As a result of declining sales and sales figures, HTC is considering a spin-off or sale of the Virtual Reality division around the HTC Vive (Test). A sale of the whole company is an option, albeit less likely.
Declining smartphone sales are not intercepted
In the last few years, HTC has found itself in the smartphone market, the largest stand of the company, in difficult water. In the high-end market dominate Samsung and Apple, entry-level and middle-class smartphones are offered in particular by Chinese suppliers at reasonable prices. To get back into the smartphone market, HTC is also trying out its own top-notch models such as the U11 (test) with production orders for Google, including the pixel and pixel XL (test) and the successor pixel 2.
Vive as a second stand could be sold
HTC has developed a second stand in cooperation with Valve over the VR glasses Vive. According to Bloomberg , HTC is considering divesting this division into a separate company or selling it entirely. For the evaluation of further strategic steps, the company from Taiwan already had a consulting company to the side. Initial talks on the sale of Vive should have been conducted, among other things, with Google, according to the magazine with reference to anonymous sources.
To reach a larger market and also with the cheaper prices of Oculus Rift (Test) and PlayStation VR (test), HTC has recently lowered the price of glasses by 200 euros. According to IDC’s market researchers, HTC sold 190,000 Vive in the first quarter of 2017, while Oculus sold only around 100,000, while Sony sold 430,000.
Complete sale or status quo as options
According to Bloomberg , an agreement with a Silicon Valley company like Google would benefit CEO Cher Wang’s reputation. Since her entry at HTC in 2015, she has not been able to counter the financial downturn. This also had an effect on the HTC share: over the past two years, the manufacturer has lost a total of 75 percent of its stock market value. Wang, who is also the largest shareholder, was regarded as Taiwan’s richest woman until the break-up of HTC shares.
A sale of the company as a whole is, in principle, an option, but appears to be much more improbable. This is due to the fact that HTC does not fit into a single buyer. A final decision had not yet been taken; Even a complete departure from a sale is possible, so HTC continues as before.