HTC stock prices dip as firm sets up new company for tech development - a VR spin-off?

HTC CEO Cher Wang

HTC CEO Cher Wang

HTC's smartphone business has been on shaky ground for a while now, as the company works to build its user base back up. But while its mobile efforts may be a work in progress, HTC has found an unexpected hit in the form of its first VR headset, the HTC Vive. Will that ultimately help prop HTC up, or will the Vive eventually go its own way, leaving HTC's phones behind? Tech fans and investors alike are wondering just that, and their speculation has sent the company's stock sliding.

HTC stock prices dip as firm sets up new company for tech development - a VR spin-off?
The big question is whether or not the Vive will remain a product sold by the same HTC that builds smartphones, or if we might see the creation of a spin-off company that picks up HTC's virtual reality efforts – the Vive included.

Back in January, HTC was quick to deny reports that it would do just that, and rejected claims that such a spin-off business – one rumored to be co-owned by both HTC and CEO Cher Wang – was in the works.

But when HTC said “no,” did it really mean “not just yet?”

HTC announced today that it's created a new company for the purpose of developing new technology. It's neither confirming that the focus of this company will be VR, nor that the company will be spun off as an independent entity, but that hasn't stopped investors from panicking, and share prices have fallen nearly ten percent from where they were earlier this week.

All this leaves us not knowing quite what to expect. Will this new firm help research tech that will ultimately make its way into HTC's smartphones? Could it really be a VR-only affair?

We reached out to HTC for comment on this development, and while the company wasn't able to discuss any of this VR-speculation, it did tell us that "The establishment is for HTC to develop innovative technologies in the future."

source: HTC, Focus Taiwan via Android Authority

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3 Comments

1. epdm2be

Posts: 815; Member since: Apr 20, 2012

"...But when HTC said “no,” did it really mean “not just yet?”.." It are these kind of things that undermine customer trust in companies. First they claim they'll never split up the company and a few months later that's exactly what they're doing. They completely ridicule themselves AND their investors. Bad move HTC. Keep your promises or die!

2. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

These OEM's jumping into VR, need to have an in-house app development team; because outside devs are slow to support or aren't supporting at all.

3. Rezanator

Posts: 1; Member since: May 12, 2016

Wait, I don't get it, someone explain it to me. Why is the stock dropping if they're going to split and create a new company to create the VR. Isn't that a good thing? Or are people selling because they want to SOLELY invest in the VR company and were only keeping their stock in HTC hoping that the VIVE would bring the prices up? And now that they're speculation it's going to spin off, people are selling so that they could invest in the VR specific company?

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