Will HTC Survive?

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Will HTC Survive?

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A few days ago, we did a story on how HTC ultimately become one of the biggest mobile phone manufacturers known for its design, OEM branded devices and its trademarked user interface in the world, all thanks to Cher Mi Wang, H T Cho and Peter Chou, who collectively established the company.

HTC, which stands for High Tech Computer, has been making smartphones longer than almost anyone. Years ago, it  HTC was known for creating Windows Mobile devices that were rebranded by AT&T, O2 and other companies. But thanks to its early embrace of Android with the T-Mobile G1 and Google Nexus One, HTC has risen to stardom, becoming a brand of its own and holding its own against mobile industry veterans like Motorola and Samsung.

It seems 2015 has not really been a good year for HTC. HTC says their financial figures for its second quarter of 2015 lost 24 cents (or pence) for every dollar (or pound) of revenue it took. After four quarters of thin profits, the business just fell rolling off a cliff. In March, the company had a market cap of $4.06 billion, and today—only a few months later—it is worth less than half of that. The trend is downwards — year over year, HTC’s monthly revenue was down 38% in April, 48% in May, and 60% in June.

htc graph

We can see in the graph that the HTC One M8 was the last peak of the HTC growth rate before starting to dwindle. The HTC One inspired an emotional connection, unusual in a generic market. The mobile won lots of phone-of-the-year awards. It joined a striking design to the smartest and most polished of all the leading user-interface skins. Surely, you would think this would turn into sales? It did, but only up to a point.

HTC ONE m8 Lollipop 6

In the past few years, HTC chose to concentrate on the high-margin end of a cut-throat market, and outsourced manufacture of cheaper models to cut costs. Without an active portfolio, it couldn’t capitalize on any “halo effect” from all the rave reviews of the M8.

Also, the trademark design of the flagship didn’t change to the plastic E8 while the One Mini 2 married the One’s high-quality body and design to an underpowered engine. Neither screamed “buy me.”

The last three years of HTC flagships: The One M7, M8, and M9.

The last three years of HTC flagships: The One M7, M8, and M9.

Samsung “recovered” in 2015 because it had used years spending a vast amount of debt on marketing and advertising. HTC had underinvested in marketing and hardly made a few good advertisements. HTC never published sales numbers for the M9, but our guess is they were never good. Reports from the supply chain suggest that HTC could cut component orders for the M9 by 30 percent. One major US carrier even left out the M9 from its lineup due to “lackluster sales.” The M9 flagship is not the reason of all of HTC’s woes, but it’s a good indicator of the company’s problems. In its Q2 guidance revision, HTC accused its economic problems on “slower demand for high-end Android devices and weaker than forecast sales in China.” The only other high-profile device the company makes is the Nexus 9, which ended up being an overpriced tablet with inferior build quality.

So will HTC survive or manage a comeback? We will never know for sure, not up until something changes. However, things are not looking great for the Taiwanese brand at the moment.

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About The Author
Rishi Baruah
Rishi Baruah
iGyaan Network's newbie Rishi Baruah is a musician hailing from Mumbai. He plays drums for a Delhi-based band and specializes in Concert Photography. Oh yes, he can cook up a mean four-cheese pizza.
  • Akhilesh Kumar Akhi

    Money matters HTC should understand this. Should come with more value for money phones.

  • Muhammad Abdullah

    Bilal Saleem :3

  • PratUshh

    Their phone configurations are more practicle , but pricing is absurd (even including their premium build quality)

  • Roshan Pinto

    2 minutes silence for HTC R.I.P

  • Sachin Balan

    HTC is the reason android still rocks. :)

  • Subrat Bhoi

    if they want to survive in the mobile market…..they have to change their style

  • Ashish Choudhary

    The quality of HTC phones makes them high priced though

  • Akshat Gulati

    Yes. it will!

  • ?????? ????

    I hope they do.. They are the best smartphone maker company.. They gave us many FIRSTS..

  • Mehraj Randhawa

    Sumanyu Sharma

  • Mehraj Randhawa

    Nikunj Khanna

  • Rajan Singh

    What i don’t like most with htc is its design. I feel headache when i see the design of htc phones!

  • Sachin Nagar

    will help definetley

  • Sachin Nagar

    plzz make more budget friendly and also put good specs

  • Subrat Bhoi

    only one way……. price matter….htc mobiles are always high priced….. becoz of price only htc came down…. !!!!!

  • Nandil Bhatia

    Shania Bhalotia

  • Bharat Manohar


  • Shubham Karnawat

    microsoft is going to brought htc

  • Tushar Mehta

    Im using526g+ and it rocks

  • MK Singh

    Very much. when spice,Lava, Intex, I ball like Co. survive. HTC has also started making budget friendly phones & it will live long.

  • Samvedh Ammisetti

    No they won’t. They have a lot of other products.q

  • Arinjay Jain

    Shift to SD and less prices… They will rock

  • Shahidul Alam Choudhury

    Hate the Ui

  • Mateen Mohammed Abdul

    all high end devices came with mediatek and it will be nightmares in upcoming days for HTC

  • Nikhil Khandelwal

    Still waiting for my next HTC.

  • Uzair Gujjer

    L T. C