We have posted about HTCâ€™s troubles recently, and it is obvious HTCâ€™s management is not blind to their travails either.
HTCâ€™s CEO Peter Chou has sent a memo to HTC staff which has been leaked in which he blames creeping bureaucracy for their recent poor performance.
â€œWe have people in meeting and talking all the time but without decision, strategic direction or sense of urgency,â€ Chou wrote to HTCâ€™s workers, Chairwoman Cher Wang and the board of directors in an e-mail obtained by Bloomberg News. â€œBureaucracy crept in without clear ownership. We agreed to do something but we either didnâ€™t do it or executed it loosely.â€
â€œWe are disappointed that our sales are down while smartphone market share is growing,â€ (but) â€œwe are coming back.â€
Chou did admit that the company was facing much bigger competitors however, but still blamed complacency, saying:
â€œOur competitors can leverage their scale, brand awareness and big marketing budget to do things which HTC could not do,â€ Chou wrote. â€œThe fast growth from the last two years has slowed us down.â€
Chou, 55, said the company needs to build on its culture, â€œcommittedâ€ employees and customer relationships.
â€œDonâ€™t let the processes, rules and norms to impact our important goals,â€ he wrote. â€œOf course we have to follow certain rules and criteria but donâ€™t let small things kill the major goals.â€
â€œThe industryâ€™s best ratingâ€ for HTCâ€™s One X handset is evidence the company has the best products, Chou wrote. There are also strong products in the pipeline for this year and early next year, Chou wrote without naming them.
Chou said workers have every reason to remain confident and should not be â€œinfluenced by noises from market and industryâ€ because the company is â€œjust having short-term challenges.â€
â€œPlease make sure that we kill bureaucracy,â€ he wrote. â€œStay firm with the hero innovations and make them even bigger and deliver them.â€
HTCâ€™s is rumoured to be releasing 3 Windows Phone 8 handsets next month.Â Hopefully these handset will have some â€œhero innovationsâ€ desperately needed to compete against Nokiaâ€™s Windows Phone 8 onslaught, which saw the company take 80% of the Windows Phone market in q2 2012.