Boston, MA 02/10/2014 (wallstreetpr) – The $104 billion market capped Taiwan based smart phone maker HTC Corp has announced a major shift in strategy through the year 2014, in order to shore up its plummeting sales and market share in the face of faster growth managed by its competitors like Korean handset makers Samsung and Apple Inc. (NASDAQ:AAPL).
Slew Of New Mid Price Models To Be Introduced In 2014
The Taiwanese based firm has indicated that it will substantially increase the introduction of its new models of midrange smart phones all through 2014. It has also indicated that it will price the models aggressively by introducing them at price points lower than its own current models. This move, the smart phone maker hopes will revive its fortunes in the emerging markets where price plays a major factor in attracting customers and the new models to attract customers in the developed markets.
The new approach was verbalized by HTC’s chief financial officer Chang Chia-lin in an interview with Reuters, where in the CFO has been quoted to have said that, “ We will sell more mid-tier and budget products at US$150 to US$300, while our high-end smart phones will go on sale at over US$600. The two cylinders are going to be fired together.”
Move Aimed At Emerging Markets And Developed World
Explaining the rationale behind such a move, the company has disclosed that its internal post-mortem on the likely reasons for the big dip in its sales over past 12 months is due to the fact that too much focus and emphasis was paid to its top two products, where as the firm took its eye off the high volume mid priced market which grew in double digits across the developed and developing markets. The firm has also made it clear that it does not intend to wade into the low end, entry level market but limit itself to shaking up the mid price market.
High End Phones Also Lined Up
HTC Corp has also indicated that it intends to release new smart phone models which will compete in the high-end phone market with the next launch of the high end phone to be publicly announced in the last week of February.