HTC distances itself from Samsung, reduces part orders

HTC distances itself from Samsung, reduces part orders
The folks over at HTC aren't really having the time of their lives right now. The company has been having financial difficulties, with last quarter not showing any signs of revival... Which is really sad, because HTC has been one of the biggest success stories in recent memory. Starting its business as a hardware vendor for other companies, it has grown to become one of the leading smartphone manufacturers. Sadly, the momentum seems to have worn off, and now Samsung, using its enormous scale, has taken over the market with dozens, if not hundreds of devices, covering each and every handset category.

So what remains for little HTC but to stop feeding its competitor then. This may be the reason why HTC has decided to distance itself from its competitor by starting to purchase smartphone parts from other companies. For example, HTC will no longer partner with Samsung for the supply of its CMOS camera sensors. Instead, it will be buying them from OmniVision and Sony. In addition, a part of the AMOLED screen supply will now be taken by AU Optronics. However, since HTC is said to be worried that AU Optronics may not be able to deliver enough AMOLED production, part of the supply will still be produced by Samsung.

We can understand HTC for wanting to distance itself from Samsung. After all, who'd want its business to be dependent on one of its biggest competitors?

source: AppleInsider

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39 Comments

1. TROLL

Posts: 4851; Member since: Apr 13, 2012

Learn from Samsung and Apple, and others, listen to your customers....

4. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

I love HTC but i think the news is exaggerated. Sourcing material from multiple vendors is just simple vendor management...never put all your eggs in one basket. However if there is truth in this then HTC isnt making the right move...be it smart or not. You dont gain market share by cutting off from your competitior...that just negative play...you gain market share by delivering better than your competitor even if you buy parts from them. And oh yeah HTC really needs a good branding guy/gal and an awesome marketing guy/gal!

12. Commentator

Posts: 3722; Member since: Aug 16, 2011

What? Apple is notorious in the business world for NOT going to its customers for feedback.

19. gallitoking

Posts: 4721; Member since: May 17, 2011

so how you explain the 95% customer satisfaction then ?.. which is higher than any Android manufacturer

21. darkkjedii

Posts: 30836; Member since: Feb 05, 2011

Good comeback bro, plus this article ain't even about apple.

22. Commentator

Posts: 3722; Member since: Aug 16, 2011

It can be explained by the fact that Apple does a darn good job on their own without customer feedback. I never said it was a bad thing. Did you not see Sunday night's episode of Family Guy? Pandering to the masses isn't always a good thing.

26. gallitoking

Posts: 4721; Member since: May 17, 2011

"Pandering to the masses isn't always a good thing." so you are now contradicting yourself..

27. Commentator

Posts: 3722; Member since: Aug 16, 2011

Listen, gallitoking, I've always respected you more than most iPhone fanboys because you seem to be fairly sensible, but don't push my patience. What part of "Apple's tactic of not relying on consumer feedback is a GOOD thing" do you not understand?!? I'm AGREEING WITH YOU THAT APPLE MAKES A DARN GOOD PRODUCT AND MOST CONSUMERS ARE EXTREMELY SATISFIED WITH IT. What part of this can't you get through your thick, crappy-Seth Green-humor riddled skull?!? This isn't some stupid Phandroid comment that "oh, Apple doesn't listen to customers, so obviously it SUCKS! Da-derp-de-der!" I couldn't care two f**ks about Apple v. Android at this point. I'm saying that it's a well documented FACT that Apple notoriously relies much less on customer feedback than most other companies.

31. letgomyeggroll

Posts: 139; Member since: Jun 13, 2012

Apple don't ask for feed backs from their customers. They steal them from their users. Didn't you now know why IPhone is a data hog and why? They gather information from your IPhone. Everything you do and where ever you are, Apple is on it. But is not about Apple. HTC is making a bad move from removing Samsung. Samsung makes most of the parts for electronics device out there in the world. You can't blame the competitors for you lose of sales. HTC had it when it came out with the original EVO. Because at the time it was the most advance phone and lead of its own. It failed when it came out with the 3D. Really, who wants a 3D on a phone? Than the EVO LTE or One X with battery and SIM just like the IPhone. They the best engineering company that design and build their own phones (Motorola, HTC, and Samsung). They just need to come up with something that is unique about their device. So called special ear piece and music IS NOT UNIQUE!!! Stop following Apple and come out with something original!!! Like Samsung with Direct file share, swap screen shots, and etc, or Motorola with boarderless screen. Stop following and be a leader like you did with the EVO

23. maryaaadil

Posts: 146; Member since: Apr 07, 2012

Talking about consumer satisfaction Microsoft wp rules here(not by much though). Lumia 920 n others r gonna be gr8. N over phone arena check out user reviews n u will know who rules in satisfaction of consumers.

34. remixfa

Posts: 14605; Member since: Dec 19, 2008

they dont have anywhere near that for the i5 gallito. Live in the now, not the past.

35. gallitoking

Posts: 4721; Member since: May 17, 2011

than what do they have on the ip5? since you seem to know

39. deeoh1084

Posts: 50; Member since: Dec 30, 2009

apple just sues bunch of companies to "INNOVATE" they should focus more on the manufacturing part instead of their lawsuits...

18. ChangMin2012

Posts: 87; Member since: Apr 14, 2012

You mean infringe designs and add gimmicky cheap plastic? I dunno if HTC's the type to roll like that..

2. MeoCao unregistered

I think deliberately reducing orders from SS will do more harm than good to HTC. SS is too big so the loss of HTC orders will not do much damage to SS while the increase price or inferior products from other suppliers may cost HTC much more. I think HTC stops buying camera sensors mainly b-c HTC tries to gain some features that Sony camera offers. It's well know that Sony is the best in the business.

3. Ragnarockd

Posts: 47; Member since: Aug 27, 2012

Samsung's victory mantra " You can always beat Quality with Quantity".

14. BillyG

Posts: 305; Member since: Sep 24, 2012

htc already do the same...little example, look at htc one with its varieties... but at least htc can build phones with better materials than samsung...

33. SleepingOz unregistered

HTC doesn't use better materials as they both use Polycarbonate for their flagships. Build MATERIAL and build QUALITY are two different things!

5. Captain_Doug

Posts: 1037; Member since: Feb 10, 2012

Good moves. I'd be happier with my HTC phones sans samsung parts anyway. I hope HTC can keep going and make a bounce back.

6. Martine

Posts: 102; Member since: Oct 20, 2011

I think SLCD 2 from Samsung is actually very excellent. No matter how much they want to distant themselves for Samsung, they should still continue to order SLCD from them.

16. b1acktiger

Posts: 223; Member since: May 19, 2012

SLCD2 is not a Samsung Product !

24. jinwons

Posts: 95; Member since: Nov 24, 2010

It is from Samsung. SLCD began as joint display fab by both Samsung, Sony. But Sony recently sold all of their share to Samsung display. When it comes to high end smart-phone display, there are only Samsung, LG and Sharp.

29. XPERIA-KNIGHT unregistered

S-LCD 2 is one of the best screens available hands down...

25. maryaaadil

Posts: 146; Member since: Apr 07, 2012

It is indeed a Samsung product. en.m.wikipedia.org/wiki/S-LCD

7. doejon

Posts: 411; Member since: Jul 31, 2012

i would screem if samsung buy´s htc :D hell yeah that would be a samrtphone and they combine both devices :D

8. ZEUS.the.thunder.god unregistered

well what can we say.. Sammy does not need htc.. they can consume everything inhouse and there are many companies out there who relies on Sammy for verious things. but I also think the news is really exaggerated. there can be plenty of reasons for htc to reduce their ties with sammy. anyway good luck htc. and yeah Sammy rocks.

9. parkwaydr

Posts: 572; Member since: Sep 07, 2011

I love HTC, the EVO LTE is my next phone, unless I switch to ATT, which is on the table, its the one x +

10. babyk

Posts: 379; Member since: Nov 03, 2011

dont worry about that htc is making the right move htc will start building itself slowly the one x is a great phone the one x plus will make them better and i believe they should keep the super lcd2 they are the best right now if they get a better camera like iphone and use removeable battery at least they will be better off

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

maybe if they would listen to their customers and put large removable batteries instead of undersized non-removable batteries in their phones as well as have them heavy things lose some weight, they would see a rise in sales.

13. Naytess

Posts: 24; Member since: Jun 08, 2010

IMO...the EVO 4G LTE is what the One X should've been - sans original color/material scheme. It's a fantastic phone, but I wouldn't have bought it if it didn't have the micro SD slot. Also, I think they (HTC) were/are a little late to the Phablet party.

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