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HTC begins outsourcing low-end smartphone production

HTC has always taken pride in the fact that the company designs, engineers and manufacturers all of its phones. That all changed this spring when HTC offloaded production of at least three HTC Desire phones  Taiwan-based contract manufacturer Compal Electronics Inc. and China’s Wingtech Group. HTC is hoping the move will help the company reduce costs and allow them to be more competitive in the mid and low-end smartphone segment.

While there may be a cost save for HTC by outsourcing the production of a few Desire devices, the quality of the phones will most likely be in line with that we have come to expect from HTC over the years. We were greeted with the usual “HTC declines to comment on rumors and speculation” line when we reached out to them this morning. HTC executives have expressed to being open to outsourcing production of certain products, but has always insisted that its flagship devices like the HTC One would always be manufactured by HTC.

Source: WSJ

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