HTC Experiences 46% Revenue Decline In May 2018

HTC's business decline continued last month, with the company's total revenues over the 31-day period amounting to the equivalent of $82.46 million, down 46-percent annually. During the first five months of 2018, the Taiwanese original equipment manufacturer managed to generate just over $448 million, around $350 million less than last year. The May drop is comparable to the April one, with HTC's sales plummeting 55-percent a month earlier.

While the company is now promising new investments in emerging technologies such as augmented reality, 5G, blockchain solutions, and the Internet of Things, analysts remain skeptical about its overall prospects, particularly those in the mobile segment. HTC has yet to signal that it's even considering exiting the smartphone market, though it appears to have started downsizing its annual handset portfolio, with the recently released U12 Plus flagship being believed to be the only high-end product from the firm this year. 2017 was the worst fiscal year in HTC's history, with the company losing some $580 million over the said period and the decline being part of the reason that prompted it to release around 2,000 engineers to Google in exchange for $1.1 billion. The deal also provided Alphabet's subsidiary with non-exclusive licensing rights to HTC's patent portfolio, whereas the Taipei-based OEM said it's planning on using the money to reinvigorate its operations.

Following the release of the U12 Plus and Vive Pro, HTC isn't expected to make any other major product announcements before 2019 and will instead likely be focusing its marketing budget on promoting its existing offerings. Despite streamlining its mobile portfolio, the firm appears to be keen on continuing onward in the mobile market, with its Chairwoman Cher Wang recently talking about its ambitions to deliver innovative devices that the 5G future deserves. HTC's VR unit Vive remains by far its most promising business in the medium term, according to many industry analysts.

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Dominik Bosnjak

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Dominik started at AndroidHeadlines in 2016. He’s approaching his first full decade in the media industry, with his background being primarily in technology, gaming, and entertainment. These days, his focus is more on the political side of the tech game, as well as data privacy issues, with him looking at both of those through the prism of Android. Contact him at [email protected]