Why HTC attack low-end, the rhythm of things?

The

hunting cloud network October 25

on October 23, HTC in high-level authority restructuring after the staff meeting yesterday, at the same time, the attitude of HTC for one thousand yuan machine for the first time changed. CEO Peter Chou says, will for the Chinese market will be one thousand yuan of the following products, high-end market share target to 15%.

profits are already in the industry generally believe that one thousand yuan machine is the red sea, HTC why involved? Because losses and pot, dying? Why HTC at four and price also lose money?

due to the product line is multifarious, begin from the end of last year HTC streamlined the product line, aimed at the high-end full “route. Introduced HTC butterfly, one and a series of flagship product, and at that time no new products covering in the end, the mid-market austerity is bigger. And high-end market, at the beginning of this year to launch the HTC one due to the lack of control of the supply chain, make its capacity is limited, has been in a state of out of stock, seriously affected the market performance, in the face of HTC huge operating costs, make its balance of payments.

on the other hand, because of a shortage of HTC patent reserves, in view of the identity of the international companies, all have to pay patent fees, proportion of these patent obviously. The rival samsung, apple obviously advantage in this respect. So the HTC seemingly high prices, but did not imagine the high profits. Machine to compare with millet and one thousand yuan, is not equal.

the machine on the market in one thousand yuan, for HTC such international brand vendors, obviously much better. In the choice of some components, many package solution obviously makes need pay royalties basically goes to zero. And its HTC will adopt OEM mode, should be in one thousand yuan machine and patent considerations. After all, a professional contract patent cooperation can also it saves a lot of patents.

on the brand, as a major international brand companies, its good brand recognition, excellent workmanship, compared with samsung. The samsung machine market performance in one thousand yuan, to everyone. Samsung’s quality door all sorts of negative exposure, such as CCTV’s recent special report, in particular, also gave the HTC for a very good bedding. HTC has always regarded metal fuselage, with samsung has also formed the obvious difference. HTC at level one thousand yuan on the market, design, brand advantage is very obvious, enter also understandable.

in addition, through the one thousand yuan into the machine market, improve the penetration of brand equipment, so as to expand the brand influence, enhance brand reputation, for users of word of mouth publicity, reverse boosting sales of high-end mobile phones. After all, in the second – and third-tier cities the HTC brand still very strange to many people.

the HTC to enter the low-end market, improve the product line for HTC itself, is trying to get rid of dilemma, gradually understand the market performance. Just isn’t fault, one thousand yuan machine market how to walk, this is a problem before the real, depends on further specific strategy to HTC.