Rumors have been floating around that HTC plans to acquire Nokia’s Chennai based plant to increase operations in India. The plant is considered the largest in the world and employs over 8000 people. In a statement to FoneArena, the company has categorically denied any such intentions and says that Mr. Chang’s words were taken out of context. Full statement is included below.
In reference to the story from The Economics Times; “HTC may consider buying Nokia Chennai plant” in India, HTC would like to clarify that the company has no intention of purchasing the plant. From a business perspective, we continually review opportunities to strategically invest and we will continue to do so in the future. It’s unfortunate that Mr. Chang’s comments were taken out of context during the interview.
Nokia’s Chennai plant is amidst a major tax related controversy and is not expected to be handed over to Microsoft as part of the transition set to complete on 25th April. If the matter is not resolved soon, it is believed that the company would consider shutting down the plan. Nokia would enter a services agreement if the assets are not transferred over to Microsoft. While HTC has denied any intentions to buy over Nokia’s plant, there is no doubt at all that it is doubling down on the Indian market. The company has managed to ship 60,000 units of it’s entry level smartphone ie the Desire 310 and the promising price point of the Desire 210 should help HTC start on the long way towards recovering it’s market position.