HTC has announced no low budget phones in near future. In an interview to Wall Street Journal, HTC CEO Peter Chou presented his desire to save the company’s image by putting a stop towards manufacturing of low-end mobile phones. Peter Chou was quoted as saying, “we don’t want to destroy our brand image, we insist on using better materials to make better products that offer premium experience, many consumers like that”. However, HTC faces competition from brands like Samsung Electronics and Apple Inclusive which have been acting like a hurdle to the presence of HTC in the medium and high end segment of mobile phones. HTC has been losing its grip in US and is trying to capture market in India and China.
Mr. Chou cleared that they don’t want to tamper their image and intends on providing the users with better products. He further explained that they will not offer “cheap, cheap phones” just to improve the shipments. He reported that smartphones in china costs as low as 2,000 Yuan, but he cleared that the company will not manufacture phones costing less than 1,000 Yuan as they will not be able to provide quality products at this price.
Mr. Chou added that the company intents to improve their marketing standards in Europe, Middle East and Africa. He also stated, “the company would consider making acquisitions in the areas of software technology and marketing”.
However, the conflict between HTC and Apple came to an end when HTC had to drop ITC lawsuit against Apple after a motion for dismissal of five HTC patents was presented by the latter to which the judge agreed.