HTC’s Fall Down

htc_logoHTC rapid fall, its latest peak market value equivalent to only one-tenth of 2012 year on year revenue dropped 40 percent, the smart phone market share has plummeted, so the industry can bring a sample of what kind of reflection?

Mobile positioning fuzzy

  HTC smartphones status quo is underachievement in the fight, but the high-end market GLAXY iPhone or Samsung’s flagship products in the low-end market and few thousand dollars below the entry-level, site is Huawei, ZTE and other domestic brands firmly occupy, ultimately helpless caught in the middle.

  From HTC Chinese official website can be found in the sale of its current total of 34 models of smart phones, which is less than 1,000 yuan only three models; but in the highest priced segment 4000 to 5000 yuan, there are up to six handsets, including three are priced at 4,888 yuan.

  Comparison of high-end mobile phone market leader Samsung, the most expensive of its Note series a cell phone (Galaxy Note 2 public version N7102) is priced at 4,899 yuan, compared with the same grade of HTC only expensive 11 yuan, but whether it is market acceptance or publicity efforts are far better than HTC; while in the low-end market, Lenovo has 6 smartphone less than 1,000 yuan, there are 10 Huawei, HTC quantity have more than doubled.

  Mobile positioning is not clear, plus ignore the low-end market, rapid dilution with HTC’s brand value, so that more consumers towards Samsung, LG, Lenovo, Huawei, which eventually led to this foundry started China Taiwan mobile phone Manufacturers gradually losing market share. Data compiled by Bloomberg show, 2013 Q2, HTC shipments market share of only 2.8% in the global top ten smart phones and Blackberry tied bottom, far behind Samsung (31.7%), apples (13.2 percent) , LG (5.1%), Lenovo (4.8%) and Huawei (4.4%).

  But just a year ago, HTC market share up 5.8 percent, just behind Samsung (32.1%), apples (16.6 percent), and Nokia (6.41, 0.05, 0.79%) (6.5%), is the world’s fourth largest smart mobile phone manufacturers, ranking at the end of her rather, it is now in the low-end market burgeoned Lenovo (3.1%), Huawei (4.1%) and ZTE (4.1%), which illustrates how the loss of the low HTC end of the market.

  In fact, the location ambiguity problem has been accompanied by HTC, its first flagship machine sea tactics, too fast to allow consumers mobile generation is difficult to have a clear understanding of the brand, also the lack of star products, and subsequently forced to change as the main fine line But no matter what kind of attempt seemed beyond their grasp, like against Apple and Samsung, the price close to its high-end mobile phone, but the content is difficult to reach the same height innovation, but not very impressed; confrontation low phone, HTC price of your crumbs at Qupin seems unlikely under this market.

  Is worth noting that the low-end smart phone market is very attractive piece of cake has become the major manufacturers compete heavily land. Large investment company under the U.S. PiperJaffray, 2013 年 bare metal price is higher than the high-end smart phone market size of approximately U.S. $ 400 320 million, well below the low-end smart phone market, 580 million, while the low-end market growth rate has far exceeded market.

  And Jun Consulting Group senior consultant Weide Wei told reporters that, for the same types of companies, or take the technical route, the development of content-type, do the research and innovation, bigger platform for the construction, such as Huawei; either walking route capital operation, extended development through the acquisition to create a complete value chain in the industry constantly adjust their thinking, highlighting the core areas.

Marketing investment is not enough

  In addition, HTC reflection to the industry’s largest, perhaps the marketing without landing.

  HTC Chairman Cher Wang worked in the “China Business News” interview, said that the biggest problem is that “no landing”, HTC’s marketing does not really allow more consumers to feel, touch. Such as for HTCOne marketing will differ according to different regions of celebrity endorsements, please, change the “one ad with a global” approach, although it will bring higher costs, but would be easier to touch different parts of the consumer. The report said that HTC Cher Wang reflect on the question that the most important thing is marketing, for its eight months ago replaced the Marketing Director (CMO), to enable a new marketing policy, and determined to increase investment, including Come “Iron Man” star Robert Downey Jr. filming commercials.

  But HTC marketing reform seems to come a little slow. Bloomberg data show that as of the end of the 2012 fiscal year, HTC sales / marketing / advertising expenses of only $ 730 million, accounting for 10% of the main costs; contrast, the industry leader Samsung’s sales in fiscal year 2012 general and administrative expenses up to $ 20.7 billion, accounting for 23% of the main costs, fiscal year 2012 sales of Apple’s general and administrative expenses also up to $ 10 billion.

  Analyst with market research firm CurrentAnalysis Ivy Green Stuttgart expressed, “HTC rival Apple and Samsung are two of the world’s largest advertising company, they also have an extremely loyal users, HTC launched must be more proactive in promoting, strengthening One and HTC brand awareness. “

  In fact, HTC marketing firepower is not enough, in addition to its slowdown in earnings, but also its “low key” marketing strategy related to previously cited FierceWireless interview with Sina Technology HTC president of worldwide sales, said Jason Mackenzie, “We are adjusting the internal HTC Culture, after we have been insisting ‘understated wisdom’, which means excellent products also need to maintain a humble attitude, but we have too low-key, we need to challenge the world’s largest two companies Apple and Samsung. “

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