Taiwanese Ministry of Economic Affairs advises HTC to focus on entry and mid-range products to gain growth in emerging countries.
accuses HTC! The entry and mid-range segments were, according to HTC, the main causes of losses this year. While the HTC One is pretty well sold, the company recently reported disappointing results with the first quarterly loss in its history. And as things keep getting worse for themselves, the overall market share of the company increased by 10.7% in 2011 to 4% this year.
Given this financial debacle, the Taiwanese Ministry of Economic Affairs has decided to react. It indicates that HTC should just focus on the entry and mid-range segments, in a report released Tuesday. The administration added that the market was saturated with high-end smartphones in the second half of the year. Thus, according to the Ministry, HTC could not cope with such a competition with different high-end models. While the company’s efforts were focused on the high-end smartphone, HTC has abandoned the smartphones Desire range.
HTC should avoid competing with the market leaders such as Samsung’s Galaxy S4 or Apple and its iPhone 5S. This means that HTC should rather aim at competitors like Nokia with its mid-range smartphones like the Lumia 520, for example.
The industry analysts also agree on this point also. Peter Liao house Nomura Securities says that if HTC focused on identical models Desire, marketed under $ 300, this could allow the company to record growth in emerging markets like China.
Economy
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