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In a move to cut costs and chase customers in developing markets, HTC has for the first time outsourced production of some smartphones during this quarter, so says the Wall Street Journal. Three models in the Desire line have been outsourced to Compal Electronics Inc of Taiwan and Chinese manufacturer Wingtech Group.

While it is keeping production of its most advanced devices in-house, HTC has outsourced a high-power smartphone aimed at the China market. Chinese contract manufacturer Wingtech, which also makes phones for Chinese brands such as Xiaomi Inc., is readying to mass produce the Desire 616.

Outsourcing is a potentially smart move in what are continually trying financial times for HTC, and rival Apple already adopts a similiar production method for the iPhone. The Desire 816 will be staying in-house as will the HTC One family of devices.

Whether or not it proves a financially sound move only time will tell.

Source: Wall Street Journal


Reader comments

HTC reported to be outsourcing production of mid-range smartphones


iDK if it will help them financially, but I could care less about their mid-range devices.

It's all about the One, baby! (Nah, just kidding.)

Maybe the Chinese can get the camera right, is the only thing really lacking in an otherwise excellent phone. Why yes I did spend a month with the phone, yes I took side by side shots with a Note 3, S4 and S5. Yes HTC was the worst of the bunch.

Please define worst. It could mean a variety of things from color saturation to overblown whites.

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out of the 4, overall it took the worst pictures out of any of them, in most situations. Of course in low light it excelled, but that is not saying much (Galaxy phones are super crappy in low light most of the time). If I had a G2 or Sony on hand it would have lost that category as well.

It is a shame that for the sake of being different they screwed the phone up just enough to get it overlooked by Mom and Pop phone shopper that takes camera pics. You know that when you go into the store that is one of the first things they ask, what do you use your phone for. When you say camera, they guide you away from HTC.

Outsourcing won't fix the camera. HTC is still designing the phone, deciding on the parts, and building the plans. Just now, someone else is building it. Its like what Apple does with Foxconn.

Got Nexus?

There appears to be a real sense of irony to me, in that HTC started out as a company that made phones for others, now outsourcing some models.

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Their stock is jumping today which is good to see. Whether it's due to their midrange or high end, I'll take it.

Ironic how they used to be the company that others outsourced to and now they are outsourcing to others!

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