HTC’s mobile division has been struggling even with the release of the HTC 10 which has been flying under the radar for one of the best phones of 2016. It’s no secret, that it has been struggling for a long time now. Other than Samsung, every other major Android brand is struggling, some more, some less. Sony managed to downsize their business to bring profits this year, HTC though, a company just as under the water, is still taking huge losses.
Due to these struggles, there is a new rumour swirling that the company is considering the sale of its mobile division.
According to sources cited by Chinese tech website MyDrivers, the co-founder and chairperson of HTC, Cher Wang, might be thinking of selling away its mobile phone business to get a hold of HTC’s finances and bow out of the smartphone industry without getting bankrupt. The competition has proven to be too much for the Taiwan-based company, which is now looking for a new owner for its smartphone biz, according to the website.
The mobile division of HTC has been suffering severe losses, which would help explain why HTC signed the deal with Google to produce the Pixel and Pixel XL. It would make sense for Google to purchase the division if the company plans to continue releasing its own devices.
But while everything makes sense, it has made sense for quite some time now and rumours of HTC (and also Sony) quitting the smartphone market have also surfaced several times over the years and the company has outright denied them each time. Whatever your opinion about HTC continuing may be, the case is similar this time as well, as HTC has already described the rumors as false in a post on Weibo.
Although, companies generally don’t like to admit failure, especially the kind that involves being sold off, until it does happen. So there’s a good chance the sale might still actually happen.
HTC isn’t new to pivoting to new businesses, the company started off as a PC ODM (Original Device Manufacturer) in the 90’s, before switching to phones in the 2000’s. HTC has spent millions of dollars in its VR headset and have admitted they believe the VR industry will overtake the smartphone industry in the coming future.
So while HTC denies the rumours, there’s still a good chance. Not that it will shape HTC’s decisions in any way, but what do you think HTC should do? Should they sell of and look for new things? As always, let your thoughts and opinions be known in the comments below.