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HTC making cheaper phones in search of profit

HTC has announced that it will be making cheaper products a two-year long sales slump.

HTC has decided to make cheaper products in an attempt to turn their two-year sales slump back around. HTC’s Chief Financial Officer Chialin Chang admitted that last year HTC “only concentrated on [their] flagship”, missing a massive part of the mid-tier market as a result. The company also saw an 80 per cent drop in its share price. 

As stated on Yahoo, Mr Chang has said that HTC will sell products in the $150 (£91.52) to $300 (£183.05) retail price range, although it won’t get into the “very, very low-end market.” As we’ve already established, HTC will soon unveil a new flagship phone. 

According to executives, more affordable phones should boost smartphone sales this year. On HTC’s China website, only two out of the 53 phones on sale cost less than $150. Twenty-one are over $500 (£305.08). Liang Lihuan, a bank worker from Beijing, said: “I used to have an HTC, but their prices have gotten too high.” 

As well as sell cheaper phones, HTC is also looking to try different methods of marketing to boost their sales slump. Co-founder Chairwoman Cher Wang said marketing was something HTC “didn’t do well” in 2013, despite investing in a multi-million dollar deal with actor Robert Downey Jr.

Image credit: Flickr/401(K)

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