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HTC sells Shanghai smartphone factory for VR expansion

By Anthony Lam - on 24 Mar 2017, 5:00pm

HTC sells Shanghai factory to fund expansions in VR

Image source: HTC.

Taiwanese smartphone manufacturing giant HTC will sell off its land and factory in Shanghai for over US$90 million in a strategic move to fund further expansions in its virtual reality business.

The 114,831 square meter smartphone factory will be sold to Shanghai Xingbao Information Technology Co Ltd. HTC added that there will be no implications for its staff and production capacity, and will continue to own and operate three factories in Taoyuan, Taiwan.

The decision was made by its board and comes as part of the company's aim to return to financial stability and operational efficiency. HTC's smartphone business reported earlier this year its annual revenue declined by more than a third in 2016, and was struggling to retain market share in the global smartphone market. 

With its sight set on taking the lead in virtual reality, HTC has recently made financing options available for the Vive in an effort to resonate with the more price-sensitive consumers.