6.3 billion yuan, just last Thursday, HTC announced that at this price to sell mobile phone manufacturing plant in Shanghai, to take over Shanghai Star Insurance Information Technology Co., Ltd. will obtain the land and factory buildings of the HTC Shanghai plant. The proceeds are mainly used for investments in the HTC VR department.
As early as 2015, HTC reported that it would sell its factory in Shanghai. At that time, HTC did not comment on the rumors.
As the world's largest smartphone foundry and manufacturer, HTC had sales of mobile phones reached about 43 million during the peak period, with a market value of up to RMB 200 billion, making it the biggest winner in the Android mobile phone market. Why is it now reduced to selling his own land for survival? What makes Wang Xuehong put all his bets on a VR eyeglass? Today Xiao Bian tells everyone about HTC's past and present lives.
Love and hatred with Intel
The famous Wang Xuehong, whose father Wang Yongqing is a famous entrepreneur in Taiwan and is known as Taiwan’s “Sokoyuki Matsushita,†has a high status and prestige in Taiwan’s business community and society, making Wang’s family also have a profound influence on political circles and has a Good business and business relations. Its Formosa Plastics Group is the largest private manufacturing industry in Taiwan.
The inheritance of children by fathers should have been the natural path for most "second generation companies". Maybe it was the mother Yang Jiao's self-reliance in the United States. Wang Xuehong did not pick up the business empire that his father had built up over the years and confidently chose to start his own business.
After Wang Jieling’s computer company touched on her experience, Wang Xuehong had a basic understanding of business. In September 1988, under the recommendation of her husband Chen Wenqi, Wang Xuehong bought VIA VIA in the hands of an American businessman with 5 million yuan, and began to focus on building chips, entering Intel, and laying the foundation for the subsequent establishment of HTC.
At that time, Intel was completely monopolized in the IT industry. No company would have the idea to pounce on the fire of such an industry giant. Wang Xuehong, who was not afraid of tigers by a newborn calf, passed acquisitions, allowing VIA to master the R&D capabilities of the core chips. Although it is inferior to Intel in terms of compatibility and stability, VIA's performance is not inferior to Intel's original factory, and the price is much cheaper.
With good performance and high cost performance, coupled with the patriotic support of the people at that time. VIA soon became the second largest chipset group after Intel. This made Intel no longer dare to underestimate this Eastern company.
After that, VIA Sheng Sheng pursued and won major customers such as Compaq and Hewlett-Packard. Intel realizes that its situation is more and more dangerous, and no counterattack may be riding on VIA. As a result, Intel used intellectual property to drag on VIA's progress. The two parties were arguing in a matter of intellectual property rights.
At the moment, AMD and MediaTek are also rising. Both sides realize that this continued lack of benefit to each other. In 2003, Intel and VIA reached a settlement with “exchange of authority†and let VIA temporarily withdraw from the chip field.
In this case, it would be better to do a smart phone. The fearless Wang Xuehong always loves to be the spoiler in the industry. After all, in the era of Nokia Full Street, the concept of mobile phones has just become popular, and it is unprecedented to be a smart phone. HTC was born in such an era that it was not its own.
Reach HTC from Dopod
At the beginning of the establishment of HTC, it created a handheld computer equipped with a Windows CE system. This device was far too advanced compared to the features of the device at that time, and its popularity was not high enough to attract too many users. Lose money. Helpless Wang Xuehong can only rely on VIA's profits to dismantle the Western Wall to fill the Western Wall.
Until 2000, the iPAQ, which was produced in cooperation with Compaq (incorporated with HP), was born. This handheld computer was listed as the most powerful PDA in the Guinness Book of Records in 2000.
When Bill Gates took the demonstration prototype, he affirmed the intentions of HTC as a smart phone and accumulated technology over the years, and maintained a long-term cooperative relationship with HTC.
Because HTC innovation is always ahead of us, we are chasing HTC.
Taking advantage of this, HTC's machines are always equipped with the latest Windows Mobile systems. As the market began to improve, HTC’s share in the smart phone industry has also increased. On July 1, 2002, HTC and VIA jointly invested in the creation of a new brand, Dopod Dopod. The main product design of mobile phones and handheld devices, business in Taiwan, China, Hong Kong, China and Southeast Asia.
The system functions of the smart phone are numerous and will naturally generate high phone bills. This caused operators to throw an olive branch to HTC. Operators around the world have found HTC to customize their contract handsets. For a time, HTC will expand the brand to the world at the lowest cost.
This win-win situation continued until 2008, when the US carrier T-Mobile, Google, and HTC worked together to create the world’s first smartphone equipped with an Android operating system, the HTC G1.
Rich features, smooth system exquisite interaction let consumers shine. Despite the little-known Android system at that time, there is no doubt that in the next few years, it slowly eroded Saipan's market share, and maintained the bi-directional trend with iOS.
In the following years, HTC became the pinnacle of the industry with Android's dividends.
In 2010, HTC’s smart phone shipments totaled 24.6 million units, accounting for 1/12 of the global smartphone shipments.
In 2011, HTC’s share climbed to 9.1%, and its sales volume reached approximately 43 million, making it the biggest winner in the Android mobile phone market.
From 2008 to 2012, together with a small number of WM system phones, HTC released a total of more than 50 mobile phones.
Looking back now, this may be the most brilliant time for HTC.
Wood show Yu Lin, the wind will destroy
History is always strikingly similar. Just as HTC was in its midst of the day, Apple sued HTC in the name of a patent infringement. Although lawsuits were already commonplace during the Weisheng era, the import ban imposed by the United States was undoubtedly worse for HTC.
According to data from market research firm Gartner, the market share of HTC smart phones dropped rapidly to 4.7% in 2011, and its sales volume has shrunk by more than 10 million. The following market changes are even worse for HTC:
Domestic brands such as Xiaomi, Huawei, and OV have gradually occupied the mid-range market with the advantage of cost-effectiveness.
Operators are naturally more willing to choose low-cost domestic mobile phones, and HTC's customized models are reduced.
Innovation in design is the current trend. The iPhone5 and Samsung Galaxy S3 win people's attention with outstanding craftsmanship.
There is no North American market permit, no big orders from operators, no more amazing mobile phones, and I am afraid that even the few remaining market shares are gone.
In February 2013, at the MWC show, HTC released the world’s first all-metal smart phone, the New One, with the new Sense 5 interface and a superpixel Ultrapixel camera, which has an unprecedented pixel density of 468 ppi.
Concise and capable design, powerful camera function, new system page, from the design process to the hardware configuration, and then to the system optimization, every one of the New one body is flowing HTC's efforts on this phone, the industry insiders It is also praise.
The award-winning New One was supposed to help HTC turn the tide and regain its supremacy. However, after the listing, the market has been flat and has been at a disadvantage with the Samsung Galaxy S4. Despite later spending huge sums of money to invite Wang Lihong to endorse and launch the red version of the New One, but it is too late, Samsung S4's advertising has been overwhelming, marketing smashed the HTC.
The system completely lost its advantages, and at the same time, it pressed the wrong treasure on the design. The New One that had failed in the counterattacks made HTC once again in a dilemma. As the so-called slapstick does not ring, the public gathers firewood high. The HTC decided that, like the G series that year, it would engage in a wave of sea tactics to gain market share.
Only this time, the mobile phone market is no longer what it used to be. The sudden emergence of domestic and foreign manufacturers, more and more cost-effective mobile phones occupy the market.
On the price, HTC models can not be as close to the people as millet; On productivity, HTC is not like Samsung has a self-sufficient supply chain; On the system ecology, HTC is not as practical as the domestic UI that has a custom function. In this quarter, blindly pushing the sea tactics is nothing more than sinking into the sea.
In this way, HTC's mobile phone gradually disappeared in people's eyes.
In 2016, HTC's smartphone shipments fell to 10-12 million units, and its annual revenue was only 78.16 billion Taiwan dollars (approximately 17.7 billion yuan), a 35% drop from the previous year, the lowest in 11 years. The loss was NT$1,500 million (about 2.3 billion yuan).
In just a few years, it fell across the board.
Focus shifts to create VR
Ten minutes before the sale started, HTC Vive's sales reached 15,000 units. This is already a pretty good result for new things that sell for $799.
The HTC, which is in a quagmire in the mobile phone market, is in urgent need of opening up new frontiers. In many cutting-edge technologies, HTC has chosen VR, and HTC Vive has also become an important part of the future of HTC layout. This time, the mobile phone factory will be sold to VR. It can be seen that HTC puts all the bets on Vive.
In April of last year, HTC's "HTC VIVE China Strategy and VR Eco-Environment Conference" was held in Beijing. It fully demonstrated its layout in VR strategy and emphasized the importance of establishing "ecology". When it was time, Valve, Unity Content providers such as Youku Tudou also expressed their willingness to provide VR resources for HTC VIVE, including games, movies, and television dramas.
"In 2009 and 2010, we used to be the world's highest-selling smartphone. We have reached this position and we hope to return to this position." Wang Congqing, president of HTC Vive China, said at the press conference.
As of November 2016, HTC Vive sales exceeded 140,000 units. According to data from the market research organization Canalys, China has become the second largest market for VR glasses in 2016, with a total shipment of approximately 300,000 units, of which HTC Vive accounted for 17.7%, ranking first.
Focusing on ecological experience, combining hardware and software properly, and paying attention to the Chinese market, HTC seems to learn lessons from previous Waterloo, not to make mistakes in making VR mobile phones, and to conscientiously put Vive into the benchmark of the entire industry. The immersive and interactive nature of the game made the players full of praise.
The launch and repercussions of Vive have given HTC a clear direction for the future and have even played a pivotal role in the entire VR industry. However, for the current virtual reality is not yet universally used, and some use scenarios of Vive are limited, HTC must return to the “original position†for a long time.
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