HTC makes great smartphones. We know that. The company has released several amazing Android devices over the last couple of years, starting with the One X and followed-up by the One this year. But that’s not enough to correct the firm’s balance sheet. HTC’s value dropped $395 million following a poor showing during the second quarter of this year, for example, during which the One was supposed to help put the ship back in the right direction. So what needs to be fixed?
Former executives and current employees speaking with Reuters expressed concern with CEO Peter Chou’s leadership. There’s concern that his “abrasive management style and weak strategic vision,” have contributed to HTC’s failures, Reuters explained, and some employees are worried that there’s not going to be enough change soon enough. The board isn’t ready to oust Chou, who himself was rumored to have agreed to step down if the One wasn’t a success. Worse, employees are afraid that HTC doesn’t have anyone lined up to replace Chou should it come to that decision.
HTC told Reuters that the company’s board and a large number of its employees still stand by Chou, especially since the One was so well received. Though, with a declining value on the market and a continued uphill battle against competitors Apple and Samsung, there’s certainly some worry about the company’s future.
Will another successful smartphone be enough? Can HTC execute on those plans? Samsung has found success in spraying the market with devices in nearly every screen size – HTC can’t afford this sort of strategy and has worked on devices by putting all of its eggs in one basket. As we’ve seen with BlackBerry, doing that too often doesn’t work well either.
Chou apparently has a weakness in which he “berates” other employees who don’t agree with his strategy – though there’s a fear he doesn’t have a long term strategy of his own.