HTC stock value below its cash holdings rendering them "worthless"

[MrStraightface]

what does this mean for the company that brought us the FRONT FACING SPEAKERS

 

http://www.bloomberg.com/news/articles/2015-08-10/htc-trading-near-cash-leaves-a-smartphone-brand-with-no-value

 

"While HTC has no long-term debt, 34 percent of its asset value comes from inventory and accounts receivable, according to Bloomberg calculations. Its inventory, measured in turnover days, jumped 60 percent in the 12 months through June 30.

To reverse sales that have fallen by more than 75 percent since the September quarter of 2011, HTC plans to cut costs and focus on the high-end market where profits are higher. Reductions will start in the current period and start to show results by the first quarter, Chang said.

“We think these efforts are not enough to turn HTC around in the next two years,” Birdy Lu, an analyst with Deutsche Bank AG, said in a report dated Aug. 7. “HTC has little chance to compete with iPhone and Samsung given limited resources, and might continue to lose shares to Chinese brands in mid/low-end segment.”

 

[NateGSR117]

Their next phone might be their last. They needed to do something crazy if they want to come back, loosing money anyways, why not go out with a bang. Although with limited resources I don't know if they can pull it off.

[LeChef]

ah no, i've always liked HTC

[Darkman]

Their next phone might be their last. They needed to do something crazy if they want to come back, loosing money anyways, why not go out with a bang. Although with limited resources I don't know if they can pull it off.

Unless they do something like how they came back with the M7, they're going to be done for.

[awesomes8wc3]

still worth more than AMD

[IhazHedont]

Sad, I got a M7 myself and it's a solid phone ...

[MrStraightface]

I have the M7 too.  solid, but I have had some battery issues

[Rekx]

I think i saw something about LG also.

[NateGSR117]

I also have a m7 and iI loveit still. It sucks that I have the camera that take shots with a pink/purple glow to everything (which has been documented)

[LAwLz]

It's sad to say but HTC are doomed. They can't afford to make custom components like Samsung/LG/Apple, and they don't have the brand image needed to appeal to the average Joe.

Their next phone might very well be their last, and I don't see them having any chance to make it better than what the other manufactures can make.

[Master Disaster]

The M9 was the straw that broke the camels back.

 

When your failing you don't release a new flagship that's worse than your last flagship.

[arnavvr]

The M9 broke them. Why can't they do something good, and come out with something like the M7?

[Nineshadow]

I think i saw something about LG also.

They currently make 1 penny profit per phone. (according to some news site, forgot which)

Not unlike other guys who sell $200 phones for $600+.

They still sold more high-end phones than ever before.

 

However, LG is way more than just phones.

[patrick3027]

Finally! Their low-end phones are some of the worst available and their last two flagships phones were only 'meh'.

Come on, failing to make a phone with a decent camera three times in a row?!? What did you expect?

[dalekphalm]

I think i saw something about LG also.

 

 

They currently make 1 penny profit per phone. (according to some news site, forgot which)

Not unlike other guys who sell $200 phones for $600+.

They still sold more high-end phones than ever before.

 

However, LG is way more than just phones.

Yeah LG and HTC are not comparable at ALL

 

HTC:

https://en.wikipedia.org/wiki/HTC

Number of employees: 16,846 (2012)

Revenue: $6.75 billion USD (2013)

 

LG:

https://en.wikipedia.org/wiki/LG_Corporation

Number of Employees: 220,000 (2012)

Revenue: $143 billion USD (2012)

 

Big contrast, eh? LG diversifies into almost every sector.

 

While LG has been back and forth recently with the global recession, they still posted a $200+ Million USD Profit (Net Income) in 2013:

http://www.statista.com/statistics/364954/lg-electronics-net-income/

 

Oh wait, that's just for LG Electronics, which is just one of the many subsidiaries of LG Corporation.

 

LG isn't worried about a damn thing right now.

[asim1999]

Sad. There Hero phones were the best for their time

But they make junk in the low end and they made a mistake by choosing to make Windows Phones cos nobody will buy them 

With the mediocre cameras of the M7, M8 and M9, as well as the overheating issues of the M9, i dont see them coming back 

[SurvivorNVL]

My M8 has been amazing.  I'll miss them, but I guess it just means to hop on the LG or One-Plus train.

[asim1999]

My M8 has been amazing.  I'll miss them, but I guess it just means to hop on the LG or One-Plus train.

You mean Sony and OnePlus train?

[SurvivorNVL]

You mean Sony and OnePlus train?

Nawh.  My next smart-phone is either a Samsung Note, LG-flagship, or OnePlus.  Not a big fan of Sony.

[Nineshadow]

Yeah LG and HTC are not comparable at ALL

 

HTC:

https://en.wikipedia.org/wiki/HTC

Number of employees: 16,846 (2012)

Revenue: $6.75 billion USD (2013)

 

LG:

https://en.wikipedia.org/wiki/LG_Corporation

Number of Employees: 220,000 (2012)

Revenue: $143 billion USD (2012)

 

Big contrast, eh? LG diversifies into almost every sector.

 

While LG has been back and forth recently with the global recession, they still posted a $200+ Million USD Profit (Net Income) in 2013:

http://www.statista.com/statistics/364954/lg-electronics-net-income/

 

Oh wait, that's just for LG Electronics, which is just one of the many subsidiaries of LG Corporation.

 

LG isn't worried about a damn thing right now.

Exactly.

[NumLock21]

Had a m7, okay phone, but one day took out of pocket and notice a small tiny crack about 1mm in length under on the lcd itself, as the digitizer (front glass) was ok. Had 1 1/2 months left before warranty expires. Called up htc and they say it will cost about $200 to replace the screen. So I thought well that tiny crack isn't really going bother me as it was on the bottom right area, so i just left it the way. After the warranty had expired, that tiny crack has grew to 4 inches long. Now I'm using a Asus Zenfone 2.

[jaggysnake57]

meh i have never has a good htc phone

[asim1999]

Nawh.  My next smart-phone is either a Samsung Note, LG-flagship, or OnePlus.  Not a big fan of Sony.

You considered their compact phones?

[Curufinwe_wins]

It's too bad. IMHO the M8 was the best phone of its generation (and its singular error was only fatal in that they failed to fix it on the m9... wtf HTC YOU HAD ONE JOB???).

[TroubleKlef]

This is what happens when you haphazardly copy competitors features and then just stick it onto your design. Chamferred edges are cool? Stick it on. Fingerprint scanners are in demand? Place a shitty one on the back. Android is moving towards software buttons and bigger screens? Remove the capacitive buttons but leave the giant black bar cause we already have giant bezels from our speakers anyway.

 

HTC had many chances to hit a home run. They could have created a seamless coherent design but instead raced for a checklist of features rather than perfecting the overall user experience.