HTC: Poor marketing behind lacklustre 2012

NEW DELHI: Taiwanese manufacturer HTC has blamed lack of aggressive marketing for the company's poor performance in 2012. CEO Peter Chou told Wall Street Journal in an interview, "The worst for HTC has probably passed. 2013 will not be too bad."

Chou conceded that rival manufacturers "were too strong and very resourceful, pouring in lots of money into marketing" last year. The company launched its flagship One series in 2012, which included three smartphones, but sales were lacklustre.

HTC's earnings in the third-quarter of last year nosedived to six-year low. At present, the value to its shares has dropped by 80% in comparison to the highs of 2010, when it launched the Android-based Wildfire smartphone. As per a Gartner report for smartphone sales in Q3 2012, HTC's market share was 2.2%, down from 2.7% on year-over-year basis.

While HTC has continued to lose market share despite the presence of top-of-the-line products like the quad-core touting One X and Samsung Galaxy S II rival One S, others have gained customers. Competitors like Samsung, Apple, Huawei and ZTE have been successful in increasing their share in smartphone sales.

HTC recently made a deal with Apple, wherein the former pays the latter an undisclosed amount for infringing patents. The manufacturer has already launched its Droid DNA in the market, a new flagship smartphone. It is available as J Butterfly in the Japanese market, where it has beaten even Apple iPhone 5 in sales.

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