HTC – Cut and run.

As good as the M8 is, it will not save HTC.

• HTC launched is new flagship device at an event in New York and despite the specifications being widely leaked it did not disappoint.
• The HTC One M8 is a great device.
• It sports an attractive metal unibody design, a larger screen, 2.3Ghz Snapdragon processor, improved speakers and some fancy new imaging features.
• The device will also have a case that uses tiny holes in the case to create a dot matrix display.
• This allows data like time, weather and caller ID to be displayed without the user having to open the case.
• On the surface these are incremental improvements on what was a good phone that keep it competitive with the high end of the market.
• However, there is nothing here that makes it stand out.
• HTC fans will argue that there are features that make it better than the Galaxy S5, LG G pro 2 or the rumoured iPhone 6 but even if they are right, it will not be enough to save the company.
• The graveyard of technology is littered with the graves of great technologies that were slain by inferior technologies with great marketing.
• Betamax vs. VHS is a great example.
• It is here that the fundamental problem with HTC is to be found.
• HTC does not have the resources to compete with the mighty marketing machines of Samsung, Apple, Microsoft or even LG.
• It is not as if the device can sell itself on price as the unsubsidised price is somewhere around $900 which is right in line with its high end brothers.
• This essentially means that the fan base will buy it but operators will not put real subsidies behind the device as there will not be the marketing punch from HTC to match it.
• Barring a miracle, this means that market share is likely to continue falling leading further losses and the need to cut back operations again.
• HTC is in the death spiral and the only way to break it is a massive investment in marketing to put market share back on an upward tack.
• HTC simply does not have the resources or the bravery to attempt such as rescue and so I suspect that its rapid decline will continue.
• Investors should be using any strength in the share price to cut their losses and run.