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07-30-2013, 05:27 PM #1
HTC Reduces Focus on High-End Smartphones as it Forecasts its First-Ever Operating Loss
In perhaps another sign that the premium smartphone market may be maturing, the struggling handset maker, HTC, has predicted its first-ever operating loss. The company revealed its plans to concentrate more on mid-range phones as a result. HTC’s operating margin was just 1.5% in the third quarter but the company has forecast a range of zero to negative 8% operating margins in the third quarter.
The Taiwanese smartphone maker revealed it plans to launch a range of “innovative and competitive mid-tier products in the coming months.” HTC executives acknowledged that it has not been competitive in the mid-range smartphone market where the industry seems to be seeing the most growth as of right now.
This announcement comes as Apple is rumored to be planning to release its own new mid-range smartphone. For those of you who are unaware of what is being referred to, there are rumors afloat suggesting that Apple will release a new, less expensive iPhone model with a plastic back in the coming months. This of course would be alongside a new high-end model as well.
The changes with HTC mark a contrast from last year, when Chief Executive Peter Chou touting his company’s insistence on using high-quality materials to build premium smartphones. This strategy eroded HTC’s margins and has now prompted the company to attempt to lower its build costs and sell mid-range smartphones with higher margins.
HTC had once been one of the largest smartphone makers in the world but has seen its share of the market slide as the industry seems to have become a two-horse race between Apple and Samsung. Recent data from comScore found that HTC held the third-largest share of the U.S. smartphone subscribers with 8.7%, which is well behind Apple’s 39.2% and Samsung’s 23%. We’ll have to wait and see how these trends affect the wireless market going forward.
Source: HTC via Bloomberg
07-30-2013, 05:38 PM #2
Wow I really thought the HTC ONE was a step in the right direction. It's too bad that manufacturers are competing for a more casual market space.
07-30-2013, 06:23 PM #3
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07-30-2013, 08:37 PM #4
Im sure that switching to metal cost them more money., so their future phones will no longer be metal which will seem like downgrade to future users.
I chose the HTC One over the S4 only because it was $50 cheaper, I got $200 for my wife's S3 AND the 32GB model costs less than the 16GB S4 which only had little over 9GB of usable space.
I do however would rather have a 32GB Galaxy S4 but I might just wait til next year and get the S5. the One is a pretty device to look at and it has some things better than the S4 but its the Samsung software that makes all the difference and no Android or iPhone can match it.
07-30-2013, 08:50 PM #5
07-31-2013, 12:24 AM #6
07-31-2013, 09:47 AM #7
^^I'll stick with my iPhone 5 for now as it has yet to fail me.
07-31-2013, 12:51 PM #8
08-01-2013, 03:49 PM #9
BTW, which color do you think will look best for resale value: Silver or Blue?!?! I have the Light Mod, as well!
Last edited by thazsar; 08-01-2013 at 03:57 PM.