On the smartphone market, HTC is such as a small fish. And the larger fishes such as Apple and Samsung are gripping but there is no way to escape.
At the time, 2010, when the Android platform for mobile devices have only been on the market, HTC is one of the largest Android smartphone manufacturer worldwide. Five years later, things have changed too fast for Taiwanese smartphone company. Consecutive market share lost to rivals. Revenue and profit so automatically plunge.
Not now, the downturn in the new HTC comes first; but can say the current situation of Taiwanese smartphone company are worse than ever. The stock price slid to record lows to only 3 USD / share. The company has also cut its forecast for second-quarter revenue / 2015 and recommended that investors may well be that you are at a loss in front. During the quarter, HTC is only expected to reach 1.06 billion US dollars revenue to USD 1.16 billion, down from $ 1.48 billion predicted to USD 1.56 billion previously. HTC also expects losses of 31 cents to 32 cents / share in the quarter.
HTC between the two rounds grip
HTC’s difficult to see small smartphone brands are being “suffocated” between the grip of the big brands, especially in the segment of high-end phones. Undeniably the top Android smartphone manufacturer HTC tables that have good quality hardware. We are appreciative of design, material. Before Galaxy S6 / 6 Edge launch, the handset of HTC aluminum casing feels always hold far superior compared to Samsung’s smartphone plastic shell.
Yet, HTC still hiding under the shadow of Samsung, Apple, and even LG – the largest smartphone brand and is known more. Samsung is the largest manufacturer of Android world with a series of models in all segments, from luxury to cheap; while Apple is the most expensive brand planet thanks to the revolutionary smartphone iPhone.
HTC’s weakness lies in that the company also failed to master the technology as Samsung, LG. If you like the LG, Samsung, all the components themselves, such as processor, RAM, screen … the latest HTC disabilities all components are dependent on third parties. They must buy chips from Qualcomm or MediaTek, purchase screen (rumored from AU Optronics – AUO) … Consequently, as the Qualcomm Snapdragon 810 chip was running too hot speculation, HTC has no other way to still use One M9 to use it to launch in time. In reverse, thanks to self-control components (with a line produced its own Exynos chip), Samsung did not use Qualcomm chips for the Galaxy S6 as they did before the Galaxy S5.
The dependence on technology, comes with too much focus on design and materials, which HTC products have always been criticized for high prices in comparison with the configuration. HTC is also trying to improve the situation by producing more models and views trung.The cheap but they ran into the other wall. Companies emerging smartphone from China as Xiaomi, Oppo … is the one who owns this segment, especially in the vast Chinese market.
Peter Chou sinner?
In the story of the decline of HTC, Peter Chou former CEO was a remarkable character. Born in Myanmar and to study electrical engineering in Taiwan, Chou joined HTC in 1997. Colleagues described him as a perfectionist who follow and have a major obsession with hardware design.
As of the date of resignation (20/03/2015), HTC CEO Peter Chou made in 12 years. His merits are enormous, but “crimes” no less. According to the Reuters page notes after interviews with dozens of former and current leaders of HTC, Chou was identified as a person capable of making quick decisions. When HTC Sensation XL launched in 10/2011 the entire plan in design, price, release date was Chou outlines just three months earlier.
Both traits were clearly his help HTC in the smartphone market, allowing companies to quickly switch strategies to create a new line of products to meet market demand. However, according to sources from inside HTC, many companies see it as a barrier to development. These features help Chou HTC adapt only market in the initial time. Later, they quickly catching up with the competition. “As in a caring, ability to make quick decisions of Chou served as a strength, but now it’s a weakness because they do not have a clear direction for the future” – an unnamed inside source from HTC said
The new way
Smartphone market already harsh then even more difficult now by the appearance of signs of saturation. IDC predicts the market will grow 11.3% in 2015 was, instead of 2014. 27.6% of this fact even makes HTC challenging because they are considered only specialized manufacturing company business smartphone instead of multiple fields like many other companies.
However, it would still have to find a new direction if it wants to survive. Virtual reality devices and health monitoring bracelet as two new product lines were selected test. Along with the SmartWatch, this is seen as the device of the future. With virtual reality, HTC partnered with renowned game developer Valve to develop. Medical equipment, firm handshake and Under Armour launched the HTC Grip month 3/2015 (event MWC).
They also had a new leader to replace Peter Chou, ie the elements are said to be hindering the development of the past have been removed. But whether HTC would do in any market as well as the “battlefield” really. Virtual reality glasses have the participation of the big guns like Facebook (with the acquisition oculus), Samsung, Google; the market also has dozens of health monitoring devices other, excluding the SmartWatch Apple is also equipped with this function. The success or failure of new playground HTC still have to wait long to take the answer, even with smartphones, alarm status was imminent than ever.