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HTC Will Stick to Produce Mid-to-High-End Phones

HTC has announced that it will not make low-end phones and instead concentrate their efforts on mid- to high-end handsets. The Taiwan-based company made this move in an effort to protect its image. HTC currently prides itself on making high-quality products that give a great experience. HTC reportedly had been receiving pressure to produce entry-level devices to increase its shipments.

HTC’s pronouncement dredges up some issues. The first one is regarding a confusing image. It may be recalled that in the past, HTC did release some devices that can be considered low-end such as the HTC One V and the HTC Desire C. That said, the label “low-end” is quite relative since some devices that may be considered low-end for some more affluent markets like the U.S. may conversely be mid-range in other countries.

HTC phones, for instance, in China retail for around 2,000 Yuan.On the other hand, Motorola phones have prices starting at the lower price of 1,000 Yuan. In other words, if HTC intends to focus on the high-end market, it should altogether stop producing devices that may be considered, or perhaps misconstrued to be, entry-level phones.

HTC’s sales are another issue. A few years ago, specifically in 2010 to 2011, the company released many new models which were generally of the high-end classification. These devices had quite expensive price tags, but the company was able to sell these devices.

However, in 2011, the sales experienced a decline. This trend seems to be continuing at present, despite the fact that HTC had been able to produce a solid lineup with the HTC One X, and the HTC One S. The problem, it seems, is that the company does design good phones but is not able to market them properly so that people buy them. Given this outcome, it might seem only wise for HTC to tweak its business strategy.

Lastly, HTC’s target niche is already controlled by Samsung with the Galaxy phones. Gone are the days when HTC was the number one non-Apple phone, and it might take some time before it can successfully regain this title.

At this point, HTC should get a move on with its plan if it wants to continue in the game of mobile devices.

via online.wsj