HTC stops with cheap smartphones

Smartphone maker HTC stops developing cheap models. The manufacturer has announced this when presenting its quarterly figures. The cheap models would not bring in enough money to continue.

The market for cheap smartphones is “ultra-competitive” and HTC has no “profit prospects” in it, chief executive Chia-Lin Lang said during a discussion of the quarterly figures according to PhoneArena. The manufacturer wants to focus on seven phones that it will release during the year. Of these, it has already presented two: the U Play and U Ultra.

HTC has made cheaper phones in its Desire series in recent years, including the Desire 300, 310, and 320. More traditional brands like HTC, however, have suffered a lot from Chinese brands like Xiaomi in the low-end market. Moreover, the margins on phones are small, because competitors also work with little margin to quickly grab market share, for example.

HTC’s smartphone branch has been declining for years. The company is trying to transform itself into a VR manufacturer with the release of the Vive last year and a mobile VR headset that works with the U Ultra this year.

HTC Desire 320