Taiwan's Asustek says has not ruled out possibility of buying HTC

Taiwan’s Asustek Computer  said on Friday it has not ruled out the possibility of acquiring struggling smartphone maker HTC Corp.

Chairman Johnny Shih of Asustek, one of the world’s biggest makers of laptop personal computers and smartphones, made the comment in response to questions raised at its annual general meeting, Chief Financial Officer David Chang told Reuters.

“Our chairman has chatted about the topic internally,” said Chang. “Still, the chances of an actual takeover are not big as Asustek is a company that has depended on organic growth.”

HTC shares plunged 20 percent on Monday and Tuesday combined after the company forecast a steep loss for the June quarter, prompting speculation that the company could be acquired.

A recent report revealed that the fiercely competitive smartphone market has compelled HTC to cut down orders for related components and parts for its premium One M9 as much as 30 percent. The sales of the One M9 have reportedly ‘fallen flat’. There are several reasons for this such as design similar to the One M8, specs just comparable to other flagships and so on.

With inputs from Reuters