HTC shrinks the mobile terminal front, focusing on the VR market. HTC, which continues to slump in the mobile phone field, has once again changed its previous policy. HTC recently held a new product launch with the theme "ForU". Three new models were officially released at the conference. What is even more interesting is that Chialin Chang, president of HTC's smartphone and networked device business, confirmed that HTC in 2017. Only six to seven mobile phones will be launched, giving up the tactics of the sea that have been used for many years.
In 2016, HTC's position in the field of mobile terminals has not only improved, but has become more difficult. According to the 2016 annual report released by HTC, the company's 2016 revenue was NT$78.16 billion, a 35% decline from the previous year, the lowest in 11 years. However, HTC has a bright performance in the VR field. As of November 2016, HTC Vive has sold more than 140,000 units. According to industry analysts, in the mobile phone market, the three high-end and low-end markets have been occupied by the strong, leaving the market space for HTC to shrink, and whether the VR market can turn the tide, will determine the fate of HTC.
HTC shrinks smartphone frontAs the second-largest mobile phone sales company in the world, HTC has not given up on the mobile phone market in the face of continued decline. HTC recently unveiled two long-rumored HTC U Ultra and HTC U Play.
It is reported that HTC U Ultra is also the flagship machine rumored to be Ocean Note, the main high-end market, its biggest feature is the front has a sub-screen similar to the LG V series and has a sapphire version. The HTC U Play is a mid-range model.
What is even more interesting is that HTC will not adopt the sea tactics in 2017 as in 2016, but will only launch 6 to 7 phones, which is halved compared with the 2016 to 11 models.
For HTC's move, the industry believes that HTC mobile phones have been taking the middle and high-end routes. In the context of the market space being compressed, they have to reduce profits by reducing models and increasing sales prices. The industry further pointed out that if HTC continues to use the sea tactics, it will definitely not match the mobile phone manufacturers such as Huawei and Xiaomi. It is reported that before the industry broke the news, HTC mobile phone shipments in 2016 alone was only 10 million units, and even less than Huawei and Xiaomi's sales in a quarter.
VR market has become "another spring"Since the first deficit deficit in 2013, HTC has been caught in a cycle of “loss and profitâ€. According to HTC's 2016 revenue data, the company's 2016 revenue was NT$78.16 billion. The first annual revenue failed to reach the NT$100 billion mark, down 35% from the previous year. In 2011, the revenue was NT$465.8 billion, and the 2016 revenue was less than 17% of the year.
However, HTC, which continues to slump in the mobile phone market, is constantly seeking new breakthroughs, and the VR market has undoubtedly become the focus of its betting. The good news is that the market has also shown strong interest in HTC's vr products. It is reported that HTC VR sold more than 140,000 units in 6 months. Last year, HTC put a lot of effort into the VR market. In April 20th, HTC Beijing Virtual Reality Ecology Conference, HTC and Valve, Warner Bros., Alibaba and other companies cooperated to launch the "Asia Pacific Virtual Reality Industry Alliance." At the meeting, HTC Chairman and CEO Wang Xuehong announced that he would invest 100 million US dollars to start the Vive X program and encourage developers to produce more quality VR content. In June of the same year, htcvive announced that it would spend $10 billion to establish a virtual reality venture capital alliance. The alliance will work with 28 venture capital firms such as the US Incubator 500 starts up and Yunfeng Fund to invest in virtual reality-related content and technology companies. At the beginning of this year, HTC launched a virtual reality (VR) fund to promote the sustainable development of global vr technology and technology research and development.
In a statement on investment supervision virtual reality (VR) funds, Wang Xuehong said: HTC will fund the best ideas that truly enhance people's awareness and positively influence the world through VR. It is also hoped that other companies in the VR industry will work together with HTC to make VR have a real impact. At present, HTC is collecting ideas on its website, and the first winning projects will be announced on April 22 this year.
Deep cultivation of content can develop in the long runThe competition in the virtual reality field was a cruel shuffle game from the beginning. The fierceness of the capital market is hard to drive the enthusiasm for the purchase of the overall market, and many VR startups have closed their doors in just one or two years. From the current point of view, although HTC currently occupies a certain first-mover advantage, but still can not relax, especially in the content development should accelerate the pace.
At present, HTC's virtual reality business is cooperating with American game company Valve. That is to say, HTC can only manufacture and develop helmet hardware. The initiative, distribution rights and content stores of virtual reality content ecological development are in the hands of American companies. HTC is hard to get more revenue. Moreover, the cooperation between HTC and Valve is not exclusive, and Valve is currently providing game content for the Oculus Rift.
The VR era is an era in which content is king. The business opportunities in the future are more reflected in content development and production. HTC is already trying to change its strategy, from the mere production of helmet hardware, to the development of virtual reality content. It is reported that HTC has set up a development studio such as virtual reality games, and will soon launch the first self-produced game.
As the industry matures, the value of hardware will rapidly decline. HTC will only position itself as a platform developer, attract more excellent developers to join, and continuously introduce high-quality, novel and VR content that meets user needs, in order to achieve long-term development.
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