HTC’s smartphone division has seen better days, with the company struggling to sell 1 million units of the powerful HTC 10. Is it time for the company to focus on the highly successful HTC Vive virtual reality headset instead?
( HTC )
The HTC 10 is a powerful device, capable of going head-to-head with the Samsung Galaxy S7 and the LG G5 in terms of performance.
However, it seems that the market has not been swayed by the smartphone, as it has been reported that the HTC 10 is struggling for sales.
In a new report by TrendForce, the global market research company stated that Chinese smartphone brands will be able to continue with substantial increases in production volume through the rest of the year, with Huawei, Oppo and Vivo expected to maintain their strong market performance.
Taiwan-based HTC, however, was reported to be looking at a production volume of only 1 million units for the HTC 10, because of the strong competition coming from the aforementioned Chinese brands.
The problem most likely is not due to any shortcomings by the technology within the smartphone. The HTC 10 features a 5.2-inch quad-HD display, Qualcomm’s Snapdragon 820, 4 GB of RAM, expandable memory of up to 2 TB and a 3,000 mAh battery.
However, one criticism against HTC and its devices is the fact that they have safe designs with lackluster features. The $700 price tag of the HTC 10 could also be a deciding factor in its disappointing sales, as customers flock to purchase high-end devices of more popular brands at that price point.
The difficulties that HTC is currently facing are among the reasons why it established a subsidiary for the HTC Vive virtual reality headset, which is performing exceedingly well, opposite to HTC’s smartphone business.
With the formation of HTC Vive Tech Corporation, managers and engineers working on the HTC Vive will be able to focus entirely on the entertainment and gaming sectors wherein the virtual reality headset will operate. In addition, investors who are looking to support the HTC Vive will be able to do so without having to worry about getting involved with the parent company’s struggles in its smartphone division.
HTC is hoping that the HTC Vive will be able to get the company out of the dire situation that it is in due to the underperformance of HTC’s smartphones, which will remain its core business.
Instead of shifting its focus entirely on the HTC Vive, the company is still looking to bounce back in the smartphone market. The company has been tapped by Google to manufacture two smartphone models under the Nexus line, which will be released this year, and HTC is hoping that the partnership will yield great rewards.
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