How HTC's market share collapsed

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HTC Market Share

BI Intelligence

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HTC accounted for a minuscule 2% of the global smartphone market last quarter, according to a report by Wired, citing Gartner. The company, which was one of the leading smartphone manufacturers in the world in 2011, is a perfect example of how smaller smartphone vendors are finding it harder and harder to compete in the rapidly consolidating handheld market.

  • Over the past few years, Samsung, Apple, Huawei, and Xiaomi have quickly emerged as the dominant smartphone manufacturers, cornering the high- and low-end markets for smartphones in almost every country.
  • Samsung and Apple, which lead the pack, are aimed at the premium price point market, reflected in their dominance in wealthier countries such as the US or the UK.
  • Huawei and Xiaomi lead the mid- to low-end price point for smartphone devices, concentrating primarily on emerging market countries.

If rival smartphone vendors are unable to compete against the likes of Samsung and Apple, their best bet is to pivot and get in on the ground floor in emerging market countries where mobile devices are just starting to proliferate. However, as a latecomer to the fast-growing Chinese and Indian markets, HTC won't easily be able to compete against the likes of Huawei and Xiaomi.

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