HTC plans to sell cheaper smartphones to become profitable again

HTC has been in financial trouble for the past few quarters as it has seen its share of the smartphone market become smaller, thanks in part to competition from Apple and Samsung. Today, HTC announced that its revenues for the last quarter will be lower than first predicted and revealed plans to cut its own costs by 24 percent.

Bloomberg reports that in an investor meeting today, HTC exec said its revenues for the July-September quarter will be 15 percent lower than the previous quarter. As a result, the Taiwan-based company will cut its operating expenses by 24 percent in the current quarter. Exactly how that will be handled was not revealed.

HTC has been trying to compete for the high-end smartphone market with products like the HTC One, but that Android-based device also suffered from supply issues that limited the number of units it sold during its launch earlier this year. Now the company says it will try to release less-expensive phones, but won't target the "ultra low-end" smartphone market. A few weeks ago it launched the 5.9-inch HTC One Max in parts of Europe.

HTC has historically been the second biggest seller of Windows Phone devices, behind Nokia. A variant of the HTC One design made for Windows Phone 8 was rumored to be planned for launch later this fall but there's been no news on that product for some time. Neowin emailed HTC for comment but a spokesperson told us that the company does not comment on rumors and speculation.

Source: Bloomberg

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31 Comments

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HTC used to be a quality phone company. This is what their brand stood for. But for the last 2 years I've watched that quality nosedive.

We've had a couple of midrange HTC phones through my work. HTC One V: poor reception, 3g just gives up sometimes, sometimes no mobile cellular function at all, phones occasionally brick, sometimes it doesn't detect the SIM. HTC Windows 8S: Terrible reliability issues. Lots of battery failures. Fragile Micro-SIM slot easily bent out of shape.

HTC needs to improve device quality and support, not reduce prices.

htc is too f* lazy to support their products. currently have a one x and my next phone will either be a nexus, a lumia or something else.

htc totally deserves its fate, they should hire britney spears to advertise their phones... b*

Hello,

HTC can do all they want. They destroyed their own rep when they stop supporting (updating) 1 year old phones.

Dumped HTC because they ditch support for phones too early. Releasing phones every 6 months is fine but you have to keep updating the old ones.

They should of created a name in WP before Nokia jumped in. Now they have Samsung and Nokia to compete. Those **** WP devices they produced Mozart etc were terribad.

Another misleading title by John. One would deduct from it that they'll start selling them at a lower price, when they actually said that they may "outsource production" to "cut cost", while avoiding the "low end" of the market. Also said they'll grow their top of the line phones.

anothercookie said,
Push out a low cost dual OS phone HTC and maybe I'll be interested.

Why the hell would you want more than one OS on a phone?? It's not a fancy geek machine, it's a freakin phone. Android or WP, pick one.

You know what cracks me up? Everyone complained that HTC made to many phones, yet no one dares question the number of phones Samsung make of their Galaxy range. S, S mini, Ace, Y and so on.

Yet look who's on top in the android market...

HTC was a fool to abandon the low-end Windows Phone market. Now Nokia is cleaning shop. Shame, because the 8S was a pretty nice looking low-end phone. What HTC really needs is to build an actual ecosystem around their devices. Making just another version of Sense isn't good enough anymore. Everyone wants all the bells and whistles that they get on Samsung's devices, even if most of the features are pretty much useless.

LOL .. I remember about a year ago they announced they would be leaving the low end phone market to restore the HTC branding.. What a 180 on that pocicy I guess because the HTC One brand did not land as well as expected..

http://www.phonearena.com/news...age-says-Peter-Chou_id31240

"We don't want to destroy our brand image," Mr. Chou said. "We insist on using better materials to make better products that offer premium experience. Many consumers like that."-HTC CEO Peter Chou

Lachlan said,
LOL .. I remember about a year ago they announced they would be leaving the low end phone market to restore the HTC branding.. What a 180 on that pocicy I guess because the HTC One brand did not land as well as expected..

http://www.phonearena.com/news...age-says-Peter-Chou_id31240

"We don't want to destroy our brand image," Mr. Chou said. "We insist on using better materials to make better products that offer premium experience. Many consumers like that."-HTC CEO Peter Chou


Misleading title by John. They never said they'll go back to the low end.

They just need to improve their support service. Their phones are awesome already. The thing that kills their business is their sucky support service.

HTC makes darn good phones... the problem is NOBODY knows it...

Take the HTC One for instance. IMHO is a much better phone than the Galaxy S4

Showan said,
HTC makes darn good phones... the problem is NOBODY knows it...

Take the HTC One for instance. IMHO is a much better phone than the Galaxy S4

I agree, I simply love my HTC ONE !

Showan said,
HTC makes darn good phones... the problem is NOBODY knows it...

Take the HTC One for instance. IMHO is a much better phone than the Galaxy S4

I would have to disagree. There are so many quality issues & faults with their phones and it's priced too high. Lot of people know HTC brand. They should be selling #1 in many markets like China if they make such great phones.

The problem isn't quality. It's the fact that they don't support phones after like a year. Take my HTC One S for example, still quite a good phone, but already unsupported.
People have had bad experiences and HTC isn't helping themselves.

Showan said,
HTC makes darn good phones... the problem is NOBODY knows it...

Take the HTC One for instance. IMHO is a much better phone than the Galaxy S4

My HTC Mozart was a great piece of hardware as well. Problem is that HTC doesnt support it. I now own a Lumia 920 and I couldnt be happier. Nokia knows how to support their devices like no other. They put HTC to shame and its no wonder Nokia is going up while HTC goes down.

Latly while many high-end HTCs are pretty good HTC is also known for having ****ty low-end phones that break-up, freeze or become terrible slow after a while. So if they are going to focus on cheaper phones then they are in for a challenge both in terms of hardware and software. Because again Nokia is showing how its done with the 520.

Showan said,
HTC makes darn good phones... the problem is NOBODY knows it...

Take the HTC One for instance. IMHO is a much better phone than the Galaxy S4


Almost everybody knows it but due to Samsung's marketing, almost nobody buys HTC. They go Samsung instead.

Showan said,
HTC makes darn good phones... the problem is NOBODY knows it...

Take the HTC One for instance. IMHO is a much better phone than the Galaxy S4

Not having a replaceable battery is a deal-breaker for me. I know a lot of people went with the Galaxy S4 over the fact that you can upgrade the storage with a Micro SD card.

I plan on keeping my devices for a long, long time. I've already swapped the battery in my iPhone 3GS twice (it's over 4 years old), and I recently put a fresh battery in my iPhone 4S.

I cannot change my iPad batteries, but Apple does have a "battery replacement" service and there are two Apple stores near me where I can do this.

How would I use an HTC One, long-term?

Ronnet said,

My HTC Mozart was a great piece of hardware as well.

If you compare it to the Omnia 7 that was also cheaper (plus AMOLED and other features) it really wasn't that good.

Showan said,
HTC makes darn good phones... the problem is NOBODY knows it...

Take the HTC One for instance. IMHO is a much better phone than the Galaxy S4

I disagree - their updates are slow to arrive and their synchronisation application for OS X is slow and buggy particularly when dealing with large libraries of music. If they focused on selling a phone with Android with minimal crapware and a quality synchroniser for OS X and Windows then they'll gain customers but so far they've successfully shot themselves in the foot each step of the way.

I think HTC One is a better phone than the S4 too, overall - but you take away the hardware construction and it might not be really "better". Nonetheless, love my HTC One

francescob said,

If you compare it to the Omnia 7 that was also cheaper (plus AMOLED and other features) it really wasn't that good.

Of course........ but I'm not comparing it to one specific Phone. I'm comparing it to the phones that were available at the time. For its time it was a mid-range device.