August 2, 2016 7:29 pm JST

HTC extends losses despite virtual reality venture

DEBBY WU, Nikkei staff writer

A visitor tries HTC’s first virtual reality headset, HTC Vive, at the Mobile World Congress in Shanghai on June 30.

TAIPEI -- Troubled smartphone maker HTC on Tuesday reported a fifth straight quarterly loss despite its efforts to tap into the nascent virtual reality market to turn itself around.

HTC lost 3.1 billion New Taiwan dollars ($98 million), or NT$3.71 per share on revenue of NT$18.9 billion in the second quarter ended in June. The Taiwanese company recognized a one-time gain of NT$1 billion from the sale of land it owned.

HTC started shipping its Vive virtual reality headset, priced at $799, in early April, but the company did not provide details on how much sales the gadget generated during the past quarter. Company officials also declined to comment on when HTC can break even on the new product.

 "It is difficult for HTC to break even this year as their smartphones are continuing to face significant challenges while the Vive headgear is still only shipping in small quantities," said Jeff Pu, an analyst at Yuanta Investment Consulting.

According to Pu's estimate, HTC has shipped some 80,000 headsets in the second quarter, while its primary competitor, Facebook-backed Oculus Rift, has shipped some 300,000 units with a price tag of $599 each in the first half of this year. He said that PC-based virtual reality is still facing critical glitches that need resolving before it can become a popular consumer product. For example, a powerful computer with a large memory is required for a superior virtual reality gaming experience.

Still, before earnings, HTC shares gained 2.3% to close at NT$97.9 each. They have gained more than 10% since the beginning of April.

Asia300

HTC Corp.

Taiwan

Market(Ticker): TAI(2498)
Sector:
Industry:
Electronic Technology
Telecommunications Equipment
Market cap(USD): 2,110.97M
Shares: 822.00M

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

Subscribe today to read the full story
- three months for
just $9

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

Subscribe today to read the full story
- three months for
just $9

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.