Struggling to compete with the likes of Samsung and Huawei, HTC is reportedly considering the sale of its smartphones business. In recent years, HTC’s flagship devices have not proven popular with mainstream consumers, leaving the company struggling to turn a profit.
At this stage, the rumours out of China appear highly speculative, although it is easy to see how a good business case could be made for HTC selling its smartphone arm.
As prices drop and companies struggle to produce the kind of significant technological advancements that were possible in the infancy of the smartphone market, few businesses in the sector are turning a profit.
This year’s HTC 10 was actually a very well-regarded device, but still did not deliver impressive sales numbers.
Even when HTC produces a market-leading smartphone, it lacks the financial muscle to compete with the marketing budgets of Samsung and Huawei.
Away from smartphones, though, the picture is a little more rosy for HTC.
Although the industry is still unproven as a major source of profit, HTC’s performance in the realm of virtual reality provides reasons for optimism. Sales of the HTC Vive VR headset have been encouraging, in an industry where there is growing momentum.
Therefore, to ensure the long-term survival of HTC, the company may well seek a sale of its smartphone arm. But such a move would likely be a source of sadness amongst enthusiasts, given the HTC’s strong history as an Android smartphone manufacturer.