HTC Is Now Essentially Worthless
Internet hyperbole (and financial analysis) have rendered HTC, a once high-flying mobile brand, essentially valueless. In short, the company is trading below cash on hand. So if you bought all HTC stock, the company would have to pay you, the buyer, to take it over. This means the company’s factories, stock and brand are worth nothing, at least on Wall Street.
Furthermore, the researchers have discovered that the HTC One Max X has been keeping fingerprint biometrics used to unlock the cellphones in an unencrypted “world-readable” file, a definite no-no in the world of security. Hackers could easily open the file /data/dbgraw.bmp on the phone’s memory and capture your fingerprint data.
It’s bad. In short, HTC is hosed.
As our own Jon Russell notes, the company isn’t sitting idly by while it burns. However, it is clear that companies like HTC and Samsung are about to be hit by lower-end manufacturers right where it matters most: price. The profit on an average Android phone is about a penny. This means the only way to survive is by reducing the price of a phone as much as possible. However, the modern phone marketers like Samsung and HTC only want to sell flagships – big, tentpole phones that lend themselves to big marketing budgets and fancy commercials.
There is no perceived upside in flogging the cheapest of the cheap, especially considering the “fanciest” phone out there is the iPhone. When your only competitor is also ostensibly the most expensive phone on the market, there is little value in highlighting your cheapest models.