HTC Midrange smartphone production will be outsourced

Absrtact: May 6 News, according to foreign media reports, this quarter HTC will be the first part of the smartphone production outsourcing, to cut costs and better development of new customers in the market. The smartphone maker, which has been losing money recently, has chosen Taiwan

May 6, according to foreign media reports, HTC this quarter will be the first time to outsource some of the smartphone production to cut costs and better development of new customers in the market.

The smartphone maker, which has been losing money recently, has opted for the production of at least three new smartphones at its Desire series, with Taiwan's Dai-Pao computer and the mainland's smelling Thai group. The two assembly lines will start manufacturing smartphones for HTC this spring. Previously, HTC's smartphone production was completed in its own factory.

The move is accompanied by other efforts to make a loss, chairman Wang has made more efforts in management, the company recently hired Samsung Electronics Co., the former U.S. chief marketing officer Paul Golden as a consultant to strengthen its marketing.

While rivals Apple and Nokia have long turned to contract manufacturers to outsource and focus on design, HTC has focused on high-end handsets and resisted outsourcing. But to counter Samsung and its fast-growing Chinese brands, it has decided to launch more Low-cost handsets this year with the help of industry and commerce. Last year, HTC sold smartphones in China at the cheapest 230 dollars. "Outsourcing will help HTC save on research and development costs, but it will not be a major driver of their earnings recovery because their main products are still being produced in-house," said Dale Guey, a technology analyst at Barclays. ”

HTC's shares have plunged more than 86% per cent since 2011, when it became the world's largest producer of smartphones, due to unsuccessful marketing strategies, supply chain accidents and growing competition. HTC's first-quarter loss was the second-highest in its history, and it has dropped out of the world's top 10 smartphone makers since last year.