HTC could soon exit the phone business

htc_hq_building

I’ve written many times about how HTC is the bellwether for Sony and other Android OEMs that aren’t Samsung or from China. Now, according to the latest rumors as pointed out by Digital Trends, HTC could be making an exit from the smartphone business in 2017.

 HTC’s mobile business has been struggling for some time, despite the fact that we are big fans of its most recent flagship device. That struggle may soon come to an end, though, as there are rumors swirling that it will leave the smartphone business entirely as soon as spring 2017. 

One major difference between Sony Mobile and HTC is that the latter of the two isn’t making money while the former is. Sure it’s chump change in the low millions but at least they’re not losing money anymore. Still, does this sound familiar to anybody else?

 HTC has denied the rumor, but the fact that the firm seems to have scaled back its mobile releases while splitting off the virtual reality division into its own company, suggests that it may at least be compartmentalizing its business to allow a corporate refocus.

We won’t have too long to wait to find out. If HTC does plan to sell off or shut down its smartphone business in spring 2017, we will likely start to see it making moves in the coming months as it edges towards that possible goal. Industry analysts will be watching closely to see what it does moving forward. 

There is little doubt that we’ll see new Sony hardware in 2017 but depending on how the current and following quarter go for Sony, I wouldn’t be surprised to see them pull out of the market in 2018 if the division doesn’t make any meaningful progress in sales.

That’s because despite the stop in financial losses, Xperia sales continue to decline year-over-year and have been for the past 3 years. Perhaps the most damning part of the report is how HTC could be

 splitting off the virtual reality division into its own company, suggests that it may at least be compartmentalizing its business to allow a corporate refocus. 

If that equally sounds familiar, it’s because in the past 6 months, Sony has been focusing on turning Xperia in a lineup that’s more than just smartphones with the Xperia Ear, Agent, and Projector. While Sony won’t come and out right say it, it’s quite likely that they’ve built a game plan that one day includes them exiting the smartphone business while being able to leverage the Xperia branding for other various products. If Sony were to dump their smartphones, do you think its best to keep them under the Xperia naming or just Sony?

 

  • Ana Helušić

    Sony G3112 and G3121 are new models for 2017. so there is no doubt for next year new hardware

  • johala02

    Sony have been struggling in the mobile space. But I feel positive anyway. If they can keep up and doing as good mobiles as the Xperia XZ in the future I think its a market for them.

  • Yep – wrote about them a bit ago. 2017 is locked but 2018 is far more up in the air. http://www.sonyrumors.net/2016/11/07/sonys-2017-xperia-model-numbers-revealed-g3112-and-g3121/

  • Problem is that a decade into the mobile world and there is no real competitor outside of Chinese manufactures and a lot of times, they win because of price.

  • johala02

    I suppose so but the Xperia XZ are actually cheaper than the Pixel phones or iPhone 7 so I dont buy the argument that Sony is always “overpriced”. If Sony can do great phones with top specs I think its a market for them.
    (But avoid mistakes like the confusing Xperia Performance)
    And Sony is one of the few android manufactors with a compact model to. Most of the Chinese brands seems to go for 5,5″ inch devices now.

    So I hope for the best. But time will tell of course.

  • Cheaper but not by much. If your budget is $200, every $50 matters but once it’s north of $600, there is less of a difference between $600 or $700.