Aug 22 AT 10:14 AM Nick Gray 33 Comments

Update: HTC to reduce handset prices to better compete with Samsung and Apple

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A Chinese industry supply chain source claims that HTC is looking to reduce the prices on its upcoming lineup of Android and Windows Phone 8 powered devices. HTC has struggled to keep up with Samsung and Apple and compete directly on features, and the company believes that reducing the price point of upcoming handsets may give the company a competitive edge which could help recapture market share and increase revenue.

It’s not exactly clear if HTC will be doing anything on the hardware side to keep the cost of their phones down, but the source claims that HTC will be dropping Beats Audio technology from the mix. While HTC does own a 25 percent share of Beats Audio and has exclusive rights to use their technology in mobile devices, HTC is most likely paying a small licensing fee for every device with the technology enabled.

A more competitive HTC is something we would all like to see, as long as new devices don’t skimp on build quality and internal components. We’re not sure how much cheaper HTC phones will actually be once they arrive in stores, but consumers are always looking for the best value for their hard-earned dollar.

How much of a price cut will HTC need to offer to gain back some market share from Apple and Samsung?

Update: In an odd twist to this story, HTC has issued a statement regarding the rumor that  Beats Audio support would be dropped from its upcoming lineup. While we’re greatful that HTC’s PR team has cleared the air, we’re a little baffled why they would respond so quickly to this rumor while letting others run wild.

HTC remains strongly committed to Beats Audio and including their innovation in our devices. Any rumor of HTC no longer integrating Beats Audio into our devices is categorically false.HTC

Via: Unwired View

Source: My Drivers

Nick is a tech enthusiast who has a soft spot for HTC and its devices. He started HTCsource.com (the first HTC blog) back in 2007 and later joined the Android and Me family in the summer of 2010.

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  • Nafi

    I’m glad their dropping Beats. It was a gimmick that didn’t really work. I also hope reduced phone prices doesn’t mean the quality of their phones will be reduced as well.

  • Hinds

    I love HTC hardware and want them to be successful so hopefully they come back strong with a nexus phone and some great hardware.

  • Paul

    I love HTC phone but because of their Tinny cheap sounding video recording microphones I will not buy one until this is fixed.

  • triangle

    A price cut will help, but I think their problem is more with the software than the hardware. Having used both an Evo LTE (also a proxy for the One X) and a Samsung Galaxy S3, I think the SGS3 is just a much smoother experience. I have problems with the sense crashing on the Evo a lot. That is something that they MUST fix if they want to improve the experience. The hardware on the Evo is actually a lot nicer than the SGS3, but the overall experience is just sub-par.

    If HTC can continue to innovate on design, make good hardware and just improve the software experience, I think they will be fine. It’ll also be a huge positive if they can get one phone on all of the carriers like Samsung has done with the SGS3.

    • Jimmy_Jo

      +1 (literally, look above)
      HTC hardware is better but Sense cripples the phone. They’re selling the One X for $99.99 after being on the market for 3 months to try and compete with Samsung. As a company, they seem lost to me.

  • spazby

    If they can lower their margins without sacrificing quality, they should pick up market share quickly.

    • thel0nerang3r

      I don’t think you understands what “margins” mean.

  • http://htcsource.com Nick Gray

    Like most of you, I’m hoping HTC will reduce costs by offering a single model to all major carriers. The reason Samsung and Apple have been so successful is because they have one device which is mass produced which reduced R&D and support costs.

    If HTC can convince the carriers that they will be better off with the same device that the other are selling, HTC should be able to capitalize on its marketing campaigns and really push its brand to consumers.

    • Jimmy_Jo

      The should have had a One X or One XL for every major carrier worldwide (only with the inclusion of an SD card slot even if not with a removable battery)

    • anamika

      In markets where handset subsidy is not present samsung sells a large number of models at different price points. iPhone share would be low as well.

      HTC were selling at higher price point when there were other models with better spec for lower or equal price.

  • ZR0ExX

    I hope they dont get rid of all the goodies like the Gorilla Glass 2 or form factor when they cut prices. Beats Audio was a good addition and i liked it but not one that will be missed. I do have a couple pairs of Beats headsets so it worked out perfectly though. Anything HTC or Nexus i usually buy.

  • dreamsrfree

    They need to have a uniform release schedule with all their US carriers and stop staggering it the way they have been. Releases need to be on all carriers at the same time.

  • TheTruthSquad

    After the Thunderbolt, they could give tyhem away and I wouldn’t take one. Once burned, always burned.

  • TheTruthSquad

    After the Thunderbolt, they could give them away and I wouldn’t take one. Once burned, always burned.

  • www.phonewbie.com

    If their high end devices drop to around $150 and make their mid range devices from $80-100 here in the US, that would make a big difference.

  • Terrormuslim Mo-Akhbar Farah

    final nail in the coffin for htc

  • Manideep reddy

    http://www.youtube.com/watch?v=-MG-pt-YF5g
    Watch it guys! :p
    It’s too funny! :D

  • Project Chicago

    Seems like an act of desperation, they are destroying their razer thin margins. Htc wont survive.

  • Matt

    A better option would have been to stop locking bootloaders, giving users zero removable storage and battery options but yeah I’m sure a price drop will turn things around [/sarcasm]

  • vforvortex

    I think HTC could stand out by being the first manufacturer to have phones with option to be with sense or just with pure google.

  • barondebxl

    It’s plain and simple, HTC has to cater to the main stream. They already have sense which is a beautiful android overlay. But now they need to work on their optimization and stop that stupid ” focus more on thinness than battery” mentality. If HTC can provide a handset with good battery life and NO LAG like the iPhone or the S3, they will start swinging but until then, they gonna keep fuc*ing up.

    • Raptor

      +1

  • kwills88

    they need to fix their bad battery and low ram reputation…they present you with an amazing phone, then slap a low battery on it..reason why I jumped on the galaxy line was the simple fact that the battery was good, I’ve loved htc since I had a t-mobile shadow, would be nice to see them be on top again.

  • HTC CEO

    HTC is dead in the water

  • bellken

    Once your reputation takes a hit, it takes a while to come back. Hopefully, HTC can restore their reputation, and, by supporting their “non-current” devices with software updates, I think they can do it.

  • sharon1234

    nice

  • sharon1234

    thx

  • DroidPower

    Here’s to hoping they make a comeback! the cutting price thing will surely help, but as long as they come out with solid products, I’m pretty sure consumers will shell out the reasonable amt of money for them.

  • honourbound68

    wondering how much of their price cuts will filter down to us since most people purchase carrier-subsidized phones (phones are usually pricepointed x49 – x99)

  • Alex Belko

    I sincerely wish good luck to HTC, They first decided to make less phones with better quality which means they should be priced pretty high, I hope they will not reduce the quality and make a lot of crappy phones, also looking forward to hq nexus by htc

  • vanessaelizebeth

    Very good review, thank you for being so detail-oriented.

    http://www.mobilephoneprice.in/