HTC may reduce component orders for HTC One M9 by 30%, say sources

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HTC may cut its orders for related parts and components for its flagship smartphone, the HTC One M9, by as much as 30% due to lower-than-expected sales for the model in the end-market, according to sources at Taiwan’s handset supply chain.HTC declined to comment on market reports.

However, the sources noted that sales of the One M9 have been flat as its design is identical to its predecessor the M8 and its hardware specifications are just comparable to other flagship models launched by other vendors.
Additionally, HTC is also facing strong competition from China-based vendors, including Xiaomi Technology, Huawei, Vivo, Oppo, Lenovo and Coolpad, in the entry-level to mid-range segment, making it difficult for HTC to ramp up sales for entry-level and mid-range models.

Although HTC has adjusted its product and marketing strategy by introducing the HTC M9+ to its high-end product line, it remains to be seen if the flagship models will complement each other, commented the sources.

HTC’s share prices dropped NT$1.50 (US$0.05) to close at NT$103.5 on the Taiwan Stock Exchange (TSE) on the May 20 session, the lowest level in over 10 years.

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