HTC isn’t doing bad, the company is doing terrible. In fact, terrible can’t even describe the financial situation that HTC is facing. The Taiwanese company shares hit a ten-year low, and is currently diving at the moment. Because of the brands shares hitting a record low, it is having a negative impact on the brands value.
The company’s shareholders no longer values the brand as it has literally no value for them. HTC’s market value fell below what the company had in cash, which is NT$47.2 Billion. Due to the massive 60% loss of stock value, the stockholders no longer values the company.
To put things into perspective, let’s show you how things went from 100 to zero for HTC quick. Back in 2011, HTC was worth NT$900 Billion and was one of the leading smartphone manufactures. Barely four years later, the company is now worth less than the taxes it probably owes their government.
The company plans to do the necessary to keep afloat. That means slim down the number of phones they currently have on the market, discount devices, lay off employees, and spend less capital as possible.
“We think these efforts are not enough to turn HTC around in the next two years. HTC has little chance to compete with iPhone and Samsung given limited resources, and might continue to lose shares to Chinese brands in mid/low-end segment.”
~Birdy Lu, an analyst with Deutsche Bank AG