HTC has scheduled an event on January 12th where the company is expected to launch either a new flagship device or a VR headset.
If it’s a smartphone, there’s bad news for users residing in the US. BayStreet Research analyst Cliff Maldonado says the company is not going to launch the upcoming flagship in the United States.
Financial Constraints and Restructuring
The report continues to mention that the company doesn’t have enough funds to successfully launch a new flagship device in the United States. HTC is going through some restructuring and has laid off some of its sales force. This financial strain is a significant factor in the company’s decision-making process. The analyst mentions the company is expected to follow the ODM (original design manufacturer) model, which means the company will continue to design and manufacture smartphones, which will be rebranded to be sold by another company, something similar to Google Pixel smartphones.
This strategy is not entirely new for HTC. The company has previously collaborated with Google to produce the Pixel and Pixel XL smartphones, which were well-received in the market. By adopting the ODM model, HTC can leverage its design and manufacturing capabilities without bearing the full financial burden of marketing and distribution in the competitive US market.
Potential Impact on HTC’s Market Presence
This is not yet confirmed as there’s no official word from the company, but the Taiwanese company is going through a tough time, and this may turn out to be true that the company launches its flagship device outside the US. If HTC does decide to skip the US market for its flagship launch, it could have several implications.
Firstly, HTC’s absence in the US flagship market could create a gap that other manufacturers might be eager to fill. Companies like OnePlus, Xiaomi, and even established players like Samsung and Apple could benefit from reduced competition. Secondly, HTC’s brand presence in the US could diminish over time, making it harder for the company to re-enter the market in the future.
However, focusing on other markets where HTC has a stronger presence or where competition is less intense could be a strategic move. For instance, HTC has a loyal customer base in parts of Asia and Europe. By concentrating its efforts in these regions, HTC might be able to stabilize its financial situation and gradually rebuild its brand.
Moreover, the VR headset market is another area where HTC has shown promise. The HTC Vive has been a significant player in the virtual reality space, and a new VR headset could help the company diversify its product portfolio and tap into a growing market. Virtual reality is gaining traction in various sectors, including gaming, education, and professional training, providing HTC with multiple avenues for growth.
In conclusion, while the potential absence of HTC’s new flagship in the US market is disappointing for American consumers, it might be a necessary step for the company to ensure its long-term viability. By adopting the ODM model and focusing on markets where it has a competitive edge, HTC can navigate its current financial challenges and continue to innovate in both the smartphone and VR sectors.
Source: PhoneArena
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