HTC – Will they sink or swim?
Losing investors, stock drops, and subsequent pleas to the public have left investors feeling weary about HTC. They have not quite regained consciousness in the phone market. The Taiwanese manufacturer has been showing more and more signs of downfall, with little downplay of their struggles. For HTC, it seems as though their doors are slowly closing – but does an open admission of areas of improvement mean that they will be able to regain their former glory?
Whilst HTC may be (albeit slowly) experiencing growth each quarter, it feels as though their growth has been somewhat stunted. In an uncovered memo from CEO Peter Chou, there is reason to believe that HTC have experienced such a sharp decline due to their extremely rapid growth in the last two years. But now, HTC have dropped to being the number 8 mobile phone maker in quarter 2 – far superseded by the likes of Samsung, Nokia, LG and Apple.
Amongst all this commotion, it has been discovered the overall GDP of Taiwan is quite reliant on HTC. As such, Taiwan’s central bank last week urged the Government to give HTC a helping hand. Whilst this is unconfirmed, it has been cited that there are already discussions taking place for the Taiwanese Government to help HTC to their former glory.
Economic analysts, Goldman Sachs, believe that there is room for improvement for HTC, but recognise there needs to be “significant executive determination to do a big-scale overhaul”. So what does this mean? As it seems, a market-leading phone in terms of specs is not enough. Does the senior management of HTC need to change, or is it the very basis of HTC that needs an overhaul, HTC’s own Sense UI? In the loosely defined words of Chou, the company will need to improve its product, quality and brand awareness.
To me, this all points to signs of a struggling company. But as always, there are many rumours floating around – some of which point to HTC being the manufacturer of choice for Google’s Nexus phone.