HTC soon to be relegated from TWSE Taiwan 50 Index down to Mid-Cap 100 Index

Given HTC's recent financial struggles, it's no surprise they are being dropped from the Taiwan 50 Index. It's sad to watch a company with fantastic products fail to achieve success in today's competitive smartphone market.

HTC was once a darling of the smartphone space and still creates phones with excellent design elements. However, as clearly shown in recent ZDNet articles here and here the company continues to struggle financially. Thus it's not surprising to hear that HTC is being removed from the Taiwanese Stock Exchange Taiwan 50 Index on 21 September.

The Taiwan 50 Index includes the top 50 large cap stocks in Taiwan and as a result of HTC's continued financial struggles it will be dropping down a level to the Taiwan Mid-Cap 100 Index instead. The Taiwan 50 Index represents nearly 70 percent of the Taiwanese market with the Mid-Cap 100 representing just 20 percent.

HTC will be replaced by Eclat Textile, who has seen share jump 55 percent this year. Eclat Textile is an elastic functional fabric product provider.

HTC is trying to streamline and focus, but we've heard that before without any significant change in strategy. I recently spent a half hour with the new HTC Vive VR headset and I personally think virtual reality may soon be the focus of HTC while it leaves the smartphone market to Apple, Samsung, LG, and other Chinese manufacturers.