HTC plans 'cuts across the board' to revitalize smartphone business

By AdrianD
Aug 7, 2015
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  1. [parsehtml]<p><img src='' class='intro-image' /></p><p>HTC has tried essentially everything to break out of its mobile market slump over the past couple of years. <a href="">Executive shakeups</a>, strategy adjustments, an increased focus on high-end products, an increased focus on low to mid-tier devices, you name it.</p> <p>Still, the Taiwanese giant continues to <a href="">bleed money</a> and lose precious share to Apple and Samsung, as well as up-and-comers from China. The logical next step in the effort to stabilize the once thriving business unfortunately calls for layoffs, cost cutbacks and a reduction of handheld models.</p> <p>Chief Financial Officer Chialin Chang ominously said to <a href="">Reuters</a> that &ldquo;the cuts will be across the board&rdquo; and &ldquo;they will be significant.&rdquo; No precise number was disclosed, but apparently, the layoffs will come by the end of 2016&rsquo;s first quarter.</p> <p>Despite <a href="">the One M9 failing</a> to keep up with rival flagship sales, HTC is reportedly hell-bent on regaining its high-end prosperity. The primary target is India and similar emerging markets, where consumers may be swayed by a robust quality-price ratio.</p> <p>A slew of dependable tipsters suggested in recent months the M9 will be followed up by an &ldquo;intermediate&rdquo; hero device codenamed Aero in late 2015. Then, a drastic redesign should take place in H1 2016, possibly in combination with a big price cut. Let&rsquo;s just hope the muscular aluminum constructions won&rsquo;t be replaced by flimsier plastic frames.</p> <p>Come to think of it, smartphone build quality is probably the only thing HTC <em>doesn&rsquo;t</em> need to alter.</p><p><a rel='alternate' href='' target='_blank'>Permalink to story.</a></p><p class='permalink'><a rel='alternate' href=''></a></p>[/parsehtml]
  2. MoeJoe

    MoeJoe TS Maniac Posts: 358   +172

    Not a good sign.
  3. p51d007

    p51d007 TS Evangelist Posts: 853   +352

    The only way they can regain, would be to slap consumers up side the head, to understand, that for the majority of users, high end processors, gazillion megapixels, screen resolution so clear that the compound eye of a house fly can see the pixels ARE NOT NEEDED to have a great device.
    Until that happens, makers will continue to turn out expensive device after expensive device that costs 200-300 dollars to manufacture, but will retail for 700 dollars and up!
  4. lripplinger

    lripplinger TS Addict Posts: 252   +84

    I currently have the One M8 and absolutely love it. Such a well built phone. I liked it way better than the Samsung S5 I compared it to. The Samsung had a nice screen, but the build quality just wasn't like the HTC. I had an HTC Eris several years ago, and it was a bullet proof phone. Would be a shame to see HTC go under.
  5. verneronomous

    verneronomous TS Enthusiast Posts: 38

    This is a shame I came from a Samsung phone and love the HTC phone. It is the best phone I have ever had. This is a shame! I will remin loyal to HTC no doubt.
  6. fadedturbulence

    fadedturbulence TS Rookie

    Indeed, this is not good to hear :(

    I knew something was going to happen, kind of thought it would be's almost always cuts after a bad series of events like what HTC is currently having.

    I really love HTC's quality of their mid-high end phones. Even if some of the phone is 'part gimicky' it still seems to have that high end feel. I have the HTC Vivid from late 2011 (don't use anymore) that has the [I assume] plastic edge piece going around the phone but even that semi-plastic feels nice and solid. (I also owned the G1 & HD2 - both again, solid for their time)

    I currently use the M7, and will not upgrade unfortunately. I would like to, but the M8 and M9 I think they went backwards a bit in design. I agree with a lot of others on the black bar below the screen, I feel it is such a pointless design element. I like my capacitive buttons in the 1 bar, over 2 black bars showing before the silver edge lining. I also think the M7 is still plenty fast enough, even playing many graphic intense games - no FramePS lag. I would get the M9 but they failed to change it enough to warrant $700 - that is too much. + The SD810 is a bad chip so I'm all set frying my legs and hands.

    Competition is getting fierce too. It use to not be so highly competitive but there are a lot of new vendors coming in and trying to dominate. Almost all the hardware/features are becoming the same now and really the only thing left to compete on, is the price. And unless you can get good contracted deals from great hardware partners, you won't have much of a chance. Unless you want to reduce your goal 'profit margin' some and reduce the price of the phone - but what company wants to do that - although it does seem like the china region is getting this; get people to see you produce quality for value then slowly bump the price/adjust profit margins

    Also, Apple has 1 phone - not sure why some (ahem HTC) feel the need to produce 1-2 high-end, 5 mid-range, 10 every year. Then they wonder why they can't support each phone for longer than 16 months without going into deficit on their support/development of legacy devices.

    I'm thinking we will hear more changes with HTC soon. Though I am glad to see them saying they 'want' to regain the high end prosperity. I hope they do, they were the first to produce an Android phone, I hope they aren't one of the first [large corps] to die off :(

  7. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,729   +1,093

    They don't need to slap consumers upside the head, they need to slap online reviewers. Your average consumer buys samsung/apple because that's what they see on TV and/or because their friends have one. A well informed buyer will read online reviews, and they all care about benchmarks, pixels, and feature creep.

    There's one other problem with your recommendation. HTC already tried it and failed. The M7 (an awesome phone when it came out) didn't fall for the megapixel race and went with 'ultra-pixels' that excelled in low light. The idea was that people put their photos on social media and don't need 16MP to do that. They tried and failed at going against the grain... as the competition caught up on low-light performance by the following year, the M8 wasn't as big a hit. Now with the M9 they went full MP... just like everyone else.

    The point is... HTC's problem isn't innovation, or understanding what people want. Their problem is living in the shadow of Samsung and Apple. They don't have other huge business segments to support a poor-selling smartphone like LG or Sony. The M7 cleaned the floor with the S4 in 2013 in any review, but it didn't outsell it... not with Lebron James doing Samsung commercials. And with the M8 and M9 they are having trouble getting people interested because they stuck to their excellent design. (Dual front-speakers rock, btw). That means no new 'wow' factor... whereas Samsung is getting accolades for 'premium design'... something HTC did years ago!

    There's your proof that HTC has been making great phones... Samsung just changed their Galaxy line to imitate them. Look for front speakers on the S7.
  8. Kevin82485

    Kevin82485 TS Booster Posts: 159   +41

    Shame, HTC makes great phones. They really should be the top dog among Android phones. Solid build, quality components, front facing speakers, and light on the bloatware compared to Samsung. Yet, most people get a flimsy Samsung with the God-awful Touchwiz UI

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