HTC with four structural changes
HTC is planning to become profitable once again. Due to the company’s desperate financial situation, HTC is certainly trying to avoid Nokia and BlackBerry’s fate of being sucked into the vortex of bigger companies. The Taiwaneese media Nomura Securities reports that HTC’s fail safe plan that is consisted of four major parts has already set start with Chairwoman Wang taking full responsibility.
The first of the four changes is the repositioning of some of the company’s high ranking figures, outsourcing production and putting the Media Tek chips to use. The structural change of HTC has already begun as few days ago the co-founder of HTC Wang was announced to take over some of the duties of the CEO Peter Chou and in future will focus more on the sales, operation and supply chain management. Meanwhile, Peter Chou will in turn get to concentrate on new product development and innovation.
Second goes the HTC to outsource some of its production to Foxconn and Wistron as Media Tek’s electronic chips will help HTC strengthening its position in low-end markets. Which leads us to the third aspect of the plan and that is putting those Mekia Tek chips to use in some HTC entry and mid-range devices to lower cost, exactly where the company’s problems put down roots.
The last change would be for HTC to find new customers and to create new partnerships. This has already begun since there’s already a report that the manufacturer might work with new telecom partners, and one of the speculations leads to China Mobile. The rumours suggest that the two companies might cooperate to develop new phones though, however HTC rejected the idea.
Nevertheless, the investors of HTC won’t give up on the company’s four structural changes reviving plan and have faith in the manufacturer to reach the top once again. ‘HTC is adopting a long-term perspective in its Chinese investment approach… there is a huge demand for phones priced below NT$4,900, and that HTC would develop new products for different market segments.’ said CEO Peter Chou.
Source: China Post
