When you are as big as HTC, you are always being challenged. When Apple announced the US$199 price for the new iPhone 3G, HTC stock took a beating. This forced HTC to have a relook at their price structure by lowering prices of their existing models for the Asian markets.
HTC entered the UMPC market with their SHIFT model without expecting a so-cheap model like the Asus Eee PC to be produced. The increasing popularity of Asustek Computer’s Eee PC has resulted in a significant impact on the development of UMPCs (ultra mobile PCs). The Asus Eee series come cheap and it may force HTC to adjust its deployment of UMPC products.
HTC will have to strengthen users’ Internet experience through mobile devices like the Shift and their up and coming new MID (Mobile Internet Device) products, which will be using Intel’s Atom and Qualcomm’s Snapdragon chipset platforms. On the new MIDs, HTC should place emphasis on how they are going to be priced. One wrong move, and the MIDs will be collecting dust in no time.
Among all the excellent features that come with a device, the wrong price can just kill it on the spot. I am sure Apple spent hours brainstorming on the right price for the iPhone 3G long before it was launched.
PRICE is the weapon that will be used over and over again.
