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Tuesday, October 13, 2009

We won’t be surprised if your answer is a big “NO!”, for you only know this company as HTC !

Surbhi Chawla debates on the strategic & branding issues of HTC...

After a long lull of six months, the smartphone category has once again become the talk of town, with a slew of high profile launches. First, it was Samsung Star and Star 3G. They were followed by the Nokia N97, and now, HTC plans to get back at competitors’ heels with its first Android-based handset in India – HTC Magic. So what prompted such enthusiastic acts on the part of the smartphone manufacturers? Well, despite the fact that consumer spending on mobile handsets dried up during the first quarter of 2009 (it fell by 19% as compared to the same period in 2008, according to Gartner), the smartphone category recorded a swashbuckling growth of 25% during the same period, all thanks to the terrific market performance of the Apple iPhone, BlackBerry Pearl, BlackBerry Storm and of course, the HTC’s Android phone – G1. That was global, how about local? The story is no different for the smartphone market in India too, where sales in this category is currently growing between 20-25% (a trend expected to continue till 2010). And of all the ‘smart’ brands, perhaps the least discussed of late has been HTC. But does that mean that all is silent and still behind the HTC wall. 4Ps B&M decided to pay a visit to HTC’s Indian headquarters, to uncover strategies that it has drawn-out, to run through competition in India.

We begin with the HTC Magic. Surely, there are some ripples that this so-considered ‘magic’ device from HTC’s stable is causing, but of course, minus the loud marketing efforts made by Apple during the launch of its iPhone in India, about a year back. Of course, the unavailability of the handset model currently makes it a tad difficult to make predictions about its future, but some issues are as apparent as they can get, and the trouble starts right where its strength lies -the Android mobile OS on which HTC works. The USP of an Android is that it is open-source which enables one to install a host of applications on their handsets as per one’s needs. The problem is that Android’s application store is not functional in India yet, therefore customers who buy the Magic would have to play around with the existing applications that come pre-loaded with this handset or develop something for themselves. Simply stated, a hurdle that stands between HTC and the success of its latest Android-based handset.

So aren’t officials at the company worried over the same? Not really, as Jack Tong, Vice-President, HTC APAC states, “I think the response that Android mobiles have received worldwide was at times even beyond expectations and we expect something similar in the Indian market.” Of course, a spokesperson in the company acknowledged the fact that, “availability of an application store would have sweetened the offering.” However, he goes ahead and optimistically opines that there would be plenty of early adopters willing to get their hands on HTC Magic, despite the roadblock.

Moving on, apart from the HTC Magic, the company is currently offering 11 handset devices (10 GSM and 1 CDMA) that fall in the price range of Rs.10,000 to Rs.42,000 and is now looking to move beyond just touchscreens. “HTC has already become synonymous with touch phones and large screens in the Indian market and from now on our focus would be to go beyond the same,” explains Ajay Sharma, Country Manager, HTC India. As far as the company’s belief runs, it is only through provision of some differentiating and interesting factor (like a feature which enables the user to switch off the phone’s ringer by just turning the phone upside down) that consumers in the country can actually be attracted; ‘differentiation’ is the word here!
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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

Why does India matter to HTC?

Jack Tong,  VP, HTC APAC Jack Tong, VP, HTC APAC

4Ps B&M: How is the smartphone market in India shaping up and how are you placed in the same?
JT:
Well, right now, India is the ideal market to be introducing smartphones in, as the market is growing quite rapidly and there is a strong demand for the phones that enable people to do more than just talking. HTC is a strong player in terms of data capable devices and we believe that the market would keep growing given the fact that 3G would be launched shortly in the country. As a matter of fact, we are quite bullish about the entire APAC region and India is a very important market for us in this region.

4Ps B&M: What are the other devices that would be offered by HTC in the immediate future? Any plans to get the second Android phone in soon?
JT:
Well, we are looking at launching many devices that we have in the international market, in India too. You would see some of them shortly. But how many of them would be launched would depend on the market performance and the response our existing devices get. As for the other Android devices, that too would depend upon the response for HTC Magic and the market behaviour.

4Ps B&M: What sets apart HTC devices from all others in the market?
JT:
Well, we may not have as many devices as some of our competitors, but we do have a robust portfolio in the segment we operate in and our strength lies in not the number of devices that we offer but the ease of use and innovations that we are able to offer to the end consumers. We don’t believe in packing features, but add things that would be relevant to the customers and make his mobile experience faster or simpler or both.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Event at IIPM
2300 IIPM students get jobs
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM Admission Detail

Labels: , ,

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.