In the smart phone market, which emphasizes brand stickiness and product quality, HTC's old empire mythology is like a bubble, but it lacks a solid interior. When the wind turns, the wall is broken, the soldiers are ruined, and a large number of mountains and rivers are lost.
Do you remember HTC?
In 1997, when the Asian financial tsunami occurred, the future of Internet technology was still unclear. Wang Xuehong, the daughter of Wang Yongqing, the god of Taiwanese business, and Wang Xuehong, who is known as the “Iron Ladyâ€, had a pre-existing insight into the future development of science and technology in an environment where all major companies are protected. The trend, resolutely founded HTC - HTC International Electronics, jumped into the field of mobile phones, tablet electronic parts foundry.
In the early 2000s, HTC worked with Microsoft and Google to grow rapidly in technology, experience and profits. In 2006, HTC abandoned professional OEM and launched its own mobile phone brand. The next year, Apple's first iPhone was born. HTC then released the world's first Android smartphone in 2008: T-Mobile G1, becoming Android smart. The leader in the mobile phone market.
In 2011, HTC accounted for 9.1% of the global mobile phone market, and the market value climbed to 33.8 billion US dollars. More than the mobile phone in the last century, Nokia, second only to Apple, became the dominant brand of smartphones. That is the most beautiful time for HTC.
However, the glory has not lasted for a long time. Since 2012, HTC's mobile phone sales have continued to decline. The global market share has nearly collapsed, revenue has shrunk year after year, and profits have turned from profit to loss. Today, foreign capital analysis HTC's market capitalization is equivalent to holding net funds, about 1.5 billion US dollars, evaporating nearly 95%.
From the flagship king of Android, there is a group of loyal fans who are loyal to the "ham sausage", and to the last dying struggle, HTC, who is still ridiculed by the netizens "Help This Company", how have you fallen step by step in the past seven years? What are the warnings of HTC's success or failure?
Looking at the history of ancient and modern times, all declines began at the peak. Time returned to 2010.
Big tree style: patent wars are riddled to lose the main market
In 2010, after HTC successfully climbed the peak of the global Android smartphone market, it was the first time that it tasted the heights of the cold.
The tree is big, except for the competitors of Samsung and Sony, both of whom belong to the Android camp, Apple, which has iOS system barriers, is waiting for another mountain in the mobile phone market.
Sure enough, in March 2010, Apple issued a warning to HTC, claiming that it infringed 20 patents related to the iPhone, and unveiled a patent battle for more than two years.
On December 20, 2011, the US International Trade Commission (ITC) ruled that some of HTC's mobile phones infringed one of the iPhone's patents, and issued a lock-up order for HTC to related products. Although less than one year, the ban was due to HTC. Resolved with Apple, but it was a serious impact on HTC, which was the main sales market in North America at the time.
Data shows that HTC's market share in North America in the third quarter of 2011 was about 24%, once surpassing the iPhone, but only 6.2% in the same period in 2012. The North American Android market was silently attacked by Samsung, and HTC could no longer be used.
Also launching the war, there is the old brother Nokia (Nokia) who used to occupy the European mobile phone market.
Since 2012, Nokia has filed patent litigation against HTC across Europe. Between 2013 and 2014, some HTC mobile phone products were banned in the Netherlands, the United Kingdom and other markets, resulting in a significant reduction in their market share in Europe.
By 2013, HTC's mobile phone products had a global market share of less than 2%, falling out of the top ten mobile phone brands. Positive and Apple, Nokia's patent warfare, not only lost a large litigation costs and settlement funds, consumption of capital base, but also lost the market in Europe and the United States.
The enemy has caught up, is there any way for HTC to fight?
Natural physique defects: fragile foundry genes
Perhaps, HTC is destined to suffer.
According to the analysis of many professionals, HTC is difficult to get rid of the foundry genes is the main reason for its weak combat effectiveness and decline.
Although more than ten years of experience in foundry has allowed HTC to accumulate deep hardware technology, HTC's software capabilities are in a new stage, and inconsistencies in software and hardware matching are inevitable: picture flashback, camera violet, body Overheating affects performance, etc., the quality is uneven, and the low yield rate is criticized by people. These drawbacks greatly affect the user experience and become the reason why HTC's high-end products are gradually losing competitiveness.
In addition, the transformed HTC did not cultivate its own core technology, formed differentiated competitive barriers, and lacked a strong legal team in resources, so that when faced with Apple and Nokia's patent attacks, they often faced small shrimps. The disadvantage of the big whale is to be slaughtered.
In fact, the most difficult solution at all is the supply chain problem.
From the foundry to the brand, HTC and the former manufacturers have become enemies, not only must seize the downstream market share, even the upstream parts group must try to divide.
Compared to Apple, HTC relies on Android without the closed-loop advantage of iOS software and hardware.
Compared with Samsung's mastery of the upstream and downstream of the electronic industry chain, the upstream can independently develop chips, screen panels, CPUs and memories; downstream to expand the market, open up marketing channels, design brand strategies, can effectively control production costs, plan and complete commodity sales step by step. The rhythm to minimize external factors. This vertically integrated production capacity is clearly lacking in HTC, which was transformed from a foundry.
In August 2010, Samsung refused to supply HTC to the HMC due to insufficient capacity of the AMOLED panel. HTC had to replace the screen supplier of the smartphone G7, which had a certain impact on the sales of the G7.
How easy it is for Samsung to smash HTC!
Holding HTC with technological innovation and manufacturing, the upstream raw materials are controlled by third-party manufacturers, and the downstream is over-reliant on telecom operators. The bargaining power is getting lower and lower, and the production cost is getting higher and higher. HTC almost gave up its own destiny. Others, the space for survival is getting narrower and narrower.
Domino effect: brand positioning buried all kinds of hidden dangers
With HTC losing in a series of patent litigations, Samsung has come to the forefront with the advantages of vertical industry chain. High-end models have gradually lost their competitiveness under the condition that Samsung and Apple monopolize the market share of Europe and the United States. HTC can regain its former territory. The lack of strength, the defects behind the brand positioning gradually began to be exposed.
At this time, HTC was shocked by the seriousness of the product line imbalance. When Wang Xuehong faced the media, he had to face up to the problem of “high-end flagship goods and neglect the low-end marketâ€. However, when HTC turned back to deepen the vast middle and low-end smartphone market in the mainland and Southeast Asia, it found that the local has already been killed by the local smart phone brands in the mainland, but Wang Xuehong did not give up, she still used her to always be unique. The courage led HTC to the battlefield.
and then?
In the results of the research on the mobile phone brand and market share in the mainland in 2017, Sigmaintell did not see HTC.
Since 2013, the four mainland smartphone brands such as Huawei, Xiaomi, OPPO and vivo have grown rapidly, which coincides with the innovation trend of 4G communication network. In the era when consumption upgrade has not yet taken place, they are from low-priced mid-end intelligence. Mobile phone products are cut into the market, featuring high cost performance and beauty camera functions. The appearance of the model follows the iPhone design, and uses the advantage of being close to the market to grasp the sales channels of online Weibo, QQ, WeChat, offline telecom operators, and the precise marketing strategy. Successfully captured the vast number of consumers.
In recent years, "Hua Mi VO" has gone further into the maritime market and entered the Southeast Asian market. According to the latest data, four of the top five smartphone sales brands in India in 2017 came from the mainland, among which, Xiaomi was in the fourth quarter. % of the market share surpassed Samsung, taking the throne of the city.
Wang Xuehong still failed. What went wrong?
Regardless of other factors, the original brand positioning and market strategy of HTC went out of the way.
In 2008, Wang Xuehong jumped into the Android camp and shouted the corporate philosophy of “quietly brilliant low-key gorgeousâ€, establishing HTC's own high-quality, high-consumption brand positioning.
For HTC, self-positioning as a high-end brand is a pursuit of excellence, but in fact it has also made a lot of problems, and in turn, self-limiting, framed HTC's product thinking. HTC's grinding and layout of the mid- and low-end product lines was quite negative when it decided to launch the branded products.
Since the launch of Dream in 2008, to later Wildfire, Butterfly and New One, these smart phones are characterized by versatility, complete specifications and high-quality appearance. Their benchmarking products are Apple's iPhone, and the price is naturally different. Up and down, at least $400 or more.
At that time, most consumers who were able to purchase these high-priced models indirectly decided on HTC's market strategy in advanced countries such as Japan, Europe and the United States, where per capita income and consumption levels were high.
In the years before and after the outbreak of Android smartphones, HTC relied on its good relationship with overseas carriers to gain rich profits in Europe and America through dozens of high-end smartphone products. A hot brand.
Perhaps the success has come too fast, let HTC think that the brand value has been solid, have the right to speak the leading consumer demand intention, can continue to rely on high-end models to profit, with this confidence, more establish the brand line: strengthen high-end technology innovation and R & D, reducing the carving of low-end goods. The market strategy is also the same: the main high-end market in Europe, America and Japan, ignoring the low-end consumer market.
After HTC lost in the high-end mobile phone market, forced to enter the mainland, Southeast Asia and other markets, open the low-end product line, only to find that their products are not competitive - the main high-end HTC does not know how to produce a high cost performance Mid-range and low-end smartphones.
It is true that the brand brings a high premium, but it must be expensive. HTC's brand is like a bubble, and the product strength can't support the brand value, and it will eventually lead to collapse. Before the repurchase of goods has not stabilized and the brand value has gained market recognition, HTC has left its arbitrariness and fragile brand power to fight against the trend, and few consumers with brand loyalty have changed like a wind.
In the third quarter of 2013, HTC experienced its first net loss.
HTC began to falter.
Self-confident market strategy
Since 2013, HTC has streamlined its product line, reorganized its product layout, and established the high-end One M series, mid-range One E series and low-end Desire series. This product line is also adopted by other manufacturers such as Samsung, Sony and Xiaomi. The functional orientation is clear and clear, falling within different price ranges, and also meeting the relative consumer demand, trying to break into the mainland market and saving the share of the global smartphone market.
HTC's financial report for 2014 showed that HTC's after-tax net profit was NT$20.7 billion (approximately US$650 million), a 16% increase from the same period last year.
However, the competition in the smart phone market is too fierce, and the sales of Android smartphones are slowing down year by year. HTC's global market share is still not improving.
In March 2015, Wang Xuehong officially announced that he was the chief executive of HTC - perhaps the result of low performance and weak products made Wang Xuehong anxious. Soon after, HTC restarted the "machine tactics", re-packaging new products after the micro-version of the hardware specifications for each series of models.
According to ePrice mobile phone database statistics, in 2015, HTC Light launched 24 smartphones in the Taiwan market. In the high-end segment, HTC first launched the flagship mobile phone M9, and then launched the large screen version of the M9+, the small screen version of the M9s. At the end of the year, the M9+ Aurora version of the enhanced camera function was released; the mid-range E series main plastic body, in addition to E9, E9+, also launched special models S9, A9, X9, and even launched in the mainland market with the mid-end E series "Deformation Distortion": ME 9.
Daxie has changed the specification into a brand of “new machineâ€. There is no ancient people before HTC. After that, there are various kinds of malformed, four-in-one, fuzzy positioning smartphones in the market, and even the absurd phenomenon of price wars, like alternatives. "civil war".
The official claim that such a radical market strategy is for the needs of different consumers, but in fact, consumers face such a disorderly model, and they have no intention to distinguish the functional differences between various models, simply choose Samsung or OPPO, which has a relatively low level of functionality, clear positioning, and cheaper pricing, saves time and effort.
On the other hand, for consumers who start with the goods earlier, there is not much difference in the price of the models that have been revised, and it will inevitably feel a victim of being cheated. From all angles, regaining the sea tactics not only did not boost sales, but also caused counter-effects, and even rushed to a group of HTC loyal consumers.
The machine-sea strategy also confuses HTC's own pace, not only makes the product line layout abandon, but also the engineering team must shoulder the software development, maintenance and update work of different models. The complex and diverse products also increase the production cost of the mold, and the production flow responds. The short product cycle does not achieve the best allocation efficiency. The overestimation of market sales and chaotic marketing strategies lead to slow sales of products and parts, resulting in difficult inventory problems, and the absorption of related costs has been linked to financial losses. HTC is even worse.
According to US financial media Bloomberg's analysis of HTC's 2015 first-quarter earnings report, its manufactured goods accounted for a record high of 2.35% of total assets, reflecting HTC's product sales are not as expected, and the stock pressure is under pressure.
In August 2015, HTC announced its second-quarter earnings report with a net loss of NT$8 billion (according to the prevailing exchange rate of RMB 1.6 billion). Since then, HTC’s earnings report has been declining every quarter.
It can be seen that HTC's smartphones have reached the point of advancing and retreating. There are Apple and Samsung 踞 high-end flagship products, and there is “Hua Mi OV†to divide the middle and low-end market. HTC has been unable to find proper product positioning and Stuck in the sea of ​​the floating load, sinking into the only remaining brand value is stinking.
Seeing that the mobile phone business is gradually declining, Wang Xuehong is thinking about the resources at hand, knowing that eggs can not be placed in the same basket. Liu Xuehong, another village, Wang Xuehong once again smelled the business opportunity, just like the original HTC, this time, is virtual reality (VR).
Transforming VR's life
In March 2015, the Global Mobile Communications Conference (WMC) was held in Barcelona. HTC Vive, a head-mounted virtual reality product jointly developed by HTC and video game dealer Valve, was first exposed and officially announced its entry into the VR industry.
"VR is a product that has led to the important development of HTC in the next decade." Wang Xuehong is confident in his affirmative tone. On the occasion of the smart phone business, the development of VR devices is a lush prospect for HTC's bleak prospects. This means that HTC is taking the first step in brand transformation, and perhaps the reason why Wang Xuehong decided to take care of HTC personally. She wants to let consumers Think of HTC, not just smart phones, but also VR products that lead the trend of technology.
HTC promoted the VR business to spare no effort, emphasizing "All in VR", both researching and developing hardware and investing in software, which attracted much attention from the outside world. HTC Vive helmets won more than 10 international awards. HTC also launched Viveport, an online application store, and established Vive Studio, a content development team. In 2016, it held the world's first "HTC Vive VR Competition", encouraging all experts to invest in VR original content. Production, and cross-border search for new landing scenes from games, film and television, art, medical, education and other fields.
According to data released by Superdata, in 2016, Sony's Play StaTIon VR grabbed the VR device sales champion with 750,000 units, followed by HTC Vive, a total of 420,000 units, and the third was Facebook's Oculus, which sold 24 Wantai, the three major manufacturers occupy 85% of the global high-end VR market.
In 2016, known as the "VR first year", HTC seems to return to the stage focus with VR. However, the reality is that VR costs are too high, often used only in high-end consumer scenes, failing to sink to the broader consumer market, and have not yet ushered in a real outbreak, and the labels have started to fight price wars in order to seize the market share. In mid-2017, Oculus supported Facebook's Rift+Touch to $399, which threatened the $799 HTC Vive. HTC had to reduce the price of the product to $599 with limited cost compression.
For the HTC that the VR industry is still investing in the long-term, in the face of the giant's price-cutting competition, it can only cope with it. The transformation of HTC is particularly difficult.
Later HTC
In 2015, HTC announced plans to reduce operating costs by 35%, including a staff cut-off policy of 15% of global employees. In December of the same year, HTC sold a production building in Taoyuan, Taiwan, and received NT$2.1 billion (about RMB 400 million) in renewal funds.
"Financial performance has disappointed everyone, and I sincerely apologize to all shareholders." Wang Xuehong said at the 2016 shareholders meeting, he said. The financial report showed that HTC had a net loss of NT$2.6 billion in the first quarter of the year and accumulated losses of NT$18.9 billion (approximately RMB4.7 billion).
In March 2017, HTC sold its mobile phone manufacturing plant in Shanghai for 630 million yuan and put the money on the VR business. Obviously, HTC failed to save the mainland mobile phone market and bet on VR. The stakes are getting bigger and bigger.
On September 21, 2017, HTC announced an agreement with Google to sell it to the RD division of Google Pixel, a Google OEM smartphone, for $1.1 billion (about 6.6 billion yuan). More than 2,000 talents will be merged into Google. In addition, in the transaction, HTC agreed to grant some of its patents to Google.
Oh, but the long-term blood loss of HTC, finally cut the meat to survive.
After taking the timely remediation of Google's Dabu Pill, HTC announced the first quarter of 2018, the extra income was 31.6 billion Taiwan dollars, and the net profit after tax was 21.1 billion Taiwan dollars (about 5.2 billion yuan), ending in the second quarter of 2015. It has suffered losses for the eleventh consecutive quarter.
Wang Xuehong smiled very happy.
Stand firm and wait for the next vent
According to the latest IDC survey, HTC's global market share is only about 0.68%. In the cross-strait smart phone market, HTC has already fallen out of the consumer's sight, and even to the dilemma of smelling, the brand image is notorious.
In the past, HTC has never worked hard on innovation.
In 2013, HTC launched the first metal body smartphone New One, and pioneered the front dual speakers, which surprised the industry.
The following year, the flagship smartphone M8 is the world's first rear-mounted dual-lens smartphone, which can capture the depth of field effect. This innovation was used by Apple on the iPhone 7, which ignited the trend in 2016.
In 2017, the HTC U11 is equipped with Edge Sense frame touch, which brings unprecedented experience to users. However, the thunder and heavy rain, the weak HTC at the edge of the market has not been able to pick up the topic.
Lei Jun has a famous saying: "Standing on the wind, the pigs will fly." Obviously, HTC has not stepped on the vent, and the market share has declined. It is unable to force the trend to create demand. It can only watch the enemy use its own technology. Innovation is a success.
Now, HTC is more than just a smartphone company.
At this year's Consumer Electronics Show (CES 2018), HTC released the successor of HTC Vive: Vive Pro, which won 22 international media awards. The outside world highly praised HTC's innovation and contribution in the VR industry ecosystem. In the eyes of many industry insiders, HTC Vive Pro is one of the most mature VR devices in the current technology. After three years of transformation, HTC successfully became the leader of the VR industry.
Wang Congqing, general manager of HTC Vive China, said in an interview with the media: "In my understanding, (VR) really popular products should have 5 billion users." It is obvious that HTC is a just-needed outlook for future VR products. IHS Markit, the market regulator, estimates that the number of VR devices in the world will reach 78 million in 2021.
But no one can say that there is still a long way to go before the VR era is in full swing before the application of the content is insufficient, the technical bottleneck has not yet broken, the commercial profit model is unclear, and the key 5G communication is put to the surface.
Did HTC wait for the day?
According to official sources, HTC is expected to release the 2018 flagship mobile phone U12+ on May 23 this Wednesday. It is said that U12+ will be the first smartphone to support 5G communication system. However, I am afraid that not many people are looking forward to it.
In the era of slower smartphone shipments around the world, HTC, which has been forgotten by everyone, waits for the moment of the wind. HTC wants to turn over and must catch the wind, whether it is a 5G smartphone or VR.
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