HTC shares fell such an extent that the entire market value has been below its cash in bank reserves.
Popular speaking, if you bought all the stock HTC, then cash is not required to have more cash in the hands of HTC. This means that you acquire HTC, and HTC for your payment. From an investor's perspective, which means HTC currently has worthless.
This seems a bit unusual. HTC Though not a smart phone market leader, but in any case still runs a highly acclaimed flagship smartphone HTC One M9. In the US, HTC has a 3.4% market share. Although the share is not high, but a large-scale mobile phone business, 3.4% of the share sufficient to continue to develop the business to lay a solid foundation.
So why HTC shares fell the point of it, so that became just want to occupy some of the cash that investors those hostile takeover goal?
The following facts to let you know that Android phone market competition is so cruel:
For LG Android mobile phone manufacturers, the average profit per unit smartphones only 1.2 cents.
Yes, each phone will earn 1 cent.
The figures from LG released second-quarter earnings. HTC may differ from the figures, but I believe there is not much access. HTC currently operate at a loss, meaning that sell HTC phones but will step loss. Basically means that you
Buy a mobile phone, HTC pay.
It is this situation affecting the HTC's stock:
Currently, the price war between the Android mobile phone manufacturers come and go. Android phones are becoming more affordable, Google recently said it would re-launch of Android One low-cost smart phone projects in India, the goal is to launch a $ 50 phone.
In addition, another major smartphone maker Samsung is also facing the same problem with HTC.
Galaxy S6 and S6 Edge should be the production of the highest quality Samsung smartphones, but the second quarter of this year, Samsung revenue has declined by 7%, thus 52.35 trillion won in the second quarter of 2014 fell to 48.54 trillion won.
In fact, all of the Android mobile phone manufacturers are faced with the problem the following figure: Android fragmentation.
With so many Android phones is simply absurd, consumers do not need so many choices.
This chart from OpenSignal website, consumers can also interact. Use the mouse to point to a small box, also shows specifically which phone. This is simply a little crazy to HTC, for example, its products, including HTC One, HTC One M8, HTC One X, HTC One XL and HTC One Mini and the like.
Similarly, rival Samsung is also true, even more than HTC models. For Android manufacturers, they seemed to be thinking: The best way to succeed is to launch as many different types of products.
Thus, HTC shares fell sharply One explanation is that: Android phone significant excess supply. Now really to the consolidation period, and some manufacturers need to disappear in people's line of sight. In fact, about 90% of the model should be canceled, manufacturers should focus on one to two really good phones and tablets.
Now it seems, HTC may become the first "downsizing" of the brand.
Related Article:
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How to Transfer HTC to iPhone 6/6 Plus/6S/6S Plus
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