HTC Rebooting Smartphone Business Amid Struggling Sales

HTC’s smartphone business hasn’t been doing that well in recent years. In hopes of remedying its dire situation, the Taiwanese company is rebooting this division in 2019.

HTC Taiwan President Darren Chen disclosed to Digitimes this week that the firm is looking into rebooting its smartphone sales within the first half of next year. The change entails dropping low-end handsets, so it could focus on mid-tier and high-end devices moving forward.

Chen said he believes the reboot could improve the market share and profitability of HTC’s smartphone division. In line with this, they are preparing to extend the high-end U12+ lineup and prolong the series’ lifecycle until next year. He did not give hints on when consumers can expect new handsets under the flagship series.

Nevertheless, the move to expand the U12+ series should not come as a surprise, considering that it’s the best-performing lineup in a while for HTC. The U12+ has been gaining ground for its dual-lens camera since its launch six months ago. On the other hand, the U12 life 128GB model has been enjoying robust sales following its launch last month.

As for the mid-tier segment, Chen said they expect the newly unveiled HTC Desire 12s to drive up sales early next year since it’s scheduled for release in mid-January. The device sports an Octa-core Snapdragon 435 chipset and a 13-megapixel selfie snapper.

Apart from conventional smartphones, HTC could expand its blockchain-enabled smartphone lineup next year. For one thing, the company’s first blockchain phone, the Exodus 1, has already sold out following its launch early this month. Moreover, Chen admitted that they are developing a new strategy and business model to promote “blockchain smartphones.”

Last month, HTC debunked rumors that it’s shutting down its struggling smartphone business. Pocketnow even pointed out how worrying the financials of the company were for the months of June, July, August and September.

HTC maintained that it is not in the process of exiting the smartphone market. Instead, it is strengthening its smartphone division by preparing new handsets that are due for release at “year-end 2018 and in early 2019.”

While its smartphone unit may be struggling, HTC’s VR headset division is doing well. Chen said the company’s VR products are gaining momentum with the release of the upgraded Vive Pro and Vive Focus. Due to this, HTC is planning collaborations that could further promote its VR headsets.