HTC is reportedly planning to launch cheap smartphones in the $150-$300 range in a bid to regain some of the lost market share.
The company has been facing serious downturn in fortunes with a fall in the global market share to just two percent of the total shipments, drop by 80 percent in the stock price, 83 percent fall in profits in the second quarter of 2013, and two successive quarters of operating losses.
Recent reports hint at cost of smartphones launched by HTC as the possible reason for this downfall. Out of the 53 phones on HTC’s website 20 cost more than $500 and only two cost less than $150 – the category that has recently shown the most growth.
HTC co-founder and chairperson Cher Wang, said “The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market”, notes Reuters.
HTC’s Chief Financial Officer, Chailin Chang, said that with this move, HTC will be selling more products that cost between $150 and $300 dollars for the developed and emerging markets along with the high-end smartphones for over $600, but not the ‘very, very low-end market.’
The company has also announced plans to release a new flagship, a successor to the HTC One, and a wearable device by this year’s holiday season.
HTC believes this move will help in reversing the slump as Wang, who is planning to boost the marketing, said “Overall profitability is going to grow.”
The executives also feel that higher volumes of cheaper smartphones should make up for the difference in price with its higher-end smartphones.
