HTC officials have confirmed that the company's former CEO Zhou Yongming had left in September last year. Zhou Yongming is known as the "father of Taiwan's mobile phone" and has led HTC to the top. His departure has made the industry more happier than HTC. In recent years, HTC has been unsatisfactory in the mobile phone market. Not only has sales been declining, but its performance has also been affected. To reverse the trend, the company began to bet on emerging products virtual reality (VR) last year. According to industry insiders, VR is indeed popular among consumers, but the lack of content limits the development of the consumer market.

Zhou Yongming has left the company last year

HTC's latest annual report of the shareholders' meeting shows that Zhou Yongming's title has become "pre-general manager", and then the official announcement shows that Zhou Yongming has left in September last year. In fact, there have been rumors that Zhou Yongming will leave the post after leaving the post of CEO, and the official did not confirm it. HTC said that it would like to thank Zhou Yongming for his long-term commitment to the company's business, sincerely wish him the future development, and invited Zhou Yongming as a consultant.

According to public information, Zhou Yongming joined HTC, the former boss of Zhuo Huo Tu, in 1997 and became CEO in 2004. Zhou Yongming, 59, has been in charge of HTC for 11 years. He has been responsible for the company's mobile phone design. After launching his own brand mobile phone in 2006, he sent many classic works such as Hero and HD2. Under his leadership, HTC From the foundry to a globally renowned smartphone brand, it has been selected as one of the top brands in the world of Interbrand. In addition, Zhou Yongming also led HTC and Apple to reach a settlement on patent disputes, after the acquisition of the top audio equipment manufacturer Beats Electronics.

The industry said that Zhou Yongming was the biggest contributor to HTC's high status in the mobile phone market, and gave him the title of "Taiwan Mobile Godfather".

In March last year, Zhou Yongming resigned as CEO and moved to the future development laboratory, mainly focusing on research and development, leaving in September. After the adjustment, HTC is still led by Chairman Wang Xuehong, and the other two responsible persons are Zhang Jialin (general manager of global business) and Shen Daobang (former chief of Huaya Branch).

Market position has plummeted

In the industry's view, Zhou Yongming's departure is related to HTC's current dilemma. In addition to Zhou Yongming, according to incomplete statistics, nearly 10 executives of HTC's mobile phone business line have left in the past year.

The most intuitive manifestation of the HTC dilemma is the company's declining performance. In the past four quarters, HTC suffered a sustained loss. In May of this year, HTC released a new quarterly financial report, the company's first quarter 2016 revenue of NT$14.8 billion (approximately US$456.4 million), a sharp drop of 64% year-on-year, compared with NT$41.52 billion in the same period last year ( About US$1.3 billion), operating loss of NT$4.8 billion (US$148 million), compared with a net profit of NT$360 million (US$11.6 million) in the same period last year.

It is understood that HTC has reached the market value of more than 900 billion Taiwan dollars in the glory period, sales have also accounted for nearly a quarter of the US smartphone market, and HTC is the world's first company to launch smart phones, October 2002 The company launched the first Windows Mobile phone Orange SPV. Since entering the smart phone market earlier and grasping the market opportunity, HTC achieved good results in the global market earlier and became one of the companies that can compete with Apple. But starting from one X, HTC began to go downhill, including the M7, M8, the company almost completely lost in the market.

In recent years, HTC has also made some remedies to save the tide. HTC implemented the â€œsmall profits but quick turnoverâ€ policy in 2012, but at the same time, domestic mobile phones such as Huawei, ZTE and Coolpad have gradually opened up the market. Nokia, Samsung and other companies have also begun to test low-end products, HTC's price reduction strategy. No results. Although a series of flagship machines were launched later, HTC still failed to prevent the downward trend and has already fallen out of the top ten in the Chinese mobile phone market.

Betting VR to reverse the situation

After the mobile phone business encountered Waterloo, HTC is already seeking transformation, and the now fierce virtual reality has become a life-saving straw in the hands of Wang Xuehong.

Last December, HTC launched HTC Vive, the first virtual reality headset that HTC and Valve jointly launched. At this year's CES show, HTC launched a new generation of developer version of the virtual reality helmet Vive Pre. Wang Xuehong revealed last month that HTC is splitting its newly-started VR business into an independent company, and the new subsidiary will be fully controlled by HTC.

Recently, Forrester Research, a world-renowned market research organization, released AR and VR industry reports. The report released the AR and VR device rankings, and HTC Vive entered the top five. Analyst JP Gownder believes that although Oculus is considered to be the leader of virtual reality, HTC is better. HTC Vive has dedicated handles, front camera, and base station, which can provide users with a virtual reality experience of the entire room. Greater room for development, hopefully competing with Microsoft HoloLens in AR and mixed reality.

However, there are still many problems in the promising VR market that need to be resolved. Hong Shibin, a member of the Internet Marketing Experts of the Internet Society of China, pointed out that the content and resources of VR depend on the size of its market. Without a sufficient number of users, developers can't get revenue from it, and there is no enthusiasm to produce more high-quality content; The concept of VR has become fierce, and capital has begun to flood in, but most of them have been invested in hardware manufacturing. There are more than 100 domestically produced and planned VR devices, and this number will continue to increase, but good content is provided. There are very few people.

"Therefore, HTC may not be able to rely on VR to reverse the disadvantages in the electronic consumer market, and the transformation process will face various difficulties." Hong Shibin said frankly.

Fortunately, HTC's performance in its own home base in Taiwan is still remarkable. A list of mobile phone market sales from Taiwan in April showed that HTC held its third place with a market share of 16.58%, which was only 0.02% lower than Apple.

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