HTC Sales Tumbled 61 Percent In 2018 As Global Smartphone Competition Intensifies

HTC Corporation recently reported that its sales fell by more than 61% this past year. The company was plagued by acquisitions, layoffs, and resignations throughout 2018. Many analysts blame intensified global smartphone competition for HTC’s dismal numbers.

This is the seventh consecutive year that HTC’s sales have decreased. The company’s total sales rang in at NT$23.74 billion ($768 million USD) or 61.78% less than last year. Their consolidated sales have consistently declined throughout 2018. December sales were 8.24% less than November sales, while their third quarter worth per shares were NT$0.65 billion ($21.1 million USD) less than quarter two.

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HTC was founded in 1997 and was one of the first companies to design touch and wireless handheld devices. The company’s stock peaked in 2011 when it was named the largest smartphone vendor in the United States. HTC soon after began to face fierce competition from companies like Apple and Samsung. This past year HTC was not even able to break into the top five smartphone vendors. Overall, HTC’s stocks have dropped by 97% since its peak in 2011.

HTC has tried to reorganize and sell parts of the company to help offset losses. In January, Google finalized its acquisition of the “Powered by HTC” R&D division or the team that worked on the Pixel devices. This sale helped break the net loss streak, but was not enough to get the company back on track. Shortly after the acquisition, Chialin Chang, the President of HTC’s Smartphone and Connected Devices Business, resigned and the company’s VR and mobile divisions were consequently combined. In July, HTC laid off 1,500 employees or a little under 25% of its worldwide workforce.

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The company remains optimistic despite the losses. HTC Chairwoman Cher Wang predicted that 2019 would be a better year for the company. She stated that the company would continue to focus on VR, AR, AI, 5G networking, and blockchain technology. Darren Chen, head of HTC Taiwan, added that the company would launch new high-end and mid-range models. Both Wang and Chen are confident that VR sales in particular will pick up, especially since the Vive Focus Standalone VR Headset will be available in the United States this year.
Tags:  Mobile, HTC, Sales, VR, (tpe:2498)