HTC has strongly denied the possibility of an acquisition by ASUS. Its statement comes just days after ASUS chairman Jonney Shih admitted that he had considered making a bid for the struggling Taiwanese smartphone maker.
It’s an acquisition that probably would have made sense for ASUS, given that HTC’s market value has fallen dramatically in recent years following a decline in revenue, profits, and market share. But HTC is adamant that despite the struggle, it will continue to compete as an independent company.
“We strongly deny the news. We didn’t contact Asusteck and will not consider the acquisition,” HTC said in a statement to TechCrunch. “As an international brand, HTC will continue to design world-class innovative smart devices through its pursuit of brilliance brand promise.”
HTC has continued to produce good devices throughout its struggle — the One M7 and One M8 have been two of the best Android-powered smartphones of the past two years — but despite that, the company has found it difficult to compete with the likes of Apple and Samsung.
This year’s One M9 hasn’t done the company any favors, either. Many fans feel it is too similar to last year’s One M8, and it’s competing against Samsung’s best smartphones to date in the Galaxy S6 and S6 edge. HTC has also launched a One M9+ with a bigger, better display, but it’s only available in China.
As a result, HTC’s revenue plummeted 38.7% to NT$13.54 billion (US$439.95 million) in May, down from NT$22.07 billion a year earlier. HTC also replaced CEO Peter Chou, who stepped down to head up product development, with Chairwoman Cher Wang.