HTC announced its revenue for July 2025 and the financial results for the second quarter of 2025 on August 6. Constrained by slowing momentum in hardware product sales as well as weak performance in service and system integration revenues, HTC reported consolidated revenue of only NT$147 million (US$4.9 million) for July, with total revenue for the second quarter reaching NT$700 million.
Both gross margin and operating profit margin fell short compared to previous quarters. The market is closely watching the upcoming launch of HTC's first AI glasses scheduled for August 14, hoping it will inject new vitality into the company's operations.
Despite challenges from tariffs, exchange rates, and geopolitical factors that have weakened recent operational performance, HTC has continued to advance its presence in the AR/VR sector. Recently, the company signed a strategic memorandum of understanding (MOU) with Japan's NTT Docomo Business to jointly promote immersive location-based entertainment (LBE) applications in Japan.
Additionally, HTC has partnered with US-based AT&T, Mynd Immersive, and third-party rehabilitation provider Select Rehabilitation to deploy the XR therapy platform MyndXR along with VIVE XR Elite devices across more than 150 senior care institutions and communities nationwide. This effort seeks to expand HTC's footprint in digital health care throughout the US.
Regarding HTC's ongoing core business losses in the second quarter, industry observers note that at the beginning of 2025, HTC reached an agreement with Google to transfer part of its VR team personnel and non-exclusive licensed patents for NT$250 million. Discussions between the two companies began in 2024.
If this collaboration becomes a foundation for further cooperation with Google, potential areas could include manufacturing outsourcing and dual-brand marketing efforts, thereby generating greater synergy.
Transferring some staff to Google was expected to reduce payroll expenses, which would potentially enable HTC to return to profitability as early as the second quarter of 2025.
However, when HTC officially announced the deal with Google, no significant new opportunities beyond the possibility of adopting Google's Android XR platform for the upcoming AI glasses were revealed.
Therefore, aside from the AI glasses, how HTC can enhance sales of AR/VR devices and smartphones or achieve breakthroughs in various AR/VR application fields remains critical to whether the company can overcome its losses.
Article edited by Joseph Chen
