HTC Aims For 1/10th of Chinese Smartphone Market by End of 2012
August 13, 2012 11:35 AM
comment(s) - last by
Company wants to be in top two in China by 2015
Taiwanese phonemaker HTC Corp. (
fumbled through Q2
, returning to profitability, but falling short of analysts' recovery hopes. The report led to numerous
branch office closings
, including regional offices in Brazil and South Korea, along with a research facility in North Carolina.
But the phonemaker did see some hope, reporting stronger than expected growth in China. The carrier has risen from 2.6 percent of the Chinese market, to around 6 percent.
That's a big deal because, after all, the Chinese market is the
world's largest smartphone market
, although it is still dwarfed by the American smartphone market in pure consumer dollars. In China, HTC is looking to compete with domestic player Huawei Technologies Comp. (
), who owns 12.2 percent of the market, and familiar-foe Samsung Electronics Comp., Ltd. (
), which owns 24.9 percent of the market, according to Analysys Int'l.
Ray Yam, head of HTC's China operations, has big goals for China. At a time when other regional headquarters are closing, HTC is planning a "secret" new headquarters for China and is considering bumping its headcount, which current consists of 500-600 local engineers.
Samsung has 6,000 branded counters -- sales locations -- in China. HTC is a ways behind, but it is fast catching up, with 2,700 current branded counters, and a planned expansion to 3,500 by the end of the year.
HTC aims to expand its Chinese presence this year. [Image Source: Cult of Mac]
HTC is trying to build its brand in China, and is in the third year of selling phones under its own name, having sold under the trade name Dopod pre-2010. Over the next two quarters, Mr. Yam told
The Wall Street Journal
that he hopes to conquer an additional 3 to 4 percent of the Chinese market, which would position his firm to vie for second place in sales.
By 2015 HTC wants to be one of the top two brands in China in revenue. That likely means holding off Huawei and rising star Apple, Inc. (
) whose products
have become status symbols
among Chinese teenagers. But if HTC can do that, it may be able to salvage its bottom line in the midst of poor European sales and currency fluctuation woes.
After all, by 2015 China's smartphone sales are expected to rise from the current 150-170 million units per year to about 300 million units per year, along with great growth to premium smartphone sales, as the nation's growing class of affluent professionals look to exert their buying power on the world of gadgets.
HTC's flagship One X and One S have drawn generally enthusiastic reviews. Writes
's Brian Klug, "The One S has an absolutely phenomenal in-hand feel" and "it blows my mind that Samsung can't get its own AMOLED panels tuned this well."
This article is over a month old, voting and posting comments is disabled
RE: At least they are realistic.
8/13/2012 5:43:01 PM
High end in price, and market segment. In other words, Apple doesnt make a cheap $450 laptop like most other makers. They only make the high end. Not a comment on quality at all, just the market they target.
I just meant that Acer isnt realistic. They announced that they would become the #1 PC maker in the world last year. Good luck. They also announced they plan to mirror Apples business model and become like Apple. They then proceed to spit out cheap crappy laptops with 1366x768 screens and cheap assed parts.
HTC is realistic. "we are going for 10% of the Chinese market" is doable for them. Acer becoming the largest PC maker on earth in 1 years time is laughable.
"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
China Tries People Who Bought Teen's Kidney for iPad, iPhone Cash
August 10, 2012, 10:26 PM
HTC Closes South Korean Office After Getting Obliterated in Local Sales
July 30, 2012, 1:30 PM
HTC Continues to Struggle, Amid Weak European Sales, Apple Ban
July 6, 2012, 6:25 PM
China is Now the World's Largest Smartphone Market
November 23, 2011, 4:10 PM
AT&T Will Also Receive the HTC One (M8) for Windows
August 19, 2014, 9:27 PM
Sharp's "Edge-to-Edge" AQUOS Crystal Smartphone Coming to Sprint for $239 Off-Contract
August 19, 2014, 7:31 PM
After 34 Years With Microsoft, Steve Ballmer Parts Way to Focus on LA Clippers
August 19, 2014, 4:17 PM
HTC One (M8) for Windows Officially Announced for Verizon Wireless
August 19, 2014, 12:15 PM
Quick Note: ASUS Readies Smartwatch for IFA 2014, Shows Teaser Image
August 19, 2014, 9:30 AM
LG Already Gearing Up for G Watch Sequel Next Month
August 19, 2014, 7:54 AM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
With USB Type-C Spec Finalized, Reversible Cables Will Soon Be Upon Us
August 13, 2014, 8:46 AM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
Update: Samsung Gets Official With 4.7”, Aluminum-frame Galaxy Alpha Smartphone
August 14, 2014, 8:56 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information