It's no secret that HTC has been struggling in the past few years. Its flagship device HTC 10 and other smartphones the company has to offer haven't been selling very well. Low sales numbers have pushed HTC into financial trouble, as the company posted a $63 million operating loss in the third quarter, the latest in a long series of losses.
According to sources cited by Chinese tech website MyDrivers, HTC is now seriously considering getting out of the smartphone business. 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. Rumor has it that four companies have already lined up to buy HTC's smartphone operations, including a Taiwanese one. An announcement could be made early next year. Cher Wang, HTC's Chairwoman, CEO, and major stock holder has reportedly agreed to the plan.
Rumors of a possible HTC takeover have surfaced quite a few times in the last few years. The company has always denied them, saying it has no intention of leaving the smartphone market. And it's no different this time around, as HTC has already described the rumors as false in a post on Weibo. Even so, it is still possible that the sale might happen. Companies normally don't like to admit these types of things until they actually happen.
HTC has a history of pivoting to new sectors – the company was born in the 90's as a PC ODM manufacturer, before becoming a smartphone pioneer in the 2000's. HTC has repeatedly signaled that it sees its future as a VR headset manufacturer and invested hundreds of millions of dollars to establish a lead in this field.
What do you think about the rumors? Will HTC sell its smartphone business or not? As always, let us know in the comment section below.
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