HTC Won’t Sell “Cheap, Cheap Phones”

June 13, 2012

After a disappointing 2011, Taiwanese smartphone manufacturer HTC shifted their strategy by concentrating on quality over quantity. We’ve seen evidence of their efforts in the form of fewer devices, primarily the HTC One Android series, which includes the One X, One S and One V. So, how does the smartphone-maker feel about their tactics half a year into 2012?

HTC told the WSJ they will continue to focus on their mid to high-end product portfolio, despite stiff competition from Apple and Samsung. Chief Executive Peter Chou confirmed the company isn’t currently concerned with the low-end smartphone market. “We don’t want to destroy our brand image,” Chou said. “We insist on using better materials to make better products that offer premium experience. Many consumers like that.”

Last year, in China, Samsung raked in 18.6% and Apple grasped 9.9% of the market share compared to HTC’s 3%. Analysts say HTC’s middle-to-high-end segment in China is shrinking due to increasing demand for low-end smartphones. With the advancement of technology in recent years, even low-end devices are beginning to offer features that consumers find appealing. However, Chou believes an ultra-low price point is not worth the sacrifice in quality and he refuses to sell “cheap, cheap phones” just for the sake of boosting sales. Instead, HTC will work on expanding their marketing and distribution network. Chou estimates that shipments to China this year will be around three times larger than last year. The company also plans to conquer emerging markets, like India, for example.

Source: WSJ

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