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HTC decline into obscurity: Tech company experienced precipitous fall after rapid rise

HTC decline into obscurity: Tech company experienced precipitous fall after rapid rise

Summary

HTC, a Taiwanese tech firm, was once a smartphone market leader after experiencing rapid growth internationally - yet its time at the top proved fleeting. The company experienced a precipitous decline in sales and quickly vanished from the imagination of many smartphone consumers. Now management are pinning hopes on a turnaround plan, though correcting fundamental problems of the business will not be easy.

HTC declined at speed thanks to poor marketing, a confusing product range, foreign competition, bad business decisions and other related factors. For a brief period, the smartphone maker looked as though it would be a lasting global force; now the company is struggling to revive past popularity.

Key Highlights

- The company will carry on manufacturing smartphones but has tacitly accepted future plans are heavily dependent on the success of virtual reality technology. Time will tell if the plan is enough to conjure a comeback.
- For the brief time HTC was a global leader in smartphone technology, there existed a period of opportunity during which the company needed to become cemented in the minds of consumers as the brand from which high-quality and value smartphones could be purchased.
- In the US companies such as Apple devoured the premium smartphone market, followed likewise in many markets by Samsung; but new Chinese players also gained many millions of customers through offering budget smartphones that performed many features previously the preserve of the most luxurious models.

Scope

- Examines the viability of the turnaround plan.
- Assesses the impact of foreign rivals.
- Assesses the quality of strategy decisions taken by the leadership.
- Looks at how the company failed to adapt to a changing marketplace.

Reasons to buy

- Can the turnaround plan work?
- What caused such a sudden decline in sales?
- What role did foreign rivals play in the decline of HTC?
- Why did the company fail to keep up with the latest trends?
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HTC decline into obscurity: Tech company experienced precipitous fall after rapid rise
Published By :MarketLine
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