The company posted quarterly revenue of around $1.4 billion in Q4 of 2013, a drop from $2 billion in Q4 2012. The company expects revenues to further fall in the first quarter of 2014, which could explain its shift to lower-cost devices, such as the Desire line of phones.
The move is indicative of the slowdown in the premium smartphone market, where Apple and Samsung have a clear advantage. It was two years ago that HTC made the announcement to concentrate on fewer more expensive premium smartphones. But this reversal seems to come with the realization that the poor sales of high-end phones means the company will have to go back to creating and marketing mid-range devices.
This would mean concentrating on phones that cost around $150-$200 rather than the $600 cost of their flagship phone, the HTC One. While the HTC One line of phones garnered strong reviews they never managed to sell in a market dominated by Apple and Samsung.
According to research firm IDC, HTC does not feature in top five phone makers for 2013, and lags behind frontrunners Apple and Samsung, as well as Huawei, LG and Lenovo.