Why did HTC smartphones continue to Fail?


HTC was one of the biggest company and a brand in the smartphone manufacturing industry which sold millions of smartphones worldwide and thanks to the elegant design; users were attracted to the HTC brand. HTC became the fastest-selling smartphone brand, but after the Samsung gives a tough competition, the popularity of HTC dramatically went down, and by 2018 HTC completely lost their smartphone market. Why did HTC smartphones continue to fail? Is HTC dead?

HTC or High Tech Cooperation started in 1997 with the ownership of Cher Wang. In the first place, HTC was designing Notebook Computers, but in a short time, HTC entered into the mobile phone manufacturing industry. For the first time in the world, HTC releases their touch and handheld device, and the biggest revolution of HTC starts in 2004 after Mr Peter Chou became the CEO of HTC company. In the same year, HTC launches the world’s first smartphone with a keyboard. After four years from that, In 2008, HTC launched the first android device with the name of HTC Dream. After that successful attempt, HTC released EVO 4G as the first 4G smartphone in America.

Unlikely the other CEOs, Mr Peter Chou always check all the devices to see the features, performances, and the things to be fixed in the next devices. And HTC was chosen to design the first hardware phone from Google, the Nexus 1. With the dedications of the heads of this company, HTC became the No.1 brand, and they are the first company that used a metal body to mobile phones. Everyone thinks that Apple is the first company to use metal design to its body, but it’s completely wrong.

Why did HTC smartphones continue to fail?
HTC Metal Design

The main highlighted feature of the HTC phones was the hardware design. With the long durable metal design, users were attracted to HTC because all the other major companies used a plastic back to their design. When comparing to the other smartphones on the market, user experiences with the HTC software design was also more user friendly than other devices. Because of these significant plus points, HTC became the most fast selling mobile smartphone brand in the world.

Why did HTC smartphones continue to fail?

In the same period, when HTC became the fastest-selling brand, Samsung entered the competition, and they introduced and launched its product lineup continuously to the market. And the giant Samsung Galaxy S series
was introduced to destroy and capture the market from HTC. And Samsung didn’t stop from that, and they keep pushing their devices to the market.

A lot of money was spent on advertising and marketing by using new strategies, and this was the main and the most significant weak point of HTC as they didn’t care about marketing. The CEO Mr Peter Chou didn’t believe about the growth of sales that can be obtained by marketing. Instead of that, he was at the point which performances are the key point which keeps the users more engaging with the brand.

Due to these reasons, the chief of the Marketing Department quit his job, but the path was unchanged. Instead of focusing on Mobile phones, HTC gave ample attention to other businesses. By getting the advantage from this, Samsung pushed some new devices to the market while HTC was busy with interacting in other companies.

HTC bought the S3 Graphics and PC manufacturing company for 300 Million dollars, but unluckily they failed to make any profits from that. Not only that, But also they were unable to make any new hardware solutions for smartphones. In 2011 HTC owned 51% share market stocks of Beats Electronics by investing 300 Million dollars, and after two years from that, they sold those stocks for 365 Million dollars. After another year, Apple owned the whole company by spending 300 Billion dollars.

While HTC was busy with other business options, Apple and Samsung Captured the smartphone market entirely, and the reports say that Apple was able to increase their sales by 200% within a year and Samsung increase their sales by 300% while HTC increased with 17%. Bad business investments and not paying attention to advertising are the main reasons for the destruction of HTC.

When branding the smartphones, “HTC ChaCha”, “HTC Salsa” devices made a vast confuse in users with these unusual names and some devices released with the same name(HTC One) and this affects a lot in the marketing side as well. Regarding these reasons, HTC company went down dramatically as HTC dropped its share price by 60% by the end of 2015. With the new CEO Mrs Cher Wang, HTC realised that they almost lost their place in the mobile phone industry. HTC wanted to change their path, and as a result, in 2016, HTC starts manufacturing VR Headsets. In 2017 Google took half of the Research and Design from HTC, and due to a financial matter, in 2018 1500 workers were dropped out of from the company.

HTC VIVE – VR Headset

In 2019 again the CEO changed and Mr Yves Maitre was chosen for that any by now 13% of VR Headset market was obtained by the HTC, and in 2018 HTC U12 and 2020, HTC Desire 20 Pro, HTC Desire 20 Plus and U20 5G was released. Users still can keep their hopes on HTC mobile devices because they have entered the 5G era with the Desire U20 Pro and U20 5G devices. Now you’ll understand why did HTC smartphones continue to fail.

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