After a couple of years of decline, HTC has officially been removed from the Taiwan stock exchange’s list of Blue Chip companies today. The exchange removed HTC from the FTSE TWSE Taiwan 50 index on after the company’s market value declined below the level required for inclusion in the market benchmark. The index lists Taiwan’s 50 biggest companies which together represent 70 percent of the market’s value. Taiwan’s stock exchange said in a statement that HTC had “not met standards” for the top 50. Its share price has declined about 60 percent in the year to date, extending a steady fall since 2011.
This represents a fairly large fall from glory compared to 4 years ago when their stock was at an all time high and their phones represented 1 in 10 that were sold around the world.
The last few years have been troublesome for the company as they experienced slip ups in marketing and supply chain as well as intense competition from Apple and Samsung in their key markets that led to a loss of $247 Million and a 15,000 employee layoff in the second quarter of this year. According to market analyst John Brebeck, “They made a lot of missteps, but they were also caught in the crosshairs of a shift to commoditization of the market,” meaning they had a leadership until more players entered the game and were unable to adjust when phones started getting cheaper.
“We remain confident that, with the diversification of our product portfolio and our continued investment in innovation, our market share will grow,” HTC said. They will keep working on high-end handsets along with connected devices and “virtual reality,” the company’s media office said last week.
Following today’s change, the exchange moved HTC to the FTSE TWSE Taiwan Mid-Cap 100 Index, a list of 100 publicly traded firms with moderate market capitalization.