HTC to focus on profitability and exit entry-level smartphones

HTC, reports seventh quarterly loss, stops making entry-level smartphones, shifts focus on profitability from mid-range and high-end smartphones

    HTC has just announced its seventh consecutive quarterly loss, forcing the company to streamline its lineup of products, which quite simply means HTC will soon stop making entry-level phones. The company, however, will support existing devices and will continue to sell its current line-up which is already in the channel.

    HTC to focus on profitability and exit entry-level smartphones

    While this is the case, the Taiwanese phone maker is said to reduce the number smartphones to a mere six or seven for the year 2017. This may be due to the fact that the company is planning on driving up profitability in the smartphone arena by focusing on the mid-range and high-end devices. Furthermore, the company is looking at ways to have higher profit margins and focus on devices which can accommodate the same.

    SEE ALSO: HTC reports loss of $100 million in Q4 2016

    Besides, several factors may have influenced the drop in HTC's popularity and profits. The biggest factor being the highly competitive market in the affordable smartphone segment. Currently, the entry-level smartphone markets, including India are being largely dominated by Chinese handset makers.

    Moreover, Chinese smartphone manufacturers are coming out with enticing entry level smartphones every now and then and HTC, on the other hand, seems to have fallen behind. Therefore, as HTC has been lacking in some areas, the company is now planning to focus on their smartphone's core features and compete in the mid-range and high-end smartphone markets, while turning profits with larger margins. It seems that company doesn't want to experience any more loss.

    SEE ALSO: HTC U Ultra sapphire variant will be up for pre-orders by mid-February

    As of now, the company has unveiled two new smartphones, for the year 2017 the HTC U Ultra and the U-Play. These phones are expected to be top-end smartphones from HTC with a lot of features. Hopefully, this will turn out good for the company.


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