Taiwan's HTC looks to new handset designs to exit slump

HTC, the Taiwanese smartphone maker that blew markets away three years ago when its moderately priced, technically solid devices reached consumers worldwide, is looking at a risky new production scheme to regain market share after a long slump.

The designer of models such as the Butterfly and the One is developing new smartphones at mid-range prices to stand out in a thickening crowd of competitors, industry experts say.

But they fear the developer will face supply-chain obstacles for high-end parts, an arduous retraining of workers to make the new stuff and lost income from shelling out capital for fancy components if they do not reach the right markets at the right times.

Profits have slid since 2011 as Apple and Samsung have taken away customers. In 2010, HTC's revenues grew 93 per cent.

Now, some analysts say the firm may become obsolete without a quick turnaround. The company may roll out super-sized phones, up to 14cm high, to vie with tablets, in line with one of the latest consumer trends, analysts believe.

Some new devices will include cameras for low indoor light and come in metal casing rather than the usual plastic. Metal casing for a smartphone is thinner, easier to handle and able to expel heat, though it may cramp phone signals.