HTC Starts Outsourcing Some Manufacturing

Posted by at 12:42 pm on May 6, 2014

HTC has begun using other companies to build some of its devices, according toThe Wall Street Journal. The company has asked Taiwan-based Compal and China-based Wingtech to manufacture its mid-range Desire series phones.

Outsourcing the manufacture of these devices is meant to help HTC cut costs. HTC has faced financial troubles for years, and posted losses in its two most recent financial quarter. HTC still makes its high-end One series devices in-house, where it has more control over processes. Apple has long outsourced the manufacturing of its iPhones and iPads to Asia-based corporations. Nokia has begun outsourcing some of its manufacturing, though Samsung and LG continue to make their own hardware.

The Journal says HTC’s moves reflect more active engagement of Chairwoman Cher Wang, who has stepped up in recent months to help CEO Peter Chou. HTC did not comment on the Journal’s report.

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