Foreign media reveals the “death cause” of HTC mobile phone: decision-making mistakes “fearful” corporate culture

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Editor’s Note: This article comes from “Tencent Technology”, the review of the school, 36, authorized to reprint. Taiwanese mobile phone manufacturer HTC was once a veteran of the smartphone market, but it is now marginalized in the market. Why did the HTC mobile phone business fall to the point where it is today? A foreign media recently unveiled the “long, painful death process” of the HTC smartphone business. According to foreign media reports, in 2013, Taiwan’s consumer electronics company HTC spent $1 billion on a dazzling marketing gimmick. The campaign with the theme “Change is coming” includes a huge giant tinfoil yacht (abbreviated as HTC), a trendy tidal car wash (abbreviated as HTC), and the “The Avengers” starring movie star Robert. Guest performance by Robert Downey Jr. ($12 million). At the time, the Taiwanese technology company was trying to recover from the disappointing smartphone HTC One. The phone won an industry award, but sales are not as good as Samsung’s Galaxy S4. HTC hopes that this marketing action will make it a leader in global smartphone technology, but this is only the beginning of the end process. Downey Jr. later moved to the Chinese smartphone company OnePlus, and Chinese consumers are equally fickle. In May of this year, HTC announced that it would withdraw from China’s e-commerce platform Alibaba and Jingdong. The company’s global smartphone market share has fallen from 10.7% in 2011 to 0.05% in 2019. In the UK, HTC no longer sells mobile phones in the Carphone Warehouse, O2 or EE stores, which means that its phones can only be purchased directly from or the company’s official website. So what happened to HTC’s smartphone business? HTC’s current and former employees portrayed a picture of a difficult business decision, a difficult business decision, a high-level judgment on innovation, and Disharmonious corporate culture. HTC’s products are very good. In 2012, HTC One X was hailed as the best Android phone in the AT&T product line to date. But the second half of the story tells the story of the company’s collapse. One X is the exclusive product of AT&T in the US. It was one of a series of operator-related mistakes; later, due to continued low sales, operators were reluctant to undertake HTC smartphones, and in 2017, U11 could only be used on Sprint’s network. This made HTC users further Declining, its share price has fallen from $42 in 2011 to $1.30 today. Several HTC insiders said that the company may have misjudged the pricing strategy. Jeff Xue, a former software engineer at HTC Virtual Reality Helmets in Shenzhen, said HTC withdrew Before the Chinese mainland market, a mobile phone with 2018 hardware configuration was priced at 3,999 yuan, while Chinese technology company Xiaomi offered more models with the latest configuration price of 2,499 yuan: “Why would you spend 3,999 yuan to buy last year’s mobile phone?” According to the engineer, the above products and pricing of HTC are the result of a vicious circle. The company encountered Xiaomi and Huawei in the Chinese mainland market. The fierce competition of the brand and the continuous decline in mobile phone sales mean that the company has ordered fewer parts and pushed up the unit cost and price of the smartphone. A former HTC community editor who asked for anonymity expressed the same view. But he pointed out: “Consumers will not know (the reason for the price increase), they will compare the price, nothing more. He also pointed out that HTC’s after-sales service in mainland China is very poor. There is only one official repair shop in mainland China, located in Shanghai. Paul Brown, vice president of corporate strategy and business development at HTC, said: “HTC is fast because of it.” Widely recognized for its ability to innovate and implement new product categories. We have a positive investment cycle before and after envisioning the product, and we work with other companies to create customized products that are relevant to the current market. “Brown does not believe that HTC’s innovation has deviated from the needs of consumers.The company answered questions about its innovation and the future of virtual reality, but did not comment on further questions. Mainland China is the world’s largest market for smartphone users and is important to any consumer electronics company. In Taiwan, where HTC is located, many Taiwanese consumers prefer the more cost-effective mainland brand mobile phones. Although Samsung and Apple are the world’s most popular smartphone companies, Oppo, Vivo and Huawei occupy the top three in the Chinese smartphone market, with Samsung and Apple being the only foreign brands to enter the top 10. Darren Krape, a senior global community manager at HTC, said mainland Chinese companies have dominated the mainland market, forcing HTC to compete with Apple and Samsung at the global level. But pushing HTC to the brink is not just a tough market. The company’s investment in innovation has no return. A former employee of HTC (this person asked for anonymity, once held a global position) specifically pointed out HTC’s “mobile phone frame pressure touch gamble.” In 2017, the company introduced the U11, a unique new feature called EdgeSense that allows users to activate certain features by squeezing the edges of the phone, but some critics describe it as a gimmick. HTC executive Brown defended EdgeSense, saying that “HTC’s long-established technology sets the standard for smartphones and eventually becomes a necessity in the industry.” The executive also mentioned that Google also used mobile phones after Pixel 2 Edge squeeze touch is used. However, Google’s adoption of HTC innovation is no accident. In 2017, the search engine giant acquired HTC’s design team for $1.1 billion. The company hopes to use HTC’s design talent to develop its own hardware business such as smartphones. HTC marketing may already be ubiquitous, but at the same time, few people pay attention to or question the company’s core technical talent. Successful product innovation requires effective marketing, especially in the context of a large number of consumer-selectable products, allowing new products to capture the attention of consumers. HTC U12+ released almost no sensation last year. Recently, some people are skeptical about HTC’s recently released EXODUS 1s. This is a cheap version of its EXODUS 1, allowing users to access the blockchain network. Attracting cryptocurrency fan bases is part of HTC’s broader strategy to focus on its niche users rather than competing for mass appeal. But the above-mentioned community moderators said that HTC’s transition to more expensive virtual reality products has alienated the company’s core fans and has eclipsed these products. It’s not just fans who are alienated. The former employee who challenged the HTC border squeeze touch input said that the company had suffered “a sad failure of the leadership,” and the corporate culture of the smartphone division was “fear and intimidation.” Comments on the Glassdoor website show that there are many other employees who are dissatisfied with HTC. A former employee wrote, “The confidentiality within the company is incredible, and there is a lack of trust between the headquarters and the rest of the company.” Of course, there are many reviews that are more positive. The company’s overall rating is 3.2 points (out of 5). The success of the HTC Vive virtual reality helmet demonstrated the company’s viable future, but it did not accept the idea of ​​its own “change to” advertising campaign. In June of this year, HTC announced the launch of two new mid-range phones in Taiwan, which surprised analysts. The company’s decline is long, slow and painful, but so far, the company has not given up on the smartphone “this game.” .

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