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Wang Xuehong said that HTC has repositioned itself as a complete ecosystem enterprise, not only focusing on software and hardware integration, but also expanding to content creation and platform establishment, and providing enterprise VR integration solutions with high added value services. Partners hope to create a new model that will increase revenue and profit in the medium to long term.
As for the 5G market, Wang Xuehong stressed that HTC IntelligenceMobile phoneWith the intelligent equipment R&D team, we have invested a lot of efforts and resources to develop 5G communication technology. At the end of last year, we launched the first 5G product HTC 5G Hub, which has been with Sprint in the US, Telstra in Australia, Three in the UK, Deutsche Telekom in Germany, and Switzerland. Sunrise and Finland's Elisa and others will provide the HTC 5G Hub to serve its telecom customers.
However, Wang Xuehong said that last year, due to the saturation of the smartphone market, competition continued to be fierce, the consumer change cycle was lengthened, and the virtual reality market was still in the initial stage of growth. HTC still suffered from business pressure last year, and the new consolidated revenue for the year. NT$23.7 billion (approximately RMB 5.2 billion), with a gross margin of 2.2% and a negative operating profit margin of 58.8%.
At last year's shareholders meeting, Wang Xuehong promised that HTC would make money in 2018 and give back to shareholders. Since HTC completed its cooperation agreement with Google in January last year, the net profit after tax for the whole year was NT$12 billion (approximately RMB 2.637 billion). However, HTC's revenue in April this year continued to drop to NT$ 590 million, setting a new low since the listing. It is expected that shareholders will raise doubts on the shareholders meeting, and when the mobile phone business will be profitable will also be the focus of shareholders.