HTC used to rule the smartphone market and today it’s having hard time competing with Samsung and Apple. The Taiwanese company knows it needs to change and is apparently preparing a plan to get back on its feet.
According to the Taiwanese media citing Nomura Securities, HTC’s plan is based on 4 major changes:
1. The repositioning of some of the company’s high ranking officers. Under this part of the plan, HTC’s co-founder and chairwoman Cher Wang will take over some duties from HTC’s CEO Peter Chou who will in turn get to concentrate on product development.
2. Outsourcing production. It is suggested that HTC may hire Foxconn and Winstron to make some of its phones (if not all).
3. Embrace low-cost MediaTek chips for select devices targeting emerging markets. HTC will keep using Qualcomm’s gear for its high-end models made for the West, but in growing economies – it will use more affordable components to launch low-cost products.
4. Finding new customers and creating new partnerships. It is suggested that HTC will start pitching new carriers all around the world. Samsung is as global company as one can be, while HTC doesn’t have a comparable visibility. Making deals with new carrier partners could help it reach new customers.
Now, while all this sounds nice, Nomura advises that this isn’t a short-term strategy and that shareholders will have to wait some time before HTC reap the benefits of this strategy.
What do you think about these changes? Will they help HTC get back on track?