Tag: htc

Samsung to regain smartphone lead

samsung-hqA research company believes that Samsung will be the number one smartphone vendor in 2015, taking the lead over Apple.

Digitimes Research (DR) said the top 10 vendors this year will be Samsung, Apple, Lenovo, LG Electronics, Huawei, Xiaomi, Microsoft, TC, Coolpad and Oppo.

HTC, which only a few years ago was top of the smartphone pops, doesn’t appear to get a lookin at all. Last week, Cher Wang, chairman of HTC, took on the CEO duties too, displacing former CEO Peter Chou to head up a new products division at the Taiwanese firm.

DR estimates that Samsung will ship over 330 million units and Apple will manage to ship 230 million.

But Lenovo appears to be edging upwards in the smartphone league. This year it will ship 64 million units, while LG will ship 67 million units, just ahead of Huawei.

DR estimates that Android phones supplied by the top 10 Android smartphone vendors willl represent over 70 percent of the total units shipped this year.

 

Wang takes over HTC hot seat

htc-isntCher Wang, the chairwoman of troubled mobile phone manufacturer HTC and a co-founder of the business has displaced Peter Chou to become the new CEO, right away.

Chou won’t leave the company – he is to work on developing new products.

HTC has suffered in the last three years because although it’s had some good products, it lacks the financial muscle of an Apple or a Samsung to perform marketing miracles and so sell more phones.

Chou had already ceded some of his CEO role to Wang, while the company has seen some restructuring.

According to Cnet, Chou admitted that he took on too much during his reign as CEO and told the wire he wanted to concentrate on new things and the company’s product portfolio.

Wang said Chou will become head of the HTC Future Development Lab, and tasked with finding new growth opportunities.

Wang co-founded HTC in 1997 and the company was an early adopter of the Android operating system. It was also early to market with a Windows phone and at one time was ahead of Samsung and Apple in market share.

Tablet makers rethink their plans

cheap-tabletsDisappointing shipment numbers for tablets last year are forcing vendors to contemplate their marketing navels and come up with new ideas.
According to Digitimes, one way vendors want to turn the market round is to persuade their suppliers to slash the cost of their components so they can cut prices on production.
And Apple, the wire reports, had disappointing sales of the iPad Air 2 and iPad mini 3, which were launched last autumn.
Sales of HTC products and Xiaomi products haven’t been that brilliant either.
Apple is rumoured to be introducing a 12-inch iPad that it hopes will cause waves of excitement.
The problem is that once you have a tablet, there isn’t much desire to get a new one that’s shinier unless you’ve more money than sense.
Apple appears to believe it can launch all sorts of new applications for the 12-inch iPad when it appears.

Google gets its hardware knickers in a twist

Nexus 9A report by financial analysts at Seeking Alpha suggests that Google has come adrift with its smartphone hardware strategy.

Seeking Alpha claims the Nexus programme does not now include the kind of devices most people would rush out to buy.

And even devices like the joint Google-HTC One GPe – which the analysts describe as the “Rolls Royce” of five inch Android smartphones is in a spot of bother. Because it’s sold out.

The Nexus 5 is last year’s model with an ancient Qualcomm 800 CPU and less memory.

The Nexus 6 is sold out but anyway it’s too big because few want a six inch screen.  The Motorola G isn’t sold out but it’s last generation.

Seeking Alpha Analyst Anton Wahlman says that everything Google is selling on its site is sold out, suggesting the behemoth is losing its way on the hardware front. You can read more of what he has to say about the debacle, here.

HTC shows signs of recovery

Nexus 9Cooperation between mobile firm HTC and Google is giving the Taiwanese firm a boost.

According to the Taipei Times, orders for the Nexus 9 tablet have exceeded expectations and that means HTC has ramped up its production facilities.

HTC mobile phones are considered to be some of the most stylish smartphones on the market, but a lack of marketing budget has seen the firm struggling to compete with the majors in the market.

HTC doesn’t really play in the tablet market on its own and the report suggests it is taking a cautious view on revenues in the sector  before it launches products it no doubt has, waiting on the sidelines.

Earlier this week HTC released figures for October 2014 showing unaudited revenues of NT$15.8 billion.  Companies listed on the Taiwanese bourse report monthly rather than quarterly figures.

HTC back on track

damsel-in-distress-4HTC has said that it is back on track and will not have to go to the markets to ask to lend a tenner until next Friday.

Taiwanese smartphone maker’s chief financial officer Chialin Chang told Reuters that the outfit had a  lack of debt, $1.7 billion in cash and the ability to fund itself.

Chang said in an interview that HTC can self-fund itself very sufficiently.

The company last week reported better-than-forecast third-quarter profit, but mainly thanks to cost cuts rather than improved sales.

Chang said the company now had a strong portfolio of phones at prices that will attract buyers in both developed markets and emerging ones.

“I think with a more robust portfolio we’re going to be able to show that we can grow again,” he said. “Hopefully people will feel in the next earnings call with the guidance, we can get the momentum back.”

Chang said that his company was working on other “smart devices” which means it is probably coming up with a watch like everyone else in the industry.

Meanwhile the outfit has created a “Re” camera, which can be controlled remotely from an Android or Apple phone, represents one effort to branch out beyond phones. Given that the cylinder-shaped device is waterproof and is highly portable, it could be seen as a potential competitor to GoPro Inc (GPRO.O) cameras.

Chang said that was the wrong comparison since GoPro cameras are specifically aimed at “extreme” sports while the Re, which will sell for $199 in the United States, is aimed at everyday use.

HTC in Google tie-up

google-ICA report claimed that HTC, which has wobbled quite a bit over the last few years, is set to cooperate with Google on its next tablet.

According to Taiwanese wire, Digitimes, the two companies will jointly launch the Nexus 10 tablet.

HTC hasn’t had a great deal of success in the tablet sphere and Google has consorted with other manufacturers including Asustek and Samsung to create previous versions of Nexus tablets.

The big question is whether it is too little and too late for HTC to make progress in the tablet arena, given that there are already so many players.

Although its recent smartphones have been hailed as good bits of kit, it seems that a  lack of coordination and marketing know how has prevented HTC doing as well as it should have.

HTC enlists Iron Man to boost brand

htc-quietly-going-underHTC has enlisted the help of Iron Man star Robert Downey Jr. in an effort to boost its brand. HTC has seen better days. It was a force to be reckoned with just a few years ago and since it was one of the first outfits to make great smartphones, it quickly gathered a cultish geek following.

That geeky image ended up being a bit of a problem for HTC, as the company’s phones were often associated with tech dullards who never got invited to parties. Samsung and Apple took a different, consumerish approach and it worked a lot better.

Iron Man to the rescue. Downey Jr. has signed a two year deal and he will be the face of the brand, thus helping it shake the geeky image. At least that is the plan. The slogan of HTC’s new push is “Here’s To Change,” and Downey Jr. will apparently deliver similar puns based on the HTC abbreviation in TV ads.

HTC’s marketing budget is about $1 billion per year, but the Taiwanese smartphone maker is being outspent by Samsung and Apple. HTC apparently has more than half a billion in its marketing budget left for the new Downey campaign.

In a chat with Marketing Magazine, Martin Kang, HTC’s head of marketing for EMEA, admitted that the company’s marketing could have been better.

“We’ve not been too good at promoting ourselves and we can’t be allowed to make the same mistakes,” he said. “Having this kind of asset in Robert Downey Jr. means we’re going to fire on all channels – social, TV and digital, with digital the core space.”

So what sort of HTC puns will be used in the campaign? Downey Jr. is supposed to play a high-powered and “somewhat bonkers” exec who comes up with various names using HTC as a starting point. “Hold This Cat,” “Hipster Troll Carwash” and “Happy Telephone Company.”

Although we’re by no means ad geniuses, we came up with a few of our own, designed specifically for Downey’s not so subtle off-screen persona – “Hide The Cocaine,” “Holier Than Christ” and “Heat That Crackpipe”.

Chinese smartphones to shake things up

android-china-communistSales of high-end smartphones are still very strong, but the market seems to be slowly shifting to cheaper gear.

As smartphone penetration rates in developed markets are already relatively high, much of the new growth is coming from emerging markets which don’t have the capacity to gobble up millions of pricey iPhones and flagship Galaxies.

According to IDC, the average price of smartphones has dropped from $450 to $375 since early 2012. As growth is now being generated in China and India, cheaper smartphones are starting to take off. Lenovo stands to gain from the trend, as it already has a very powerful grip on the Chinese market. Chinese players like Huawei and ZTE should also do well. The big losers might be Apple and Samsung, but nobody expects them to sulk and sob in the corner while their lead evaporates.

Apple is apparently working on a cheaper, plastic iPhone, designed specifically to target emerging markets. Samsung and HTC already have mini versions of their flagship phones and although the Galaxy S3 Mini was a disappointment, HTC seems to have cracked it with the HTC One Mini. Motorola’s new X-phone, or Moto X, is set to launch in a week or so and it won’t be a high-end device as many had expected.

However, Chinese smartphone makers still might get the best of big brands. We are seeing similar trends in the low-end tablet market. Chinese manufacturers can respond to changes much faster, they are more dynamic and their costs are much lower. Samsung and Apple might spend hundreds of millions on marketing, but no-name smartphone makers can’t rely on an overpaid hype machine – their only choice is to come up with low-BOM (bill of materials), yet competitive low-margin products, which means China is actually teaching the West a lesson in capitalism.

ABI analyst Michael Morgan told Bloomberg that the days of fast growth in the high-end smartphone market are over.

“It’s the Chinese companies who know how to survive on tiny margins that are ready for the fight that’s about to ensue,” he said.

In other words we may be in for a repeat of the PC price slump of the mid nineties. Chinese manufacturers can churn out cheap smartphones and tablets, much like PCs, but this time around the shift might even be faster. Even if Chinese companies can’t access the latest and greatest in mobile tech, that doesn’t really matter in the mid-range and low-end. Last year’s tech is good enough and it’s cheap, which is exactly what they need.

Furthermore, most chipmakers should have no qualms about selling their latest processors to anyone willing to pay – since most of them don’t have their own smartphone business, although Samsung is an exception. The same goes for most other components and some chipmakers have a vested interest in peddling their own designs. Nvidia seems to be leading the way, as it is already working on reference smartphone and tablet designs. Its next SoC (Tegra 4i) is a mid-range chip with LTE and the first products based on the new chip, and possibly Nvidia’s reference design, should appear in early 2014.

This is also pretty bad news for Nokia, which had hoped to replace its Symbian and S40-based offerings with cheap Windows phones. However, Nokia feature phone users in emerging markets seem to be choosing cheap Chinese Androids instead.

However, most high-end smartphone sales in Europe are still coming from carriers, thanks to comprehensive (and usually quite pricey) two-year plans. If European and US carriers embrace more mid-range Chinese phones, things could change in a heartbeat.

HTC smacked on its own patch

Etiquette on the MTRMost disinterested people I have talked to hereagree that the HTC One is really quite a super phone but here in Taipei it’s losing out on the marketing front.

And it’s to South Korean Samsung, which has giant adverts plastered all over Taiwan.

In terms of marketing money, Samsung has incomparably more at its disposal and seems to know how to use it.

It wouldn’t be the first time and no doubt it won’t be the last time that marketing has beat a better product down.

So what’s HTC to do? There isn’t an easy answer to that either. It might try changing its logo – which is a feeble little thing – and talking to journalists more than it currently does.
Samsung advertising in Taipei

Disties offer gourmet delights

Big snail in Old TaipeiComputex 2013 begins next week – a jamboree where there’s a chance to meet a plethora of industry types from all over the world and those at the heart of the supply chain.

We’ll be covering all the important announcements on both ChannelEye and our brother pub TechEye.net.

And here we’ll be bringing you all the gossip and yak yak we hear on the grapevine and on the Nangang strasse.

Let’s start with a juicy story that demonstrates how business is done differently in Asia than in Europe. Well, we think UK vendors [what vendors, Ed?] wouldn’t find themselves in an analogous situation.  A well known vendor from Old Taipei found himself being entertained in the Philippines recently, with lashings of very strong beer and a delicious goulash like soup.  At the end of the evening, the vendor asked his hosts about the delicious stew – to be told that they’d been supping speciality dish horse penis soup.

All the main news  buzz over here is about aggressive acts by the Philippines against a Taiwanese boat recently.  That led, we hear, to a Canadian woman being unceremoniously ejected from one of the famous Taipei cabs because the driver thought she was a Filipino.

You might remember the other week that several HTC suits in America were beamed out of the company – prompting speculation that there was something afoot in the beleagured Taiwanese company. It turns out many of the suits were ex-employees at the Redmond Volehill and, strangely enough, the Microsoft culture didn’t fit with the HTC culture.  Once, of course, Microsoft and HTC were very pally indeed, introducing a smartphone superficially very similar to a really pioneering smartphone from a British company that ended up successfully suing Microsoft.

Meanwhile, some folks are very enthusiastic about Intel’s announcements next week of its Haswell technology.  Bitter and twisted hacks over at sis pub TechEye believe the chip giant isn’t going to do Haswell as people expected.  That, of course, remains to be seen but expect that Intel’s new CEO, already dubbed “Special K” and who was speedy to institute a purge of positions at Chipzilla, will be watching its progress with some degree of trepidation.  So will we, Mr K, so will we.

More – and there will be much more – later.

* If you’re new to Computex and to Taiwan, check out this site – We View Taiwan – for some really useful information.

Handset sales up, Samsung gains share

nexus4-ceSmartphone wars are becoming rather predictable. Every quarter sales notch up and every quarter Samsung emerges as the big winner. The last quarter was no exception. However, growth is slowing as the market matures, although there is still plenty of room for growth in emerging markets. 

Worldwide phone sales totalled 426 million units in the first quarter, up 0.7 percent year-on-year. Smartphones saw a lot more growth, with sales totalling 2010 million units, up 42.9 percent from a year ago, according to a Gartner survey.

Sales of feature phones are down in all regions except Asia, while smartphones accounted for 49.3 percent of all phone sales worldwide, up from 34.8 percent in Q1 2012. At the same time feature phone sales contracted 21.8 percent.

“Feature phones users across the world are either finding their existing phones good enough or are waiting for smartphones prices to drop further, either way the prospect of longer replacement cycles is certainly not good news for both vendors and carriers looking to move users forward,” Gartner analyst Anshul Gupta said.

Samsung saw its market share go up from 21.1 percent to 23.6 percent. Apple also did well, growing from 7.8 to 9 percent, while Nokia’s share dropped from 19.7 to 14.8 percent. However, looking at smartphone sales, Samsung’s share was 30.8 percent, up from 27.6 percent. It was trailed by Apple at 18.2 percent, down from 22.5 percent. LG grabbed the bronze, with a 4.8 percent share. Huawei also had a good quarter, upping their share to 4.4 and 3.8 percent respectively and outperforming former heavyweights like Nokia, Sony and HTC.

Android is still the dominant mobile operating system, with a share of 74.4 percent, up from 56.9 a year earlier. Apple’s iOS share stands at 18.2 percent, down from 22.5 percent a year ago. Just so it wouldn’t look like a two-horse race, Blackberry is still in the game with a 3 percent share, down from 6.8 percent last year. Apparently BB10 did not make a huge difference. Windows Phone has a 2.9 percent share, up from 1.9 percent last year. It is growing, but at a painfully slow rate.

HTC guerrilla marketing campaign takes on Samsung juggernaut

htc-quietly-going-underTroubled smartphone maker HTC is not giving in yet. It used the Samsung Galaxy S4 launch event to stage a guerrilla marketing event of its own. HTC can’t take on Samsung in a set piece battle or in a war of attrition, but it seems eager to fight on the landing grounds, in the fields and in the streets. The streets of New York that is. 

HTC did not use Spitfires and Hurricanes, it resorted to an even more potent marketing weapon – lovely ladies handing out HTC One samples. Sometimes a friendly smile works better than a Vickers machine gun. HTC let the crowd try out its new flagship phone at the sidelines of Samsung’s Unpacked 2013 event and it offered a $100 rebate for anyone who trades in their old phone, reports Business Insider.

Samsung held two separate events in New York, one for the media and one for consumers. Apparently HTC chose to target the latter. It is unclear how many consumers fell for it, but in our opinion the HTC One has what it takes to slug it out with Samsung’s Galaxy S4. Sadly though, HTC lacks hundreds of millions of dollars to take on Samsung’s hype machine and hype is proving more important than actual products. 

HTC is down, but it is not out. And if the HTC One fails we will sink into the abyss of a new dark age made more sinister, and perhaps more protracted, by the lights of perverted Samsung science.

HTC is not the only Android outfit that chose not to yield to the apparently overwhelming might of the enemy. LG took out a few cleverly placed ads, trolling Samsung’s SIV ads in New York as well.

HTC struggles to stay afloat despite top notch products

htc-quietly-going-underHTC was one of the first smartphone makers to cash in on the Android craze a couple of years ago, but the good times are long gone and if its fortunes don’t turn around soon, it might be up for sale, or worse.

Back in 2010 and the first half of 2011, HTC was the darling of tech hacks and investors alike. It was posting strong sales, with triple digit revenue growth for four consecutive quarters. However, it has been downhill ever since.

On Wednesday HTC announced that its sales in February dropped a whopping 44 per cent year-on-year and 27 per cent compared to January. At the moment, HTC’s market cap is roughly one fifth of what it was in mid-2011.

So what on earth went wrong, and what led to HTC’s annus horribilis last year?

It wasn’t the products. Last year HTC decided to focus on fewer phones, which seemed like a logical step for a small outfit, as it could allocate its resources more efficiently and turn itself into an upmarket brand. The resulting One series phones got stellar reviews, but the positive vibe did not result in strong sales. HTC’s flagship One X featured a better screen than its arch nemesis, the Samsung Galaxy S3. It also looked a bit nicer and its build quality was vastly superior. In terms of hardware and software, it was on a par with Samsung’s S3 juggernaut. The same is true of other HTC phones.

For years HTC was viewed as a geeky smartphone brand with excellent but somewhat dull products. It tried to shake off this perception by introducing a bit more flare to its smartphone designs and then there was the ill-conceived Beats Audio deal. Clearly, it didn’t help. Worse, Samsung’s approach of flooding the market with countless Galaxy models worked like a charm. Instead of diluting the Galaxy brand with cheap, plasticky phones, Samsung managed to get more brand recognition than Google’s Android OS. Galaxy has become synonymous with Android, and then some.

HTC’s new flagship, dubbed One sans suffix, is already getting great reviews. It features a 4.7-inch 1080p display, Qualcomm’s Snapdragon 600 processor, which is the fastest currently available mobile chipset, along with an innovative Ultrapixel camera and a new dual-membrane microphone. It ticks all the right boxes and should be able to take on anything Samsung, LG or Sony could throw at it.

Sadly though, that is not enough. HTC simply can’t sell its gear or get its message across. It lacks the resources of consumer electronics giants, so it can’t market its products as effectively and it can’t get sweetheart carrier deals like big players. What’s more, smartphones have already gone mainstream and HTC simply lacks the brand recognition of more consumerish brands. Geeks might love HTC phones, they can get very positive reviews, but mainstream consumers just don’t care. They don’t read tech sites and they buy Samsungs instead.

So although HTC pioneered Android phones and although it still has excellent products, it could get the unflattering distinction of being the first Android smartphone maker to go out of business, in the middle of a mobile boom and with very little fault of its own.