HTC has announced in a statement made earlier today that the company has not contacted ASUS about any plans for acquisition. The company also added that it won’t be considering such an acquisition.
This statement comes after Jonney Shih, the current Chairman of ASUS said while talking to his shareholders that the company could consider taking over its fellow Taiwanese company, HTC. While ASUS made no formal bid/ offer for such an acquisition, the news made the headlines this weekend. This eventually forced HTC to release an official statement clearing things in this regard.
“We strongly deny the news,” the company wrote in the statement. “We didn’t contact Asusteck and will not consider the acquisition. As an international brand, HTC will continue to design world-class innovative smart devices through its pursuit of brilliance brand promise.”
HTC has been making smartphones for a long time, but still the company has not been able to make a break through. Despite developing and releasing premium smartphones with top-end features, the company’s sales have been disappointing as compared to competitors like Samsung and Apple. As a result, HTC has been struggling a bit in the past few financial quarters.
HTC also saw some setbacks this year. First, it was Peter Chou who stepped down from the CEO position to take the role of head of product development. Later, the company lost its head of design, Jonah Becker. Also, the company recently, lowered its second quarterly revenue forecast for the year from a range of $1.48 billion – $1.56 billion to $1.06 billion – $1.16 billion.
However, the company has made a few changes in the past few months to bring back its momentum. Firstly, co-founder Cher Wang became the Chairwoman of the company. Secondly, the company decided to diversify its product portfolio which mainly consisted of smartphones. For example, it released a brand new VR headset called as the Vive as well as a standalone camera called as the HTC Re camera.
On the other hand, ASUS has been growing steadily. The PC maker has shifted its focus on mobile devices in recent times, which has led to the release of many smartphones from the company. In fact, another PC maker turned smartphone manufacturer, Lenovo sold more phones than Pcs for the first time in the previous financial year. Acquiring a well-established, yet struggling company like HTC could give a boost to ASUS’s plans for its smartphone division.
However, after this statement made today, it looks like the HTC will continue to innovate as a standalone smartphone maker in the market.
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