HTC isn’t exactly in great shape. They make good phones, but they don’t make great phones. Ask just about any Android fan whether they’d have a Galaxy S3 or a One X and there’s a good chance you’ll hear the word “Samsung” come out of their lips. The recently launched DNA/Butterfly certainly has people talking about HTC again, but let’s be serious for a second, just because HTC was the first company to launch a 1080p smartphone, that doesn’t mean they’re going to fix all their problems.
According to a new report in DigiTimes, HTC has canceled “a number” of new models that were supposed to come out next year. That obviously means they’re going to focus on fewer products, which is a good thing, right? Bad news, the report goes on to say that HTC has also been reducing their component orders. That’s a nice way of saying HTC expects to sell fewer phones. DigiTimes also says HTC expected Q1 2013 shipments to be 20% to 30% higher than shipments for Q4 2012, but those numbers have now been cut in half to 10% to 15%. Normally companies sell fewer phones in Q1 than they do in Q4, but you have to remember that HTC is a Taiwanese company; Chinese New Year is in February. That’s a huge holiday in that part of the world.
Speaking about China, we know that the Chinese don’t like buying expensive phones, and that’s forcing HTC to change their strategy. Just a few short months ago, back in June, HTC’s CEO told the Wall Street Journal that they weren’t going to sell low end devices. This is no longer the case. DigiTimes says HTC is now competing in the sub 2,000 RMB ($320) market, not because they want to, but because they have to in order to stay alive.
So the obvious question that springs to mind is can HTC turn things around?
Sadly, it’s too early to tell.