HTC thinks it will do well in 2014. Here’s why

HTC’s chief marketing officer Benjamin Ho is in the fight of his life. Since taking over the role in 2012, he has been trying to reverse the phone maker’s flagging fortunes and make the brand desirable to consumers once more.

The results were mixed. Despite launching the HTC One to critical acclaim, the company wasn’t profitable in the first quarter of 2014. That was its third loss in three quarters. You can’t blame marketing for everything, but it did play a part.

Now, the company’s top brass hopes the sequel to the HTC One, dubbed the M8, can bring it out of the doldrums. It’s a repeat of 2013: critics are fawning over the phone, which has a sleek aluminum finish, a depth sensor for the camera, and some nifty touch gestures.

But as the first version of the One showed, excellent design alone won’t be enough to win the day. But here’s why the company still believes it can have a good 2014.

HTC flagship phone may be the one, but it’s not a solo effort

Without divulging any hard targets, Ho believes HTC can improve on its global smartphone market share of three percent due to a bigger line-up of products. Besides the One, the company has the Desire line of mid-tier phones.

It’s also planning to launch a tablet and a smartwatch in the latter part of 2014. While details about the smartwatch are scant, the tablet is reportedly an 8.9 inch Nexus model.

“In one quarter we announced three new models. We will have a much richer and fuller portfolio,” says Ho. The wider array of products could allow HTC to sell more units and make up for lost time.

It’s taking a bite out of Apple’s playbook

HTC emulates Apple in many ways. It targets discerning consumers in developed markets that shell out more for better phones – exactly the same kind of gadget lovers coveted by Apple. It is selling the first version of the One even as it promotes the M8, just like how Apple is still shifting the iPhone 5 despite already releasing the 5s.

HTC also believes in taking a slower, more deliberate pace to innovation. It’s not clamoring to be the first few to market like Samsung with the Galaxy Gear. Rather, it is studying consumer behavior – including that of HTC customers – to figure out why they would want a smartwatch.

“Sometimes it’s good to be first. But with new product categories, I prefer to be the first to observe and first to learn.”

Besides a thin form factor, Ho believes health tracking will be the killer app for smartwatches – an approach that follows Apple’s rumored iWatch. Conserving battery life is also a priority – consumers expect smartwatches to have more stamina than their phones – although there’s no sign how it plans to achieve that.

“You don’t want a big chunky piece as your watch. Do we have to design it more like a lifestyle watch? I think there’s a compelling reason for it.”

Robert Downey Jr. has paved the way for HTC

With a much smaller marketing budget than competitors like Apple and Samsung (HTC is outspent 13 to 14 times by them), it needs to make every dollar count.

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