Market analysis firm CCS Insight shared its report compiling its predictions for 2024 and beyond. The company predicts that Taiwanese technology giant HTC will withdraw from the virtual reality industry by 2026. For HTC, which once led technology, the probability of this prediction coming true does not seem low at all.HTC is coming to the end of another road
HTC has played a pioneering role in the smartphone market by launching many smartphone models that break the mold in terms of design, performance and functionality. The company’s HTC Hero, HTC Legend, HTC Desire and HTC One models have not been forgotten by technology lovers even after many years. Despite these iconic series, HTC announced its withdrawal from the smartphone market in 2017 and sold its phone business to Google; Google has since continued its aggressive expansion of consumer hardware with its Pixel line of devices and Nest smart home products.
In recent years, HTC has largely shifted its future to the merging of virtual and physical worlds, that is, to the VR and AR side, but things are not good here either. Last January, the company launched the Vive XR Elite device, a lightweight headset focused on gaming, fitness, and productivity, priced at $1,099. While its high price is not welcomed by consumers, the company’s decreasing revenues make it difficult to compete with Meta, Sony and Apple, which has just entered the market. In this context, CCS Insight thinks that the company will exit the VR field.HTC has never positioned itself as an affordable brand, and this continues on the VR side as well. However, Meta is launching its products with very aggressive pricing, almost at cost, to increase adoption with Quest. Although Apple’s entry into this space has revived interest in the category, it seems difficult for HTC to stay in this market. CCS Insight therefore predicts that by 2026, HTC will exit the market and sell its intellectual property rights to other players in the field.
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