HTC is getting out of the entry-level smartphone market, says there's no profit to be made

[Shawn Knight]

HTC is throwing in the towel with regard to its entry-level smartphone strategy, instead electing to focus its handset portfolio on high-margin, flagship devices.

The company said as much during its recent Q4 2016 analyst call as highlighted by Phone Scoop.

During the call, HTC CFO Chia-Lin Chang described the entry-level market as ultra-competitive and one that would provide no benefit to them from a productivity standpoint. As such, they plan to trim the portfolio down to between six and seven devices in 2017. HTC will, however, continue to sell and support budget-minded phones already in the channel.

Mid- and high-end devices like the upcoming U Play and U Ultra, for example, will arrive as scheduled in March. The high-end HTC 11, which is rumored to be powered by Qualcomm’s Snapdragon 835, is also in the pipeline.

While the low-end is no doubt competitive, the flagship market may offer even stiffer competition.

In 2017, we’re expecting to see what’s looking to be an excellent device in the Samsung Galaxy S8 in just over a month and a redesigned iPhone from Apple later this fall. Companies like LG, Huawei and Sony will also pepper the market with high-end devices in the coming months, bolstering what is shaping up to be one of the more exciting product cycles in recent smartphone history.

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https://www.techspot.com/news/68215-htc-getting-out-entry-level-smartphone-market-there.html

 

[oldikes]

Exciting product cycles? why? 100mAh higher battery capacity? needs more camera sensors? why have one fingerprint sensor when you can have 5?

 

[Uncle Al]

Either their production costs are out of line, or their profit expectations are even more out of line ....... or simply bad management, which is what I would suspect.

 

[MoeJoe]

L m a o

 

[hahahanoobs]

I think they are only known for the HTC One, so that might also have something to do with this decision.

 

[turismozilla]

Pu$$ies.

 

[yRaz]

Low end smart phones are an investment with the hope that further on down the line you build brand loyalty. Now I'm sure plenty of people will never be able to afford high-end or even midrange smartphones, but there are also plenty of people who will.

HTC is a business and this is their choice to make, I'm sure they didn't make it lightly. With thongs like the Moto G around(got my mom one for Christmas), the market share for low end smartphones is not in HTC's favor. Currently have the HTC stylo 2 Plus and I couldn't be happier. Not my Galaxy S5 by any means, but I don't need the features of a high-end smartphone. Although, I do miss the AMOLED display.....

 

[Aaron Jones]

With thongs like the Moto G around(got my mom one for Christmas)

What an excellent typo.