When you’re at the bottom, the only direction is to go up; at least that’s HTC’s hope as it announced dismal fourth quarter numbers today which showed a 91-percent drop in profits compared to the same time last year.
Good phones. Bad marketing
HTC made a net profit of $34.4 million, but although it was in the black, this number represented the lowest profit margins since 2006 for the company.
Although reviewers think HTC phones are fairly good products, the real problem seems to be with HTC’s lack of marketing skills: people just aren’t interested in HTC phones. Peter Chou, CEO of HTC admitted this in an interview conducted with the Wall Street Journal when he said:
“Our competitors were too strong and very resourceful, pouring in lots of money into marketing. We haven’t done enough on the marketing front.”
Good and EVO
HTC’s big sellers are its EVO line and One X line of smartphones, but strong competition from other heavy hitters such as Apple, Motorola, and Samsung, HTC has had a difficult time distinguishing itself from its rivals.
If marketing is everything, HTC may need to re-brand its smartphones with new product names that excite the buying public because One X and EVO just doesn't seem to cut it.