HTC divests virtual reality business and makes another loss

HTC confirms that it has established a separate subsidiary for virtual reality. It also made another loss in the first quarter of 2016. Turnover fell by 64 percent compared to the first quarter of 2015.

HTC has posted a message in which it discusses the recent rumors that there would be a split from the virtual reality department. In it, HTC confirms the rumors and reports that a subsidiary has been established under the name HTC Vive Tech Corporation, of which HTC is the sole shareholder. In addition, the company again announced losses on Monday, turnover fell to 14.8 billion Taiwan dollars, about 400 million euros. In the first quarter of 2015 there was still a turnover of 1.12 billion euros.

HTC’s sales last grew in 2011, when viewed over the whole year. The Taiwanese company also makes an operating loss of 4.8 billion Taiwan dollars, converted about 129 million euros. The net loss amounts to 2.6 billion Taiwan dollars. A year earlier, the company was still above the line with a profit of 13 million euros.

HTC reports that it introduced a number of different products in the first quarter of 2016, including the Vive virtual reality glasses, the Under Armor Healthbox, the One X9 smartphone and the Desire devices. The Vive has been on sale since April 5, so the sales figures have not been included in the figures for the past quarter. That is why the company reports that it is looking forward to the coming quarterly figures, in which the Vive results together with the figures of the HTC 10 smartphone will be mentioned.