HTC will ‘play to its strengths’ as Q2 smartphone sales slump

HTC will ‘play to its strengths’ as Q2 smartphone sales slump

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.’

 

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