HTC star may rise again as latest premium handset sells fast

Former contract smartphone maker feels the buzz following launch of premium M8 model

PUBLISHED : Monday, 09 June, 2014, 3:29am
UPDATED : Monday, 09 June, 2014, 3:00pm

Once a star of the intensely competitive smartphone sector, Taiwan's HTC has seen its fortunes collapse in recent years - but the success of its latest model provides a glimmer of hope.

The company started out as a contract smartphone manufacturer for major foreign players including Microsoft and only began developing its own brand of handsets in 2006.

It quickly built up a loyal following as the first to use Google's Android operating system - now the most popular OS for mobile devices and adopted by global smartphone leader Samsung. But from stellar performances in 2011, HTC has nosedived as Samsung, Apple and strong Chinese brands such as Lenovo and Huawei surge ahead.

It's a mix of being genuinely functional, but also a real statement device
Nic Healey, CNET

In the first quarter of this year, it posted a net loss of NT$1.88 billion (HK$485 million) while sales hit a five-year low of NT$33.1 billion. Now, though, there is a much-needed buzz around the brand once more, following the launch of the HTC One (M8) handset in March.

"It's a mix of being genuinely functional, but also a real statement device," said Nic Healey of technology review site CNET. "Something like the M8 is a real stand-out on the shelf."

Reviewers and consumers have praised the M8 for its high-quality design, with a brushed aluminium case, as well as powerful speakers and a dual-lens camera for special effects on photos.

The look and feel of HTC's on-screen menu system were previously criticised as over-complicated, but the M8 has improved the interface, says Healey.

Tech news site The Register described it as the Alfa Romeo of the smartphone world.

HTC would not comment on sales figures for the M8, but says it expects to swing back into profitability in the next quarterly results, doubling its revenues in the three months to June.

"We believe that we are on course for a strong 2014," said chief executive Peter Chou.

There was also a hint at a new collaboration with Microsoft at last week's Computex tech show in Taipei.

"The M8 is selling fast across global markets," said Sascha Pallenberg of technology consultancy Mobile Geeks.

"In terms of the build quality and the materials this is the most sophisticated phone on the market."