Confusion about HTC. Had production cuts smartphones? - Computer World (press release)

According to Reuters reporters referring to the personal observations and informants, plants HTC in Taiwan in Taoyuan significantly reduced the production of smartphones.

supposedly works there only part of the assembly line. Ideantyczny scenario may be the HTC Chinese factory in Shanghai, where he is currently rumored devices are manufactured exclusively for the local market. The report said the major cuts, reaching up to 20% of global capacity HTC. Global sales of smart phones continues to grow fairly rapidly, but HTC has lost market share despite the exciting premier such as for example the HTC One (pictured below).

One of the reasons to reduce production as suggested by Reuters, is a complicated financial situation of the Taiwanese company. HTC has long been noted down for falling revenues, but so far the company did hold above the line. Unfortunately, in the last quarter for the first time in the history of recorded loss and is quite large. Within three months lost about 101 million dollars.

Report mentions the possibility of “optimization” of production (euphemism for cuts in order to avoid further losses), and even plans to resell the assembly lines. According to Reuters, this may indicate a desire to move some of the tasks associated with installation of smartphones such companies such as Foxconn. Outsourcing can bring considerable savings, especially if HTC decided that the separation of the business responsible for the production of which has been designing and selling devices.

HTC strongly denies all of the writes Reuters. In the official commentary we read that HTC does not close factories, nor is there any plans for the sale of its assets.

Unfortunately, the atmosphere around HTC is not the best. In September, with a loud bang t?pn??a matter of partnership between HTC and Beats Electronics (brand name behind the sound system in smartphones, HTC). Beats freed itself from the influence of the end of HTC, a Taiwanese company buying back the rest of their shares. Both sides declared that true desire to maintain partnership relations, but the issue further branding logo BeatsAudio HTC devices has not been explained.

Everything that is happening around the HTC is quite a conundrum for analysts. There have even been unconfirmed reports of ongoing talks with Lenovo, but it is not clear what the exact context. HTC has difficulty with the reflection from the bottom, but it is still too big bite to swallow for potential competitors.

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_{Fig. HTC}

_{Source: Reuters}