HTC Decides To Stop Making Low-End Phones, Attempting To Protect Its Image

This year HTC made a goal of only pumping out a few devices, instead of one every few months. So far, they’ve held true to it, focusing on their One line of phones, which consists of only 3 devices. There are still a few oddballs, like the Incredible 4G LTE, but otherwise the company has stuck to its word. However, they are now looking to stick to the mid-to-high-range market, and focusing less on low-end phones.

This comes in wake of emerging markets like China and India joining the smartphone revolution, where most phones are sold at a low price point. HTC has admitted that competitors like Motorola and Samsung have already beaten them to the lowest price point, and that their focus could be spent elsewhere. Software is where the Taiwanese company would rather keep its attention, along with tie-ins with companies like LogMeIn and Dropbox.

The launch of the HTC One V is right around the corner, and it could very well be one of the last low-end HTC devices we see in the US. Is this a smart move for HTC, or should they rethink the plans to stop making low-end phones?

Wall Street Journal via Tech Crunch

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With prepaid growing not only in the US but around the world, 'cheap' or 'affordable' contract-free phones are important.  To me, its not really the cost of the phones as much the cost of a 2 year plan...Im on prepaid plan right now that is super cheap and fits my needs fine....Luckily I got my phone for free...but it usually retails between 200-330 so thats more reasonable than asking 500-800 up front.  And how is to say you have to make a 'cheap' phone.  Googles Galaxy Nexus is now selling for only 399

This sounds like a not so sound decision, because HTC is basically giving up in the low price points, and giving Samsung and Motorola reign in those price points. This will allow the competing manufacturers to achieve bigger economies of scale and that will make HTC phones more expensive to begin with. Selling more expensive phones requires a strong luxury brand, similar to what Apple iPhone represents. I think that HTC is not "a high quality, luxury brand" and therefore the company could have more strength in the low-to-mid price points instead of the mid-to-high price points. HTC could end up losing its shirt as Samsung and Motorola will definately be also in the price points HTC is now concentrating on.

tatdude806 8 pts

That is fine and dandy that HTC wants to make only high end phones, that is their right. But those high-end phones should not be pieces of junk to begin with. How many Sensation4G and Amaze 4G owners would agree with that?

Daiskei 5 pts

 tatdude806 Not only that, this is all lies. Single core Desire devices are coming next month... Look up the Desire VT, kinda pissed that they're getting Sense 4 and HTC claimed the Sensation was incapable of running it on it's dual core processor... Oh, wait.. I'm running Sense 4 ported now and it's great.