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HTC shifting strategy, reducing handset prices to regain market share

HTC’s glory days of record setting handset sales and record shattering revenue reports are long gone. The HTC One series was supposed to help HTC get back on track, but heavy competition from Apple and Samsung has pushed HTC to the back shelf with very little support from carriers in the U.S. market.

Rather than pushing out new flagship devices and hoping that consumers will take notice, an industry supply chain source claims HTC will be taking measures to reduce the cost of its handsets in order to deliver handsets to consumers at a more competitive price. Exact details regarding how handset prices will be reduced are not yet available, but the source claims that Beats Audio technology will no longer be included in upcoming HTC handsets. HTC does own 25 percent of Beats Audio, but we suspect they are still laying a small licencing fee for using Beats branding and technology in their devices.

Since HTC does have incredibly high profit margins built into every device that it sells, HTC could easily reduce the price of its upcoming phones without having to reduce build quality or skimp on internal components. HTC could also live up to its promise of producing fewer devices which would help the company keep its focus on high-end phones while reducing R&D overhead.

How low do you think HTC’s handsets need to be priced in order to compete better with Samsung and Apple’s handset offerings?

Update: HTC has commented on this matter, stating that any rumors about HTC moving away from Beats Audio are “categorically false.”

Source: My Drivers Via: Unwired View

 

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6 comments
  1. I’d be the first to return to HTC, but not as they are now. The reason that many of us gravitated towards HTC in the first place was due to an openness and flexibility that wasn’t available from the larger manufacturers. If they return to offering that kind of function and flexibility, such as supporting 64gb+ microsd cards or any for that matter, it will be easy to return to being a customer of theirs.

  2. For me it’s not about the price. Now the One X costs like the Galaxy S 3 in Denmark, and they have about the same hardware specs. I just want to know, that I’m a step ahead of the other brand’s flagships when I buy a new phone, at least softwarewise.

  3. The reason people are leaving HTC is because they can’t release source in a reasonable amount of time, so all the developers have packed up. And along with that, goes the users.

    They still make the best devices on the market though. And who cares about gimmick audio.

  4. I love my HTC Desire Z but I would like a stronger smartphone with a hardware keyboard that is capable of supporting ICS or Jelly Bean, don’t care about the price much

  5. I leave HTC for two simple reason:

    1. Where are my micro SD Card and Battery replacement?
    2. Reliability is down to toilet after I updated my thunderbolt.

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