HTC

HTC selling off its Shanghai smartphone factory to Chinese brand

HTC selling off its Shanghai smartphone factory to Chinese brand
Last week, we regrettably reported that HTC plans to let go of 15% of its work force in an effort to reduce operating expenses. Today, we learn that the shedding of work resources will continue with HTC selling its Shanghai factory to an undisclosed Chinese manufacturer.

HTC has a number of facilities across mainland China and Taiwan, which it uses to manufacture its own smartphones. The Shanghai factory, in particular, was built in 2009 at a cost of about $32.2 million. In 2010, when HTC was in good times and revenue skyrocketed, the factory, which has a working area of around 147 square meters, operated at double capacity

Today, demand for HTC phones doesn't call for its availability, and if the company is willing to part with it, this could mean it has lost hope of coming back to its past success. The Taiwanese phone maker is in a difficult spot, with its ambitions to battle Samsung and Apple restricted by its comparatively miniscule size, and its low and mid-range handsets being pushed against the wall by Chinese low-cost vendors.

On the upside, selling the factory will put a welcome cash injection in HTC's dwindling bank account. In addition, the company doesn't seem to be disheartened by the trying times that have fallen upon it, as leaked information about an upcoming flagship smartphone, the Snapdragon 820-powered HTC O2, suggests HTC hasn't lost any of its high-end device ambition.

via GSMDome

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17 Comments

1. Taters

Posts: 6474; Member since: Jan 28, 2013

They should use Foxconn like Microsoft and Apple and the trolling version of Nokia does anyways. In fact, everyone except Samsung and LG should use Foxconn and Pegatron.

4. CoastCity

Posts: 257; Member since: Mar 07, 2014

And Apple should use Pentagon

15. Subie

Posts: 2356; Member since: Aug 01, 2015

*Pegatron*

2. nebula

Posts: 1009; Member since: Feb 20, 2015

PhoneArena " 147 square meters" Can't be right :)

3. CoastCity

Posts: 257; Member since: Mar 07, 2014

"which has a working area of around 147 square meters" = 12,12m x 12,12m lol BIIIIIIIIG! And $32.2 millions? So cheap...

11. ibend

Posts: 6747; Member since: Sep 30, 2014

its actually 146,667 sq (this mistake maybe its because comma as decimal used in some part of the world)

12. neops

Posts: 297; Member since: Jan 28, 2014

Yea, and all across Europe (except UK maybe?)

5. sip1995

Posts: 1771; Member since: Feb 07, 2014

Once again Nokia lost the oppurtunity..... :(

6. Freedom

Posts: 10; Member since: Nov 24, 2014

It s not 147 sq. meters. It is 146,667 sq. meters (1,578,708.92 square feet). @Phonearena, Please correct.

7. Af1rPA

Posts: 712; Member since: Jun 12, 2014

They should get rid of the CEO and hire me. I'll take 100K a year.

8. Kruze

Posts: 1285; Member since: Dec 30, 2014

HTC O2 will be their last chance.

10. Shocky unregistered

They've already blown it, 6" phones don't sell.

9. snowgator

Posts: 3621; Member since: Jan 19, 2011

I have given HTC several chances. I LOVED the HTC One M8 for Windows and sang it's praises as the single best operating Windows Phone- bar none- for about 2 months. Than the bottom fell out, and screen after screen froze or died over 3 replacement devices. I liked it enough I bought it out of pocket through the HTC site, and their customer service was just a pain. My daughters fiancé owns the Android version of the M8, and it has a dead spot on his screen as well after less than a year. They have a history of underperforming devices and sure cannot get their cameras right to save their lives.

16. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

HTC phone bulid is simply sub-par. Recently, my colleague also complain to me about his M8 Android version. Wonder if there is any quality control on HTC part.

13. sam3k

Posts: 130; Member since: May 02, 2013

Omg this is so messed up, HTC is one of the top smartphone designer's in the biz , if HTC dies their will be less competition in the market..

14. ShadowHammer

Posts: 201; Member since: Mar 13, 2015

Don't worry too much, there are plenty of hungry vultures waiting in the Chinese shadows to take their place. ;)

17. roshan

Posts: 1; Member since: Oct 10, 2015

where is make offical htc phones???????

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