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HTC Shifts Focus Away from Smartphones to Prioritize XR and AI Hardware

Electronic Technology · Computer Communications · cnyes · 2026-09-03

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HTC is phasing out its smartphone business to concentrate on high-end XR devices and immersive content, with a new AI hardware line slated for Q4.

What Happened

Strategic Business Shift: HTC senior vice president Huang Chao-ying announced that the company is gradually phasing out its smartphone business due to a lack of technological breakthroughs, shifting focus toward XR software and hardware integration.

Core Revenue Drivers: XR services and content remain the company's primary revenue contributors, with B2B enterprise applications now accounting for over 50% of the XR segment's total performance.

Hardware Portfolio Optimization: Having cleared out low-end XR inventory, HTC is now prioritizing high-end, all-in-one devices and plans to launch a new AI-focused hardware product line in the fourth quarter to boost profitability.

Immersive Content Expansion: Beyond hardware, the company is actively monetizing immersive entertainment by collaborating with global content providers to transform cultural IP into XR experiences, such as the 'Pharaoh' and 'The Little Prince' exhibitions.

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