HTC cut its own production volumes and outsources - Generation NT

slowdown in its business require it manufacturer HTC to reduce its production capacity of smartphones selling some resources and outsourcing production to third parties. Wall Street Journal and the agency Reuters asserts, noting the meeting held between representatives of HTC and assemblers in recent months.

If HTC has its own production, logistical element which is expensive and must run continuously at full capacity to be financially balanced, the decline in smartphone shipments could lead to reconsideration of this resource and the means to reduce the financial impact.

transfer of part of production to FIH (a subsidiary of Foxconn) or Wistron is mentioned and the initiative is seen as an effort to satisfy shareholders Manufacturer who saw the value of the company fall sharply in recent quarters.

HTC has many projects to revive based on the Chinese market and partnerships (it could be the origin of the Amazon or smartphones) but in the meantime, the manufacturer has swung into the red in third quarter with a first loss.

The manufacturer responded by claiming not to have no plans to close or sell its production sites but indicates that, like any manufacturer, it must plan its production and optimize the operation of its sites according to expected demand.

According

Reuters , HTC has already met two production lines in an on-site Taoyuan, bringing capacity to 1 million smartphones products per month, against 2.5 million units monthly previously produced on site.

HTC could go through the Apple model, separating the activities of product design and production, while wishing to retain a portion of its production capacity.