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HTC To Sell Phone Factory, Invest In VR

Date Type Companies involved Size
March 20th, 2017 other HTC $147.8m
HTC To Sell Phone Factory, Invest In VR

HTC has announced that it intends to sell its Shanghai smartphone factory for an estimated 147.76 million yuan ($21,399,613 ). HTC’s board decided to sell the 114,831 square metre facility to Shanghai Xingbao Information Technology Co to restructure its assets and fund expansion of its VR business.

The news was reported by China Daily, saying that, “HTC added that there were no implications for its business or staff levels and its production capacity would remain as planned.”

 

Decline And Growth

HTC’s annual revenue dropped by more than a third last year to NT$78.16bn ($2.55bn) from NT$121.68 billion, a fall of 35.77%. Demand for HTC’s smartphones is in decline, while the Taiwanese manufacturer is seeing growth in its Vive VR hardware. Zhao Ziming, an analyst at Beijing-based consultancy Analysys, commented, “"In recent years its smartphone business has declined rapidly, especially in the Chinese mainland market. After selling the Shanghai facility, the company will be able to use more resources to develop the VR business."


Editor

Steve is an award-winning editor and copywriter with 20 years’ experience specialising in consumer technology and video games. He was part of a BAFTA nominated developer studio as project manager for the UK’s first fully interactive digital TV channel. In addition to editing TheVirtualReport.biz, Steve contributes to PocketGamer.biz, PCGamesInsider.biz and BlockchainGamer.biz, as well as creating marketing content for a range of SMEs and agencies.

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