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Report: HTC To Reduce Phone Prices To Compete With Samsung & Apple

Eric McBride
12

It’s no secret that HTC has had its fair share of problems lately, and is definitely at the point as a company where some pretty drastic action needs to be taken if they ever want to get back on track. Well it seems that HTC is definetely not giving up, as reports indicate that HTC plans to slash the price of its phones in an effort to better compete with Apple and Samsung.

The report comes from a Chinese supply chain, who stated that price reductions will occur for upcoming Android and Windows 8 phones. HTC is having a hard time keeping up with Apple and Samsung, but they are certainly more than capable of producing amazing devices. A price reduction might sound risky considering the financial problems they are having, but also makes sense if they are able to establish themselves as a price competitive OEM that delivers high quality hardware.

We don’t know if HTC will make major hardware modifications in order to keep prices down, but the supply chain is also reporting that Beats Audio will be completely dropped from their mobile devices all together. As HTC is most likely paying licensing fees for every handset shipping with Beats, this could aid them in minimizing costs.

HTC has a good reputation for constructing durable phones with a premium feel, and I hope that their amazing build quality or internal components aren’t sacrificed in order  to reduce costs.

What do you guys think? Could this be a step in the right direction for HTC?

Let me know what you think in the comments below!

Picture credits: norebbo.com

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Comments

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  • Patrick R. Aug 23, 2012 Link

    Slashing prices without sacrificing the quality of the handset would be the right direction to take in order to gain a competitive edge over Apple and Samsung. Okay, maybe not beat them but rather catch up.

    Gimmicks that increase the price of the phone just wont cut it. Drop beats and maybe focus on streamlining their product line. Maybe having just one low, mid and high end model would be better. Drop Sense - go with vanilla android or near vanilla to be able to push updates faster and beat samsung to the punch. Less gimmicks and faster updates is the way to go.

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  • Eric McBride Aug 23, 2012 Link

    Sounds like a winning plan to me Patrick. I agree with all your points here. HTC will most likely not catch up with Samsung or Apple anytime soon (if ever), but a price reduction with solid hardware is certainly a good first step.

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  • bits Aug 23, 2012 Link

    Boys, i totally agree with ya on this one To summerise it, Ultimate solution :-)

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  • Eric McBride Aug 23, 2012 Link

    We should all be sitting on the HTC board of directors. We would set **it straight!

    :-D

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  • CJ Brown Aug 24, 2012 Link

    eliminating Beats Audio is a WINNING move on HTC's part ... creating quality Android Smart Phones at affordable prices will allow them to compete (I'd rather they sent the $ wasted on Beats Audio to create High Def screens, more memory in their HTC One models, etc) ... & get your Carriers to allow updates quicker / more efficiently ....

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  • Eric McBride Aug 24, 2012 Link

    I agree CJ. It's simply not needed, and there are plenty of Android apps like DSP Manager that manage audio.

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  • Patrick R. Aug 24, 2012 Link

    Haha the wisdom of the armchair experts. Although honestly, htc doesn't appeal to me as a brand. Their purchase of beats makes no sense (pun intended). It may be true that people use their devices as PMPs but sound quality is easier achieved through hardware rather than software.

    Case in point the iphone/ipod sounds like crap through the 3.5mm jack (played through apples software) but run it through the dock connector and a headphone amp (even a fiio) boom, good sound. Same with the galaxy s. Average sound until you root it and run the voodoo app. Crystal clear sound from both. Rivals my cowon s9 and sansa clip. Both shining examples how manufacturers fail to harness the potential of the hardware they put in. Such a waste of the wolfson chip's capability. The yamahas Samsung uses now makes me want to cry. I still use my SGS for my secondary line and back up PMP for when my cowon runs out.

    There are cheaper options to improve performance, too bad htc chose the more expensive option.

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  • Eric McBride Aug 24, 2012 Link

    SOOOOOOOOOO true Patrick. When I plug my Galaxy Nexus to my sound system at home = MAXIMUM CRANKAGE. Voodoo makes such a huge difference.

    Same with the processor. Mine came stock at 1.2ghz, but I'm running both cores on 1.8ghz and its stable as hell. I even undervolted, which gives me better battery life at 1.8ghz than i ever got on 1.2.

    I guess the big boys just don't care about unleashing the FULL potential of their hardware.

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  • aarish madaan Oct 22, 2012 Link

    It will be very good for htc

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  • CJ Brown Oct 23, 2012 Link

    All HTC needs to do is offer a 4G HTC ONE with a 4.3 screen and an 8 megapixel camera for "no contract" carriers and I may think about it (right now? Boost Mobile is offering the Samsung Galaxy II S & it will be my next Android Smart Phone - unless a surprise comes before March 2013) ....


    Beats Audio may seem like a great marketing gimmick, but in the end it is not helping HTC sell Android Smart Phones (their best strategy is to offer a quality 4G product at the most affordable prices, do not rely only on the big 4 Carriers, start catering more to the "No Contract" Carriers as that market continues to grow) ....


    I've enjoyed my HTC Droid Incredible, but that latest software update has been the worst snafu (no thanks to Verizon Wireless), I guess the future will be "no contract" and "boot your Android Smart Phone"

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  • nikhil jose Nov 5, 2012 Link

    its a good move .to catch customers because if someone starts using an HTC device they will stick to it for sure, as of me, i started from i-Mate Jam which was made by HTC .. i was amazed by its hardware quality,, i still have it . then to HTC desire, then Droid incredible , then EVO 3D . now i need is htc one S . if u reduse the price and more publicity that would take to next level, and you will find customers like me going for the next better HTC model :)

    regarding beats audio.. i dont think a customer will buy a HTC phone because its having beats audio . but still its good .

    Another important thing HTC must do is try to get AMOLED display , thats the main reason i chose HTC ONE S . all in all its good compactable almoset similer to iphone 5 in all ways , one thing i dint like is they just added a vga camera in front nd no 3G video calling :(

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  • CJ Brown Nov 6, 2012 Link

    FROM DVICE.COM -



    http://dvice.com/archives/2012/11/apple-ipad-mini.php



    Apple iPad mini and iPad 4 set weekend sales record!



    Apple CEO, Tim Cook, said, "We set a new launch weekend record and practically sold out of iPad minis. We're working hard to build more quickly to meet the incredible demand" (this record Cook is referring to is that Apple sold 3 million iPad minis & 4th generation iPads in three days). With the iPad 3 just over half a year old, it's likely the majority of sales were focused on the new iPad mini (I want to feel bad for these Apple Cult Consumers, but Apple wants them to replace their old devices asap & buy newer Apple devices) ...



    ALSO FROM DVICE.COM -



    http://dvice.com/archives/2012/11/apple-loses-iph.php



    Apple loses iPhone owner loyalty for first time!



    After the iPhone 5 was released, Samsung's Galaxy S III saw a rise in sales & this suggests that Consumers waited to compare the two smartphones (results seem to also suggest that Consumers overwhelmingly preferred the Samsung Galaxy S III). Fact - Apple has lost brand loyalty for the first time since the original iPhone's release (& now its time for HTC to capitalize on that by offering smart phones on par - or better - @ affordable prices) ...




    Only 88 % of iPhone users in the United States were likely to buy another Apple iPhone (a 5 % decline from 2011); while in Europe, only 75 % were likely to buy a new iPhone (compared to 88 % in 2011). You can blame the negative press Apple has generated due to their patent lawsuits, but you can also blame the fact the iPhone5 isn't a quality smart phone compared to its competitors (HTC, Samsung, etc). ....



    Google's Android mobile platform has seen a 16 % increase in its European market (again, this is something HTC needs to capitalize on by offering better "no contract" smart phones - such as any 4G lte HTC ONE released recently that's about to become outdated by a newer 4G lte HTC ONE)



    Could 2012 mark the beginning of Android's dominance over Apple? Only time will tell (& that will depend on how the next Tablets stack against the iPad4)



    C J

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