One of the top smartphone brands internationally until not long ago, Taiwan’s HTC has now decided to stop working on developing smartphones. The company will, instead, focus its resources on developing products and technologies in the area of virtual reality. Not distancing itself totally from the world of smartphones, the company will manufacture 5G-enabled devices. These were the revelations coming directly from HTC’s new CEO, Yves Maitre an event.
Change of Leadership Brings Change in Outlook
It appears as if this change in the overall business strategy by HTC has come about following Yves Maitre recently taking over the reins of the organization from Wang Xuehong, who was the Chairman of the company, till just a fortnight back. The new CEO didn’t mince words in admitting that the management of the company had made certain wrong decisions in the past and paid the price for it. He was possibly referring to the decision to manufacture budget segment phones and stay with markets that held high demand for these phones. That strategy had also not worked. The company continued to post losses. This change in the management’s view of the future will now alter the course, possibly for the better.
Some More Insights into the Five-Year Plan
According to Yves Maitre, who had been with Orange and has a communications industry background, the management has set new goals for itself. As mentioned, the thrust will be on making further gains on the investments already done in the HTC XR line of products that are sold under the Vive sub-brand. These are virtual reality (VR) products, headsets and so on. More funds will be spent on research and development of these products.
There will be a marked U-turn on the markets to be tapped as well. HTC will want its products to be made for the developed markets across the world where pricing will not be an issue. The company can thus extract a premium on the higher technology products that it is able to develop and ship. The company’s plans to work on the 5G technology and make/sell smartphones for 5G use also fall into place while dealing with the developed markets. This is because these are the countries where 5G services are being rolled out first.
Based on all these plans, the new CEO expects that HTC will turn the corner and by the year 2025, it will wear an all-new look and energy as a technology company.