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Report: Taiwan better served by an HTC shift to low and mid-range models

Posted: , by Alan F.

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Report: Taiwan better served by an HTC shift to low and mid-range models
Taiwan’s Industrial Economics and Knowledge Research Center, funded by the Taiwan government, says that the value of the production of mobile devices in the country during the second quarter plunged 21%. The research center blamed a slowdown in demand locally for high-end smartphones. While not mentioning HTC by name, the research center was certainly talking about the Taiwan based handset manufacturer when it said that despite solving an issue with parts shortages (which affected production of the HTC One's UltraPixel camera earlier this year), branded handset makers have been troubled by a slow-down in demand for high-end models and by being late to the market with new phones.

The report could only be about HTC considering that Taiwan's other handset producers like Acer and Asus aren't producing phones in the quantities that HTC is. Gartner's Taipei based analyst C.K. Lu says that only HTC's production could affect the value of the country's mobile device production to such a degree. "This is mainly due to HTC's sluggish sales, especially in the high ends,” says Lu. "Other vendors are not yet able to ramp up their smartphone portfolios."

Originally a contract manufacturer that was the name behind such models as the T-Mobile G1, the first Android phone in the U.S., HTC eventually gained traction with phones using its own brand such as the Windows Mobile powered HTC Touch Diamond and HTC Touch Pro. At the same time that Verizon launched the Motorola DROID back in 2009, the company issued the HTC DROID ERIS and then followed that up with the HTC Nexus One. By 2011, the company owned 10% of the global smartphone market but now is out of the top five, surpassed by Chinese firms like Lenovo and ZTE.

Despite the top-shelf HTC One, which seemingly has been a success, HTC expects to breakeven at best for Q3. In one part of the report,  the Taiwan research center mentions HTC by name and suggests that instead of focusing on the HTC One and variants of that model, HTC should drop back and produce phones that cover the low to mid-range of the market. Doing so, says the report, will help the country turn in a stronger manufacturing performance for the third quarter and beyond.

"As maturation of the high-end smartphone market cools under the influence of intense competition in the middle-end market, our country’s smartphone brands since the second quarter have promoted new models bit by bit to the high, middle and low price levels while continuously raising product visibility through global sales...However, for mass-market products, mainland China and emerging markets have become crucial to fluctuations in the status of brand-name developers, so in the second half of the year, whether Taiwan’s developers succeed in average-priced phones will directly affect our country’s smartphone industry performance this year."-Taiwan’s Industrial Economics and Knowledge Research Center

source: Forbes

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posted on 27 Aug 2013, 03:23 3

1. Sesameopen (Posts: 109; Member since: 02 Aug 2013)


posted on 27 Aug 2013, 03:27 2

2. RH234 (Posts: 45; Member since: 21 Aug 2013)

Delays in launching the phone then waits 5 1/2 months to launch a $1 billion marketing campaign. Even worse, they launch this Ad blitz shortly before Note 3, Sony Honami, and IPhone 5s announcements. Doubt this will help HTC One sales even if Iron Man threatens the planet.

posted on 27 Aug 2013, 03:27 9

3. LetsBeHonest (Posts: 1526; Member since: 04 Jun 2013)

Yeah low and mid range phones are the key to success. look at nokia . Their Lumia 520 selling like hot cakes, there is no low end phone that can match 520. And look at Samsung's success. All those profit is not came by selling s4 and other flagships. They have lots of good offerings on low-mid range categories.
i love HTC One . Its such a beauty with beast . Make a low-mid range phone with One's design language with Lumia 520 specs and cover all basic customers needs like sd card,removable battery etc

posted on 27 Aug 2013, 10:29

8. Rehankhan (Posts: 323; Member since: 24 Oct 2012)

'there is no low end phone that can match 520'

Htc 8s said hi

posted on 27 Aug 2013, 03:36

4. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)

Yes, HTC should produce phones that cover the low to mid-range of the market with proper price tags. HTC phones in India are too costlier than Sony.

posted on 27 Aug 2013, 05:41

5. tiara6918 (Posts: 2111; Member since: 26 Apr 2012)

I doubt HTC would make a strategy that would successfully make them enter the low end and mid range category. Their products are always expensive than others and so are their specs. HTC would just be better off by focusing with their high end devices

posted on 27 Aug 2013, 08:31 1

6. Eclectech (Posts: 253; Member since: 01 May 2013)

HTC will not make low end phones because their CEO, Peter Chou indicated he'd like to protect HTC's brand image. This very site had an article about it last year (Google - HTC will not produce low end phones).

posted on 27 Aug 2013, 08:55

7. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)

HTC needs better quality control. Gap-more design and really poor finishing marks on the headphone jacks, USB ports, and sim card trays is terrible. You might be able to fool the average American that your designs are amazing by using metals and really dense plastics but most people see how crappy your build quality is in regards to clearances and heat distribution.

posted on 27 Aug 2013, 13:21 1

9. sharks (Posts: 236; Member since: 16 Feb 2013)

Looks like the trolls are back to typing again. You have no idea what's good and what's amazing. The HTC One is freaking amazing.

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