HTC is having a tough time at the moment, following the lukewarm reception to its latest flagship, the HTC One M9. It seems that the company has a lot of unsold inventory.
According to Bloomberg the percentage of "Finished Assets" has hit a record high of 2.35 per cent. In other words, there's tonnes of HTC phones on pallets in warehouses and on shop shelves that nobody wants.
This is problematic for the company as it means that it has spent all of that cash cranking out phones on the production line, but as they haven't yet been sold HTC isn't making any money back on them.
Business analysts often use figures like this as an indicator of the health of a company. According the Bloomberg piece, Apple faced a similar problem in the 90s, with unsold gear piling up; it was only when Steve Jobs returned to the company (and brought in Tim Cook) that Apple sorted itself out.
The news comes just days after we've heard speculation that Asus might be interested in buying HTC, which could certainly be one solution to the current problems. There are also rumours that HTC is planning what sounds like a "Hail-Mary Pass": a plan to break with annualised production cycles and release a new flagship phone later this year, in response to the criticism for the M9.