HTC to launch cheaper phones as revenues tumble

Looks like HTC has finally realised that you cannot survive solely on premium offerings unless you are of-course ‘Apple’, which too seems to be heading towards cheaper offerings with rumoured cheaper iPhone and decently priced iPad Mini.

HTC Chief Financial Officer Chang Chia-Lin told at a conference call that his company was planning to launch cheaper phones in China and other markets. It currently sells its cheapest smartphone in world’s most populated country and biggest mobile market at 2000 yuan (INR 17000). It will now launch smartphones with price-points even lower than 2000 yuan.

“We’re going to go down, but not below 1,000 (INR 8,500),” he said. “We see there’s still room to play” in 1,000 to 2,000 yuan phones.

We might see some of the cheaper model trickling to Indian market too. HTC does sell smartphones around INR 8K in India, but most of these are old models, which have reached this pricing after several price-cuts. It would be interesting to see if HTC launches a decent budget Android phone at INR 8-9K.

Chang added that his company would be targeting developing markets more closely this year

Revenues tumbling

Taiwanese maker HTC gave a disappointing outlook on Monday for first-quarter revenue, saying it would be flat to 17 percent lower than in the previous three months, reports Reuters.

The company expects -quarter revenue of T$50 billion to T$60 billion, which is below than T$60 billion in the fourth quarter and T$65.75 billion a year ago.



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