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Monday, May 05, 2014
HTC Faces Supply Shortage For One M8, Outsources Part Of Production

HTC is facing a high demand and a supply shortage for its latest flagship smartphone, the HTC One M8, Corp.'s flagship smartphone,a company executive said Monday.

According to the Taiwanese Central News Agency (CNA), Jack Tong, head of China operations and president of HTC North Asia, said that the initial sales performance of the M8 had outperformed that of the HTC One in the same period of last year. HTC plans to launch the M8 in more Asian countries from the middle of May.

HTC has also began to outsource production of some of its smartphones for the first time this quarter, as it looked to slash costs.

According to WSJ's sources, the taiwanese company has outsourced at least three of the new models in its Desire series to Taiwan-based contract manufacturer Compal Electronics and China's Wingtech Group.

The move is part of HTC's efforts to become profitable, as it was previously producing its mobile device in its own factories. But as HTC struggles to hold its ground against Samsung and rapidly growing Chinese brands, it has decided to launch more low-price phones this year with the help of contract manufacturers.

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, is readying to mass produce the Desire 616, which will run a fast eight-core processor made by budget chip maker Mediatek, the WSJ's report added.

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