comscore Despite dismal results, HTC sticking with high-end smartphone strategy

Despite dismal results, HTC sticking with high-end smartphone strategy

  • Published: October 17, 2013 4:07 PM IST

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To say that things have gone poorly for HTC in 2013 so far would be an understatement: The company released one of the year s best smartphones but has nonetheless gotten clobbered by Apple and Samsung, which both continued to dominate the high-end smartphone market. Meanwhile, low-cost Chinese Android vendors kept pumping out devices that had respectable specifications at rock-bottom prices. Since HTC lacks the advertising clout of Apple and Samsung, many observers assumed that it would make a strategic shift to release more low-cost devices that would appeal to consumers in emerging markets. Also Read - HTC Wildfire E Lite smartphone design leaks online

It seems, however, that HTC plans to keep banging its head against the wall by sticking with a strategy that has been a proven failure. In an interview with CNET UK, HTC online communications manager Jeff Gordon said that HTC will not suddenly shift strategy to become a budget smartphone maker since competing against Huawei, ZTE, and eventually Amazon, for low-end, razor-thin margins is a fool s game.

While it s true that the low-end Android market is brutal, zero-margin affair, it s clear that sticking only with high-end Android phones is not doing HTC a lot of good. Given how saturated the high-end smartphone market is right now and how well Apple and Samsung rank in customer satisfaction surveys, it s difficult to see HTC breaking through no matter how many Robert Downey, Jr. ads it runs.

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  • Published Date: October 17, 2013 4:07 PM IST

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