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.
Whether or not it proves a financially sound move only time will tell.
Source: Wall Street Journal
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