Goldman Sachs says HTC must fix marketing issues

[Nreeldeep]

Wed, Jul 18, 2012 - Page 14 News List

HTC must fix marketing issues: Goldman Sachs

CHINA CAMPAIGN: HTC’s sales are growing in China, where it is using pop stars and road shows to market its phones, something it does not do in the US or EU

Staff writer, with CNA

HTC Corp (宏達電) will regain its market share in the global smartphone market next year after it addresses important sales and marketing issues, Goldman Sachs said on Monday.

In a research note, Goldman Sachs said HTC’s market share in China in the segment for phones over 1,500 yuan (US$235) had increased to 13.3 percent in May, ranking third in the segment, up from 6.4 percent in April.

The strong momentum indicated that HTC’s China business is showing resilience in demand since the launch of its One series in the high-end market and the New Desire series in the mid-end segment, the note said.

“We believe it will nevertheless have implications for HTC’s other regional markets,” Goldman Sachs analyst Robert Yen (嚴柏宇) said, adding that its performance in China’s market will not be strong enough to offset HTC’s weak sales in the US and Europe.

Yen said that HTC has used unique marketing strategies with a local focus to get its product features and design philosophy across to Chinese customers, who are widely seen as being very price-sensitive.

These strategies, such as online movies, city road shows, collaboration with Sina Weibo (新 浪微博) and using local pop stars as spokespeople for its products are rarely seen in HTC’s marketing in the US and Europe.

It shows that HTC’s current market problems in the US and Europe are not caused by its smartphones being too expensive or by its product designs not being competitive, but rather by sales and marketing problems, Goldman said.

“We expect HTC to continue revamping its sales and marketing team in the US and Europe,” Yen said.

“We believe adjustments in strategy will take time to bear fruit, but that this sets the foundation for a rebound in market share in 2013,” Yen said.

Goldman expects HTC’s shipments to drop by 68 percent from last year to 6.7 million units in North America and by 38 percent to 5.8 million units in Europe.

On the contrary, shipments in China will jump 105 percent from last year to 6.4 million units, while those in other Asian markets and the rest of the world are forecast to rise 18 percent to 13.1 million units it said.

Given the estimated 28 percent drop in HTC’s total shipments this year, Goldman has cut its target price for HTC to NT$280 from NT$360 and kept a “neutral” rating on the stock.

HTC shares closed up 3.83 percent at NT$298 yesterday in Taipei trading.

 

[mggm100]

I don't know much about marketing, but I have always thought the EVO ads on TV have been very weak.

Sent from my EVO 4G LTE using Tapatalk 2

 

[Nreeldeep]

I'm definitely an HTC fan. HTC needs to survive and thrive because I love how they have been pushing the envelope in terms of design as of late. I have a feeling that we won't see another plastic high end HTC device.
Hopefully with the recent hiring of a new North American chief who will oversee marketing, we will begin to see the kind of marketing that made the OG Evo famous. Apparently HTC is pulling out all the stops in China. No reason why they can't do that here. I was dismayed that HTC basically closed shop on Evo Lte marketing in the states.
Although I own a Samsung S3, reasons why listed in another thread, I wish my S3 was encased in HTC?S classy chassis. My S3 is solidly built and feels good in my hand and it's "faux" f@#k it, let's say FAKE silver surround actually is sexy. It's a good looking design. But when I have to remove that flimsy, a$$ back cover you can hear "AAARRRRGGGHHHH!!" across the neighborhood. We won't even get into how wonderful the Evo4GLTE feels in the hand opposed to the greasy, sticky feel of S3's rear panel.
Having used both devices at length, Evo lte stands toe to toe with S3. They each have their pluses and minuses.
But few will be made aware of this, referring to the article I posted about marketing.
It's just too bad HTC won't deal, at this point, with the multitasking issue. Maybe because it's only an issue with us power users, who number in the minority.

 

[541rrhse]

HTC announces Mike Woodward as company president of North America

http://forums.androidcentral.com/htc-evo-4g-lte/189299-htc-names-new-north-american-head.html

 

[Nreeldeep]

HTC announces Mike Woodward as company president of North America

http://forums.androidcentral.com/htc-evo-4g-lte/189299-htc-names-new-north-american-head.html

That's the thread I posted a few days ago. I alluded to it in this thread. Thanks for adding it.

 

[LAhanger]

I personally hope that HTC gets its crap together, because I would love nothing more than to see them build another Nexus phone. Samsung is crap. I'd even prefer to see Sony get a crack at the next one if HTC doesn't.

 

[bearballz72]

I'm definitely an HTC fan. HTC needs to survive and thrive because I love how they have been pushing the envelope in terms of design as of late. I have a feeling that we won't see another plastic high end HTC device.
Hopefully with the recent hiring of a new North American chief who will oversee marketing, we will begin to see the kind of marketing that made the OG Evo famous. Apparently HTC is pulling out all the stops in China. No reason why they can't do that here. I was dismayed that HTC basically closed shop on Evo Lte marketing in the states.
Although I own a Samsung S3, reasons why listed in another thread, I wish my S3 was encased in HTC?S classy chassis. My S3 is solidly built and feels good in my hand and it's "faux" f@#k it, let's say FAKE silver surround actually is sexy. It's a good looking design. But when I have to remove that flimsy, a$$ back cover you can hear "AAARRRRGGGHHHH!!" across the neighborhood. We won't even get into how wonderful the Evo4GLTE feels in the hand opposed to the greasy, sticky feel of S3's rear panel.
Having used both devices at length, Evo lte stands toe to toe with S3. They each have their pluses and minuses.
But few will be made aware of this, referring to the article I posted about marketing.
It's just too bad HTC won't deal, at this point, with the multitasking issue. Maybe because it's only an issue with us power users, who number in the minority.

I brought my Evo back to BB for an overheating issue and BB assoiate asked if I wanted to get a different phone. She showed me a working SIII,and I have to say I was really impressed with it. BUT, in the end I stayed with the Evo. That (mostly) metal unibody like construction feels and looks really nice on the 4G LTE, plus if I have to go with a skinned phone, Sense is IMO a better looking skin. Still a bit bloated but still better than Touch Wiz, at least IMO.

But I have to tell you I was really tempted to go with the SIII.

 

[Nreeldeep]

I personally hope that HTC gets its crap together, because I would love nothing more than to see them build another Nexus phone. Samsung is crap. I'd even prefer to see Sony get a crack at the next one if HTC doesn't.

Samsung is hardly crap. They may not care about high end or non plastic materials to encase their devices, but Samsung's higher end devices do use quality plastics. The S3 is definitely sturdy, it just doesn't feel as nice as EVO's aluminum chassis. And remember, HTC used plastics on the Evo lte as well. As we know, that top piece is shiny, greasy plastic ala S3, and the bottom portion that houses the speaker cut out is plastic.
You fire up the S3 and you will experience the smoothest ride this side of the iPhone. You may not care for TouchWiz, but the S3 is remarkably smooth all around. The user experience is marvelous. I still haven't been able to catch my wife's S3 hesitating or stuttering.
Samsung's specs are as good as anything out today. Only the Evo lte rivals it. I'll give Samsung the edge on larger battery and twice the ram. But Evo fans can argue the efficacy of those points. That's fine.
But Samsung is hardly crap. You don't have to be a fan, but to dismiss a high end device so summarily displays a lack of insight and honest analysis.
Give me Samsung's interior wrapped in EVO's exterior.
I'll be good.

 

[crzycrkr]

Yeah, Samsung has the best internals in the game and their build quality is top notch.

Sent from my EVO LTE using Tapatalk 2

 

[Nreeldeep]

Yeah, Samsung has the best internals in the game and their build quality is top notch.

Sent from my EVO LTE using Tapatalk 2

In my opinion, after having both devices in my household for over a week, they are virtually in tie. Where one lags, the other shines.
As noted in the thread title, unfortunately the masses have not had the opportunity to experience the HTC Evo lte due to the unfathomable lack of interest in marketing HTC has displayed. That's unfortunate also because I think a sizeable chunk of S3 sales would have gone to HTC had they marketed the Evo4GLTE here in the states the way they're doing in China.
I sincerely hope to see some fresh HTC advertising now that there is a new ad chief at the helm. It's not too late. The summer is young. And Apple's super sized iphone won't arrive till fall.
Side note: Isn't it so satisfying to see Apple finally admit that they need a bigger screen ala Android, in order to continue to compete and stay cutting edge?
Oh, and does Android have a patent on 4+" screens? One of you legal clerks should look that up. Let's tie up Apple in patent court and delay the release of their new iphone. Hell, let's ask the judge to force Apple to either pay Android a royalty for using their 4" screens or force Apple to go back to 3.5".