Samsung and HTC have both been the leading mobile phone companies in the industry. The article (http://www.nytimes.com/2013/10/05/technology/htc-suffers-first-quarterly-loss-as-samsung-soars.html?ref=international&_r=0) reveals that HTC has made its first loss. One suggested reason is that HTC has been concentrated on producing premium models and less focused on the lower-end demand. Whereas, its competitors – Samsung, and even some Chinese companies such as, Lenovo, ZTE and Huawei, are providing a variety of products which allow them to meet the demand from the lower-end of the market. In addition, apart from phones, Samsung also earns profits from its alternative product – memory chips. And the recent increasing price of memory chips allow Samsung to obtain significant profits and expand its growth.

On the other hand, another suggested reason for HTC’s first loss is that HTC has also experienced an internal discord.  A number of executives have quitted the company and a top designer has been caught theft of trade secrets from HTC.

Based on this article, it shows that the importance of having a wide diversification in products because there are always different groups of consumers who would have different demands. In addition, the internal discord in HTC suggests that a sufficient management team is essential to a company’s success.

Work Cited:

New York Times (http://www.nytimes.com/2013/10/05/technology/htc-suffers-first-quarterly-loss-as-samsung-soars.html?ref=international&_r=0)