HTC Will Make ‘Significant’ Job Cuts, Slash Smartphone Models To Buoy Sinking Ship
HTC was a dominant player in the early days of Android and often enjoyed record sales and profits. That seems like a million years ago now that Apple and Samsung are dominant players. HTC also faces stiff competition from Chinese players in the low end of the market, and all combined, it's taken a toll. No longer king of the mountain, HTC is reportedly planning to slash its workforce and scale back the number of smartphones it offers.
Chialin Chang, Chief Financial Officer for HTC, told reporters that the job cuts won't be concentrated in any single division, but will take place "across the board," Reuters reports. He also warned that the job cuts "will be significant," adding that they'll extend into the first quarter of next year. Beyond that, he didn't provide any specifics, such as exactly how many pink slips the company plans to hand out.
HTC has been in a bit of a rut. To get out of it, the company will reduce the number of smartphone models it offers and focus its efforts on high-end handsets, especially in emerging markets like India. According to Chang, HTC has a 20 percent market share in such areas with regards to phones that sell for between $250 and $400.
It will be interesting to see how HTC's upcoming efforts pan out. The company faces an uphill battle, as it falls into the catch-all "Others" category in global smartphone market share. According to IDC, Samsung led the way in the first quarter of 2015 with a 24.6 percent share of the worldwide smartphone market, followed by Apple (18.3 percent), Lenovo (5.6 percent), Huawei (5.2 percent), and LG Electronics (4.6 percent). The "Others" category that HTC is clumped into comprises the remaining 41.7 percent.
Chialin Chang, Chief Financial Officer for HTC, told reporters that the job cuts won't be concentrated in any single division, but will take place "across the board," Reuters reports. He also warned that the job cuts "will be significant," adding that they'll extend into the first quarter of next year. Beyond that, he didn't provide any specifics, such as exactly how many pink slips the company plans to hand out.
HTC has been in a bit of a rut. To get out of it, the company will reduce the number of smartphone models it offers and focus its efforts on high-end handsets, especially in emerging markets like India. According to Chang, HTC has a 20 percent market share in such areas with regards to phones that sell for between $250 and $400.
It will be interesting to see how HTC's upcoming efforts pan out. The company faces an uphill battle, as it falls into the catch-all "Others" category in global smartphone market share. According to IDC, Samsung led the way in the first quarter of 2015 with a 24.6 percent share of the worldwide smartphone market, followed by Apple (18.3 percent), Lenovo (5.6 percent), Huawei (5.2 percent), and LG Electronics (4.6 percent). The "Others" category that HTC is clumped into comprises the remaining 41.7 percent.
