China seems to be the center of focus when it comes to mobile phone manufacturers. Following Apple’s strategy, HTC too is taking special interest in China as its potential market. Chairwoman and Co-founder of HTC, Cher Wang gave an interview on Bloomberg TV saying that HTC is targeting to sell one of its every five expensive Smartphones to their potential market in China. A research conducted by IDC shows that HTC currently holds only 1.3% of the total Asia Pacific region’s market share; this excludes Japan.
HTC’s target is to take that figure up to 20% in the next year – a figure that is important to create a presence in the expensive Chinese market. Wang believes that Chinese are loyal to their devices. The CFO of HTC, Chang Chialin says that HTC phones are currently sold for almost $653 (4,000 Yuan) or more in China. Apple too is targeting China to increase its sales growth in the region; the company’s new iPhone model 5c is being sold for around 4,488 Yuan in the county.
Peter Chou, CEO HTC says that their company currently enjoys a fairly good market in China, however they still have a lot to do in order to create a strong footing in the country.
HTC’s strategy is to get more profits and revenues from China by selling their high priced smartphones. HTC proved its ability to hold buyers’ attention through its HTC one model.
Bloomberg’s data shows that HTC market went down from 5.8% to 2.8% within a year. This loss is attributed to the company’s Marketing department. Wang in her interview to Bloomberg says that she sees the next couple of years as the real challenge because HTC is revamping its marketing strategy to launch its new products. The company signed an agreement with the Hollywood legend Robert Downey Jr., which will play a major role in bringing HTC phones to mainstream.
Wang said that as compared to other brands, such as Apple who spends billion on marketing, HTC has invested less. She said that their marketing budget was a tenth or even less of that of Apple’s.
Thursday’s early trading showed that shares of Apple Inc. (NASDAQ:AAPL) went up by 0.95% ($491.22).