This week HTC has revealed its Q4 2012 financial results with less than favorable comparisons to this same time last year, letting investors know that their strategy for hitting 2013 with a bang will be a relatively low starting price point for the Chinese mobile market. This strategy capitalizes on the massive growth potential for greater China and takes the power of the lower-tier market (still largely untapped in many regions around the world) to a whole new level. This set of announcements unfortunately still has HTC forecasting steady or falling margins through the immediate future.
It was none other than HTC’s Chief Financial Officer Chang Chia-Lin that spoke up on the conference call this week after the quarterly earnings report. He spoke about China’s potential and the fact that HTC would be focusing on more than the mid- to high-end models they’d been delivering throughout the country up until this point in history. The price point for the new less expensive devices, he said, would under-cut the least expensive device they’ve got on the market today.
With the lowest-tier device on the Chinese mobile market from HTC today being set at 1,999 yuan ($320), Chang made it clear that they are “going to go down, but not below 1,000.” He also let it be known that “we see there’s still room to play” with devices priced around 1,000 and 2,000 yuan. This opens HTC up to delivering more devices like the HTC One SV with a solid product delivery at a price that wont break the bank.
HTC has a flagship smartphone on the way as well, mind you, with a code-name delivery right this minute set as HTC M7. This device has also been tipped to be bringing on a brand new brand name for HTC’s upcoming camera technology with Ultrapixel replacing Megapixel. It’s going to be fun beyond all other things!