HTC looks to low-end phones as panacea for falling sales
Despite returning to a slight profit, HTC continues to struggle amid larger rivals Apple and Samsung Electronics.
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HTC is hoping cheaper phones will aid in the company's recovery.
The company, which over the last two years has streamlined its portfolio down to just a handful of premium smartphones, said it would expand its portfolio to include more mid-tier and affordable phones, according to Reuters, citing executive comments from a conference call.
The phones would range between $150 and $300 (excluding subsidies). Its higher end phones retail for around $600, which is standard for a flagship device. The company believes higher volumes of its cheaper device will drive profitability.
The decision to go back into lower end phones marks a reversal of the company's core strategy -- one that has resulted in plunging market share and sales. On Monday, it also reported fourth-quarter revenue had fallen by nearly a third to $1.41 billion, although it managed to reverse a recent trend of losses by eking out a profit of $10 million.
In the first quarter, HTC expects to post revenue of $1.12 billion to $1.19 billion, but return to a loss.
Chairwoman Cher Wang acknowledged on the call that HTC focused too much on its flagship
The focus had come when a number of other large handset makers had shifted their gears to mid-range devices and lower. Samsung Electronics already had a healthy and well-rounded smartphone portfolio, while Nokia saw much of its growth come from lower end Windows Phone and Asha devices. Even Apple attempted to break into the mid-tier market with the
In a major market like China, companies such as Xiaomi, Huawei, and ZTE all offer low and mid-tier phones.