Just in case you were unclear just how bad things have become for HTC, here are the most current facts. First, the company finally hemorrhaged enough money that it posted its first operating loss, based upon a steep decline in summer sales of devices. Here's a quick quote with the relevant details,
For the quarter ending in September, HTC reported a net loss of NT$2.97 billion (USD $101 million) on sales of NT$4.7 billion (USD $1.6 billion), a worse result than the consensus forecast of a NT$2.2 billion loss on sales of NT$54 billion. Bloomberg says that HTC’s smartphone business is getting whacked both in the high-end market, where its HTC One model was delayed in many places until after the release of the Galaxy S4, and the low-end market where it has considerably less presence than low-cost Android vendors such as Xiaomi. ~ BGR
In fact, if that doesn't paint a bleak enough picture, to put things in perspective, HTC has lost 90% of its market value in just two years time. Furthermore, so far, whenever any company in the mobile world begins operating at a loss they have never recovered. Here's a quote from industry analyst Asymco’s Horace Dediu,
“The observation I have been making is that once a company begins to generate negative operating margins from phone sales, that phone business never recovers. The question then becomes one of gauging how long they have before the business is sold, dissolved or merged.”
Finally, just to show you how desperate things have become, Microsoft is now courting HTC suggesting the company offer Windows Phone 8 as a dual-boot option on their phones with Android devices. In fact, reports suggest that Microsoft is even willing to forego their usual licensing fees for using Windows Phone and allow HTC to use it for free. Of course, this also expresses how desperate Microsoft has become to try and get competitive in the mobile world as well.
The idea is not without a tiny inkling of merit. It would allow HTC to offer a phone which would stand out from the crowd (if only slightly), and it would help Microsoft get their mobile OS onto more devices and in front of more users. Supposedly, HTC is warming up to the idea and is working out the logistics of making that happen on their devices.
Sadly, it's hard to see how this move will make much difference for either company.
Source: TechCrunch