HTC to Develop VR Headset for U Ultra Smartphone

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However, HTC's offering won't be a simple case of slapping a smartphone into a headset, instead it will be a new spin on the mobile VR concept, which we will be seeing later this year. There is also a possibility that an HTC Smartphone will be the VR controller as most of the sensors are there.

According to a report from Phonescoop, HTC will continue to sell and support the budget devices already on the market. However, when it comes to mobile VR, Samsung's Gear VR has held its ground - at least for now.

HTC knows that in order to stay in business and go head-to-head with other big names in the industry it has to make some serious changes. The South Korean has been having a much better success with its headset selling over 4 million units in 2016. The way it will work is by simply plugging it in to a smartphone.

Jointly developed by HTC and USA video game supplier Valve, the HTC Vive was unveiled at the Mobile World Congress show in March 2015 and officially went on sale worldwide in April 2016. Considering that the VR market is still pretty young, there's no saying how this could turn out for HTC in the long run.

Research firm CCS Insight predicts sales of virtual reality devices will grow from 2.2 million previous year to 20 million in 2018, with smartphone-based devices representing the vast majority.

As for whether HTC will ever return to the entry-level market, an HTC spokesperson told TechRadar the company doesn't have any more details to share beyond what was said on the investors call. Revenue slide by 13 percent to $720.7 million. Thus far, mobile headsets like the Google Daydream are generally lacking in performance and it will be interesting to see how HTC tackles this problem.

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