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HTC denies phone business sale rumours

Rumours have been circulating in recent days that HTC is seeking a buyer for its smartphone business. The company has responded, however, dismissing talk of a sale.

Commenting on the issues to the website TechRadar, a HTC spokesperson simply stated:

“HTC strongly denies this rumour.”

Although HTC’s denial was firm, there is little that can be read into either rumours of a sale or HTC’s response.

If HTC was planning to sell its smartphone business, then providing confirmation to the press would undermine any negotiations with potential buyers.

Like nearly all smartphone manufacturers, HTC is struggling to make a profit from selling its phones. But unlike companies such as LG, HTC does not have a large financial safety net to provide reassurance while it chases market share.

The sale of HTC’s smartphone business would nonetheless be a radical move. Android phones are what defined the company, and growth elsewhere is far from guaranteed.

Although HTC is competing in the virtual reality sector with its HTC Vive headset, it is a market that has yet to be proven. Yet questions remain as to whether HTC can afford the diversity that its smartphone business offers.