Actually, HTC’s smartphones are outstanding in my mind because of its metal design and high-speed chips. Even though HTC has one of the best products in smartphone industry, it is faced with serious problem like declining revenue, insufficient sales and low profit. The Bloomberg shows:” HTC’s first-quarter net income plunged 98 percent to NT$85 million ($2.8 million), the sixth straight decline, according to data released by the Taoyuan, Taiwan-based company yesterday.” In my point of view, there are several factors that trigger the consecutive decline in profit
In 2013, HTC released its flagship product HTC One m7, a revolutionary smartphone to the public and the new flagship left a deep impression in consumers’ mind. However, in the following months their supply chains could not satisfy customers’ needs because of the shortage of their resources. Thus, thousands of customers will not receive HTC”s smartphones as they comes out, even though they are willing to pay for the products. In that case, consumers will choose other smartphones that have similar functions like Samsung and iPhone. Due to the inefficient supply chain, HTC lost market shares. In 2014, HTC improved their supply chain, but the previous failure leaves a negative impression on customers mind. And customers will not choose HTC’s products because they don’t believe that HTC can meet their needs.
Base on my experience of using the HTC One, I think HTC should focus on their crossing- selling strategies. In comparison to Samsung, HTC cares little about their multiple products. It is quite hard to find HTC’s accessories of their smartphones like protectors, earphones, batteries. These accessories can provide the companies with huge profits and large amount of potential customers. Thus, HTC loses market shares in the accessories market
Marketing is of vital importance in the competitive cellphone market. Obviously, HTC concentrates too much on their product designs and pay less attention to their marketing and selling product images to customers. There are less HTC branch stores in comparison to Apple and Samsung, which means that costumers are less likely to see and touch its products directly and give customers an image that their smartphones are convenient to use. What’s more, HTC should allocate more money to make more influential advertisements to show the points of difference of their products instead of the advertisement that just introduce the points of parity.