Saturday, 15 February 2014

HTC market saturation - dejavu in practice and result

There's a touch of dejavu about the latest reports around HTC's decision to begin the production of cheaper smartphones as a priority with the reported Desire 8 (pictured below) a starting point. The problem is that the last time they pushed in this direction, it was from a position of great strength - not desperation, as they currently find themselves. 

What HTC need, and are looking for, is market share. They're hoping that producing cheaper phones will be a quick fix to keep pace with the likes of Nokia, LG and Huawei in the fight for the final 20-30% of market share left by Apple and Samsung. However, what HTC need is brand loyalty, and they're not going to get there by producing cheap phones. The HTC One is critically regarded as the best phone around. HTC simply need to be better with their marketing. If they don't market one 'phone of the year' well enough, how an earth are they going to get it right when marketing a series of them? After all, they haven't got a great record with trying market saturation. That's the consumer view. The trouble is, in the eyes of their investors, they need to turn a profit and that pressure is crippling the company. HTC are making quick, snap changes to try and find a quick solution. Unfortunately, I just can't see it working.

Can you?

No comments :

Post a Comment