HTC Shares Down 10% Due To VR Business Spin-Off Concerns

HTC has had a very turbulent time over the last year or two as a business. However, indications had started to suggest that HTC was passing through the turbulent period as their latest device, the HTC Vive, seemed to be one which is proving to be a viable product for the company. In spite of being an expensive entry product to the world of virtual reality, reviews and the general consensus is that HTC’s virtual reality ambitions and business model looks promising. By association, so does HTC’s future.

However, a new report out of Taiwan is now suggesting that HTC is about to spin off its virtual reality business into a separate business. As you might expect, the new business will focus specifically on virtual reality, both the product and development sides of the business. To be clear, this is not the first time that these rumors have circulated and HTC did already deny them. However, the most recent reports (which have yet to be denied by HTC) sent HTC stocks into descent and dropping by 10-percent. A drop which is thought to be a direct result of doubts and concerns over HTC’s business model in the absence of the virtual reality side of things. According to the details and although no confirmation has come through from HTC on this, the reports do note that HTC has confirmed that a separate VR company does exist. One that has been set up, is to be supervised (and said to be wholly owned) by HTC’s current CEO, Cher Wang.

Interestingly, these reports do come on the back of a recent VR initiative that HTC has set up dubbed Vive X. The program is designed to help fuel content for the HTC Vive by providing funding and guidance to interested VR-focused start-ups. Whether this has anything to do with laying the groundwork for the rumored spinning-off virtual reality business currently remains to be seen and until any further confirmation comes through from HTC on whether the virtual reality and mobile sides of the business will split, much of what is to come is speculative. However, with the HTC 10 seeming to be a popular option at the moment and with rumors of possibly two HTC Nexus smartphones for this year, the mobile side of things might not be as problematic as analysts seem to think or are suggesting.

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About the Author
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John Anon

Editor-in-Chief
John has been writing about and reviewing tech products since 2014 after making the transition from writing about and reviewing airlines. With a background in Psychology, John has a particular interest in the science and future of the industry. Besides adopting the Managing Editor role at AH John also covers much of the news surrounding audio and visual tech, including cord-cutting, the state of Pay-TV, and Android TV. Contact him at [email protected]
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