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October 26, 2015

HTC One A9 fails to impress financial analysts

by John_A


The HTC One A9 is prepared to hit the market in the coming weeks and with a price point significantly lower than flagship devices. HTC is hoping the combination of a “good enough” device from a hardware standpoint combined with affordability in a package designed to emulate another market winner will be a win for them. Unfortunately, it does not look like any positives the new HTC device brings to the market is going to be enough to reverse the pessimistic view of the company that financial analysts have.

A U.S.-based brokerage, named withheld per Taiwan trading regulations, has commented that,

“We tend to believe a decent device is not enough to reverse a company’s fortune given the trend of commoditization for Android-based smartphones, industry growth deceleration and severe competition.”

While the brokerage sees the HTC One A9 as a decent device that is “competitively priced,” they do not see sufficient differentiation for the HTC One A9 to help HTC regain market share or lift profits. The firm notes that the device is positioned in a difficult spot. On the lower end, buyers have access to devices from Xiaomi and Huawei that can provide good performance for a smaller price tag. This challenge will be deepened by HTC’s scaling back on their company and the lack of a strong online sales channel. At the top end, the device is not able to compete with flagship type devices.

The firm also noted the impact of Apple’s new upgrade plans for iPhones. Those plans will likely shrink the product replacement cycle while at the same time increasing pressure on consumers to stay with a platform. Other large manufacturers will likely pursue a similar strategy, especially for higher end devices, a market where HTC has given up significant ground compared to several years ago.

source: Focus Taiwan
via: GSMDome

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