They may be two of the biggest OEMs from Taiwan, but that doesn’t mean that all is rosy in the garden for ASUS and HTC. While ASUS has much better prospects, they are relatively a new player in the smartphone market. Meanwhile, HTC has been dealing with the disappointment with their latest flagship, the One M9, and also the consequences of financial losses in the market. So what is the solution for the two? It may be to join forces, rather than do it on their own.
ASUS Chairman Johnny Shih hinted on Friday that they haven’t ruled out acquiring the other company and ASUS’ Chief Financial Officer David Chang also told a major news outlet that it has been brought up internally. However, he cautioned that the chances of this pushing through are slim since they are “a company that has depended on organic growth.” Later on over the weekend, they filed a note with the Taiwanese stock exchange saying that there are no investment plans, but they also used the terms “for now” so nothing is final.
So even though “for now”, the deal seems to not be pushing through anytime soon, the idea of ASUS acquiring HTC is not without merit for the former. It might help them meet their expansion target of shipping 17 million smartphone units. They have recently started offering their smartphones to the US and China, but have a lot of catching up to do with their other competitors.
Meanwhile, HTC is dealing with losses in the second quarter of 2015, and it is more dire than they predicted. Their stock has dropped significantly this week because of this news. Reviews for their new flagship the One M9 have been less than kind and their current offerings are not setting the market on fire. Acquisition might be a blessing in disguise for the OEM, if it will ever push through at this point.
VIA: SlashGear
This is probably a good thing. We have two ASUS notebook/laptop computers. They have been excellent. Better than our HP which has had 3 hard drives fail. The ASUS machines (both Windows 8.1 with touch screens) work flawlessly and we haven’t had one issue with them. And I’ve had ASUS motherboards in the past and they’ve always been excellent. So, this looks like a win-win.
HTC should of stayed to the last 2 year game plan that made them money. Making only one flagship a year. With one phablet and one mini flagship. Then you could focus on it every year. Instead of making a whack of top end phones. How do you make the same mistakes again? Make a couple middle class and a couple low end. Not all these 700 dollar options