HTC unveils Desire 816 to chase growth in cheaper smartphones

Peter Chou, chief executive officer of HTC Corp., unveils the new HTC Desire 816 smartphone at the Mobile World Congress in Barcelona, Spain, on Monday. Photo: Simon Dawson/Bloomberg

Barcelona/Taipei: HTC Corp. unveiled a lower-priced smartphone at the Mobile World Congress in Barcelona as the unprofitable Taiwanese smartphone maker chases growth in cheaper handsets.

The Desire 816 is a smartphone priced in the mid-tier and will be available in China starting in March and in other countries beginning in April, chief executive officer Peter Chou said at a press conference on Monday.

HTC this month forecast its third consecutive operating loss as shrinking sales and rising competition erode market share. Taoyuan-based HTC is counting on initiatives including wearable devices and a new version of its One handset to help reverse two straight annual declines in revenue as Chinese competitors including Xiaomi Corp. sell smartphones for as little as $100.

“With the HTC One leading in the premium segment, it’s clear that there’s a huge opportunity in the middle of the market,” Chou said. “Many people want to have an affordable smartphone that does not compromise.”

HTC plans to demonstrate the first of three wearable devices this week in Barcelona, a person with direct knowledge of the plans said last week.

Smartwatch prototype

A smartwatch prototype based on Qualcomm Inc.’s Toq device will be previewed to carriers at the Mobile World Congress and HTC is also developing a watch using Google Inc.’s Now service, the person said, asking not to be identified because the details haven’t been released.

Separately, the company announced the Desire 610, which it calls a compact entertainment hub, with a 4.7 inch (12 centimeters) screen, a quad-core processor and fourth-generation LTE connectivity. It will be available across Europe from May, according to a press release.

The Desire 816 has a 5.5-inch screen, 1.6 gigahertz quad- core processor and a 13 megapixel rear camera, fourth-generation LTE connectivity. Prices for the devices weren’t disclosed.

Better marketing and customer service this year will help HTC convince consumers to buy its devices, which received strong reviews last year while posting declining sales, chairman Cher Wang said this month.

HTC, one of the few global companies that only makes smartphones, had a 30% drop in sales last year following a 38% decline the year before. Its stock has fallen 8.2% this year and lost 90% since a peak in April 2011.