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HTC CEO refuses to produce cheap cell phones As a means to energize sales

By Aldo Panessidi

 HTC CEO refuses to produce cheap cell phones As a means to energize sales

HTC refuses to offer cheaper handsets just to boost sales.  Despite struggling to match the sales numbers of its competitors, the company is sticking to its strategy of producing only medium- to high-end handsets.

HTC CEO Peter Chou defended the company’s strategy in an interview with The Wall Street Journal. “We don’t want to destroy our brand image. We insist on using better materials to make better products that offer premium experience. Many consumers like that.”

Chou’s comments come at a time when many industry watchers are beginning to question HTC’s strategy. Motorola and Samsung are capturing the low-end handset market in the Chinese market, but Chao insists that HTC will not manufacture “cheap, cheap phones” to boost its market share.

HTC will increase its marketing efforts and expand its distribution network into emerging markets. Chou expects that 2012 Chinese shipments will reach three times last year’s total. Shipments to India and other emerging markets are steadily growing. Chou is adamant, “We think our strategy is successful.”

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