The year 2015 has not been a good year for HTC. The year has been characterized by the disappointing sales of One M9 phone that is HTC flagship. The declining financial status has greatly contributed to massive layoffs and financial woes. The most recent effect that hated the company with thunder is the delisting of the company from Taiwan 50 index. Also, the buzz that hit the non-phone products like the REcamera and the HTC vive experience also shock the bottom line of the market. Problems of HTC started from the transformation we experienced in the high-end Android landscape last year. With the commoditization of smartphones hardware, it becomes hard to even for the strong brands to differentiate themselves on the high price tags. Since the high-end Android phones are ideally good, other rivals find it difficult rise and walk shoulders high above other firms and demand the common price that prevailed the previous year.
Of all the challenges in the market, HTC remains the primary smartphone company that survives a period difficult to make money just by selling smartphones. It was the pioneer of metal smartphones though competition increased from then. Smaller players in the market have managed to pack a hardware equivalent in features and to make to the M9. These phones are sold at relatively cheaper prices directly to customers. The financial position of HTC has not helped to curb the menace. The new high-end Android trades at around $300 to $400 beyond which traders makes diminishing returns.
Currently, it’s possible to find a phone comparable to the best-rated phone in the previous year at a price less than half of the latest and greatest version. More so, clear-cut differences between the phones are very small. This phenomenon makes customers shift from highly priced smartphones. Currently, only two phone manufacturers, Apple, and Samsung can manage to hit the realistic demand in the market. The two companies have the adequate technical oomph to retain their positioning the market.
This status leaves unclear answers about the future of HTC and other manufacturers. However, A9 seems to blend well with the market. It remains the competitive edge for HTC; it’s a precious space to ignore. The specs of One A9 look like an inversion of the strategy for the One E9.its loaded with high-end internals at cheaper chassis. HTC Company might also be the first to launch the first phone running Android 6.0 Marshmallow out of the box. Despite the good device, HTC main challenge might be the market because the flagship phone will launch at a time when competition is high and resources are scarce.