HTC hit back at reports it is set to spin-off its virtual reality activities into a separate unit owned by Cher Wang, its chairwoman, president and CEO, stating that it will “continue to develop [its] VR business to further maximise value for shareholders”.
Speculation about the move started earlier this week, with HTC citing “recent media reports in Taiwan, such as by United Evening News”, as the reason for its statement.
However, some reports suggested that a VR unit would be formed which remained part of HTC, which the current statement does not seem to rule out.
Such a move would give it some separation between the two businesses, meaning that both could work more independently, with separate financials, while still enabling it to maximise ties between the two.
With HTC’s smartphone business struggling, the company is looking to new areas such as wearables and VR in order to generate new revenue.
It announced a portfolio of products called UA Healthbox at CES 2016 earlier this month, working with fitness clothing and accessories company Under Armour, including a fitness band, heartrate monitor and scale.
The company also unveiled its updated Vive VR system at the event, stating it will be available for commercial launch in April.
But these new products have entailed significant development costs ahead of commercial launch and revenue, placing more pressure on HTC’s struggling core business.