Earlier this month, HTC Corp, the world's fifth largest manufacturer of smartphones, revealed it is selling its Shanghai-based phone factory for $91 million to Xingbao Information Technology and intends to use the proceeds fuel its growing VR business.

The news of HTC's divestment from some operating assets is not surprising given the Taiwanese-based firm's smartphone offerings have not been selling well lately, and new HTC phones have not faired well in the big flagship battles that manufacturers like HTC, Apple, Samsung, and LG wage every year.

"Smartphones are important, but to create a natural extension to other connected devices like wearables and virtual reality is more important... I think the problem is competition – Apple, Xiaomi – these companies spend tons of money on communications and marketing, they pump a huge amount of investment into the market."

- Cher Wang, Co-Founder and CEO, HTC