Android Central

When it comes to financials, it seems HTC can't catch a break lately. The Taiwanese manufacturer says it'll book a loss of $40 million from its investment in troubled cloud gaming provider OnLive. OnLive, as you may remember, last week underwent restructuring and was sold to a newly-formed company in order to avoid bankruptcy.

HTC invested in OnLive in February 2011, at the height of its success in the smartphone market. Since then, however, OnLive has been absent from all of the company's noteworthy devices, and it's continued to struggle financially due to the high operating costs associated with cloud gaming. This isn't the first time an HTC investment has gone sour. The manufacturer's investment in Beats Audio is another recent example -- that company's founders recently bought back half of HTC's investment in Beats, after Beats Audio integration failed to differentiate HTC's high-end smartphones.

Elsewhere, HTC's profits and market share continue to be squeezed, with July revenues down 45 percent from 2011 to 2012. The company will be hoping an expected fall refresh of some devices will help it deal with increasingly fierce competition from the likes of Apple and Samsung.

Source: PC World

 
There are 15 comments

if they limit the internal storage and batteries again this fall their awesome stuff will fail in my mind. please do it right this time I want a nice HTC device!

I love HTC and give them credit that my nearly 2 year old Evo 4g still runs great. But they are starting to remind me of GMC during the 70's - 80's. Instead of concentrating on making a game changing phone (like the Evo 4g), they keep investing in non-related businesses and enhancements that either people don't want or don't care about (or at least not enough to pick their phones over the competition).

Legobricke says:

Kind of tough to use BEATS for selling a phone when HTC restricts it's use to only the stock music app. I bought a rezound looking forward to using BEATS. I feel completely duped that with even the release of ICS to still only be restricted to the stock player.

icebike says:

What are you talking about?
Beats works with almost any audio player, even music streaming apps, and things like tune in radio and pod cast apps, like pocket cast.
Works perfectly on HTC OneX.

JobiWan144 says:

+1 to icebike. Works fine with Play Music (my preferred app), Google Listen, and even YouTube on my EVO LTE. I just haven't gotten speakers or headphones yet that are good enough to make me really appreciate the difference Beats makes.

Edit: maybe they expanded the Beats integration to be system-wide in 2012 after they tried it out with just the stock music app on the Rezound in 2011. I agree, though, they should have made it system-wide on the Rezound with the update to ICS.

lrn2swim says:

That's false.

rsanchez1 says:

It wasn't just the poor old workers that were shafted. The big evil corporation was shafted too.

icebike says:

Actually the failure of OnLive is a blessing for HTC.

Their investment in OnLive clearly wasn't going anywhere or yielding any revenue, but as long as it was on going HTC was pretty well stuck with propping up OnLive.

When HTC realized that they were getting nothing out of this partnership they told OnLive the money was going to end, and HTC wanted out, which forced OnLive into restructuring.

This allows HTC to write the whole mess off of their books once and for all, and take a huge tax write off. The worst possible outcome, from HTC'S perspective would have been for OnLive to limp along, draining more cash from HTC.

The 40 million was already spent. Long ago.
So instead of viewing this as a negative for HTC, it is, and should be viewed as a clear positive, and a sign that HTC is taking steps to clean house.

Rather than costing HTC 40 million, it saves HTC untold future millions and gives a 40 million tax benefit. Finance 101.

I'm so sick of the complaining about the non removable battery. My phones with non removable batteries get better life than the ones that do. Clearly they are doing something right. And as for the non removable SD card that comes from Google... They are just following their lead. And the less storage on the AT&T One X is on the carrier who wanted to keep Costs down. Let it go. I think that they should have had 2 different capacities but they probably didn't think it would sell well that way and apparently they were right.

I'm so sick of the complaining about the non removable battery. My phones with non removable batteries get better life than the ones that do. Clearly they are doing something right. And as for the non removable SD card that comes from Google... They are just following their lead. And the less storage on the AT&T One X is on the carrier who wanted to keep Costs down. Let it go. I think that they should have had 2 different capacities but they probably didn't think it would sell well that way and apparently they were right.

AndroidOne says:

In my opinion, HTC's problems have nothing to do with OnLive, Beats, Sense, limited multitasking or even the lack of interchangable battery or SD slot on the HTC One X. The failure of HTC comes down to one thing, and one thing only... lack of marketing.

Most of us that visit these sites regualrly are but a tiny portion of the company's potential customer base. The main reason that I know about the HTC One X and the Evo LTE is because I read about it here and on other Android blogs on the internet. As far as mass media marketing, I can barely remember when I last saw an ad for these HTC flagship phones and the amount of ads on my area that I am aware of, pales in comparison with those for the Samsung and Apple models. With the ongoing saga of Apple v Samsung, the latter brand has benefited immensely from continued media presence. When the Evo LTE was blocked in the US, I recall a couple of pieces on the lay media, then nothing.

If you have a product that is meant to be mass consummed, you can not just dump it on the wireless carriers and hope they will market it for you. If you don't go out and try to convince your intended market how much better off they will be by buying your product as opposed to the competition's, then you are not going to survive - Marketing 101: in order to sell any product your job is to convince your prospective customers how much they need it and the many benefits it will bring them.

I see HTC making investments on products/services to bring their potential customers added value, but I don't see a mass media marketing effort to inform said customers about it.

This is my opinion on the whole HTC mess. Hope they get it together before is too late.

sharkknuckle says:

^This! I completely agree. I am bombarded with advertisements about the SG3 and about the Nexus when it came out but I honestly don't think I've seen one advertisement about the HTC EVO LTE or the HTC One X. But Samsung has a very popular brand name and people know they will get a quality product when they buy the product, while they might not know (and therefore trust) HTC and stray away from a similar or possibly better product. Granted I do miss having a removable battery...

cyanogen-man says:

Sigh and their not; bundling the beats head phones anymore either HTC BRING THE ONE LINE TO ALL CARRIERS MAKE ONE VERSION AND REMOVABLE BATTERIES AND EXPANDABLE STORAGE IF WE WANTED PHONES LIKE THAT WE WOULD IF BOUGHT AN I PHONE (threw up in my mouth a bit) DONT CRIPPLE US MAKE AN AOKP VERSION TO!!!! MOST HTC OWNERS ARE POWEE USERS KILL SENSE WE WANT VANILLA ANDROID!!!

moonnite says:

would be nice if HTC had an up to date bluetooth stack, they make nice devices but when I can't do the normal things others can it is time to move on -- bye bye HTC

The bluetooth stack problem is the deal breaker for me also. I don't mind so much having sense, but not being able to use things like all the cool bluetooth controllers, and devices, that I already have makes me want a vanilla android device. I also can't believe how long they have held out on releasing the source for some devices.
If they aren't going to go after the mass market with marketing, at least cater to us hackers who will continue to by their phones with great build quality, and hack them to do what we want, if we knew we didn't have to wait 6 months to get source code.