HTC sells phone factory to invest in VR businesses

HTC said the sale of the Shanghai plant will not affect its mobile division.

@LanaJelic
Published Fri, Mar 17 2017 3:23 PM CDT   |   Updated Tue, Nov 3 2020 11:56 AM CST

HTC has announced that the company has sold its phone manufacturing facility in Shanghai to boost their investment into their Vive virtual reality business.

HTC sells phone factory to invest in VR businesses | TweakTown.com

A Chinese company, Xingbao Information Technology bought the factory for $91.17 million.

HTC said the sale of the Shanghai plant will not affect its mobile division. This also removes the liability of owning the factory and the depreciation of its value. HTC does still occasionally manufacture devices for other companies like the Google Pixel, but most of HTC's contract manufacturing days are over.

The company is likely expecting a lot of growth in their Vive VR division this year and appear to be moving resources into that direction. After all, there are rumors that HTC will be launching a new VR device very soon that will likely be mobile.

However, HTC now has some competition in the SteamVR world with their Vive product from LG. LG showed off their own SteamVR headset at GDC and is poised to take some future Vive sales from HTC.

NEWS SOURCE:investors.htc.com

Lana has a passion for technology and science. She spends her time looking for the latest and most interesting technology and science news. Her passion is in gadgets, wearables, and other cool and interesting applications of technology or science. She also spends her free time gaming in MMOs like World of Warcraft. She has prior experience covering technology for publications and breaking news. If she’s not doing either, you might just find her exploring the metaverse in VR. Lana wants to expand TweakTown’s coverage of mobile, wearables and gadgets while also bringing her experience with science and general tech to TweakTown. Her area of coverage is around science, technology, smartphones, wearables, and general neat gadgets. She hopes to one day be able to drive around in her self-driving car while she schedules an appointment for a SpaceX trip to the moon on her smartwatch.

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