Really grim for HTC - IT.Branschen

market for smart phones is becoming tougher and more manufacturers fighting for their survival in the shadow of giants Samsung and Apple. Nokia is working feverishly to reverse its dismal trend, and now flagging HTC because they expect to make a loss in the next quarter. It would then be the first time since the company was founded in 2002.

Class=”paragraphIntro”> A big reason to the dismal prognosis is increasingly difficult climate for phones in the higher-end, where competition getting tougher as the market shows signs of saturation. Samsung has gained much by offering handsets for the lower classes, and even Apple, which made a thing of simply offering a new premium phone every year, is expected to follow suit with a lower priced iPhone model. According to Francisco Jeronimo at IDC, HTC must follow.

– HTC has competed too much in the premium segment of the market, but is now taking steps to introducing cheaper models before year end. They need to focus on the lower end in the future if they are to have a chance to succeed in reversing the trend.

Francisco Jeronimo looks a growing threat from Chinese manufacturers, but believe HTC may develop competitive models that attract the market. The focus on the lower segments may not mean that HTC completely abandons premium phones like HTC One, because it is important to build a strong brand. He does not believe that it will.

forecast for the the third quarter, however, is dismal for the Taiwanese manufacturer, which expects to report falling margins with 8 percent. Revenue is expected to land on the $ 2 billion, which is significantly lower than analysts’ expectations of $ 2.5 billion. It looks, however, with confidence in the fourth quarter and expects to be able to reverse the upward again. An optimistic forecast Francisco Jeronimo not share.

– It’s a worrying development for a relatively small manufacturer HTC. It will require restructuring in the coming months, and I believe that their difficulties will continue in the fourth quarter, says Francisco Jeronimo.

A small glimmer of l ight darkness is to showcase model HTC One selling well. A miniature model of the phone to launch globally in September. The question is whether the next models can save HTC in a market where even the biggest players seem to go against everything more difficult times ahead.