HTC is still struggling and they have just posted a loss of NT$1.88 billion (MYR202.6 million) for Q1 2014. Last year they’ve taken an aggressive step of launching a trio of aluminium clad HTC One devices but this hasn’t done much to stop its downward trend financially.
About 2-3 years ago, HTC was a formidable smart phone player and they once ranked 3rd behind Apple and Samsung, enjoying a 10% share of smart phone sales. In 2013, HTC has only managed to capture a market share of 2% according to Strategy Analytics.
For the next quarter, HTC is banging on their latest HTC One (M8) and mid-tier Desire 816 to improve its next quarter results. Will this be enough bring the Taiwanese smart phone maker back to profitability?
The HTC One M8 is a very well built device and it improves over the One. However it is a flagship device that’s arguably lacking in features compared to its competitors. Next to the Galaxy S5 and Xperia Z2, it is hard to justify the HTC One M8 other than having a premium body construction.
Another hurdle is HTC’s speed to go to market internationally. Samsung will be releasing its Galaxy S5 worldwide including Malaysia next week while there’s still no indication when the HTC One M8 is going on sale here.
Other than pushing a high-end product, HTC also needs to release more affordable smart phones to help drive its sales volume. Last year they have neglected the entry to mid-tier segment and this would be a key area for them this year.
Just last month, HTC had announced its first smart phone that uses a cost effective MediaTek processor with the Desire 310. It is yet to be seen if their Desire line up is compelling enough to draw the attention in the already crowded space. HTC needs to come out with a cheap and cheerful device like the Moto G, which is said to be the most successful Motorola model ever. It is no surprise why it is desirable with its respectable hardware specification and an affordable price tag.
The smart phone industry can change very quickly. Sony had struggled with underwhelming smart phone specs back then has now emerged Top 3 in most markets. They even ranked number 2 in India surpassing Apple. Will HTC make a come back this year? Leave your thoughts in the comments below.
