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HTC Might Outsource Smartphone Production

Oct 23, 2013, 7:29 AM by Eric M. Zeman

HTC is considering whether or not to have other companies build its phones. HTC has spoken with several companies that run production facilities, including Hon Hai Precision and Wistron, about taking over some of HTC's manufacturing needs, according to the Wall Street Journal. Citing sources familiar with HTC's plans, the Journal says the company is looking for ways to save money as its cash flow weakens. HTC has always manufactured its own hardware because it owns various factories in Taiwan and China. Most of HTC's competitors, save for Samsung, outsource device manufacturing to other companies. The Journal also said that HTC might sell some of its plants. In a separate report, Reuters said that HTC has already idled several of its manufacturing facilities. Reuters reporters who visited an HTC facility outside of Taipei saw that it was shuttered. The facility in question handles about 20% of HTC's manufacturing capacity. When asked about the shuttered plant, HTC Chief Marketing Officer Ben Ho said, "Like any manufacturer, we do volume planning to optimize our lines, our manufacturing, and production facilities. Whether we are operating those facilities depends on market demand and our own expectations. When you have less demand you work with less facilities to optimize your costs. When you have demand, or bigger growth, you definitely have to activate all these facilities." Ho also said the company has no plans to sell its manufacturing plants.

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crossedsignals

Oct 23, 2013, 1:37 PM
edited

Perhaps they should produce phones for other firms

Rather than outsource the production of their phones to someone who will likely listen most closely to their biggest customer du jour (Apple, etc.), why doesn't HTC offer its excess production capacity to other companies? They certainly have domain knowledge in the production of phones and now have excess capacity. It would seem to be a better deal than selling off production facilities for some fraction of a dollar and outsourcing their manufacturing. Given BlackBerry's woes of late with their contract manufacturers, BB might be an ideal customer for HTC 'phone manufacturing'.

TDBearCT

They did for a number of years-- most carrier branded phones were made by HTC, and they made phones for HP as well.

mikkej2k

Oct 23, 2013, 3:35 PM

Removable Battery & Removable Memory = More Sales

It's that simple.

People like the build materials and quality is o.k. So close , yet so far away.

tjobrien21

I'd agree 100%. The things I loved about the HTC phones I owned in the past were the quality build, good camera, and easy to replace battery and SD card. Why they went away from that winning formula, I'll never understand.

Even Samsung gets it; th...
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Slammer

Oct 23, 2013, 8:30 AM

Something Has Terribly Gone Wrong.

HTC is trying so hard to follow Apple, that it has lost all consciousness in regaining credibility for what they were once known for.

Just listen to your long time, diehard customer's concerns and maybe you can retrieve thousands that fled your lack of acknowledgment to these needs.

John B.

jennielouwho

I have to agree with you. My last four phones have all been HTC Androids and I feel like they've lost touch with their customer base recently for the sole purpose of competing with Apple and Samsung. They need to get back to their roots and start list...
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