Taiwanese mobile company HTC is experiencing riches-to-rags syndrome as the mobile brand faces stiff competition from Apple, Samsung, and other Chinese makers. This reverse pattern (usually people go from rags to riches) came to surface when media came to know about the layoff spree in the manufacturing unit. HTC said it would cut 1500 jobs at its manufacturing unit in Taiwan.
Interestingly, HTC employed 6450 people globally in June; this means, nearly a quarter of its workforce will be jobless.
Apple believed to be responsible HTC’s Downfall
HTC believes that layoff will optimize the manufacturing organizations in Taiwan, “This plan will allow more effective and flexible resource management going forward.”
The company plans to finish this layoff process by the end of September. According to HTC, the company is planning to bring its two products – smartphone and VR headsets – under the common umbrella.
The real reason behind this sacking of employees is Apple’s growing presence in the smartphone world. In the fourth quarter of 2017, Apple shipped 77 million units, while Samsung shipped 74 million units. Moreover, the combined shipments of three Chinese phone brands stood at 96 million. This clearly indicates that HTC’s total shipments are equal to a rounding error for its competitors.
Moreover, Google’s $1.1 billion deal under which the search engine giant bought most of HTC’s designers for manufacturing of Pixel models proved a nail in HTC’s coffin. These designers were mainly handset engineers.
Following several crises, HTC reported a 55.5% plunge in April revenues YOY and a 46.7% slide in March sales.
The glorious past of HTC
If young users are not familiar with HTC brand name, they will be surprised to know that the company was first to Android model, the HTC Dream (also known as T-Mobile G1) in 2009. HTC was the third-largest phone maker in the world until 2011, next to Apple and Samsung then. After this phase, HTC faced tough times and it’s HTC One series has witnessed unexciting response from users, who turned to iPhone and Galaxy S models. Notably, HTC manufactures Pixel phones for Google.
HTC has to come up with a killer phone design that can give Apple and Google a good run for their money. As long as Apple and Android giants like Pixel and Galaxy are there, HTC has no room for standing.
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