HTC is outsourcing production of mid range smartphones, according to a latest report from the Wall Street Journal. The Taiwanese smartphone maker is reportedly outsourcing its Desire line of smartphones that are targeted at emerging markets like India.
As per the report, HTC has selected Taiwan-based Compal Electronics Inc. and China’s Wingtech Group to outsource these smartphones. The move comes from the company at a time when it is facing tough competition from Samsung, Apple, local manufacturers and upcoming Chinese brands. Also, outsourcing can help the company in cost cutting and garner some much-needed revenue.
The report further states that HTC is keeping the production of flagship One M8 and Desire 816 in the house and not outsourcing them. Instead it will outsource recently launched Desire 210and the Desire 616 budget smartphone that would be targeted at emerging markets. However, the WSJ report did not identify the third phone that is being outsourced.
Source: Wall Street Journal