A few days back, there were reports suggesting that Asus is planning to buy the fellow Taiwan based manufacturer HTC. Asus stated that it has not ruled out the option of acquiring HTC, and later clarified that it has not put a formal bid to buy the rival manufacturer. Now, HTC has come out with its statement denying any chance for acquisition by Asus.
Although a deal was unlikely, talks of a merger highlighted the unstable position of HTC in the industry. Despite of being the prominent Android maker, HTC has seen its revenues, profits and market share drop in the recent years.
In the past year, HTC witnessed further shake-ups. The firm’s Chairwoman, Cher Wang replaced the co-founder Peter Chou as the CEO in March as it seems to a new generation of connected services and products for extra revenue.
The firm suffered to a great extent in the monthly financial result before six years and the same happened in the Q1 2015 profits report. HTC has written off $93 million of unused production capacity and the firm is expected to post another loss for the second quarter of this year that could be 30 percent lower than expected.
Despite the high hopes of HTC, its flagship smartphone One M9 has had its share of ups and downs. After positive reviews and the use of premium hardware, the customer interest was not enough to produce the sales volume that was expected by the vendor.
In order to diversify from the smartphone industry, HTC launched the Re standalone camera last year followed by a tie-up with the gaming industry giant Value to launch the Vive virtual reality headset.
It looks like HTC is aimed to carry on fighting its position in the smartphone industry. The firm has a lot of resources at its disposal, but it fails to generate revenue. With the strong Android legacy in the market, HTC looks appealing to the faster growing firms in the industry.