With HTC’s sales continuing to dip, the Taiwanese smartphone maker is shaking up its executive suite. HTC’s board of directors just named Cher Wang as its new CEO, effective immediately. Wang, chairwoman and co-founder of HTC, replaces Peter Chou, who will transition into what the company is calling a “strategic” new role leading the firm’s future product innovation.
“We are seeing rapid changes in the industry, with the smartphone as our personal hub connecting us to a growing world of smart devices,” said Wang. “As an entrepreneur at heart, I am excited to see so many new opportunities, and I am honored to accept this opportunity to help shape the next stage of HTC’s development.”
Chou Made His Mark
This shouldn’t be a huge leap for Wang. Beyond serving as co-founder and chairwoman, Wang has recently been involved in running different aspects of HTC so Chou could focus on product development. The board decided now was a strategic time to make the transition so HTC could move into the next stage of its development.
Chou definitely made his mark on HTC, transitioning the firm from a handheld device original device manufacturer to a global company. Now, he’ll head the HTC Future Development Lab to focus on identifying future growth opportunities as the company struggles to drive profitability. HTC posted a fourth quarter 2014 loss of NT$ 1.56 billion (close to $ 52 million).
All this despite the firm’s big spend to get Iron Man Robert Downey Jr. to star in a campaign that spanned digital, social and PR. In 2013, Downey inked a two-year deal with HTC. But product launches continued missing the mark with consumers in a smartphone world dominated by Samsung and Apple.
Will a New CEO Help?
Can Wang turn it around? Maybe. She has a strong track record in the electronics industry and has built several successful IT-related businesses. HTC, itself, is a multimillion-dollar global company that shook up the smartphone industry with its Android-powered devices.
CNBC named Wang one of the 25 people to have the most profound impact on business and finance since 1989. In 2011, Forbes named her “the most powerful woman in wireless” and Fast Company called her one of the most influential women in the industry. She has many such accolades, but does that mean she can right the ship?
We asked Rob Enderle, principal analyst at the Enderle Group, for his thoughts on the shake up. He told us HTC’s problem is that the Android segment is very low margin and handset makers need vertical integration and a diverse portfolio to survive — and HTC has neither.
“A CEO change isn’t going to fix a fundamental problem, which is that they are overmatched when it comes to competing with heavyweights like Samsung and LG — both of which are also struggling in the segment,” Enderle said. “Until some additional margin can be driven in, small focused shops like HTC will have a hard time staying in business let alone growing revenue or profit.”
