HTC-May Survive in Bipolar World

The core assets of HTC are people, innovations, and technology. But in the recent quarters, HTC has started retrenching people even from R&D divisions which are responsible for innovation and developing new technologies. It means HTC’s core assets are depleting. HTC was known for its cutting edge technology of 16mp camera and high speed '4G' technology but performing badly in the last two and half year. Why is it so? Paper objectives are to identify reasons for its downfall of HTC, distress signals for HTC downfall, and possible revival strategies for survival of HTC in Bipolar world (Samsung and Apple) of smartphones makers. In addition, research paper present eight research proposition/ questions with respect to present state of HTC and its future and possible answers to these research propositions/ questions. Research paper ends with concluding remarks in the context of HTC future.


Introduction
In this competitive era, one cannot secure its brand, valuation and profitability for longer duration without investment in product innovation and designing appropriate business strategies.To mention, HTC, Taiwanese smartphone maker was the fourth biggest smartphone manufacturer during 2010 and 2011.HTC was also the first and biggest Android smartphone maker and the largest Window Mobile smartphone maker.Over the years, Samsung and Huawei have done much better with Android operating systems by devising better strategies and taken over HTC in all aspect.Windows Mobile operating system was a nightmare for smartphone makers such as Nokia.HTC was known for its cutting edge technology of 16mp camera and high speed '4G' technology and was not dependent on Windows Mobile OS.In spite of all, HTC did very badly in the last two and half year.HTC was valued at US $3.8 billion at the end of Q2, 2013, down from US$37 billion at its peak during 2010, a reduction of 10 times (Chawla (2014)).Its market cap was less than US$ 1.5 billion in August 2015 which is much less than its market cap of US$28.4 billion in 2010 (Riley (2015)).Its market share was around 10% during peak years but it was 2% in Q2 2015 (Beaver (2015)).Shah (2015) reported its market share even as 1.4% in smartphone domain during Q2, 2015.Keeping in view the changing landscape of the smartphone market, this paper attempts to analyze the (i) reasons for the down fall of HTC, (ii) stress signals as a result of downfall of HTC, and (iii) possibilities of HTC revival in a market of low margins and fierce competition .The research paper also included a section of research methodology giving details of methodology and research questions.Subsequently, research paper presents answers to these research questions based on the analysis of qualitative and quantitative secondary data collected / compiled in the research paper.This data is with respect to (i) revenue, (ii) profits /losses, (iii) market share of HTC vis-à-vis of competitors, (iv) growth/reduction of number of employees, (v) factors responsible for growth and downfall of HTC, (vi) new product launch by HTC and associated positive and negative factors with these events, etc. consumers in comparison to the new product launch by competitors, (v) discontinuation of partnership by technology partners, etc.

3.Analysis of Growth and Downfall Statistics of HTC
This section presents analysis of changing pattern in market share of mobile phone/smartphone major vendors in the world vis-à-vis share/ place/ ranking of HTC in market share.The analysis is based on quarterly as well as yearly data presented in tables 1(a), 1(b), 2(a), 2(b-1), 2(b-2), and 3.

3.2.
Quarterly Analysis of Global market share of major mobile phones vendors by units (%)     The data presented in table 3 is about number of smartphone shipments in thousands.The data of table 3 has four unique features, i.e., (i) research companies are reporting data of only five popular vendors rests are clubbed together, (ii) number of shipped units are not increasing continuously but declining in between on quarterly basis, (iii) maximum numbers of units are shipped in the year closing fourth quarter for each year, (iv) first two quarters of 2015 recorded a sharp decline in the number of units shipped, and (v) HTC is not reported separately but with others.

Reasons of HTC downfall
HTC has made investment to innovate software as well as hardware for its business growth.Its strategies look much better than Nokia which has decided to sell off its mobile handset business (Singh(2014)).HTC is never stagnant and incompetent.It is introducing new features regularly but still could not sustain competition due to some miscalculations and many a times not reacted as per the needs.HTC leadership has accepted the mistakes and challenges and has not given up its efforts to comeback as evident from statements of leadership.Many reasons such as glitches in supply chain, inappropriate marketing efforts, overpricing of tablets and other devices, lack of innovation in design, selecting sub standard processor, and market dynamics are cited by the experts for the downfall of the HTC.Some specific reasons for its downfall as reported in the recent two years by experts are listed in the following: Reason 1:Supply Chain Management: AP (2015) reported that marketing and supply chain glitches as well as intense competition from Apple, Samsung Electronics and Chinese makers such as Xiaomi is one of the reason for its downfall.
Reason 2: Contracting Carriers: Samsung and Apple captured the United States through sales contracts with wireless carriers which HTC could do it but was not effective (AP( 2015)).However, HTC could sale 5-inch HTC Droid DNA through US carrier Verizon Wireless (Taipeitimes ( 2013)).
Reason 3: Competing in China: HTC could not compete with Lenovo and Xiaomi in China in creating a good customer base (AP ( 2015)).Experts have reported additional factors for HTC decline.These factors are (i) less demand for high-end Android devices, and (ii) less sales in china than the forecasted figures (Boxell ( 2015)).Xiaomi and Samsung had ruined early advantages of HTC in China (Millward (2015)).
Reason 4:Marketing Efforts: HTC spent less in marketing, perhaps underestimated the impact of the iconic name recognition of Apple and aggressive publicity campaigns by Samsung(AP ( 2015)).HTC is out marketed by Samsung with huge marketing budget (Millward 92015)).HTC tried to enhanced its marketing efforts by splashing out $1bn on a marketing campaign starring Robert Downey Jr during 2013 for HTC One M7.
Commercial ads featuring Gary Oldman did not help in advertising the company's flagship smartphone during 2014 according to Sivanandan (2014).All these marketing efforts are of no use.Late of, HTC start thinking that the competition has raised operating costs as well as cost for product promotion and decided to invest less (Boxall (2015)).
Reason 5: Advertisement and its impact: The ads were lacking right strategy.To mention, the ads for HTC One M9 could not communicate all features of the smart phone to the market (Amadeo ( 2015)).Another expert Sivanandan (2014) reported that HTC had failed to uplift its market performance due to its inadequate marketing strategies for its feature-rich smartphones.
Reason 6: Lack of Components parts: HTC moved slowly in securing smartphone components such as processor while competition was growing much faster (AP ( 2015)).De Guzmen (2013) reported that HTC ran short of Aluminum body of the HTC flagship HTC One which led to delay in production and secondly it was not ready on the date of release.On the other hand, Samsung Galaxy S4 was becoming a hit in the market at the same time.reported that manufacturers like LG, with its well-received G3 and G4 family, tend to make around 1 cent per phone in net profit.Low margins and decline market share contributed significantly in the downfall of HTC.
Reason 10: Pricing of Nexus 9 and Other Smartphones: Nexus 9 runs with Lollipop OS was an overpriced tablets by HTC.Further its build quality was poor as mentioned by Amadeo (2015).Its NVIDIA's K1 chipset made it a serious contender among tablets of different makers but price and other negative points reported by reviewers impacted its acceptability in the market.HTC also priced its handsets higher than the similar handsets of the competitors with better hardware in some cases.Millward (2015) reported that HTC was beaten by competitors with respect to specification in top end domain and on prices in the budget range segment of smart phones.
Reason 11: Market Dynamics: Barrett (2015) reported that there was nothing wrong with HTC as such but smartphone market doesn't have room for more than a handful of smartphone makers.If one does not innovate and is not different then it can no longer hope for much.Millward (2015) said that HTC peak came before the peak of smartphone market.It means HTC exhausted its energy before time.
Reason 12: Android's Internal Rivalry: Nicole (2012) reported that Android internal rivalry is also one of the reasons for downfall of HTC.HTC was unable to sustain competition among Android OEMs.Nicole (2012) also mentioned that third-party software, such as ad servers or analytics systems (adware) was reported as malware in Symantec report and CarrierIQ.Google has been addressing some of these problems but it is impacting likes of HTC more.

Distress Signals of HTC indicating downfall
The  2008,2010,2012,2014,2015) (i) Removal from blue chip index of Taiwan Exchange: AP (2015) reported that HTC was removed from FTSE TWSE Taiwan 50 index on August 21, 2015.It was highly negative news for HTC and had impacted its market performance.
(ii) Share Price less than the Cash at Hand: Barrett (2015) and Kessler (2015) reported that company is worthless to the investors.During June 2015 with share price of $1.82/share at Taiwan Stock Exchange, its market cap was $1.34 billion.On the other hand, as per the HTC's balance sheet at the end June 2015, HTC's total assets of $4.9 billion including $1.5 billion cash minus $2.6 billion debt liabilities.It means still company value was $2.3 billion but this value was not accepted by markets.
(iii) Selling off Manufacturing facilities: Liu (2015) reported that HTC is selling off two manufacturing facilities in Shanghai.He further reported that Shanghai manufacturing units have been closed for a month and that 500-600 people, mostly production line personnel, left their posts by the end of August.Only 20-30 supervisors are left.However, there is no change in R&D department and sales department.This again impacted the reputation of the company.
(iv) Falling Revenue: Domanico (2012)  (vi) Discontinuation in Partnerships: Griffith (2013) mentioned that HTC was ditched by Dr Dre's headphone company Beats, which bought out HTC's stake and ended their partnership.

Analysis of HTC Units Sold
The details of the quarterly units sold by HTC are presented in    2013) quoted that HTC needs to create a better portfolio to survive rather than few good devices.
Table 5© consists of data with respect to domestic and international (export) sales in million units.The main source of data is annual reports of HTC.From the analysis given in table 5© it can be inferred that HTC is losing market share in domestic as well as international market.In fact, HTC is losing more in domestic market.HTC needs to devise better strategies for product portfolio, marketing, pricing, quality, and retention of employees so that their morale remains high.2010) reported that EPS of 0.2 US$ which was higher than the expectation of the company during Q1,2010 but its camera received bit negative feedback from the market.Kendrick (2010) reported that an increase in HTC revenue and profits are because of HTC Dream, HTC Hero and HTC Magic smartphones and Android OS during Q2, 2010.Savov (2010) quoted Android again as the chief catalyst for this growth of HTC revenue (US$ 2.45 billion) and profit (US$ 360 million) during Q3, 2010.Company has seen an EPS of NT$ 13.69 during the period.Gsmarena (2011a) reported very good performance during Q4, 2010 and quoted that HTC will focus on 4G devices.It is also reported that HTC's six new devices and a tablet is waiting to hit market during 2011.HTC recorded NT$ 18.61 EPS during Q4,2010.Big portfolio of product was reported during the year as important factor for success.

Year 2011
Gsmarena (2011b) reported much better performance during Q1, 2011 and quoted that HTC is strengthening its position by buying 82 patents and filed 14 patent applications to add patents to its wireless portfolio of patents.HTC was also planning to hire 100 people for its marketing, operation and R&D divisions.HTC's earning per share was NT$ 18.36 during Q1, 2011 .Gsmarena (2011c) cited three smartphones, i.e., Desire HD, Sensation and Thunderbolt droids for the success of HTC during Q2, 2011.HTC's EPS reached NT$ 21.69 during 2 nd quarter,2011 .Nagpal (2011) reported strong brand recognition, leading product portfolio and expanded distribution channels are main factors for growth of HTC during Q3,2011.This quarter EPS of HTC was highest at NT$ 22.07.Domanico (2012) reported that performance of HTC was less than expectation during Q4, 2011 and its EPS declined to NT$ 13.06.This was beginning of the downfall of HTC.

Year 2012
Wauters (2012) mentioned intensive rivalry in the smartphone business and slowing global economy are responsible for declining performance of the company during Q1, 2012.Jeff (2012a) reported 58% fall in HTC profit during Q2, 2012 in comparison to Q2, 2011.However, there is an increase in profit in comparison to Q1 2012.Jeff (2012b) reported further reduction in revenue and profits during Q3 2012 and said that HTC is hoping for better results in the next quarter with new launches of Windows Phone 8X and Windows Phone 8S handsets, along with the HTC One X+.Abent (2013) reported that HTC saw good performance in Japan and Taiwan during Q4, 2012.It is also reported that sell of HTC achieved the targets in US and China.
Year 2013 Haselton (2013) reported that HTC profit in Q1, 2013 was merely US$ 2.88 million in comparison to 151 million during Q1,2012.HTC is betting on new HTC One smartphone.Epstein (2013) mentioned that HTC One performance was up to the satisfaction during Q2, 2013.This is the reason for better performance in comparison to Q1, 2013.HTC has gained market share in China due to HTC One and HTC had taken up many initiatives to improve its performance.Martonik (2013a) reported that HTC has posted an operating loss of over $101 million during Q3, 2013 even with better sale of HTC One.Peter ( 2014) quoted HTC's CFO who said that company need to add more low-end and mid-range smartphone during 2014 to arrest declining performance of the company.Jeff (2014) reported that Q4, 2013 was also a quarter of losses for HTC and said that HTC had to focus on building a compelling mid-range portfolio in the price range of $150-300 price range.Tsuki (2014) reported that during 2013 HTC targeted high end phone market which is dominated by Samsung and Apple.Sony and LG are also struggling in this segment for their share.HTC is strategy to compete in this segment is not well crafted in terms of price and quality of devices.The year identified the inadequate product range with HTC.

Year 2014
Epstein (2014a) stated that HTC recorded big decline in its revenue during Q1, 2014.It was US$ 1 billion.Company also incurred a loss of US$62 Million.However, HTC reported that declining trend in revenue is reversed by HTC during March 2014 after 28 months.Ku (2014a) also mentioned that HTC is betting on the demand for its new products, including flagship HTC One [M8] and mid-tier flagship Desire 816.Its losses are as expected by the company for quarter 1, 2014.Epstein (2014c) reported that in Q2, 2014 company recorded a profit of US$75 Million but increase in revenue was not substantial.It reaches US$ 2.2/2.17/2.05billion.Increase in profit was due to cost cutting measures taken by HTC.Ku (2014b) also reported that its operating profit surpassed the estimates during Q2, 2014Q2, . Triggs (2014) ) connected the performance with good market presence of HTC One (M8) in US & Europe, HTC One (mini 2) in Europe, HTC One (M8) & Desire 816 in Taiwan.Lomas (2015) stated that HTC could not keep momentum of Q2, 2014.It is losing both revenue and profits during Q3, Q4 2014.It is betting now on periscope camera accessory for smartphones 'Re", HTC Desire Eye, and One Mini 2.
Year 2015 Jonnalagadda (2015) quoted that HTC fortunes have further declined during Q1, 2015 but its performance was better in comparison to Q1, 2014.He also mentioned that HTC is betting on One M9 in the U.S. and European markets, and One M9+ and One E9+ in Asian markets.Timotato (2015)reported loss of US$ 260 Million during Q2, 2015 and revenue of mere US$ 1.07 billion.Lucic (2015) reported revenue as US$ 1.076 Billion and per share loss of NT$ 9.70 as per the expectation of HTC.HTC is developing 'Aero' device as part of its new and innovative camera technology and it may help HTC in its survival.Stefan (2015)quoted operating losses of US$ 138 Million during Q3, 2015 with revenue of mere US$ 0.659 billion.It is expected that company will announce major job cut in days to come and prove to be worthless as commented by many experts.2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014 and, 2015 is (-) 31.42%,(-) 10.50%, (-) 22.27%, 5.3%, (-) 47.95%, (-) 40.15%, (-) 37.95%, (-) 28.60%, (-) 7.62% and, (-) 33.32% respectively.Banbury and Mitchel (1995) said that incremental innovations makes good impact on market share and business survival in industry which has moderate switching costs for the buyers.HTC may introduce incremental innovations rather than looking for major breakthrough which may not be possible in smartphone manufacturing industry.
(ii) Cost Cutting: HTC want to dilute its software division with a view to cut cost (Amadeo (2015)).It is a good idea.It must learn lessons from Nokia's strategy of being both hardware as well software vendor at a time when world was moving closer to Android OS and it failed miserably due to Symbian operating system (Singh (2014)).HTC must concentrate on hardware and let Google and Microsoft take care of OS and other software components.HTC may follow policies of Lenovo in managing loss making businesses.
(iii) Expansion: HTC may produce other devices such as Camera and Vive VR Headset to have wider portfolio (Amadeo (2015), Boxall (2015)).It is a good idea but needs time for proper planning and to create cost effective strategy.
(iv) Moving to South East Asia: Liu(2015) reported that HTC may move its factories to Indonesia to reduce the cost of production but it is denied by HTC.It is a good idea to cut the cost by moving to low cost areas/countries for production and do innovation in home country.
(v) Mid-Range Portfolio: Jeff (2014) mentioned that HTC will focus on building a compelling mid-range portfolio in the price range of $150-300 price range.On the other hand, Vince (2015) reported that Samsung had lost ground in the low-end and mid-range smartphone spectrum due to fierce competition by Chinese makers.If HTC can compete with Chinese makers than it must concentrate on midrange portfolio.However, it will be very difficult for HTC but it is not impossible.
(vi) No Selling-Off: It is reported that HTC buyer could be mobile phone maker (Samsung, Apple, Lenovo, LG, Xiaomi, Huawei etc.), PC maker (Asus/ Acer/ Dell/ HP), Microsoft, Google, Facebook, Amazon, Blackberry, OnePlus etc.There were lots of rumors about ASUS buying HTC.These are denied by HTC.HTC must sustain its present status and innovate with existing technology or create new partnership for innovation and come back in next two to three years.HTC should not share information on its mergers with others and selling off of its assets.
(vii) Collaborating with Entrepreneurs: It will be better for HTC to collaborate with new technology startups for innovation, research, and development.It will help in two ways.HTC will get rid of internal innovation stagnation if any.Secondly, it will create synergies between different mind sets.

Research Question
Based on the data presented in earlier sections of the research paper, this section presents possible answers to the research questions in the context of HTC downfall.
Research Question 1:Will HTC be able to survive in the face of recent downfall and fierce completion in the market?
Neil Mawston said "HTC is struggling against ambitious Chinese and Indian brands in the low and middle tiers, while Apple and even Samsung continue to provide serious challenges in the high-end" (Jennings (2014)).On the face of performance statistics of the company it looks that HTC may not survive the competition.If HTC can maintain its present status with no decline further for 3 to 4 quarters, then it will beat the competition and will bounce back.On the other hand, if the management of HTC sends signals of mergers or selling then it will be end of journey for HTC.
Proposition/ Research Question 2: Does the size of home country markets matter for success?
Yes, it matters for success since local device makers understand pulse of buyers better than outsiders.If one compares home market for Nokia (5.4 million people of Finland), HTC (23.4 Million people of Taiwan), and Samsung (50 million people of South Korea) for success or failure then statistics are in favor of concluding that size of home country market makes difference.Nokia mobile phone business no more exists, it is taken over by Microsoft (Singh (2014)).HTC is losing more in the domestic market in comparison to international market and is on the verge of collapse.Samsung is still growing but losing growth trajectory.
Proposition/ Research Question 3: High technology market has place only for few successful international brands.
It is reported by many experts that smartphone market has room for 4 to 5 international brands and this can be further ascertain by data presented in In case of HTC it is true.Alone HTC data is not sufficient to draw conclusion.One needs to analyze data of Nokia, Motorola, and few others to confirm the statement of this research question.
Proposition/ Research Question 5: Will expanded device portfolio help HTC in managing the confidence of the investors in near future?
Certainly it will help HTC in managing confidence of investors.Large device portfolio will help HTC to devise better marketing strategy and failure of few devices due to not so right combination of components or not so appropriate features of software will not impact its market share and profitability.It will also help in reducing overall negativity of HTC devices and customer will have more choices.
Proposition/ Research Question 6: Lack of innovation by HTC is responsible for its downfall.
It is evident from the fact that HTC does not have a big basket of patents like Motorola or Nokia.Motorola market value was because of Patents (Singh (2015)).This is not true in case of HTC.Apple had filed lawsuit against HTC.HTC is to settle patent issue with Nokia.It can be taken as surrogate factor that HTC suffer from lack of appropriate effort in innovation.It could be one of factor responsible for the downfall of HTC.
Proposition/ Research Question 7: Android's internal rivalry is responsible for its downfall.
Smartphone success and failure depend on hardware as well as software which include mainly OS and application software.In present day context one of the important processes to develop software is integration of many software components to have ultimate needed software (OS or Application).In addition, software's are sold in the form of different versions.Differentiating among large number of versions of software (OS or Application) is sometimes not possible for OEMs.Android's internal rivalry is reported by only one expert as a factor responsible for the downfall of HTC but it could be a reason for failure.Android may be treating Samsung with priority in comparison to other makers of smartphone in term of quality of software's.9. Conclusions Miller (1990) observed that "success leads to specialization and exaggeration, to confidence and complacency to dogma and ritual".He also made a candid comment that it is the strength of companies that lead to their downfall.HTC was working in specialized domain.Its initial growth was exaggerated by media.Every move of HTC was described as right move.This might have converted in to over confidence in the mind set of leadership at different levels in HTC which at some stage got converted in to complacency.Having attained this stage media turned hostile to HTC and started finding fault with HTC management and reported every move either as late or not in right perspective.

Proposition/ Research
Experts have concluded that smartphone market will absorb only 3 to 4 vendors in tier-1 category.The market still has four to five players in tier-1 category.These are Samsung, Apple, Huawei, Xiaomi, and Lenovo.HTC exited from this group.Many reasons are cited for exit of HTC from tier-I category or even tier-II category in earlier sections of the research paper.In recent past every move of HTC is unsuccessful in the eyes of media and also for ultimate business outcome.Present state of business in HTC is making it worthless as reported in the print / electronic media.Still going by statements of leadership and not much reporting in media with respect to merger of HTC with other smartphone makers or selling off HTC to smartphone makers or software developers or other companies in eco-system indicates that HTC may survive as smartphone makers of in "other category" in a bipolar world of smartphone makers.With changing market dynamics, one of the leading smartphone makers will certainly commit some mistake in next few years or geopolitical event may force any one of them to lose its place, HTC may fill that place.To fulfill its dream HTC must first concentrate to regain domestic market and look for new markets wherein competition is weak.HTC needs to develop an excellent product portfolio to compete and to arrest existing decline of the company.

Table 1 (
a) and table 1(b) present share of global market share by units in percentage of different mobile phone and smart phone manufacturers for the period starting with 2009 to 2015.
The data is compiled from various reports of Gartner.It can be seen from the data that Nokia + Microsoft, HTC, Motorola, LG, and Research in Motion are losing their share in mobile phone market.The major gainers are Apple, Huawei, TCL communications, and ZTE.The number one manufacturer Samsung gained during 2012 and 2013 but during 2015 its share is almost at par with its share of 2009.It is also evident from the data of table 1(a) that aggregate share of small vendors is increasing and it was highest (36.9%) during 2015.As far as HTC is concerned, Gartner is not showing its independent market share since 2013 as it is no more among the top five to six mobile phone manufacturers.It can be taken as a surrogate factor to the downfall of HTC.
Market share of smartphone makers is compiled in table 1(b).Aggregate share of Samsung, Apple, Huawei, Lenovo (Motorola) and Xiaomi is approximately 54%.Till 2012, HTC was a major vendor with 9.2% share and its ranking in market share was at third place.It had lost its place in the global smartphone market to Xiaomi, Huawei, and others.The data did not indicate very good scenario for Samsung as the share of small smartphone makers is increasing continuously and eating Samsung market maximum.Table 1(b):Global Smartphone Market Share of Major Vendors byUnits,  Percent (2009-2015)

Table 2 (
a), Table 2(b-1),Table 2(b-2), and table 3 contain quarterly data of sales of mobile phone and smartphones.Table 2(a) contains quarterly data of global mobile phone market since Q1, 2012 to Q2, 2015.The Gartner news room is the source of data given in Table 2(a).It is evident from the data that HTC is not a top vendor in overall mobile phone market which is dominated by Samsung, Apple, Microsoft (Nokia), and other Chinese and Korean mobile phone vendors.

Reason 7: Lack of Innovation in Design and patent issues: HTC
HTC One M9 was upgraded with Qualcomm Snapdragon 810 SoC.The chip turned out to be hot and throttled very quickly.It wasn't much of an upgrade over 2014 devices.The heat and throttling reports also made consumers wary of Snapdragon 810devices (Amadeo (2015)).It was not a good decision on part of HTC though chip was rated positively by the reviewer.
Hruska (2015)) Margin for Android Mobile Phone Makers:Edwards (2015)quoted that Android business is very brutal.Its phone manufacturers make an average profit of only 1.2 cents per phone.It means economy of scale is very important for a smartphone maker to survive.Hruska (2015)

Table 4 :
common distress signals for the industry in any segments are laying off of the workforce, reaction of stock markets, selling off the assets, falling revenue, falling popularity of the products, and few more .The important stress signals in the context of HTC are listed in the following Category wise statistics of HTC employees from 2006 to 2015 Griffith (2013)reported that three designer of HTC were arrested in Taipei.It all impacted the morale of employees.The details of HTC staff in different categories by HTC are presented in table 4. It can be seen from table 4 that HTC has given due importance to specialists but few lay offs had sent wrong signals in the market.Source: http://media.corporate-ir.net/media_files/IROL/(Annual Report of the years- reported that HTC 4Q, 2012 revenues were U$3.48 billion (102.4 billion Taiwanese dollars) with earnings per share (EPS) of US$0.44 (13.06 Taiwanese Dollars).It is far below the estimates of 144.6 billion Taiwanese dollars, and EPS of 17.03.HTC has to revise its revenue for next quarter.Data presented Table 6 (a), and 6(b) is a proof of its falling revenues.
Brian (2010)rom Q1 2010 to Q3 2012.It is evident from the data given in table 5(a) that year 2010 was growth year for HTC.Brian (2010)reported that HTC had launched two new Android-powered smartphones, the Desire HD and the Desire Z. HTC has also released four new Windows Phone 7 handsets, i.e., the Mozart, Surround, Trophy and the HD7 during the year.Year 2011 was also a growth year for HTC.Year 2012 has seen beginning of the downfall of HTC.More data is not available for HTC with respect to its share in mobile phone market.The source of data was mainly Statista web site.

Table 5 (
b) consists of data with respect to smartphones.

Table 5 (
c): HTC Smart phone and other items unit sales (Domestic and International)(in Millions) He also mentioned that HTC is planning about 10 new Windows Mobile and Android devices and is looking to grow revenue by 20 percent.In recent years, such announcements of big portfolio are missing from HTC.Table 6(d) consists of yearly revenue in US$ and contain data for few more number of years.

Research Question 4: High growth of a company in high tech domain results in to early downfall.
table 1, 2, 3 given in earlier sections of the research paper.It is further reported that life cycle of smart phones devices is small which is evident from the price reduction of older devices with the launch of new upgrades.If one does not push large portfolio (combination of hardware and software) of devices quickly for all segments of market one loses its market share and if one is too aggressive in pushing new devices, it eats profits due to high manufacturing cost.Unbalanced approach makes companies in others category.It is true in the present context of smartphone business.

Question 8: First mover advantage does not work in all cases.
HTC was first to use Android operating systems.It means HTC must be benefitted by first mover advantage.But it was not in HTC case.HTC lost this advantage very quickly.It is in support of proposition that first mover advantage did not work in all cases.