21
Aug
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According to a Taiwanese newspaper, as reported by Fox Business, HTC was the subject of a recent plea by the head of the country's central bank. He urged the Taiwanese government to offer some sort of financial assistance to HTC, whose stock has dropped over 80% from its peak in Spring of 2011. While HTC is still profitable, the bank's governor points not only to HTC's dramatically waning share figures, but the impact of its slowed growth on Taiwan's net exports, which have fallen 11% year over year.

Unfortunately, it makes sense (no pun intended). HTC had an absolute flop of a handset cycle starting in early 2011, and things just went downhill from there. While the One series has done a lot to restore the confidence of critics in its phones, consumers just don't seem to be biting with the same enthusiasm they did back in the ThunderBolt days. It's a bit sad, because I really like the One X (despite its numerous flaws), and I found the One S to be an impressive phone, as well.

The fact remains, though, that HTC did let consumers down for a while before finally getting back on track, and the market is clearly punishing the company for it. And now, HTC is building better phones, and people are taking notice. It just may take another year before the stock market decides to notice, too. It's also of paramount importance to note that HTC is one of the single largest companies in Taiwan, and that the economy of Taiwan itself suffers when HTC's financials take a dive. HTC is to Taiwan what Detroit's "Big Three" are to parts of the US, in a way - HTC employs the better part of 10,000 people, and doubtless indirectly supports tens of thousands more.

Taiwan just wants to shore up one of its biggest domestic manufacturing and innovation firms against any potentially volatile economic downturns that might deal the company a serious blow while it's trying to turn itself around. After all, we are talking about the company that just dropped $35 million on an enterprise software firm after losing $40 million to OnLive. And more importantly, HTC as a company is still very much profitable, even if it isn't as profitable as it was last year.

So, don't count on an HTC-less world just yet, there's still plenty of time for Peter Chou to get his company back into top form.

FOX Business

David Ruddock
David's phone is whatever is currently sitting on his desk. He is an avid writer, and enjoys playing devil's advocate in editorials, and reviewing the latest phones and gadgets. He also doesn't usually write such boring sentences.

  • ari_free

    HTC's problem is they want to be the Nintendo of smartphones. They need to kick @$$ like Samsung.

  • Cheeseball

    They need to stop thinking microSD slots are only good enough for low and mid-range phones. :P

  • PostByMe

    Maybe if they stopped bending over backwards to the carriers and eased up on their bootloader locking, people would be more receptive to them...

  • tman

    Sorry but I fail to see how any of samsungs phones ie. Galaxy Nexus,S2 or S3 are anything like apple iphones or infringe apon them in anyway. Also I don't care what the Judge in California says. The Patents that were issued are nonsense patent. Apple argued that a tap is a zero length slide? LOL....I love the comparison to a period bein a zero length line. That California Judge is playing politics and siding with a US based company. She should do her job and be impartial like the judge in Chicago's Motorola vs Apple. He was right to throw the law suites out. Companies need to stop sueing and spend their money on innovation.

  • http://twitter.com/homncruse Aaron Burke

    "The fact remains, though, that HTC did let consumers down for a while before finally getting back on track, and the market is clearly punishing the company for it."

    But Samsung also lets the market down time after time in various ways, and yet the same market continues to sign their paychecks directly over to them year after year.

    Double standards, people. Look past the marketing.