In the article, HTC a Taiwanese manufacturer company of smartphones and tablets is said to have experienced a drop of 79% in profit for the third quarter. The drop is due to high competition put up by rivals Apple and Samsung.
During the July to September quarter, its net profit has dropped from NT$18.68bn a year earlier to NT$3.9bn ($133m; £83m) this year whist Samsung was anticipating record profits for the same quarter.
This drop in profit is high and definitely raises concerns in HTC. It seems that the company should revise its SWOT analysis and business strategy in order to come up with ways that can make it more competitive in the increasingly tough market especially when dealing with powerful rivals such as Apple and Samsung. One weakness that HTC seems to have is the lack of powerful innovations which seem to be the strength of its rivals.
Innovations are results of an excellent workforce and technology. Hence, to avoid its downfall, HTC should look on heavily investing on getting the right technology and employees to help it produce new model of electronics able to attract customers like Samsung’s Galaxy S3 and Apple’s iPhone5 have done earlier this year.