HTC has hit some hard times. Its share price on Monday fell to its lowest in a decade and, as a result, its market value has tanked. Bloomberg said that its market value is now worth less than the $1.5 billion in cash that it holds and that a lot of its assets, even its name, aren’t worth a dime.
The news comes on the tail-end of poor One M9 sales and missed expectations on other handsets. The company has continued to struggle against major smartphone OEMs in the United States and key growth markets such as China.
“HTC’s cash is the only asset of value to shareholders” Sinopac Financial Holdings analyst Calvin Huang told Bloomberg, noting that other assets, including the company’s factories, no longer hold any value due to “more write-offs to come.” Huang also argues that the HTC “brand has no value.”
HTC said last week that it plans to cut staff in an effort to save money, and still has another “trendy” new phone in the pipeline. Wall Street isn’t bullish on it making a comeback soon, though. Deutsche Bank AG analyst Birdy Lu told Bloomberg said it has “little chance” to take on new phones from Samsung and Apple and that it will “continue to lose shares to Chinese brands.”
Sounds like HTC needs to make some major changes. We love its hardware, and HTC has a loyal fanbase, but that doesn’t seem to be enough right now.