HTC CEO Tells Investors That the Worst is "Probably" Over
January 4, 2013 2:25 PM
comment(s) - last by
Company promises to try to be more innovative to keep up with Apple and Samsung
"The worst... has probably passed. 2013 will not be too bad."
Terms like "probably" aren't the most reassuring phrases to be uttering to investors, but that's what HTC Corp. (
) CEO Peter Chou said in a
The Wall Street Journal
I. HTC Survives an Abysmal 2012
"The worst" was
. Q3 2012 saw HTC's
an incredible 79 percent on a year-to-year basis. Overall, the company's global market share (of all phones, including feature phones)
from 2.7 percent in 2011 to 2.2 percent in 2012.
HTC was far from the only player to struggle last year. Other firms like
Research in Motion
, Ltd. (
) and Google Inc.'s (
saw a continued bleed of sales. But perhaps no company
rose as quickly
-- or fell as fast -- as HTC.
Now the firm is
looking to get its groove back
. In his interview, CEO Chou emphasized that HTC must push out a number of "innovative" designs in 2013, to outdo his competitors. While stopping short of saying his competitors like Samsung Electronics Comp., Ltd. (
) and Apple, Inc. (
) were more innovative in hardware or form factor, he did acknowledge that the market's top two players were out-marketing his firm.
HTC CEO Peter Chou was dealing up brutal honesty in a new interview.
[Image Source: Android and Me]
"Our competitors were too strong and very resourceful, pouring in lots of money into marketing," he acknowledges, "We haven't done enough on the marketing front."
II. Pushing on With Superphones, New Markets
But he disputes the notion that HTC no longer has the resources to put out killer products. He remarks, "Although we don't have as much money to counter [Samsung and Apple], the most important thing is to have unique products that appeal to consumers."
Mr. Chou firmly believes that HTC can put out better look, better featured phones than fellow Android-phonemaker Samsung or Apple. The upcoming
5-inch Droid DNA
-- the flagship Android phone of Verizon Communications Inc.'s (
) and Vodafone Group Plc.'s (
) joint-subsidiary Verizon Wireless he views as one example of such a top-shelf product.
He views expansion into new markets as key to a turnaround, as well. While HTC traditionally relied on U.S. sales, primarily, 2012 saw HTC relying on
a boom in China
to offset a bust in the States. HTC saw its sales double in the Asian giant to 2.8 million units last year. And HTC also benefited from stronger than expected sales of its Butterly smartphones in Japan (the Butterfly is the Japanese twin of Droid DNA).
HTC hopes the Droid DNA -- the U.S. version of the J Butterfly -- will wow consumers in 2013.
[Image Source: The Verge]
"One thing I'd learned from last year is to act fast and be responsive to market changes," the 56-year-old CEO comments. "We are being more flexible now. We are constantly fine-tuning our sales plans and position in various markets."
HTC can also take comfort in that it has finally
set its legal drama with Apple behind it
. HTC is now
long term patent licensing agreements with Apple and Microsoft Corp. (
), making it perhaps the most secure of the Android phonemakers patent-litigation-wise.
But HTC has a tough road ahead to restore its reputation as a premium handset provider. The company will tip its hand to investors shortly, releasing Q4 2012 financials and its Q1 2013 forecast.
This article is over a month old, voting and posting comments is disabled
RE: switch sides?
1/4/2013 3:29:53 PM
Not really. It sounds like a plan to make them a niche player on a niche OS, with the company surviving almost entirely on payments from MS (assuming MS was even willing to do something like that).
They'd be in a worse position than Nokia, and this is a scenario that has not worked out all that well for Nokia!
"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
HTC Slams Rumors, Hints Apple is Getting Less Than Half Microsoft's Licensing Fee
November 20, 2012, 9:04 AM
Verizon Tips 5-inch HTC "Droid DNA" as Flagship Phone
November 13, 2012, 12:20 PM
HTC Makes Deep Cuts to R&D, Marketing, Amid Financial Panic
October 26, 2012, 11:55 AM
Inadvertently Leaked Earnings Report Leads to Shaky Trading Day for Google
October 18, 2012, 7:08 PM
HTC's Woes Continue as it Posts Big Earnings Miss
October 8, 2012, 10:40 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM
Apple sued because of iPhone 6 Touch Disease
August 31, 2016, 7:00 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Most Popular Articles
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information