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Why HTC failed?
- 2. Presentation Title Your company information 19th March, 2015 By: Muhammad Noman
- 3. Introduction • High Tech Computer (hTc) • Taiwan based company, founded in 1997 • Since 2007, introducing mobile devices under its own brand. • Manufacturer of smartphone and tablets with Windows & Android OS. • Partners: Google, Microsoft, Qualcomm
- 4. History of Firsts Year Firsts 2010 1st range of windows 7 phones 2010 1st 4G phone 2008 1st Android based smartphone (T- Mobile G1) 2003 1st Microsoft 3G phone 2002 1st Microsoft powered Smartphone 2000 1st Microsoft Pocket PC
- 5. World’s 1st Android Mobile (T-Mobile G1)
- 6. By AnTuTu (Bechmark android app)
- 7. HTC Comeback For rather a long time, only HTC one, in HTC family, was standing on the top stage and it is yet out of date. Finally, HTC one M8 came out to save HTC back. HTC One M8
- 8. Pakistan Mobile Industry • More than 100m active mobile phones • Chinese phone: 70% share • Smartphone: 15% market share • Smartphone share is expected to double • 77% of Smartphone users 21 to 30 years old • Featured phone: more 80% (2500- 4000 PKR) • On average, 1.5 million handset import per month Report: Dec 13, 2014
- 10. Top 5 Smartphones in Pakistan (2014) Rank Smartphone 1 Apple iPhone 5S 2 HTC One 3 Samsung Galaxy S4 4 LG 2 5 Samsung Galaxy Note 3
- 11. Issues • Lack of Marketing • Supply Chain • Price
- 12. Continued… • Performance • Late OS update • Lot of investments with little return.
- 13. Recommendations • Get attention of consumers – Aggressive Marketing – Cutting Price • Improve Supply Chain
- 14. Continued… • Designed new models • Low end products • Improve Quality
Editor's Notes
- critics find these numbers really exaggerated and since no cellular operator is willing to make public actual active subscribers on its network nor PTA has any interest to record the truth in its books despite knowing it there are nearly 100 million active mobile phones in Pakistan of various denominations belonging to different brand names. We must not rule out that a big chunk of handset market is dominated by Chinese mobile phones that can incorporate more than one SIM in them. Leading share is with QMobile which controls almost 50% of the market with its (Ultra Low Cost) ULC mobile phones mainly under the price range of PKR 4,000 60 local brand names under the umbrella of Chinese phones with their own warranties during last 5 years. Currently, smartphones keeps the 15% market share and with more 3G and 4G penetration the share is expected to rise up to 20% by the end of 2015.
- The year started with 2.5 million handset import in January 2014, touched 1.1 million in April 2014 and gradually rose to an average of 1.5 million per month in first 10 months. Whereas, 2013 recorded an average import of 2.0 million per month with highest in Jan 2013 reaching at 2.9 million.
- HTC One: Price 42000, Android 4.1.2 (jelly bean) Samsung Galaxy S4: Price 37500, Androoid 4.2
- Marketing Samsung $2.5bn (2013 Q) HTC $130m (2013 Q) Even HTC has themselves admitted that their marketing skills have failed terribly. They targeted a part of audience in their marketing which is more tech friendly rather than targeting general consumers. But such type of audience form very negligible part of and the sales to them means missing out on huge number of sales. When Samsung advertises, they fill the billboards, television commercials and newspapers with a lot of images of their best-selling phones and with a lot of offers. Also, the HTC mobile price should be a bit lower than their Samsung counter parts just to lure people to buy them. a global leader in mobile innovation and design Supply Chain Other than marketing, the biggest issue that lingers HTC’s sales is their inability to bring their devices to market in short time. Take for example the HTC One. This device was announced a month prior to the announcement of the Samsung Galaxy S4 but still the HTC One is not on sale
- Investments Beats Audio partnership cost it $300 million, Another investment that didn’t seem to pay off for HTC was the $300 million it spent acquiring S3 Graphics. OS HTC One was announced 2 months after the release of Android 4.2.2 but it was still running the Android 4.1.2 which feels weird.