HTC has responded to reports that its larger rival, Asustek Computer, was interested in taking over the company. Asustek’s chairman, Johnny Shih, had been quoted as saying, ahead of the company’s AGM, that the two companies had held informal talks. However, HTC issued a statement saying it had not made any contact with its rival, and nor would it consider a merger.
The rumours emerged after HTC’s CEO, Cher Wang, warned that the company needed to change the way it operated and “immediately” cut costs, in order to face tough challenges in the smartphone industry. HTC has dramatically cut its financial forecast for the current quarter after the company lost almost one-sixth of its market value on the Taiwan Stock Market. Wang also said that HTC plans to develop new business opportunities, such as virtual-reality headsets.