HTC's CEO Coming Under Pressure As Company Struggles With Turnaround
A decade after he took over as the CEO of Taiwian's HTC, Peter Chou is coming under increased pressure to step down from the role.
Once applauded for leading the company from a small handset manufacturer producing products for mobile networks to rebrand into a global smartphone vendor, he is now seen as the problem preventing the company recovering from its current slump.
The Reuters news agency says that it interviewed a dozen former and current HTC executives who said Chou's abrasive management style and weak strategic vision play their part in the company's decline.
The company has seen its market share slump from around a quarter of the smartphone market to just 5 percent over the past five years as it struggled to react to the twin forces of Apple and Samsung.
HTC pinned a lot on its new flagship smartphone which received good reviews, but was delayed in its launch. A Facebook tie-up proved to be a flop. Now the company may be asked to sell its stake in the Beats headphone subsidiary it curiously invested in a couple of years ago.
The firm is also fighting a number of patent battles, and even support from Google in supplying some patents as defence has not substantially helped the company.
However, while Chou lead the company to success, he is said to be unsuited to dealing with the patent battles and rebuilding the company's reputation in the smartphone market.
"The weak point is they don't really have a long term strategy," one unnamed executive told Reuters. "It used to be a strength, and now is becoming a weak point as they don't have a clear direction going forward."
The other difficulty the company would face if it ousted its CEO is the lack of any obvious replacement.
The firm is expected to post a net loss in the forthcoming quarter, and that could finally force the issue, and give the company the breathing room it needs seek an outsider to come in and try to turn the company around.
On the web: Reuters