HTC reported to be outsourcing production of mid-range smartphones

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

Richard Devine