Nomura Securities is one of the top investment houses in the Asian region. A published report on Friday explains four changes that HTC is considering in order to turn things around. First, to recap, last quarter, the company reported its first quarterly operating loss ever. While CEO Peter Chou recently gave back some of his marketing duties to Chairwoman Cher Wang, Chou said that the problem with HTC was with its low to mid-range models. The executive said that the flagship HTC One is selling well. And there is talk of HTC returning to its contract manufacturing roots by producing a line of Android flavored handsets for Amazon.
According to Nomura, HTC is considering a four part plan that has already started with Chairwoman Wang taking responsibility for sales and supply chain management. CEO Chou will deal with product development. In addition, HTC might also start outsourcing some of its production to Foxconn and Winstron. The third change has to do with the use of low cost supplier MediaTek for chips. This might help HTC lower costs of low to mid-range models, exactly where the Taiwan based manufacturer is having problems. And the silicon slinger’s MT6592, the first true octa-core processor, will be shipping next month.
The last change would be for HTC to form new strategic partnerships. There is speculation that the globe’s largest carrier, China Mobile, could be looking to team up with the troubled manufacturer. With 750 million subscribers, China Mobile is a good friend for a handset producer to have,
The bottom line though, is that HTC does not seem to know how to market its phones. Spending $12 million on Robert Downey Jr. was a bad idea although the problem was the actual campaign itself. We don’t see silly little green trolls dancing at a car wash conveying to people the reasons that they should be buying the HTC One. As we have said on these pages going back to the Palm Pre, the ads that work are the ones that show a particular phone in action. Phone buyers want to see features.