Taiwan's economic affairs ministry says HTC should focus on mid to low-range phones

Taiwan's economic affairs ministry says HTC should focus on mid to low-range phones
HTC says that the low and mid-range areas of the smartphone market have been its downfall this year. While the HTC One has apparently been selling well, the company did manage to recently report a quarterly operating loss for the first time in company history. Meanwhile, the Taiwan based firm has seen its share of the global smartphone market decline from 10.7% in 2011 to a current 4%. How can HTC get its market share back on an uptrend?

A division of Taiwan's economic affairs ministry says that despite the problems that HTC is having in the low to mid-range area of the smartphone market, that is exactly the segment of the market that HTC should be aiming for. In a report released on Tuesday, the agency said that markets were saturated with high-end phones in the second half of this year. Thus, HTC's top-shelf models like the HTC One mini, HTC One max and HTC Butterfly S could not do well, leading to losses for the manufacturer in the third quarter. The report said that to lift market share in this time frame, HTC had to push out its HTC Desire model handsets. 

One one hand, moving away from the upper crust of the smartphone world would mean avoiding those penthouse dwellers like the Apple iPhone 5s, Samsung Galaxy S4 and LG G2. On the other hand, it would mean having to compete with Nokia's low-end stud, the Nokia Lumia 520/Nokia Lumia 521.


Nomura Securities analyst Peter Liao, stationed in Taipei, says that if HTC were to ramp up production of Desire-like models that sell for under $300, it could score some growth in developing countries like China. In that case, Liao says that the ministry's report makes sense. Another smartphone analyst in Taipei, the appropriately named Johnny Yen (we don't make this stuff up guys!) says that sales of the HTC Desire would go up in developing countries if HTC could get some support from the carriers in the region.               

The economic affairs ministry report mirrors one released in August from Taiwan’s Industrial Economics and Knowledge Research Center, that said that Taiwan was better served  if HTC would drop the focus on high-end models and concentrate on the low to mid-range handsets.              

source: Forbes                             

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15 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Mid and low end phones in the U.S. would be an almost certain fail. Of course, HTC hasn't exactly been able to get traction in the U.S. for a while now. Mainland China seems to have their own internal manufacturers dominating, so don't know if HTC can get traction there either.

8. woodshop20

Posts: 459; Member since: Sep 14, 2013

The amount of success the Moto G brings in the US market will show whether there is a market for budget/low end phones or not. But then again, HTC are really keen on overpricing their phones.

14. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

Honestly, we are at the point that a mid end phone is still powerful for everyday usage. Next year, the S600 processor will be in every mid end phone and no one will ever think a mid end phone is useless anymore. Even with S4 processor in Nexus 4, I rarely notice any lag or slow down.

2. LiyanaBG

Posts: 381; Member since: Nov 07, 2013

no there is so many mid-range/lower range HTC phones and no one is buying theme. we all want the very high end HTC phones with the best/latest specs. HTC need to fix there camera issues they need to stop with the ultra pixel thing or make the picture Quality like other phones out there, like the LG G2 or Note3. not one needs 4mp or ultra pixel camera we are not in 1970's. make phones with 8 ultra pixel cameras and up or don't make phones.

3. oNEWorld

Posts: 140; Member since: Aug 01, 2013

put a snapdragon 400 processor or s4 pro in a device with 720p screen and price it accordingly. $250-$300 price range would help them sell phones. oh yeah and stop rehashing the design of the ONE for gods sake and come up with something slick and new. Let's go HTC do something right to help u get back to the top.

4. darkskoliro

Posts: 1092; Member since: May 07, 2012

What they need is the next nexus...I would chuck money at my screen until it appeared.

5. LiyanaBG

Posts: 381; Member since: Nov 07, 2013

that would be amazing if they make the next Nexus it would be a hit.

6. oNEWorld

Posts: 140; Member since: Aug 01, 2013

HTC Nexus SIX phablet

7. LiyanaBG

Posts: 381; Member since: Nov 07, 2013

YUP i would buy 2 or 3 of them if this comes true :)

9. woodshop20

Posts: 459; Member since: Sep 14, 2013

HTC doesn't get the idea of making a phablet like Samsung does. A phablet is not supposed to be only a blown up phone, but they need to make use of the screen space with multi-window and stylus support This is why the One Max is such a massive failure.

10. darkskoliro

Posts: 1092; Member since: May 07, 2012

Just my opinion, but I prefer stock android on smaller screens :( and plus I wouldnt go above 5" anyway...N5 size sounds very good.

11. GeekMovement unregistered

i loved htc's top end flagships.

12. zuckerboy

Posts: 898; Member since: Dec 22, 2011

maybe they r right. bcuz nokia survived bcuz of sales of low end devices...

13. tiara6918

Posts: 2263; Member since: Apr 26, 2012

Htc has so many mid range devices in china but I don't think they're selling very well though

15. Taters

Posts: 6474; Member since: Jan 28, 2013

HTC needs to work on the range where they don't produce garbage. Unfortunately, they seem to have lemons whether it is low, mid, or high end.

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