HTC shutting factories, might move to outsource smartphone production

HTC shutting factories, might move to outsource smartphone production
Both Reuters and the Wall Street Journal are reporting today that there is some major production restructuring brewing at HTC. The Journal cites its own sources who confirm that HTC has been in talks with Foxconn, Wistron and the like, for outsourcing some of its smartphone production to them. Currently HTC makes all of its phones itself, in a few factories in Taiwan and mainland China.

Reuters chips in, reporting that one of those factories has been recently closed, with its journalist seeing it actually locked up, with loading docks empty and a confirmation sign on the doors. Probed for comments, HTC actually replied that this is just production line optimizations, likely due to diminishing sales, and it has no plans to stop producing its own handsets. Here are the quotes from HTC:

source: Reuters, WSJ



1. woodshop20

Posts: 459; Member since: Sep 14, 2013

Poor HTC, soon they'll go the path of Blackberry and Ericsson. Not that they made bad devices though, just really poor management and marketing. Quick, Lenovo, buy them out!

7. lsutigers

Posts: 832; Member since: Mar 08, 2009

Ericsson is very much in business and doing well. They just dont produce handsets for the consumer market since the Sony Ericsson restructuring. They are big in the enterprise network sector.

2. Taters

Posts: 6474; Member since: Jan 28, 2013

No wonder their quality control was s**t. They had their own factories and they have no experience manufacturing their own parts.

3. VLaRueC

Posts: 189; Member since: Dec 18, 2012

Disregard ^ comments. HTC has plenty of experience in manufacturing...

6. Taters

Posts: 6474; Member since: Jan 28, 2013

Plenty of experience manufacturing lemon handsets? Besides that I can't think of anything else. They don't manufacture their own displays, ram,CPU, glass, or camera lens. That leaves precious little for them to manufacture.

4. Android4Ever

Posts: 89; Member since: Aug 12, 2013

All HTC has to do is release a flagship "pretty phone" with REMOVABLE BATTERY & SD CARD SLOT and they will be right back in the race. Its so obvious that NOBODY (except isheep) wants a "sealed shut" phone with a tiny battery, therefore constantly having its users plugged into a wall all day like a dog on a leash. This is checkers not chess HTC...

5. roldefol

Posts: 4745; Member since: Jan 28, 2011

LG (G2) and Motorola (Maxx) seem to be capable of producing good "sealed" phones that last all day. If all companies understood that a good battery is worth adding a millimeter to the device thickness, it wouldn't be such a problem. As for SD cards, that's between them and Google.

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