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February 25, 2015

Samsung is now the underdog and that’s bad news for HTC

by John_A

HTC_One_M8_Samsung_Galaxy_S_5_Sport

For a while, Samsung could do no wrong. With a big-time marketing budget, it didn’t matter if the critics praised them or not. It didn’t matter if their phones were plastic or if they were loaded with tons of bloatware because people went to the carrier stores and bought them. However, things took a big turn in 2014 thanks to many cheaper handsets and Apple’s commitment to enter the 21st century with a larger display on the iPhone 6. By the end of 2014, Samsung’s market share dropped significantly, and companies like HTC are thinking Samsung is now ripe for the picking. Sounds logical right? Wrong!

For the past few years, if your company name wasn’t Samsung or Apple, you were an underdog. HTC has been one of those companies and they might have been the best underdog anyone could dream of. They built some of the finest phones in the land and received more praise than any other Android manufacturer, but non of it delivered results. HTC thought that people would “wake up and smell the coffee”, and switch to the HTC One, but they didn’t. They forgot that marketing is the key to success or failure. No one could expect HTC to have the ability to pour the millions into a campaign that Samsung could, but they didn’t even try. They lacked direction and consistency. They would start one stupid campaign and end it abruptly, only to start another ridiculous one shortly after.

What HTC didn’t realize was that Samsung was actually ripe for the picking two years ago when the original One (M7) was unveiled because that’s when Samsung’s decline was in motion. Unfortunately they didn’t seize the moment, and now they are in a bit of a pickle. With Samsung’s market share dropping to a 3-year low, Samsung is now an underdog, which doesn’t bode well for HTC.

The press and analysts are saying 2015 is a very crucial year for Samsung, but unfortunately it also happens to be the same for HTC since they have yet to show any sustained profitability. HTC will unveil the 3rd edition of the One phone this Sunday with the hopes that they will finally get to the Promise Land since Samsung, or shall I say Goliath, is about to go down. One big problem…..In HTC’s words, “It took you (Samsung) copycats six times to get it right.” This line comes from a rap song (and video) called “Hold the Crown” that HTC released a few weeks ago. Remember that lousy marketing effort I mentioned? HTC is telling you the consumer that Samsung has it right now, and they (HTC) couldn’t convince you to buy their (HTC) phone when Samsung was getting it wrong, but now that Samsung has it right, you should buy their (HTC’s) phone because they (HTC) hold the crown. Seriously?

So yes, Samsung is about to get it right, but it doesn’t matter that it took them 6 years to do it because they already have brand recognition from proper marketing. Samsung’s problems aren’t because consumers are down on them. It’s because Apple made a resurgence with a refreshed product and there are more lower priced handsets in the marketplace. Samsung already has a loyal following, and now that they are “getting it right”, they are about to rejuvenate that following much like Apple did when they enlarged the iPhone. It’s a lot easier to get back to the top of the mountain when you’ve already been there. Just ask Tom Brady, who recently appeared in his 6th Super Bowl. Samsung is about to do the same with the Galaxy S 6, and possibly the Galaxy S 6 Edge.

HTC had their chance but completely blew it. They wasted 2 years of senseless marketing, and now they are about to release the 3rd version of the One with basically the same design. Love the quality man, but it’s getting a little old don’t you think? At the same time, Samsung is now refreshed, and the S6 is going to have that new car smell. Trust me when I say that Samsung will make a big splash next week at Mobile World Congress. I am not saying that every critic will now fall in love with them, but they will deliver a product that will excite consumers. On the contrary, HTC will be offering more of the same, which is never exciting. To top it off, HTC chose to unveil their “more of the same” product on the very same day the world gets to see the Galaxy S 6. In other words, HTC chose to share the spotlight, which is something they haven’t done in a long time. Yet another big mistake.

I feel bad for HTC because I have always loved their phones. I said the One X was the best Android phone hands down, I said the One (M7) was the best phone on the planet, and I referred to the One (M8) as the Rolex of smartphones. I rooted for HTC but now I am excited for what Samsung has to offer, and I think the mainstream consumer is as well. Unfortunately that’s bad news for HTC.

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