HTC will transfer the mobile phone business to the full force of VR Google or acquisition

In the smart phone market, Taiwan's HTC Corporation (Hongda Electronics) has fallen from a former smartphone ancestor company to a company with a negligible market share. Recently, the industry has rumored that the company is preparing to transfer the sluggish smartphone business.

Based on a number of foreign media news, the industry rumors that due to the long-term sluggish sales of smartphones, the business has suffered long-term losses. Wang Xuehong, the head of HTC, has made a decision to transfer the mobile phone business. In the future, HTC will no longer be a smartphone manufacturer.

As early as more than two years ago, Xue Yu had already talked with a big domestic factory, because the price was too high to achieve, but completed another acquisition.

Earlier, some insiders said that the total shipments of HTC mobile phones this year were only 10 million units, which was less than the sales of Huawei and Xiaomi in one quarter. However, the new field of vive VR glasses is a competition, with more than 140,000 units sold in October.

If the rumors are true, HTC will become another company that has suffered a fiasco in the smartphone market after the Nokia and Finnish BlackBerry, and has been forced to withdraw.

Earlier, HTC has seen a number of flagship mobile phone sales downturn, the company's mobile business has long been in a loss. This is why the company has tried every effort to design Pixel phones with Google and provide OEM manufacturing for each other.

HTC will transfer the mobile phone business to the full force of VR Google or acquisition

However, foreign media recently pointed out that Google's mobile phone cooperative design and foundry business has not become a lifeline for HTC. The main reason is that although Google's mobile phone has achieved initial product success, this niche product does not pass US mobile. Carrier sales, the market is very limited, simply can not compare with Apple, Samsung Electronics' flagship mobile phone.

Foreign media pointed out that if HTC is willing to transfer mobile phone business, Google should be a reasonable potential acquirer. In the past, Google has acquired Motorola Mobility, but did not improve its operational dilemma. After the divestiture of nearly 20,000 patents, Google transferred Motorola Mobility to China's Lenovo Group. To this day, Motorola Mobile has not yet emerged from the predicament, but has caused a burden to Lenovo Group.

According to analysis, if Google acquires the HTC mobile phone division, it may get some of the company's mobile phone design talents, which is what Google is currently lacking. After the transfer of Motorola Mobility, Google did not give up the dream of making mobile phones. The company chose to operate mobile phones in a light asset manner. Currently, one or two self-branded smartphones are launched every year, often designed in cooperation with world-renowned Android mobile phone brands. For example, HTC, Huawei, South Korea LG, etc., the manufacture of mobile phones is also entrusted to partners.

However, for this industry rumor, according to Taiwan media reports, HTC has rumored that there is no plan to transfer the mobile phone business.

In 2016, HTC launched this year's high-end flagship mobile phone HTC 10, becoming its weapon for market share, but according to third-party market organization data, as of July, this mobile phone sales only a bleak one million, has not reached The sales standard of a mobile phone manufacturer's flagship mobile phone.

In the past few quarters, HTC's mobile phone sales and related revenues have plummeted at a rate of about 50%, and the current global market share is becoming very small.

For the decline of HTC mobile phone business, Taiwan media analysis said that the company had made mistakes in product positioning. HTC has always positioned itself as a high-end brand, hoping to compete with Samsung Electronics and Apple. This positioning has led to the high price and low cost performance of HTC's flagship mobile phone, which has caused consumers to stay away from it.

Public opinion believes that HTC does not have the strength to compete with Samsung Electronics and Apple for the high-end mobile phone market, whether in new technologies, new parts development, mobile phone design, and advertising marketing investment.

At the same time that high-end mobile phones failed to break through, due to the rapid rise of the Chinese mobile phone army, gradually extending from the low-end market to the mid-end market, some of HTC's mid-end product lines were also hit, and the market share slump was not unexpected.

At present, Wang Xuehong has put his energy and resources into the virtual reality market. The company launched the full-featured virtual reality helmet Vive and is ready to build a VR content ecosystem that integrates third-party developers. But whether virtual reality can become a mainstream mass market in the future, and grow a market comparable to smartphones, whether HTC can rely on virtual reality to reproduce the glory of the year, this is still an unknown.

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