HTC, the struggling smartphone maker of Taiwan, clocked its most horrible quarterly loss this week, but claimed that it anticipates an optimization from the $1.1 Billion agreement with Google inked previously in 2018.
The pact, concluded in January, claims that Google will purchase part of smartphone business of HTC as the U.S. major seeks to take greater management of its hardware business. HTC has experienced successive losses owing to stiff rivalry in the handset segment from Samsung, Apple, and strong Chinese companies. Experts are also skeptical about the profit potential of investments by HTC in up-and-coming regions such as virtual reality.
Its woes were mirrored in the outcomes for the period from October to December, which characteristically might get a lift. But as an alternative the company clocked a net loss of Tw$9.8 Billion (almost $336.8 Million) in the quarter four, the largest ever. Income fell to Tw$15.7 Billion by 29%. The company credited the quarterly loss to rivalry, its product mix, inventory write-downs, and pricing.
“HTC has undertaken a tactical evaluation of the business to optimize processes and teams, and conveys the regions below common leadership for enhanced harmonization of the virtual reality and smartphone businesses,” it claimed to the media in an interview.
As the company suffered a seventh consecutive quarter loss, earlier it decided that it will stop the production of its entry level smartphones. In order to cover up the loss and recover from it, the company thought it right to halt the production of its budget smartphone and concentrate only on the flagship handset.
As per the reports provided by the company, it has come under notice that the mid range smartphones are not making much profit for the company. Hence, it has decided to stop its production and completely shifting their focus on the flagships.