After Nokia, BlackBerry, HTC Staring at Bleak Future

[Hamartia Antidote]

http://www.ndtv.com/profit/after-nokia-blackberry-htc-staring-at-bleak-future-1205796

Taiwanese smartphone maker HTC seems to be following the footsteps of Nokia and BlackBerry, global telecom giants that have now slipped into obscurity.

HTC's market capitalization fell to $1.5 billion on Monday, below the amount of cash the smartphone maker had at the end of June. In simple terms, it means HTC's brand, factories and buildings have zero value at the moment.



HTC's market cap slumped below cash on books tracking the 60 per cent crash in the company's shares this year.

HTC's market share in key geographies has fallen into low single-digits because of increasing competition from iPhone maker Apple and Samsung Electronics, which manufacture high-end phones. Meanwhile, HTC's low-cost offerings have been eclipsed by budget Chinese rivals.

According to Reuters, industry watchers have dismissed HTC as "confused, unoriginal and uncompetitive".

Last week, HTC reported a second-quarter loss and forecast another loss for the third-quarter; its chief financial officer said the company would cut jobs and discontinue models as part of its strategy to focus on high-end devices to better compete with the likes of Apple Inc. and Samsung Electronics.

Most of HTC's phones run on the Android software, where the average profit is only 1.2 cents per phone, according to a report in Business Insider.

"HTC runs at a loss, which means that ultimately it costs more for HTC to make a single phone than it can get by selling them. HTC is basically paying people to take its phones right now," the report said.

HTC is now pinning its hopes on India, where it claims to sell one in five smartphones that are priced between $250 and $400.

 

[FairAndUnbiased]

HTC is fked. they have nothing distinguishing themselves from even Gfive, never mind Xiaomi or Huawei.

 

[AndrewJin]

HTC is fked. they have nothing distinguishing themselves from even Gfive, never mind Xiaomi or Huawei.

Best wishes to HTC.
@TaiShang

 

[TaiShang]

Best wishes to HTC.
@TaiShang

Their problem is they lost the young user base. For some reason, the two can't simply sync. HTC is visible everywhere in terms of commercials and ads, from music contests on TV to large youth gatherings.

But interestingly, ASUS appears to be on the rise as a domestic alternative.

 

[Soulspeek]

HTC mobiles are good in quality but not VFM. What HTC offers at a premium pricing, lots of new manufacturers are offering at dirt cheap rate. Ditto with Blackberry. There was a time when Blackberry was THE phone to have by elites. Technology evolves very fast. How long can this company rely on just BBM? There are dozens of new multimedia enabled messenger services that are fast and free.

HTC & Blackberry have to reduce their production costs. Blackberry in particular needs to move to Android, if it wants to survive. Today only those Mobile OSes can survive which have got huge app stores. Right now, only Apple & Android have such stores. Apple wont share its app store with anyone. So the only option is to either join Android bandwagon or wither away.

Samsung too is not safe. After becoming the leading mobile manufacturer, it also started quoting ridiculous prices for its cellphones. Advent of cheap, high grade cells from China will hit Samsung hard if it does not mend its ways.

 

[ito]

Once Nokia, Blackberry and HTC used to rule the Phone market. Trading below cash indicates low future growth prospects for HTC. The only way HTC can be revived is to turnaround and India can be a great place to start given that HTC has good market share in India and India is the fastest growing phone market in the world

 

[qwerrty]

next will be sony, then lg

 

[cirr]

Their problem is they lost the young user base. For some reason, the two can't simply sync. HTC is visible everywhere in terms of commercials and ads, from music contests on TV to large youth gatherings.

But interestingly, ASUS appears to be on the rise as a domestic alternative.

HTC is a good brand。As a matter of fact，my first smartphone was an HTC。

The brand shouldn't be allowed to go into oblivion。Perhaps a merger between a mainland smartphone maker（ZTE？Gionee？Coolpad？Meizu？）and HTC would create a viable new player。A 50-50 joint venture is another possibility。

 

[Fireurimagination]

HTC phones are just too pricey and people now have tons of options

 

[Nair saab]

Some Indian Company like MicroMax should grab the opportunity and Buy HTC with the help of TATA or reliance... Like the TATA's purchased loss making Voltas ...

HTC is still there in market the only thing they lack is innovation... HTC was known for its best touch screen ... I had one ... But now I use Apple...

 

[AndrewJin]

HTC is a good brand。As a matter of fact，my first smartphone was an HTC。

The brand shouldn't be allowed to go into oblivion。Perhaps a merger between a mainland smartphone maker（ZTE？Gionee？Coolpad？Meizu？）and HTC would create a viable new player。A 50-50 joint venture is another possibility。

Highly possible, Wang Xuehong is very pro-mainland. And I don't think it's the best strategies to lower prices to cater to low paid Indians, which will totally ruin its reputation.

 

[50cent]

just reduce prices why Chinese are soo sucesful because they offer good quality with cheap prices htc has to adopt Chinese doctrine of becoming market leader

 

[Echo_419]

Once Nokia, Blackberry and HTC used to rule the Phone market. Trading below cash indicates low future growth prospects for HTC. The only way HTC can be revived is to turnaround and India can be a great place to start given that HTC has good market share in India and India is the fastest growing phone market in the world

They should invest here India is the only market which can save them

Highly possible, Wang Xuehong is very pro-mainland. And I don't think it's the best strategies to lower prices to cater to low paid Indians, which will totally ruin its reputation.

Clearly HTC leadership does not agree with your low IQ statement

 

[AndrewJin]

They should invest here India is the only market which can save them



Clearly HTC leadership does not agree with your low IQ statement

Wang Xuehong can sell smart phones to any people regardless their IQ, totally different issues.

 

[ito]

They should invest here India is the only market which can save them



Clearly HTC leadership does not agree with your low IQ statement

Turning around a distressed company is the extremely hard. Only there are few instances where people are successful. But I guess, India is an opportunity given that HTC has a healthy market share in India.