HTC will not stop outsourcing its production

It seems that announcements from the house of HTC Corporation are refusing to stop. After announcing that the year 2014 will see the company launch four more products onto the market, the company has now made it clear that it will not stop outsourcing its production completely. The Taiwanese phone maker, instead, will keep on striking a healthy balance between outsourcing the production of its smartphones to reliable contract manufacturers and making smartphones at the company’s own manufacturing plant. This information has been provided by HTC’s CEO himself.

Peter Chou, the chief executive officer of HTC Corporation, met the press on Wednesday at the company’s product launch event (held in New York). When interacting with media representatives, Chou said that his company will be outsourcing the production of certain products to ODMs (original design manufacturers); he informed that HTC has taken such a decision primarily due to lack of resources.

Chou, however, didn’t mention the exact number of smartphone models the company is looking to outsource; he has also not named the assembly partners HTC is in talks with or has signed contract with.

Chou made it clear that HTC will have an extremely flexible outsourcing strategy; he added that to maintain flexibility the company will keep on developing innovative devices at its own factories.

To let people know the kind of position HTC holds in the global smartphone market, the CEO said that for a large number of people, the HTC One M8 is still a more functional smartphone compared to the newly launched Apple phone, the iPhone 6.

The Taiwanese mobile phone manufacturer has also experienced significant success with its mid-level Desire smartphones, for instance, the HTC Desire 820. The Desire 820 is the first smartphone to come packed with an octa-core, 64 bit processor; this specification of the device again proves that HTC looks to innovate even when it comes to its lower-priced products.

This is not the first time we are hearing that HTC uses the services of ODMs to get its products manufactured. Earlier this year, in the month of May to be more precise, Chang Chia-lin, the Chief Financial Officer of HTC, confirmed that the company often needs to rely on contract manufacturers to get its smartphones manufactured.

Chang didn’t forget to inform that the outsourcing volume of the company is less than 50% of the total number of units it ships. It became important for him to provide this information as many market observers were suggesting that HTC outsources the majority of its shipments. Chang, however, refused to reveal the exact number of devices manufactured by ODMs.

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