HTC On the Ropes Again as Slumping One M9 Sales Lead to Worst April in 6 years

[jackiescivic]

Gee, color me surprised.

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[jstafford1]

Gee, color me surprised.

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What color is surprised?

 

[jackiescivic]

What color is surprised?

Purple maybe? :-D

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[jstafford1]

Purple maybe? :-D

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Lol...

 

[jstafford1]

Only place I've seen HTC commercials is on YouTube. Never see them on TV.

 

[kodiak799]

You guys make some good points, but they are from a US prospective. Keep in mind, that the majority of phones are sold outside the US. China being the largest market followed by India and SE Asia.
These folks don't know what a subsidy is. Perhaps they are tired or just can't afford $600-800 for a phone every couple of years. An S6 sells for $800. here.

You're kind of making our point. While the growth may be in international, the margins/profits are razor thin outside of a handful of countries.

Most people don't upgrade their computer until it's too slow or broken. That day is quickly approaching for cell phones where people will have them 3-4 years or more before upgrading. Programs like VZW Edge could be devastating to manufacturers - when it was $200 to upgrade every other year, no big deal AND the newer hardware was needed...but now when I save $25/mo ($300 per year) if I wait you're going to have to wow me to get my money.

 

[cereal killer]

Sammie's profits have been down, as well. I think we're seeing that users aren't upgrading every year, or even every other year (which is still $200-$300 even with subsidy), because the phones are good enough for 95% of the users.

It's plagued many OEM's for a long time: simply too many models. Your product cycle needs to match the consumer purchase cycle or you spend too much on R&D and realize too little production efficiency.

Mid-low tier handsets are killing profits for Samsung. When consumers can get a smartphone for over half the price that does pretty much exactly the same thing as these flagships they are going to purchase them. The market has proven it.

Samsung better start targeting the emerging markets and stop trying to act like Apple or their margins will continue to shrink.

 

[cereal killer]

You guys make some good points, but they are from a US prospective. Keep in mind, that the majority of phones are sold outside the US. China being the largest market followed by India and SE Asia.
These folks don't know what a subsidy is. Perhaps they are tired or just can't afford $600-800 for a phone every couple of years. An S6 sells for $800. here.
HTC, LG Sammy and Moto are now competing with a few very aggressive Chinese & Korean manufactures [ Xiaomi, Elephone, Huawei, Umi ] that are putting out top quality devices at $250-400. And let's not forget about the One Plus One.
I think these Companies need to not only rethink thief product, they need to understand who their customers are, where they are, and present an affordable Flagship that meets the Worldwide demand.

As a side note: Our malls have a full floor dedicated to PHONES. Next time I am at the mall I will snap a few photos and you will see how many customers are in the Sammy, HTC LG stores and how many are in those stores that sell sell Xiaomi, Elephone, Oppo etc. You may be shocked..

This^^^^^^^^^

 

[kodiak799]

Mid-low tier handsets are killing profits for Samsung. When consumers can get a smartphone for over half the price that does pretty much exactly the same thing as these flagships they are going to purchase them. The market has proven it.

Samsung better start targeting the emerging markets and stop trying to act like Apple or their margins will continue to shrink.

Yep. The difference is Apple has people locked into its ecosystem....plus the R&D for IOS, and for that matter marketing, is shared across platforms. And Apple could even take a loss on IPhones, if it wanted, as a loss-leader to get people on ITunes, Mac's, etc....

There's very little money in EM. There's not much money to be had when the going price is $200. Doesn't leave much margin to over R&D and marketing.

Maybe Google really is on to something with Project Aura....get like 4-5 different sized screens as a shell and then sell the components individually, since display tech advances are pretty much pointless (beyond flex screens). Then you're only rolling out 1, maybe 2, new CPU's a year instead of 4-5 different phones.

 

[Ollie]

Mid-low tier handsets are killing profits for Samsung. When consumers can get a smartphone for over half the price that does pretty much exactly the same thing as these flagships they are going to purchase them. The market has proven it.

Samsung better start targeting the emerging markets and stop trying to act like Apple or their margins will continue to shrink.

Samsung targets all markets. They sell mostly low end phones. They even sell those old school Nokia like bar phones. They are immensely popular where I travel. My phones stick out like a sore thumb since it is rare to see them outside of a display in a store. These phones cost hundreds of times what the people make so there is no way Samsung, Apple, HTC, LG, etc can even earn a living there selling anything but low end phones.

 

[Jeffrey]

I have one of these for when I am in between phones. Costs all of $18.00. Sammy sells a ton of theses.

 

[Ollie]

I have one of these for when I am in between phones. Costs all of $18.00. Sammy sells a ton of theses.

Our company issues these phones to anyone traveling to our sites. They work everywhere.

 

[cereal killer]

Samsung targets all markets. They sell mostly low end phones. They even sell those old school Nokia like bar phones. They are immensely popular where I travel. My phones stick out like a sore thumb since it is rare to see them outside of a display in a store. These phones cost hundreds of times what the people make so there is no way Samsung, Apple, HTC, LG, etc can even earn a living there selling anything but low end phones.

Keep in mind consumers in emerging markets don't want old, inferior technology. They want high-end devices with low-end prices. Thats where Samsung is failing.

Xiaomi and the other companies are meeting those needs and rapidly boosting their market share at Sammy's expense.

 

[94lt1]

Keep in mind consumers in emerging markets don't want old, inferior technology. They want high-end devices with low-end prices. Thats where Samsung is failing.

Xiaomi and the other companies are meeting those needs and rapidly boosting their market share at Sammy's expense.

Yup.. Something for nothing... And their chick's for free.. Lol.. Sorry... It's playing on the radio... But it fits...