HTC plans to exit the entry-level phone market moving forward and will instead focus its handset portfolio on high-margin devices.
The company made the comments during a conference call with media to discuss its fourth quarter financial results. HTC said it will continue to sell and support entry-level phones that are already in the channel, but the company will reduce the total number of new phones to six or seven for the 2017 calendar year.
HTC cited the high level of competition in the entry-level space as one reason for dropping low-cost phones from its lineup, as well as the slim chance it will be able to create profits from such phones. The company said it needs to focus on profitability in its handset business moving forward and will thus make only mid-range and high-end devices.
HTC announced the U Ultra (pictured) and HTC U Play at the Consumer Electronics Show in January. These phones are expected to go on sale in March.