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HTC NEEDS A CHANGE

It is no news the competition inside the smartphone world is very tough now. Some time ago several mobile companies entered the race and now every mistake can be crucial. HTC managed to get into that race and now has to think of how to maintain its position. The end of this year seems to be a bad luck for the company, which already has cut its Q4 sale forecast by 20%.

Compared with the same period last year HTC’s revenues amounted to $1.27 billion, while this year they made up $1.02 billion. Not that bad, but the decline is obvious after six quarters of revenue growth. Now HTC is worried this decline can eventually turn into a free fall, from which the company risks not to recover at all. HTC explained this decline with “global macroeconomic downturn,” the factor of fiercer competition and said this bad luck is temporary. But is it all about factors, or the problem is related to the underperformance of mobile devices HTC makes?

It is true HTC has such grand opponents as Apple, Google, Samsung and Motorola, but it has really to do something different to gain its previous position on the market. Perhaps instead of producing a bunch of phones a year, HTC needs to concentrate on just a few but real innovations and plus produce and promote a flagship smartphone. Unless HTC does so in the first quarter of 2012, it risks to lose in the race of smartphones, and with the current hectic pace on the market, the return would be nearly impossible.

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