Feeds

HTC looks to cheaper phones as revenues wane

Company shifts focus to mid-market with new models

Top 5 reasons to deploy VMware with Tegile

HTC said that it will pull away from the premium smartphone market and focus its efforts on lower-cost handsets.

The company said in its latest quarterly report, published on Monday, that the move would help the company improve its margins as HTC struggles to cope with plummeting revenues. The firm reported 42.9bn NT$ (New Taiwanese Dollars – $1.4bn US) over the quarter in total revenues, down from 60bbn NT$ over the same period a year ago.

Net profit was 310m NT$, down from 1bn NT$ in the year-ago quarter. Earnings per share was also down compared to the previous year.

CFO Chialin Chang said that the company is looking to improve its performance, particularly its margins, by offering an improved line of lower-cost devices in the middle range of the market rather than focus solely on its flagship One line of high-end phones.

"In the coming months were going to have more product coming out," Chaing said.

"I believe we have a lot more robust portfolio outside of flagship, our mid-end and affordable parts will be strong."

The company saw its stock take a hit last week when word first surfaced of its disappointing financial performance. While the firm was able to eke out a profit, investors were less than welcoming of the news, and HTC stock was down 3.61 per cent following the report.

Like many other vendors, HTC has suffered from a market that many analysts predict will only continue to slow. Research firm IDC has predicted that smartphone and tablet sales have hit their peak and emerging markets may be due for a slowdown.

HTC is not the only handset vendor to be planning a push into the lower ranks of the market. Nokia is said to be preparing a low-cost Android handset that is slated to make its debut next month at Mobile World Congress in Barcelona later this month.

Should market trends hold up, HTC could continue to see a challenging market even with its new focus on cheaper devices. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.