Although HTC once signed up for successful work in the cellular market, the company decided to forget about bad actions. Therefore, we told you why HTC has become a brand whose name is unknown.
HTC is a brand of mobile phones that we have heard less about every day. Given the current state of HTC, it is hard to believe that the brand was once the third strongest in the smartphone market after Apple and Samsung.
HTC, which at one time held 24% of the smartphone market in the United States and offered the customer extremely successful products of price performance, began to quickly withdraw from the market, leaving behind achievements. And what were the reasons why HTC was forgotten? The answer is in our article. We wish you pleasant readings.
HTC was a very successful and popular phone brand, especially in 2011. As we noted at the beginning of summer, the company quickly withdrew from competition for smartphones and took third place in the ranking after Apple and Samsung.
Following the success of the company, the CEO of HTC said that from 2012 it will produce only high-quality expensive phones to protect the company’s reputation.
Despite the fact that this new solution was completely different, the Chinese have already begun to take possession of the smartphone market, and, along with new brands, HTC has come an irreversible way. All these years it was interesting whether HTC could take its place in the market.
XTC made another wrong decision on this decision and went to cooperate with Windows Phone, which at that time was already going to sink. We already talked about why Windows Phone failed. But combining the company with another unsuccessful company on the way to failure was a deadly blow for HTC.
In 2013, the company released the flagship model HTC One, which became one of the company’s best-selling phones. At that time, XTC One was comparable to Samsung Galaxy S4, and the performance and functions of both phones were almost the same.
Despite the fact that HTC broke the sales record, sales did not pass the Galaxy S4, and the competitor had 7 times fewer sales than the phone. Thus, the company had a dream only to sell a high-quality phone.
The next One (M8) model, released by XTC, turned out to be too low, like the previous model, and despite the fact that XTC released these models as the flagship model, the cameras of the phones were extremely poor.
However, HTC began to create new models under the motto “high-quality phones for a strong community.” Unfortunately, HTC fans were not as loyal as thought, and users began to sharply criticize the HTC One (M9) models. During this whole process, the market value of HTC fell by almost half.
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This is not the only Samsung rival to worry about. Chinese manufacturers such as Huawei and Xiaomi began to quickly capture the smartphone market and produce high-quality and performance phones. HTC was one of the weakest in the market at the time and received more than Chinese manufacturers.
HTC with great perseverance continued to produce flagship phones, and even the produced U12 + were incredibly successful. But this time, people no longer pay attention to HTC, and no one cares about which phone HTC made.
If HTC says that we created a good phone, then this time the brand received money from poor marketing and management, and the company could not convince users to use this product, although it had a good product. XTC was unable to allocate a budget for advertising like Samsung due to poor conditions, and became invisible in the smartphone market.
Even if the budget is small, the HTC marketing team was not able to use the available resources correctly. In 2013, the company was founded by Robert Downey Jr. He signed an advertising contract and paid the actor $12 million.
We understand that $12 million is too much, but at that time HTC allocated only $1 billion for advertising projects. Given the financial situation of the company, $1 billion was really very high and risky. HTC released its ad under the motto “Change,” but the ad did not help change the cost of the brand.
In HTC advertising, he behaved as if it were a newly elected brand. In advertising, phones with the company’s main products are barely visible, and advertising on which so much money is spent, unfortunately, did not help restore the company’s reputation.
In the same year, Samsung spent $10 billion on advertising and marketing, showing its competitors that they were doing something, and this was the highest budget among smartphone manufacturers.
Despite all this, HTC managers remained extremely optimistic and some claimed that the worst times had passed, and some of them said that in 2019 the company would make a big profit. After everything that happened, it seemed like an amazing point of view on optimism and faith in the success of the company.
The company put forward its deal with Google as evidence of this optimism. In 2017, Google bought part of the HTC research and development department for its own smartphone series for $1.1 billion.
The number of employees of the HTC mobile department is becoming more and more noticeable, and people are beginning to doubt that in 2019 the company will fail.
Inevitable end; HTC dropped heavily in the market
One of the most notable factors in the decline in HTC was the change in the value of the company’s shares. In 2011, the company traded at $42 per share. The current share price of the company, which is becoming more expensive, is only $1.20.
It wasn’t the new phone on which HTC worked. Vive, introduced as a virtual reality title, was extremely interesting, and product performance was higher than expected. In 2016, the company left Vive and focused on another division, leaving its mobile department, which is going to sink.