HTC pinning its hopes on the Vive and HTC 10 as sales fall 64% during last quarter

midian182

TechSpot Editor
Staff member

HTC may be making plenty of positive headlines with its Vive virtual reality headset, but the company’s latest earnings report shows that it’s still struggling to compete with Apple and Android devices in the smartphone market, as the Taiwanese firm posted its fourth consecutive quarter of losses.

Compared to the same period last year, HTC’s sales were down 64 percent to 14.8 billion Taiwanese dollars (US $460 million) from NT $41.8 billion (US $1.29 billion). Profits, meanwhile, fell 78 percent from NT $8.2 billion (US $250 million) to NT $1.8 billion ($60 million).

It’s worth mentioning that the Vive isn’t included in the company's figures for the quarter, neither is the new HTC 10. But the report is still bad news for HTC, which will now be hoping that its VR device and flagship smartphone can turn around its ailing fortunes.

"The media and consumer buzz around HTC, including for the keenly-awaited launches of the flagship smartphone and Vive virtual reality system, clearly demonstrate our leadership in innovation and have provided a great boost to the HTC brand," said Cher Wang, chairwoman and chief executive of HTC in a statement.

HTC’s Cheif Financial Officer, Chialin Chang, said it will “trim expenses” as it attempts to lower operating costs. The company recently sold off some land and is continuing to invest heavily in the Vive.

“HTC has seen strong launches in early Q2 ’16 for both the new flagship smartphone, the HTC 10, and the HTC Vive virtual reality system and anticipate good momentum over the year,” the company wrote in its earnings report.“HTC will continue to streamline processes and optimize resources to develop products in the most effective way.”

As noted by the BBC, it was only five years ago when HTC was ranked as the fourth best-selling smartphone maker in the world, with a market share of around 9 percent. Today, it sits in 17th place and holds a 1 percent share of the market, according to research group IDC.

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Theinsanegamer

TS Evangelist
HTC needs to start standing out from the crowd. Making a midship phone without pricing it out of the market (htc a9) would be a great start.
 
R

RustyTech

Here is a revolutionary idea...how about including features consumers want?? I know this is probably that Mind.Blown moment, but that will go a long way!
 
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amghwk

TS Guru
HTC should stop mimicking iPhones - So called unibody craze and taking away customary options like replaceable battery and microSD support.

And pinning it's hope on Vive, which is an unproven tech despite all the hype, seems to be a looming disaster. It should just focus what it does best - the phones.
 

Axle Grease

TS Addict
HTC should stop mimicking iPhones - So called unibody craze and taking away customary options like replaceable battery and microSD support.

And pinning it's hope on Vive, which is an unproven tech despite all the hype, seems to be a looming disaster. It should just focus what it does best - the phones.
The market is saturated with mobiles which means it's time to venture into sometime new. Having got an HTC Vive, I am not talking out of my arse when I say that the immersive entertainment industry will be massive. Getting in early is a wise decision by HTC and the Vive is a fantastic start. It's hard to convey the VR experience to people who've never experienced VR. The best thing I can suggest is to watch peoples reactions on youtube vids and then make your own decision as to the wisdom of HTC pinning its hopes on VR technology development.