HTC Is Withering Away in the Mobile Market: 10 Reasons Why

By Don Reisinger  |  Posted 2013-04-08 Print this article Print

5. Specs obviously don’t matter as much

It’s hard not to be impressed with some of the devices HTC is showing off. The company’s One handset comes with a large screen, a powerful processor, and an overall decent design. Yet, consumers don’t seem to care. Maybe in the Android market competitive specifications don’t matter as much as HTC thinks.

6. Does HTC understand the U.S. market?

It’s not clear whether HTC truly understands the U.S. market. In a recent interview, the company said that it was planning to partner with celebrities in the U.S. to help market its products. Yet, there’s been no indication in the mobile space that celebrities can help sell mobile phones that aren’t already selling well. Is HTC just grasping at straws?

7. The financials are out of whack

The financial performance at HTC is something that the company truly needs to worry about. As noted, HTC watched its revenue slide 37 percent and its profits by 98 percent in the last year, alone. Meanwhile, its expenses are not being managed properly. HTC’s financials are out of whack.  Something needs to be done to address them—quickly.

8. The Facebook deal seems lopsided

HTC and Facebook last week announced a collaboration in which the social network’s new Home platform would be central to the handset maker’s First device. Although that should get First some attention, leaked photos of Facebook Home already show it running on Google’s Nexus. When Facebook Home launches on Apr. 12, it will be fully capable of running on other devices. That’s a problem for HTC because it was presented sort of as an exclusive deal that isn’t exclusive at all.

9. Supply chain management is a problem

HTC’s poor performance in the first quarter of the year was due in large part to its inability to get the One to store shelves at the beginning of March as planned. HTC blamed the problem on a shortage of camera components and will now launch the handset on Apr. 19. But in truth, HTC should have been managing its supply chain more effectively and been ready to address any issues. By not doing so, it’s put itself in a bad position.

10. It’s hard to get noticed

Looking around the Android marketplace, it’s clear that getting noticed isn’t exactly the easiest thing in the world for any company. There are literally dozens of new Android handsets hitting store shelves every few months and only Samsung’s get top billing in carrier stores. It’s hard to get noticed in today’s marketplace. And HTC is losing because of that.

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