HTC is finding it increasingly hard to compete in the global smartphone market. It has launched some great handsets over the past couple of years but nothing seems to have worked enough to turn its fortunes around. It has been bleeding money quarter after quarter with no end in sight. HTC shifted its focus to virtual reality a couple of years ago and that side of the business appears to be doing well. The company has now decided to sell one of its manufacturing facilities and use the proceeds to fund its VR business.
It was first reported back in 2015 that HTC was thinking about selling this factory. HTC has confirmed to investors that it’s going to sell a 114,000-square-meter located in Shanghai to a company called Xingbao Information Technology. The transaction also includes a plot of land and it’s going to net HTC 630 million yuan which is around $91 million.
The company says that the sale of this asset is going to fulfill its operational adjustment needs and assets activation. It later explained to local media in Taiwan that the proceeds from this sale will also be used for the purpose of “expanding VR business.”
It’s also quick to point out that this doesn’t mean the company is withdrawing from the smartphone market. HTC mentions that the sale of this asset is not going to have any impact on its smartphone business.