HTC looks to introduce low-cost handsets, slash costs in hope of finding profit

Poor HTC, they just can’t catch a financial break as the company warned its fourth quarter revenue will fall up to 15 percent below analyst estimates. The company briefed investors earlier today as it struggles to increase its estimated 2.6 percent of the global smartphone market.

HTC says they will look at releasing a broader product line, including more low-cost handsets as it aims for higher profitability into next year. “We’re looking at broader products in this quarter…we aim for higher volume into 2014 that will give better profitability,” company financial chief Chialin Chang said in the briefing, referring to more affordable smartphones. That move would be a sharp turnaround from HTC’s previous strategy of attempting to capture 20 percent of the high-end smartphone market in China.

Let’s be honest about HTC’s future and say that among other problems are marketing misfires that have cost the company mindshare. “Perhaps in the past we have not marketed ourselves that well,” Ben Ho, HTC’s chief of marketing, told Reuters in an October interview.

Is there anyone who ran out to purchase a HTC device based on the fact that Robert Downey Jr was peddling their products? I mean a tinfoil catamaran doesn’t exactly strike me as a winning formula for increasing sales. Ho would not rule out an increase to the marketing budget however, currently set around $1 billion. “We are in the process of tightening up and revamping a lot of things that we used to do.”

Unfortunately with the fourth quarter not looking to make things any better, HTC will need to explore more than just low-cost handset sales to try to win back the hearts and minds of customers flocking to Samsung products in droves. I’m not quite sure Iron Man is up to the challenge.

via Reuters