HTC – Buyers are not interested in low-end handsets

Low end handsets unwanted Apparently HTC has been criticised by analysts for not catering enough to the low-end smartphone market that support huge vendors like Nokia and to some degree RIM.

HTC has responded by confirming what we already suspected – their low-end handsets just do not sell very well.

According to Digitimes Peter Chou had said after a recent stockholders meeting in Europe and North America, where they sell most of their handsets, mid to high end smartphones are the mainstream, with buyers more than willing to pay the modest price premium for more powerful features.

HTC said after an extremely well received collection of handsets the company expects Q2 2010 revenue to rise sequentially by 40-50%, with significant growth in shipments and profits.

Is HTC right that they would be wasting their time on low-end handsets when everyone wants a HD2 or better, or should HTC still be catering for the large masses who do not see the same value in smartphones as we do? Alternatively is the cost of the handset such a small proportion of the total cost of ownership of a 2 year contract smartphone that saving $100 is really just being penny wise and pound foolish? Let us know below.

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