HTC Rise And Fall – A Real Story Of HTC

HTC Rise And Fall | HTC Is From Which Country | Why HTC Failed |

HTC Rise And Fall

HTC Rise And Fall: HTC is the name of a company that dominated the smartphone world in the early part of the last decade. In addition to launching the first Android smartphone in the market, HTC was once the world’s largest Android smartphone maker. From the beginning, HTC has given a lot of importance to the design along with the hardware and features of the phone. As a result, the acceptance of this phone among the consumers was also eye-catching.

HTC Rise And Fall

According to a report by Arnnet, in late 2011, HTC, the largest smartphone market at the time, released 5.7 million smartphones in the US smartphone market. In one fell swoop, they were able to overtake Apple and Samsung, capturing 20 percent of the market share. But at present HTC is in the market share. What is the reason for the company, which once dominated the market, is now facing such a predicament?


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HTC was founded by Taiwanese entrepreneur Sher Wang. After receiving a bachelor’s degree in economics from the University of California in 1981, he joined Taiwanist First International Computer in 1982. From there he continued to learn the ins and outs of the business. Following this, in 1997, he established ‘High Tech Computer Corporation’ with several partners. In short, what we know today is ‘HTC’.

HTC began its journey by producing notebook computers, but a year later the company focused on building a ‘touch and wireless handheld device’. The world’s first ‘Touch and Wireless Handheld Device’ was introduced by HTC. Over the next few years, the company continued to expand its business by making such devices as well as filing various patents. Sher Wang stepped down as CEO of the company in 2004. Peter Chao, then co-founder of HTC, became the CEO of HTC.


why htc failed

Peter Chao was then known for his picky nature. He always gave priority to perfect work. As a result, users were getting devices with the same quality as Apple products in the hardware, software, and user experience of HTC smartphones. HTC has been using Microsoft software on handheld devices since its inception. HTC has been instrumental in popularizing Microsoft’s Windows Mobile operating system among its users.

Although HTC’s main job was to manufacture the device for other manufacturers. Since 2004, under the HTC Qtek brand, Windows Mobile has introduced the PDA or ‘Personal Device Assistant’ to the world. The HTC Qtek range was later re-branded under HTC’s official branding in 2006 and brought to market by the HTC TyTN.


The scene changed after Apple released the iPhone in 2007. HTC’s future will change in that whirlwind of revolution. When Google launched the operating system ‘Android’ in 2008, the company launched the first Android smartphone, the HTC Dream, also known as the ‘T Mobile G1’. That same year they released the first Four-G smartphone ‘HTC Max 4G’ in the US market.


The following year, in 2009, they shocked the world with the release of the first capacitive touchscreen Windows smartphone ‘HTC HD 2’. Until the launch of this phone, all Windows smartphones had a resistive touchscreen, making the phones relatively thick and heavy. HTC changed the face of that traditional genre. With HTC’s unprecedented success in the hardware market, Google has teamed up with HTC to launch Google’s first hardware ‘Nexus One smartphone. Google later changed the lineup of this Nexus series by changing the Pixel lineup. In 2009, HTC was involved in a total of 11.7 million handset shipping.

In 2010, that number reached 24.6 million units. As a percentage which is more than 111 percent. As a result, the company’s revenue rose 93 percent year on year to 7 billion. Following the multi-device policy, HTC launched more than 45 million phones in 2011. Capitalizing on its relentless success, the company’s revenue reached. 15.51 billion.

The regulator that acted as a positive influence behind the skyrocketing popularity of HTC phones was that the company was very diligent and careful in using the latest hardware in the market as well as making the phones dazzling and eye-catching. While all the companies used plastic in the body of Android phones during the rise of smartphones, HTC was the first in the world of smartphones to introduce metal unibody design to everyone.

While other manufacturers do not pay much attention to the audio features of phones, HTC has adopted stereo sound systems in their phones from the beginning. HTC always kept a close eye on the phone’s software or user experience. When the company launched Windows Phone in 2009, they introduced the new software ‘TouchFLO 3D’ to give a modern graphical look to the user interface like Windows spreadsheets.


After HTC moved its vision from Windows to the Android platform, HTC Sense was created for the Android platform by optimizing TouchFLO 3D. Although a system of infinite possibilities, for various reasons it was a little behind the times. There were many shortcomings in the features of this software as well as a lack of optimization.

As a result, it did not put a smile on the faces of users. In 2012, when HTC’s global market share fell below 5 percent, HTC’s market share suffered its first blow. However, in 2011 the company’s global market share was 9.1 percent. On the other hand, Samsung, which lagged behind HTC in terms of market share in 2009, topped the smartphone market in 2013 with a market share of 24.6 percent.

HTC’s revenue graph continues to decline as smartphone sales continue to decline. In 2012, the company’s revenue fell 37.91 percent to 9.63 billion. Thus, every year the company gradually progresses towards losses. Although HTC managed to gain popularity in the smartphone market in a short period of time, one of the reasons for its decline was its poor positioning and branding. HTC failed to properly position its products to customers. In addition to this, the company could not do proper branding as it did not give due importance to the advertising sector and marketing.

The company has not been able to give consumers a clear idea of ​​exactly what the HTC brand represents. This was largely due to the perfectionist attitude of the then CEO Peter Chao. His idea was that HTC’s advanced hardware, smooth user interface experience, and premium design were enough to attract users to HTC’s devices. So HTC’s brand tagline was also set as ‘Quietly Brilliant. But you want to sit here by mistake. While HTC has been competing with Apple for premium quality in the market, Samsung was launching all sorts of great ad campaigns to consolidate and strengthen its position in the market.

In 2011, Samsung released their Galaxy SII phone, which was a boon for Samsung. Such advertisements lead to a silent war of attrition among consumers called ‘iOS vs Android. At that time, ordinary smartphone users would have taken Samsung as Android. In response, HTC did not campaign that way, and the company’s branding was already weak. Again, HTC could not increase its marketing experience. Because “marketing and advertising are equally important to attract users,” HTC realized at the time that their revenue had plummeted.

However, in 2013, HTC launched an ad called ‘Here’s to change’, signing a 12 million advertising contract with Iron Man actor Robert Downey Jr. But in the advertisement, the company fails to accurately represent their real product smartphone, and what their company actually represents. That year, HTC spent a total of 1 billion on advertising, a risky investment considering the company’s current state of affairs. However, that year Samsung’s advertising budget was ten times that of HTC, the highest among smartphone manufacturers.

HTC bought S3 Graphics, a PC manufacturing company, in 2011 for 300 million to further strengthen its smartphone division. But the company did not develop any new hardware for HTC in the next few years. In 2011, HTC bought a 51% stake in Beats Audio for another 300 million.

However, they managed to make a profit of 56 million by selling their shares in the company for 356 million. But just two years later, Apple acquired Beats Audio for 3 billion. Had HTC not sold the shares, the company’s profits would have been in the billions of dollars. In 2011, HTC acquired Saffron Digital Ltd, a London-based mobile-based multimedia company, for 48.6 million. The following year, they invested On 40 million in the American game stream company On Live.

While there are endless possibilities for streaming platforms, HTC fails to take advantage of these two platforms here as well. HTC has also invested in several other small and large segments to diversify its business, but none of them have been able to make a profit. Weak marketing and flawed investment systems have led to a worsening of the company’s smartphone naming process.

HTC used to pick all the weird names when it came to naming smartphones. Such as – ChaCha, Salsa, Desire, Sensation, Amaze, Incredible, Butterfly, etc. There would be no continuity in naming again.


Why HTC Failed: In 2012, the company released three premium smartphones named HTC One S, One V, One X. The following year, they released the HTC One in line with the success story of the HTC One X, which again became known to users as the HTC One M7. The following year, the company released a flagship called the One M8, meaning that only the name of the flagship changed each year.

However, from the beginning of the naming process of Samsung phones, a number was added to the Galaxy S, which was very easy for the users to remember. With so much going on, a number of internal issues of the company also stood in the way of HTC’s progress.

Criticism of the managers of various departments by the CEO of the company and the decisions imposed from outside had a negative effect on the minds of the company officials. At the same time, a murky attitude was created among the employees about the responsibilities of the company. In 2013, the company’s Vice President of Global Communications, Retail Marketing Manager, Digital Marketing Director, and Product Strategy Manager left the company.

The marketing department was pretty messy from the start. As a result, the company was slowly becoming more fragile in terms of management and realizing these things, Microsoft wanted to acquire HTC. However, the company later acquired the Nokia Mobile Division. In addition to these issues, many other new brands have emerged as competitors in the market share of smartphones along with Samsung.

Chinese smartphone makers ‘Huawei’ and ‘Xiaomi’ have come up with a very good position in the smartphone market in a very short period of time as they have been bringing good quality and performance phones to the market on a low budget. They were also able to attract customers very easily and quickly due to their clever marketing campaigns and advertisements. Although HTC was still releasing flagship smartphones in the market. HTC released U12 + in 2018 which did not see much success. Because, by that time, consumers are losing interest in HTC phones.

HTC’s stock in 2013 was 90 percent less than its stock value in 2011. In 2015, the company’s revenue was reduced by almost half compared to the previous year and the loss was 155 million. As a result, HTC was dropped from the top 50 companies on the Taiwan Stock Exchange after a 6% market share fell. That same year, Peter Chao resigned as CEO, and Sher Wang returned as CEO. But by then, HTC’s market has plummeted. So that year HTC announced a 15% layoff worldwide. Google bought a large chunk of HTC’s hardware business in 2017 for 1.1 billion after a series of losses.

The acquisition brings more than 2,000 HTC engineers to Google, who are currently working on Google’s Pixel division. The company also decided to lay off another 1,500 employees in Taiwan in 2018 to reduce its costs, which is about 22 percent of HTC’s worldwide workforce. Instead of smartphones, the company is focusing on virtual reality, artificial intelligence, machine learning, and blockchain. After taking charge, Sher Wang realized that it was impossible for the company to recover from the collapse of the smartphone market. As a result, they turn their attention away from virtual reality, and in virtual reality, they are advancing quite successfully.

At the end of 2019, Ives Metric was appointed CEO of the company as part of a shift in focus to future technologies such as machine learning, artificial intelligence, and virtual reality. However, he resigned shortly afterward and, according to the latest news, Sher Wang took over as CEO for the third time.

A Real Story Of HTC


Q. Is HTC One still supported?

A. The devices no longer supported include the following: DROID DNA by HTC. … HTC One M9. HTC One® max.

Q. Who is HTC owned by?

A. Google.

Q. What happens to HTC?

A. Google purchased a large chunk of HTC’s smartphone design talent in 2017 for $1.1 billion.

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