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HTC Blames 2012's Lack of Success on Marketing

By - Source: Wall Street Journal | B 31 comments

Firm experienced 79 percent decrease in profits during third quarter.

Smartphone manufacturer HTC has blamed 2012's lackluster performance in the smartphone market on a lack of marketing. Speaking to The Wall Street Journal, HTC CEO Peter Chou said he believes the "worst for HTC has probably passed."

"Our competitors were too strong and very resourceful, pouring in lots of money into marketing," he said, referring to the company's struggle to succeed in the smartphone market last year. "We haven't done enough on the marketing front."

Although HTC experienced a solid 2011, sales and market share failed to reflect the same success the following year. Back in October of 2012, the company announced a 79 percent decrease in profits since 2011.

The Taiwanese firm, which lately promised better smartphones due to its licensing agreement deal with Apple, reported its lowest quarterly net profit figures since 2006. It made $133 million during 2012's third quarter; comparatively, it made $633 million during the same period in 2011.

HTC is currently said to be working on its high-end, quad-core M7 smartphone, which is set for a CES reveal this week. The firm is also rumored to be preparing two Windows RT tablets, including the first 7-inch tablet powered by Microsoft's OS.

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  • 2 Hide
    halcyon , January 7, 2013 7:34 PM
    Marketing? They think it was because of their lack of marketing? Looks like HTC is in denial.
  • 4 Hide
    Anonymous , January 7, 2013 7:35 PM
    Maybe they should look at there phones. They used to have top of the line phones.
  • 9 Hide
    LordConrad , January 7, 2013 7:39 PM
    Marketing, really? Stop making phones with unchangeable batteries and no microSD card slots and sales should increase. It's not rocket science.
  • 0 Hide
    Anonymous , January 7, 2013 7:40 PM
    should have made a qwerty keyboard phone.....
  • 1 Hide
    kinney , January 7, 2013 7:44 PM
    1 word: Thunderbolt.

    FU HTC.
  • 2 Hide
    jacobdrj , January 7, 2013 7:52 PM
    Most people in my area had never even heard of HTC until after 2009... And then they seemed to have a reputation of being rock solid reliable.
    But they didn't build on that. Yeah, it was poor marketing with mediocre products that hurt them.
  • 0 Hide
    cknobman , January 7, 2013 7:53 PM
    LordConradMarketing, really? Stop making phones with unchangeable batteries and no microSD card slots and sales should increase. It's not rocket science.


    Add to that getting rid of the damn Sense overlay. Its bloated, buggy, and laggy; and the reason I wont buy another one of their phones (previous owner of 3 HTC android phones).
  • 0 Hide
    psykhe , January 7, 2013 8:02 PM
    LordConradMarketing, really? Stop making phones with unchangeable batteries and no microSD card slots and sales should increase. It's not rocket science.


    Honestly I do not care that much about that. What kills them for me is a unchangeable *small* battery.

    If you make the battery unchangeable at least put a decently sized one in and do not go with a moronic "customers want thin phones rather than longer lasting ones" sales pitch.
  • 0 Hide
    crisan_tiberiu , January 7, 2013 8:06 PM
    I just give an example: in Romania i didnt see any HTC comercial on the TV, for Samsung Galaxy S3 i did, for Iphone 5 the comercial was not needed... to many fanboys.
  • 3 Hide
    jn77 , January 7, 2013 8:08 PM
    If HTC is really that concerned and actually reads these comments, When I renewed my contract and saw what they were offering at that time to replace my EVO 4G, none of HTC's flagship models had user replaceable batteries (Apple Syndrome) and they got rid of the micro SDXC card slot.

    That is when I said Hello to my GS3...... end of story. It is little things like that which android power users want and why take them away?

    Whom ever made that choice at HTC needs a demotion.
  • 1 Hide
    g00fysmiley , January 7, 2013 8:19 PM
    reason to not go htc.. updates, the evo can run 4.0 no problem when you root it, but nope never officially released, they did release ics for the evo 3-d but that was only a few months back... if they really want good marketing pull a nexus and promise updates within 2 months of updates for 3 years provided the hardware meets the minimum requirments for said update.. really any manifacturer who does this for android will be banking (yes i know the nexus lien does that is why i use a nexus btu its a lien not a brand) ... this is the one thing i like abotu apple, they release and update and it goes live for all devices, well at least fo rthose devices that meet hardware requirments.
  • 0 Hide
    sickofthis00 , January 7, 2013 8:21 PM
    LordConradMarketing, really? Stop making phones with unchangeable batteries and no microSD card slots and sales should increase. It's not rocket science.

    Im sick of hearing this hypocritical crap.......
    when apple does this: "omg they are such a closed platform"
    when google does it with the nexus 4: "oh its alright, its such a cool phone, i don't need that stuff anyways"
    when htc does it: well, just look at the stupid stuff said in the quote... not the first time i see this too...
    kinney1 word: Thunderbolt.FU HTC.

    You should be pissed off at verizon... It is almost always the carrier's fault when there are update delays. Also i'm sure they said it was slow with 4.0 because of all the crap verizon added to the software after htc gave it in for customization.
    halcyonMarketing? They think it was because of their lack of marketing? Looks like HTC is in denial.

    Have you heard of any other phone other than the iphone or the s3 in the outside world? I doubt it.. With all the publicity Apple vs Samsung is getting + all the money samsung put into the S3 with the olympics and their features (exclusives), there is no doubt in my mind that not many people hear of the choices HTC offers.

    Lastly, I just would like to say that I own none of phone brands mentioned above, but know people with at least one of each of them (S2, S3, I4, I5, OneV & OneS). HTC has solid phones. The One S and One V I have tried have very solid builds. They feel of quality when being held. As for the software, my friend upgraded his One S with CM10 and is in
  • 0 Hide
    sickofthis00 , January 7, 2013 8:27 PM
    The rest of my comment got cut off...anyways rewriting it here:

    and is in <3 with it now. Given, the original software included may not be great, but the hardware is.

    Summary: What HTC said is correct. Samsung put a ton of money into their S3 marketing (as seen on TV and Olympics and youtube ads every 2 seconds). It really was because of the lack of marketing
  • 1 Hide
    psykhe , January 7, 2013 8:29 PM
    g00fysmiley ... this is the one thing i like abotu apple, they release and update and it goes live for all devices, well at least fo rthose devices that meet hardware requirments.


    Yes, because you really need the hardware of the 4S to be able to do turn-by-turn navigation which android phones have since..what? 2 years?
    Apple does not exclude functionalities because of hardware issues, but because they want to motivate users to buy a newer device.

    Mind, Apple has despite that still a vastly superior update policy than any Android OEMs. The one for Googles Nexus devices is better though, my Nexus S got updates with all functions longer than the iPhone 3G or 4.
  • 0 Hide
    LordConrad , January 7, 2013 8:29 PM
    cknobmanAdd to that getting rid of the damn Sense overlay. Its bloated, buggy, and laggy; and the reason I wont buy another one of their phones (previous owner of 3 HTC android phones).

    I'm not bothered by Sense because I root all my android phones, but the Rezound will be my last HTC phone if they stick with integrated batteries and no expandable memory. I always get extended batteries for using my phone as a hotspot.
  • -1 Hide
    LordConrad , January 7, 2013 8:37 PM
    sickofthis00Im sick of hearing this hypocritical crap....... when apple does this: "omg they are such a closed platform"when google does it with the nexus 4: "oh its alright, its such a cool phone, i don't need that stuff anyways"when htc does it: well, just look at the stupid stuff said in the quote... not the first time i see this too...

    It's not hypocritical, I don't buy Apple or Google phones for the same reasons.
  • -1 Hide
    sickofthis00 , January 7, 2013 8:39 PM
    LordConrad
    sickofthis00Im sick of hearing this hypocritical crap....... when apple does this: "omg they are such a closed platform"when google does it with the nexus 4: "oh its alright, its such a cool phone, i don't need that stuff anyways"when htc does it: well, just look at the stupid stuff said in the quote... not the first time i see this too...It's not hypocritical, I don't buy Apple or Google phones for the same reasons.


    Then its just stupid. Explain sales of those phones then
  • 0 Hide
    dark_knight33 , January 7, 2013 8:51 PM
    kinney1 word: Thunderbolt.FU HTC.


    It was a half-a$$ attempt. I loved my thunderbolt a lot, then I actually used it...
  • 2 Hide
    Kami3k , January 7, 2013 9:29 PM
    sickofthis00Im sick of hearing this hypocritical crap....... when apple does this: "omg they are such a closed platform"when google does it with the nexus 4: "oh its alright, its such a cool phone, i don't need that stuff anyways"when htc does it: well, just look at the stupid stuff said in the quote..


    Apple's iPhone at retail is also nearly double the price then the Nexus phone.

    The Nexus phone is dirt cheap for the hardware specs, so of course it's not going to have everything in it.

    HTC has no excuse as their phones retail price is still higher then the Nexus 4's by a few 100 dollars.

    It's not hypocritical if the situations are completely different, fool.
  • 1 Hide
    Shin-san , January 7, 2013 9:46 PM
    cknobmanAdd to that getting rid of the damn Sense overlay. Its bloated, buggy, and laggy; and the reason I wont buy another one of their phones (previous owner of 3 HTC android phones).
    Adding to that, as a programmer: it's a pain because it makes us put special cases for HTC phones, and it's hard to cover every nook and cranny of HTC's stuff
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