Last week, HTC reported the company’s first ever quarterly loss: an astounding NT$2.97 billion. The long-time smartphone manufacturer’s market share also dropped to 2.8%, being overshadowed by competitors such as Apple and Samsung. The following quarter is expected to be even tougher as HTC has no innovative products being released until early 2014.
For HTC to be successful again, the company must address various issues on its business model canvas. Clearly, there are supply chain issues that must be resolved. This was made evident when the flagship smartphone, HTC One, was delayed and released alongside the successful Samsung Galaxy S4. There have also been internal issues with design and engineering, as many complaints have surfaced regarding the One’s hardware and software. The company’s failure to fulfill its value proposition, which is to use innovation and leading technology to help solve everyday problems for consumers, resulted in a drop in profits and shares. The company’s CEO, Cher Wang, also admitted that there was a problem of communication with consumers, which falls under ‘Customer Relationships’. HTC must improve its marketing to attract new customers as well as keep current customers informed of its operations. If HTC does not improve after the quarterly loss, this could very well be the beginning of the company’s downfall.
An example of the many videos online discussing issues with the latest phone:
More information found here:
http://www.reuters.com/article/2013/10/04/us-htc-earnings-idUSBRE99300L20131004