On June 22, HTC finally announced that former CEO Zhou Yongming had left in September last year. At the same time, there are more materials indicating that Zhou Yongming turned to work as a company called Digital Kingdom, which has a relatively mature VR business.
Zhou Yongming is the pioneer of the HTC mobile phone brand, and once led HTC to the peak, known as the "Taiwan mobile phone godfather." Moreover, Zhou Yongming is also the main hero of the company's VR business development. However, his exit does not seem to affect HTC's promotion of VR business. On the contrary, the development of HTC Vive and other products is expected to become the key to HTC's determination not to be the next Nokia. However, HTC's profitability is still worried by the industry, and the outlook is not clear.
Soul characters quietly exit
Zhou Yongming and Wang Xuehong
According to Taiwan's "Electronic Times" report, Zhou Yongming, the former CEO of HTC Company, has resigned, and HTC's latest annual report of the shareholders' meeting has changed Zhou Yongming's title to "former general manager." HTC expressed its gratitude to Zhou Yongming for his long-term commitment to the company's business and sincerely wished him the future development and invited Zhou Yongming to be the HTC Honorary Advisor.
Zhou Yongming’s whereabouts also settled in the dust last year. A company called the Digital Kingdom confirmed that Zhou Yongming had joined in September last year. Currently, Digital Kingdom is a video content company focused on the production of VR content.
Zhou Yongming joined HTC in 1997 and left in 2015. During his 18 years in office, he once led HTC in the forefront of the world. In 2002, HTC released the world's first smartphone. In 2006, it launched its own brand mobile phone and successfully walked out of the traditional identity of the foundry. It can be said that HTC completed the fastest development in the early stage of smartphone development. In March 2015, Zhou Yongming stepped down as CEO and was responsible for the technical development of HTC's future R&D lab.
Zhou Yongming is known as the “Godfather of Taiwan Mobile Phoneâ€. His departure has made the industry more worried about the future of HTC. "After Zhou Yongming left, one of the biggest problems is who will take his place." Internet communications analyst Yu Bin said that from the position of chairman Wang Xuehong as CEO, HTC has not found a suitable candidate.
Zhou Yongming’s departure was seen by the industry as the result of HTC’s management struggle. Wang Yanhui, secretary-general of the China Mobile Alliance, believes that the chairman and CEO can cooperate well when the company is in the ascendant. However, with the decline of HTC’s mobile phone business for several consecutive years, Wang Xuehong has increasingly intervened in the company’s business. Zhou Yongming chose to leave. It is also normal.
The future of HTC Vive is unpredictable
Zhou Yongming is the chief hero of HTC Vive. HTC Vive was officially launched on March 1, 2015. It is reported that the research and development of this product was also carried out under the vigorous promotion of Zhou Yongming. Although Zhou Yongming left Vive and joined the VR business of the digital kingdom, it did not reduce the enthusiasm of HTC to promote VR.
On June 29th, HTC announced at the World Mobile Congress in Shanghai that it will unite 28 of the world's top venture capital firms to form the Virtual Reality Venture Capital Alliance and set up a VR product booth at the conference. Yu Bin believes that HTC is transforming into VR, which is an effort to avoid becoming the next Nokia.
According to market research firm IDC, global virtual reality equipment shipments will exceed 9 million units in 2016. At the same time, China's VR virtual reality device shipments will reach 480,000 units in 2016, an increase of 476% compared with 2015.
Zhang Hongzhong, deputy dean of the School of Journalism and Communication at Beijing Normal University and head of the VR Creative Research Laboratory, said that “VR as a new technology application is basically in line with the theory of innovation diffusion, but still in the stage of innovation, in a gradually expanding process."
Among the vendors competing in the VR field, Leng Zhe, a researcher at the Science and Technology and Strategy Society of the University of Science and Technology of China, believes that HTC Vive is the most mature product on the market. However, due to the use of steam authorization technology, it lacks its core advantages and its development prospects are difficult. material.
A number of interviewees said that overall, HTC has not been much new in the development of VR, and is still at a general level in the entire wave of VR development.
Return to OEM or the best way out
Zhou Yongming’s departure has allowed the industry to focus on the future development of HTC.
As a mobile phone manufacturer once known around the world, HTC's development trend in recent years has been weak. According to its first quarter financial report for the fiscal year 2016 released in early May, HTC's revenue was NT$14.8 billion (US$460 million), down 64% year-on-year; profit was NT$1.8 billion (US$60 million) ), a year-on-year decline of 78%.
The overwhelming burden of the mobile phone business has made the development of its business seem a bit sloppy. It is understood that HTC's latest HTC lifestyle 10 has been sold overseas recently, priced at 52,800 Indian rupees, about 5185 yuan, while the domestically issued HTC 10 configuration is lower than the former, but up to 3799 yuan pricing, Still being squandered by many consumers.
It is worth noting that in the above financial report, HTC did not mention too much about the solution to improve the smartphone business. On the contrary, it praised many products other than smartphones, such as HTC Vive's outstanding performance in the market.
Wang Yanhui said that for the decline of the mobile phone business, should HTC give up its own mobile phone brand and consider returning to OEM manufacturing? “Doing so can at least reduce losses, because mobile OEMs don’t need inputs from markets, channels, etc.â€
"Return to the foundry, or wait for the VR outbreak, this is the two roads for HTC to get rid of the dilemma." Wang Yanhui bluntly.
Background information
In 1997, Zhou Yongming was invited to create HTC under the invitation of his predecessor, Zhuo Huo, and became CEO in 2004. He served in mobile phone design for 11 years. Under the leadership of Zhou Yongming, HTC released the first Microsoft 3G mobile phone in 2005, launched its own brand mobile phone in 2006, launched the world's first 4G LTE smart phone HTC ThunderBolt in 2011, and officially released the VR product HTC Vive in 2015.
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