HTC to back out of entry-level smartphone market to focus on mid and high-end phones

Following a dismal earnings call, HTC has announced that it plans to exit the entry-level smartphone market and focus on high-margin devices.

Speaking to the media, HTC stated that it would continue to sell and support existing entry-level smartphones “in the channel” but added that it would cut down the number of new phone launches to 6 or 7 this year, reports Phone Scoop.

HTC and has failed to make a real impression on the smartphone market for many years. Its last successful smartphone was the HTC One M8, which was released almost 3 years ago.

The entry-level smartphone space is a cut-throat world today. It’s flooded with models from Chinese handset makers and margins are razor thin. HTC cites this intense competition and the lack of much profitability in the segment as the reason for its withdrawal.

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The smartphone maker will now work exclusively on mid-range and high-end smartphones.

The Verge points out that HTC did cut back on smartphone production before. The last time it did so was in 2012.

In the call, HTC mentioned that it would continue its work in the VR headset space and that development would proceed as planned.