Posts: 11; Member since: Sep 27, 2013

It is not a great move. If they really want to innovative they can put more bigger sensor in size and keep MP as 12 and have large pixels otherwise it is biggest marketing mistake

22. amats69

Posts: 1527; Member since: Nov 12, 2012

Yes it is a great move by HTC..try to compare a shot from a regular 4mp cam with 4mp with ultrapixel technology you will see the difference.maybe the current ultrapixel cam used by htc now is not yet perfect but as what others said "theres always a place for improvement"...even pro photographers even agree on this.. If you dont have knowledge about bigger pixels and always believe that higher mp count is good then its your choice...thats why im very excited on htc's next year's flagship..for sure they will do something/work more on ultrapixel camera...

17. Epicness1o1

Posts: 308; Member since: May 30, 2013

totally agree,if they putt a 13 mp cam the camera would be super awesome,but I think that the lenses on the htc one are very efficient and if they putt a 13 mp camera the resolution of the phone can measure to the Z1 and I think thats the reason why they didnt putted a bigger camera,and then every mobile company should make very good lenses for the mobiles,so nobody gets profits of it just loss,while developing good lenses

10. lallolu

Posts: 733; Member since: Sep 18, 2012

Totally. People that love it can say whatever but we all know the camera is not good. A regular 13mp would have been nice or they could have even gone ahead to make a 16mp camera. I believe the camera is the greatest letdown of the phone.

24. ojdidit84

Posts: 462; Member since: Jul 16, 2011

Definitely agree. I was gonna dump my DNA for the HTC One and didn't go for it for the sole fact that the camera wasn't up to par for me. That and moving to yet another HTC phone with no SD card slot. I don't care so much for a removable battery, but I want my camera to live up to the competitors and I want my damn SD card slot back so I can put my darn music, take more pictures/video, hold more games on my phone.

13. chandra7894

Posts: 11; Member since: Sep 27, 2013

Totall agree it is not about communication but product is poor. We want good high MP sensor with good battery life.

2. amats69

Posts: 1527; Member since: Nov 12, 2012

Marketing! Just marketing htc! You have the best product so focus on marketing!

18. Epicness1o1

Posts: 308; Member since: May 30, 2013

Hah your right when I am looking TV every 10th commercial is from Samsung,Sony or LG and I hardly see a htc commercial

4. Googler

Posts: 813; Member since: Jun 10, 2013

Strange button configuration on the One and not available on enough carriers hurt sales. Keep it simple, design it well, and market the living bleep out of it is all they need to do.

12. Lauticol

Posts: 404; Member since: Jun 25, 2011

I don't see how can a simple button layour keeps you from buying a phone

23. Googler

Posts: 813; Member since: Jun 10, 2013

Button layout is goofed up, why should I buy that phone when there's plenty of other great phones who have a more standard button layout? If I'm on the fence between two or three phones, the one that's simpler and easier to use out of the box will get the sale. When you can see that, you'll understand why HTC is having problems, they can't get the basic things down. It's a dog eat dog world in mobile, little things make big differences. I've read tons of comments about button layouts over the years, it matters.

19. Hyperreal

Posts: 361; Member since: Oct 08, 2013

Dont know whats your problem. Double cklick on home button - multitask, hold home botton - menu. Slide up - google now. Thats it. I dont need more buttons.

25. ojdidit84

Posts: 462; Member since: Jul 16, 2011

Well, you know. People don't like learning something new. Same reason that a lot of people coming from the iPhone call Android "too complicated." It takes a few minutes to learn the new ins & outs/differences on the new phone and then you're good. People are just lazy to learn something new.

29. Googler

Posts: 813; Member since: Jun 10, 2013

Dude, that is amazing. With just one comment you've completely summed up my entire life and nailed it. You didn't even let anything like personal preference and choice get in your way, you just went straight to "this guy is just lazy." Mind. Blown. Freud has nothing on you.

30. Googler

Posts: 813; Member since: Jun 10, 2013

Let me guess, you own the One. Here's a hard dose of reality for you, your description of how the buttons work or your defense for them isn't going to persuade me to purchase the One. People look for different things in what they purchase. Some hate HTC for not having removable batteries while others won't buy their phones because of not having removable SD cards. It's all about personal preference and choice. For me, ergonomics and things like button placement mean a lot. It appears you own the One. My opinion of the button layout shouldn't affect your use of the phone, enjoy what you purchased.

5. terabyteRouser

Posts: 457; Member since: Oct 18, 2011

I can't believe any company would waste $12 million dollars on using Robert Downey Jr. in an ad. Man they really have a disconnect with American culture. Outside of Iron Man, I don't think anyone cares about that guy. They really made a mistake with that one.

6. amiroo1

Posts: 3; Member since: Oct 04, 2013

htc is best in every aspects except marketing.

7. amiroo1

Posts: 3; Member since: Oct 04, 2013

pleasure of android=htc

34. Epicness1o1

Posts: 308; Member since: May 30, 2013

+1 man

8. hboy857

Posts: 367; Member since: Jun 03, 2013

In today's world marketing is pretty much everything. People buy Galaxy "S" series phones not because it's the best android phone but Samsung make people believe that they are buying the best android phone in the world. Whether people like it or not HTC One is the best phone of this year, i will say again and again and again and again and again........ Just focus on Marketing HTC and keep proving us awesome phone like HTC One. Best of luck.

9. Slammer

Posts: 1515; Member since: Jun 03, 2010

---" Chairwoman Cher Wang says that communication between the company and consumers needs to improve."--- Does this include listening to the consumer? How many times have myself and others called to express our concerns and been ignored? John B.

11. ocilfa

Posts: 334; Member since: Aug 03, 2012

Wand and slump should not be in the same sentence.

15. artealis

Posts: 98; Member since: Dec 15, 2010

absolutely no communication, HTC never hear that people hate no sdcard slot phone.

16. willard12 unregistered

Their failed communication with consumers began when they thought they heard consumers say that they didn't want sd cards or a replacable battery. It continued when they thought consumers said they didn't want widgets. Apparently, in terms of market share, they heard wrong.

21. Slammer

Posts: 1515; Member since: Jun 03, 2010

Exactly! Countless calls to customer service proved to me that these two things were indeed important. Two reps at HTC confirmed that I was not alone in my concerns. They claim that they have received calls upon calls for the same thing. Once again, it is a company telling us what we need or don't need. Me and my colleagues spoke our mind by switching to Samsung for access to batteries and SD slots. Then HTC wonders why it is in this position. John B.

20. MickLuvHP

Posts: 23; Member since: Oct 26, 2011

Follow what Samsung have done for their marketing and HTC will have much better sales than Samsung in years to come!

26. ausnote2

Posts: 84; Member since: Dec 07, 2012

Too many compromises Sd card Lack of removavble battery and small as well Poor camera I prefer home button feedback I prefer large screen >5" screen. Hope the htc one max addresses these compromises

27. LikeMyself

Posts: 631; Member since: Sep 23, 2013

Do not adopt a lazy attitude.Accept that you could do better! Put an 8MP cam, yes MP does make a difference. Put an expandable storage in One+ or else I wish you bad luck, why can't you put a larger battery?Are you dumb or you don't use a smartphone? Did you know that most people in my 1.5M+ population country don't know what is HTC!

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