Wednesday, March 30, 2016

Investors are not optimistic about HTC s revitalization plan

  Foreign media reported that investors are not optimistic about Taiwan smartphone maker HTC has launched the revitalization plan.

  To reverse the downturn, but HTC has made a lot of attempts.

Investors are not optimistic about HTC's revitalization plan

  Since last year, HTC replaced, Chief Marketing Officer, started selling similar GoPro sports camera, developed virtual reality helmets, and increase investment in high-end One series phones, but sales are still poor. In addition, HTC CEO Peter Chou was also replaced, company Chairman Cher Wang total comes to the fore.

  However, none of these measures made the established results, investors are not happy.

  In the eyes of investors, HTC in 2011 is the world-wide competitors, product sales on a quarterly basis once it has reached 4.6 billion dollars. At that time, HTC also briefly ranked United States largest smartphone maker, but many research institutions have now dropped out of top ten list of the world's smartphones.

  In the past four years, due to Apple, Samsung and other makers of cheap down living space, HTC's market value has evaporated 95% (evaporation 60% this year).

  On August 10, the value of HTC after further falls in share prices is only 1.5 billion dollars, slightly less than the company has cash. In the eyes of investors, HTC's brands and production facilities, as well as design is worthless.

  Wing Fung financial holding company limited (Sinopac Financial Holdings Co.) Analyst Huang Wenyao (Calvin Huang) States: "cash is the only valuable asset, HTC's other assets are of no value. HTC used to developing good lead management confident, arrogant resulted in design, marketing, pricing and distribution made a series of mistakes. "

  On August 13, she said in a statement: "the enhanced operational efficiencies the company returned to profit in the process, we have to reluctantly make some decisions to achieve overall operating expense reduction 35% objectives. "Layoffs 15% is a necessary thing to do. In addition, the company will focus on high-end mobile phones, cameras, and virtual reality equipment and other hardware products.

  Bloomberg won a HTC internal messages, the contents of the message have been confirmed. She said in the message: "this program will help HTC in the choice of returning to the global leader in the field. Please be assured that HTC flourished again, I am full of confidence. "

  HTC promised will focus on development of high-end phones, but its One product reviewer of appreciation, but consumers are not very cold. It will encourage the company to cooperate with companies in other industries.

  HTC also works with video game developer Valve virtual reality projects for cooperation. In addition, HTC also announced last year to work together United States sports equipment brand Under Armour, developed a series of health tracking equipment. However, HTC Chief Financial Officer Zhang Jialin (Chialin Chang) said at a press conference on August 6, if HTC made cheaper products, "I don't think Under Armour will cooperate with us."

  KGI (KGI Securities) analyst Richard Ko, "said HTC's strategy is not very clear. Virtual reality is very cool, but niche product, I think it will not contribute to revenue in the next 12 months. " Jet Pack China s first behind the scenes including

  In the view of Richard Ko, HTC plans see the turnaround hopes. If sales increase, or at least not fall, this 35% cost-cutting would ensure HTC revenue balance. If this is not fulfilled, HTC will run out of money in three years.

  Richard Ko, said: "they have to stop. "