When it comes to choosing between mobile phones and VR services, HTC is facing a tough decision. This has become one of the most talked-about topics in the industry, especially among VR enthusiasts, following recent rumors about HTC selling off its mobile business. On September 21, the news officially landed, and what caught the attention of VR professionals was that HTC plans to sell some parts of its mobile division but will continue to focus on VR, which is still in its early stages.
Selling the mobile phone business seems like a smart move. At its peak, HTC once held a 10% share in the smartphone market. However, by 2011, its market share had dropped to less than 2%, and by 2016, it was only 0.68% globally. This decline led to a 35% drop in revenue last year, the lowest in 11 years, along with a loss of NTD 10.5 billion.
Helen Co., CEO of Helmet Enterprise, praised HTC's decision. “I believe this is a very correct choice. HTC’s mobile business has been losing money for years, so stepping back from an unprofitable area and focusing on more promising VR is a strategic move.â€
The mobile phone industry is now a highly competitive "red sea," while VR is still a "blue ocean" with huge potential. According to iResearch, China’s VR market reached 3.46 billion yuan in 2016, and it's expected to surpass 10 billion yuan by 2018. With a projected compound annual growth rate over 80%, China could become the largest VR market by 2021, reaching 79.02 billion yuan.
HTC started eyeing VR as a new growth driver as early as March 2015, when it partnered with Valve to develop the HTC Vive. As of June 2017, the Vive had sold 420,000 units, behind PS VR but ahead of other VR headsets. It remains a leader in the industry.
Tang Jianhong, co-founder of Little School Technology, believes HTC’s decision is driven by commercial logic. “In VR, HTC holds a significant and growing market share. In contrast, its mobile market share has been shrinking steadily. VR is still in its early stage, full of energy, while the mobile market is mature and HTC no longer stands out. Selling mobile and focusing on VR is a sensible move.â€
Despite the challenges in VR—such as resolution, latency, field of view, and interaction—HTC continues to invest. Although the market has seen a downturn, with some retailers reporting a sharp drop in sales, HTC remains committed. Ren Fuxin, founder of Xiaohuaxiu, believes HTC’s decision to stay in VR is deliberate. “They have confidence in the future of VR.â€
Industry insiders also warn that if HTC leaves VR, it could be a major setback. “HTC is one of the first companies to really focus on VR,†said Tang Jianhong. “If they abandon it, it could bring another winter to the industry.â€
While some companies are preparing for a possible downturn, others remain hopeful. Ren Fuxin said that having a company like HTC continue to support VR gives developers confidence. “We look forward to a bright future for the industry.â€
As the story unfolds, it’s clear that HTC’s choice reflects both the challenges and opportunities in the evolving tech landscape. Whether it’s the right move or not, the decision highlights the importance of innovation and long-term vision in a rapidly changing world.
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