HTC has around 20,000 employees but has witnessed several losses in the past few years. A September 2013 media report confirmed that HTC’s share of the global smartphone market was less than 3 percent. In July 2013, HTC released finalized second quarter financial results, and with it a warning that it may slip into an operating loss during the third quarter. The company met its revenue target but profits fell by around 80% year on year. The company which was recently in news for the introduction of 3 work shifts for its employees has been reported to have shipped only 4.75 million units of its new HTC One M9 in three months.
HTC’s market value has seen a serious decline. The company, which a few years ago had a market value of around US$33.8 billion has now dropped down to around US$2 billion. Such heavy losses could be attributed to a poor strategy and adoption of some vital methods to have a competitive lead over other companies.
The HTC One M9 model which was launched in the latter half of March 2015 has seen shipment of merely 4.75 million units. The company has shipped down this new flagship smartphone to 43.75% as compared HTC One M8 shipped during the initial 3 years.
The HTC’s flagship models are still set at CNY4,000, while the mid ranges to high end smartphones have flourished the Chinese market quite well. These are the models priced at CNY1,600 (US$258) and up. The consumers have picked up more of iPhone devices and HTC has failed miserably in the Chinese market.
With such statistics it is going to be very difficult for HTC to make a breakthrough the Chinese market. With the local Smartphone vendors waging a new round of price wars, particularly for mid-range and entry-level models, the breakthrough becomes even more difficult for HTC. This can be understood by the example of Xiaomi Technology lowering the price of its Hongmi (Red Rice) 2A to CNY499 from CNY599 and Coolpad (in cooperation with Qihoo 360), but offering its Great God F1 plus at CNY399. On the Contrary, HTC Desire series products are available at CNY1,000- CNY2,000.