Why Does Htc Avoid Promoting Smart Phones Around One Thousand Rmb?

Except the high-end smart phone market share occupied by Apple

, currently there are large domestic market of smart phones around one thousand yuan, which makes Motorola, HTC, Samsung and other foreign brands' product lines face a choice.

HTC's CEO Peter Chou has repeatedly announced that it will expand in the emerging markets, but HTC will not give up their "high-end brand" image to introduce low-cost mobile phones. "Consumers are willing to spend more money to buy high-end products. This is the reason why its business grows four times this year in the mainland market, suggesting that the consumers share its high-end philosophy.

The three mainland enterprises ZTE, Huawei and Lenovo significantly accelerated the volume and frequency of new product launches. With the active subsidies of the three operators, they rapidly occupied the market share of smart phone about one thousand Yuan.

Recently, Motorola's senior vice president of mobile technology in Greater China clearly stated that "For Motorola, we do not have deliberately stressed what must be done in the next quarter. Whether it is doing the smart phones or feature phones, the ability of every business to produce consumer electronics is limited. We will not follow others." Motorola positioned three major product lines. Than simply the pursuit of a particular price segment, the improvement of the brand's image and the user experience may be more meaningful for Motorola.

HTC is not easy to be involved in the practice of smart phones around one thousand Yuan. Some one said that it will miss a vast smart phone market in the second and third tier cities and smaller cities in China.

The analyst said that it is not a must that as mobile phone manufacturers must produce products from the low, mid to high end like Nokia. For the HTC which always insist the high-end market, rushing into the one thousand Yuan mobile phone market may affect its original brand positioning, resulting in the loss of high-end customers.

According to the data, HTC's shipments in the last quarter were more than BlackBerry's RIM, officially becoming the world's fourth-largest smart phone manufacturer.

From the perspective of brand positioning, HTC and Motorola are currently taking the high-end line. The profit margin is much higher than the low-end market. From the point of view of operator resources, they need to distinguish between the international market or domestic market. In the domestic market, it is clear Huawei, ZTE, Lenovo and other domestic manufacturers have more advantage.

by: Amanda Xia

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