Tim Bichara

HTC to focus on midrange phones

Earlier this week HTC announced it will shift to a focus on midrange phones over 2014. This seems like a bit of a 180-degree turn after the HTC One seemed to be designed to compete with the high-end phone companies such as Apple and Samsung.

While the HTC One had a very positive reception, it seems that success didn’t return to the company. As reported by the Verge, over the last quarter of 2013 the company’s profits dropped by 28% when compared with 2012.

So if the HTC One was really successful why did the company’s profits drop? This seems to be a case of over-specialization, as HTC Co-founder Cher Wang mentioned; the problem was the company was concentrating too much on its flagship phone. By focusing too much on high-cost phones, even if they were well received, the company was missing out on “a huge chunk of the mid-tier markets”

While this isn’t the first time the company has shown dwindling profits, in fact 2013 seemed to have been a bad year for HTC with very poor revenues reported back in April and June. Perhaps this change in direction to a focus on midrange phones will turn around their dire looking situation.

That is not to say they are leaving the high-end market completely, the company announced that are currently working on a successor to the HTC One, along with their own smart-watch.

While our thoughts on the smart-watch trend are hardly secret, we are interested to see if with this new focus on midrange phones, whether HTC can turn this situation around. Either way it looks like 2014 will be make or break for HTC


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