Editor in Chief
- Dec 30, 2010
- Reaction score
- Austin, TX
Several times throughout the years, we have written numerous articles describing HTC's situation as "grim," yet every time before, the company has found its footing and had a resurgence which seemed to put them back in the fight. The latest news puts HTC back in a dark place again.
This time, it turns out that sales of the HTC One M9 have hit a slump which is so heavy, the company will likely have to reduce its component orders by as much as 30%. From a business perspective, this is terrible news because it starts a downward spiral that will be tough for the company to pull out of.
Once your sales have dropped enough that you have to renegotiate your supply chain parts orders, that can hurt your relationship with your vendors. Once they lose confidence in you, they will be more apt to take their business to your competitors, which also hurts your future product line. It could potentially lead to a "death spiral" for HTC.
When you couple that with even more competition in the lucrative Chinese markets, it will require something really big from HTC to get them back into a competitive position.