Expect only mid-range and high-end flagships from HTC moving forward.
HTC is hoping that less is more when it comes to smartphone offerings. Chia-Lin Chang, President of HTC's Smartphone and Connected Device divisions, says the Taiwanese company will stop chasing high sales numbers in the entry-level smartphone markets and instead focus on designing and selling highly profitable devices.
This news comes from HTC's quarterly conference call with investors, wherein the company announced a fourth straight quarter posting an operating loss. When asked how the company plans to shift its strategies for 2017, Chang responded in part by saying "We are going to get out of the entry level part, which I think is ultra competitive and we're not necessarily going to benefit from a profitability perspective here. To us, profitability on the smartphone is going to be quite important."
Chang continued by saying the company plans to focus on mid-range to high-end products moving forward, stating the company is planning to release only seven "key SKU" (stock-keeping units) in 2017.
The strategy does make sense, given how crowded the budget phone space has become —especially in the competitive overseas markets of China and India. Instead of chasing high sales figures with cheaper devices, the plan will be to focus on mid-range devices and premium flagships with higher profit margins — such as the forthcoming HTC U Ultra and U Play.
Only time will tell if this new strategy will lift HTC's smartphone division out of the red, but at least we're sure to see the top tier of smartphones from HTC moving forward.
Reader comments
HTC leaves 'ultra competitive' entry-level smartphone market to focus on turning a profit
Competitive...
They shouldn't have made so much garbage. The same goes for other makers as well. Too much random budget phones is a waste of money and resources.
Low end? They sell mid range phones for comically too high prices...
Just like Trump, they will be hard pressed to see the end of 2017 while still relevant...
We dodge a bullet it went Hillary! That would have been worse
You mean 2024 after he gets reelected by a landslide just like 2016.
Seven SKUs still seems like a lot of devices.
Yep. All named similarly enough that they'll all be forgettable.
And overpriced
isnt a same phone with 64 gb and 128 gb considered 2 sku?
Yes
it's funny, cuz they've said this BEFORE when the M7 was released... then a plethora of phones came out because of the success of One M7.
The M7/M8 days were nice.
If HTC released a modern day M8, meaning exact same physical design, but improved internals and software, I'd snatch that up in a heartbeat. Well, they could ditch the gimmicky dual camera setup w/ "ultra pixel" and just put in a really good single camera system.
Yeah, there was (supposedly, anyway) a reason why that phone was called the HTC One.
I glad someone else remembers this
Yeah, I remember when they announced this same "strategy" a while back. I'll believe it when I see it. If HTC were really smart, they'd focus on their manufacturing partnerships with the likes of Google and Underarmor, make one (and just one) really good phone a year, focus their entire marketing budget one that phone, focus their software development resources on supporting that one phone for 3 years, and when the next year comes around, pull an apple and sell the previous year's model (which it would already be supporting) for $100 less => profit
They should release a high-end phone, cause they haven't done that in years.
HTC 10?
Corrected version: They should release a high-end phone that doesn't cost an arm and a leg.
If you want to compete with Samsung, Apple or Oneplus, you need to make products that are either better or either lower-priced. The HTC 10 was a magnificent device but was neither better nor cheaper.
I hope HTC can turn things around. I used HTC for years and the two best phones I've ever used were the hd2 and HTC Titan.
I moved over from Windows mobile to android late last year and was looking at the HTC10 but went for the LG G5 instead because of the camera and screen size.
Ide love HTC to go back to making phones like the Titan and HD2 and if they do they maybe on my next phone radar at the moment it's the LG g6 I'm excited about.
I still remember the days when I would get excited about the next high end phone that HTC was releasing. Other than my current Note 5, the Droid Incredible 2 was my favorite phone that I've ever owned. The detailing and styling of that phone really was incredible. It was an aluminum shelled phone before that was a popular feature to have. I also beat the ever loving crap out of it and it stood up to the abuse like a tank.
I've always loved HTC phones. They have the best 3rd party skin IMO and their design and quality is usually top notch. It just seems like every flagship they've released the last few years has one major feature that's either missing or sub par. If the HTC 11 or whatever it will be called has the 835, waterproofing, and a camera competitive with Samsung's I'll be very interested. I'm skipping the U.
I doubt if HTC will be able to survive with only high end devices. Yes they make nice design and good build quality etc..But so do many of the new Chinese brands from mainland China to. So I guess we will see what happends.
Sony is struggling to in mobile, but they atleast making camera sensors to other brands also.
HTC.s chance are probably to go back to the ODM business and make Pixel devices etc..
Releasing seven phones a year still sounds like too many. Four phones, a mid-range and flagship available in small and large display sizes would be sufficient, I think.
7 SKUs, not 7 different phones
They need to figure out how to make their flagship devices come in at mid-range prices backed by a strong marketing plan.
As tough as it sounds HTC, you can do it. While your hardware quality rivals that of Samsung and Apple, you just don't have the brand recognition like you used to.
Here's what you do, create a flagship with an 821 Snapdragon, 4GB RAM, 128GB on-board, same camera as last year's Pixel, QHD display, and 3200 - 3500mah battery, with 5.2" display and sell it for about $625. - In other words, make a Pixel 1.5 and sell it as your own.
I have said this previously less is more release less phone's so you can support them for longer with software updates you really only need three max high mid and low end
I never had the Desire for their lower end phones ;)
But, the HTC One and One Mini were the absolutely best in-hand feeling phones for me. I would hold them even when there was no other reason than to enjoy the sensation. I moved on to the M8 for performance and memory, and it does not feel as good, but it works so well that it remained my daily driver after I bought the iPhone 6s and S7 Edge.
It was the overproduction of phones that put me off HTC years ago. I had the Sensation XE - billed as their flagship phone and bought on launch. Then 3 months later a new flagship was out and the sensation became old news!
They deserve the kicking they got but i hope they get their act together because they can produce some great gear.