HTC revamps strategy to ‘do things differently’ by targeting profitability instead of volumes.
The manufacturer’s Q2 2015 demand for high end smartphones lead to a TWD 8bn (£160m) quarterly net loss.
HTC is rethinking its strategy in the ‘challenging’ smartphone environment to reverse the slump in demand.
The company reported revenues of TWD 33bn (£670m) alongside operating losses of TWD 5.1bn (£100m), falling in line with its earnings guidance and preliminary results, released last month.
Speaking in an investors call, Chialin Chang, CFO and president of HTC global sales, said: ‘There's a softness in the high-end demand of smartphone, part of it due to the overall Android market, part due to our HTC-specific.
‘This softness is because every time HTC rely on, quite heavily on the high-end smartphone and the halo effect created, so without the high-end carrying the load, creating the halo effect, there's some impact in there. In light of the current challenging environment, we are doing a few things.
First of all, we're actually rethinking about what's the right smartphone strategy. As you can see, a lot of vendors basically treat smartphone as the entry point for mobile internet. So to us, it's a game. Obviously people try to grab subscribers through the more volume of smartphone. So it becomes a very intensified competition.
‘HTC have a few advantages and we're going to have to play in terms according to our strengths. So we're going after profitability instead of -- we're going into the profit share and profitability instead of the volume share. That's something we're going to do it differently.’