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As HTC Fights To Survive Samsung & Apple Are Suffering From Price Problems

As HTC struggles to survive in the smartphone market, the high cost of a premium Samsung and Apple phone is slowing down smartphone sales in Australia, with consumers hanging onto their pricey premium models longer the CEO of a leading research Company has claimed.

Foad Fadaghi the CEO of Telsyte said that brands such as Samsung who are looking for volume sales and profits may have created a problem for themselves by lifting the cost of their smartphones.

Earlier this week Telsyte released their Australian Smartphone & Wearable Devices Market Study 2018-2022 which found that 4.3 million smartphones were sold in the first half of 2018, this was down 3.7% from the corresponding period last year (4.4 million).

Fadaghi said that consumers who have paid a premium price are comfortable with their new phone offering and because they have paid a premium price they are least likely to upgrade to a new model.

Overnight struggling smartphone brand HTC reported another slump in revenues with both retailers and carriers now considering dropping the brand in Australia with sales for July down 37.23% for the month and 77.41% year on year.

HTC reported consolidated revenues of US$45.7 million for July.

The lacklustre performance for the month indicated that sales of HTC’s smartphone still remained in doldrums, while its VR business has yet to make major breakthroughs, according to industry sources.

For the first seven months of 2018, revenues for the Taiwanese Company crashed 53.98% from a year earlier.

The company also reported that it incurred losses during second quarter of 2018.

Despite efforts to optimize its corporate structure, including plans to cut 1,500 manufacturing jobs by September, and to release new models of its U12 and Desire lineup’s as well as its first blockchain-enabled smartphone the Exodus in the second half, it remains to be seen if HTC can make turn around its handset business, said industry observers talking to DigiTimes.

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