[Global Network Technology Reporter Chen Jian] HTC's voice in the Android mobile phone market has been getting weaker in the past two years. He was still an Android player and he is now planning to deepen his efforts in the VR field. It is reported that HTC will sell its mobile handset foundry in Shanghai for 620 million yuan and will have funds for research in VR virtual reality.
As early as 2015, it was rumored that HTC wanted to sell its mobile phone factory in Shanghai, but HTC denied it at that time. The relevant person in charge of HTC responded at the time that HTC would not sell the company, including the factory. At present, HTC has only two factories in Shanghai and Taiwan. Selling any of them will cause HTC's mobile phone production to suffer from major problems.
According to the latest news, the HTC Board of Directors decided on Wednesday that it will sell the Shanghai manufacturing plant to a mainland company for US$91 million (approximately RMB 630 million). The potential buyer is a company called Xingbao Information Technology. Domestic company.
HTC's factory area in Shanghai amounts to 114,000 square meters. It was built in 2009 and is mainly manufactured in the HTC series of smart phones sold in the Chinese market. In 2011, the monthly production reached 2 million units, but with the rise of other mobile phone manufacturers, HTC has left many production lines at the factory idle since 2013.
In 2015, HTC also sold its factory in Taoyuan, Taiwan, for US$183 million. Now it has 3 factories in Taoyuan. 2015HTC was also reported to sell the factory in Shanghai, but it was later officially denied.
HTC stressed that the sale of the factory will not affect the company's mobile phone business. But obviously this statement is not convincing.
According to the 2016 revenue data released by HTC, the company recorded revenue of NT$78.16 billion last year, the lowest level in 11 years. HTC’s operating loss reached US$117 million in the last quarter. However, the good news is that HTC's investment in VR has received certain returns. Last year, HTC Vive sold 450,000 units after listing. However, with the VR market being overheated and rational, coupled with VR's relatively long investment return period, it remains to be seen whether HTC will sell the plant after it is a correct choice.
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