Based on HTC’s quarterly earnings reports this year, you might agree with Reuters columnist Robyn Mak’s remark that HTC is “heading for extinction in 2016.” Mak’s statement was made with his analysis of the current state of the smartphone market and many smartphone manufacturers’ inability to squeeze out a profit in 2015. Responding to Mak’s harsh comment, Cher Wang and HTC went on the offensive, stating that the HTC brand will never disappear.
HTC claims that it is well positioned to take on the competition with targeted devices for niche markets and that 2016 may actually be the first year that HTC will make money from its Connected Devices division. The HTC Vive VR system will go on sale in April and HTC’s partnership with Under Armour should produce a family of connected fitness devices during the first half of 2016. That being said, HTC does need to find a way to return its smartphone division to profitability in 2016. Fortunately, the company is already working on internal reorganizations that should cut out a lot of unnecessary overhead and result in a more coherent product portfolio.
HTC may never regain the market share in the smartphone industry it enjoyed in 2011 and 2012, but it certainly isn’t doomed.