Wednesday, October 23, 2013

In the red, HTC denies reduced its production capacity - Clubic

Posted by Ludwig Gallet Wednesday, October 23, 2013

HTC would have reduced a fifth production capacity by closing one of its production lines. The company could even outsource part of its production, indicated the Wall Street Journal. But the main person denies. Block
HTC Logo

HTC has accumulated setbacks in recent months. On 4 October, it announced its first financial loss in its history. A result not so surprising, as it suffers from terrible competition on the smartphone market.

After the disastrous launch of the HTC One, the commercial flop of the First, the firm would, according to the Reuters closed one of its production lines Taoyuan, near Taipei. What would sacrifice a fifth production capacity of the manufacturer. The agency bases its information on the findings of a reporter went to visit one of the factories of HTC, supported by about internal sources.

The line in question was shut down soon August. According to the sources mentioned, she would never have been re-started since. A sign on the spot indicates a temporary closure. The merged firm would have two production lines in Taoyuan and consider the sale of unused, China and Taiwan assets.

HTC discuss with Foxconn and Wistron

Still HTC denies block. It reaffirms the need to optimize the use of the forces of production, especially when demand is lower. In this sense, the production line will be ready to leave as soon as the orders come.

Wall Street Journal supports assertions Reuters, referring to negotiations between HTC and some players like Foxconn and Wistron to outsourcing of business.

HTC suffers financially, loss of EUR 74 million announced on behalf of its fiscal third quarter was confirms the decline of its activity observed in recent months. Faced with the difficulties, the manufacturer is resigned to sell shares in the last manufacturer of Beats headphones and speakers, against $ 265 million. HTC have now turned their eyes to China hope to recover the slope.

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