HTC are banking on new ranges of mid-tier smartphones to return the business to profit in 2014.
The company predicts that a slew of new, more affordable products can help them regain market-share and put an end to two years of slumping sales. The Taiwanese manufacturer has reported 27 months of falling year-on-year revenues as it faces very strong competition in the high-end of the market from Samsung and Apple in particular.
HTC has just published its latest set of financial results where it reported a sales drop of 38% from the corresponding period last year.
Chief Financial Officer, Chialin Chang told an investor briefing that 2014 should see a rise in profit margins, owing to an increased presence in more tiers of the market: "What we're shipping in there, we want to make sure is competitive," Chang said.
"The problem with us last year was we only concentrated on our flagship."As well as the competition at the top of the market, HTC's fortunes have also been hit by cheaper alternatives coming out of China. Only two years ago, HTC were responsible for one in every ten smartphone sales, globally, but that share is now only 2%.
Speaking in an interview with Reuters, co-founder and Chairwoman Cher Wang acknowledged the need for action, "The problem with us last year was we only concentrated on our flagship. We missed a huge chunk of the mid-tier market."
During the investor meeting, Chang also hinted that the company would be releasing a werable tech product shortly but no further details on that were forthcoming.
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