The unprofitable Taiwanese smartphone maker has selected Taiwan-based contract manufacturer Compal Electronics Inc. and China's Wingtech Group for at least three of the new models in its midprice Desire series, said people familiar with the matter. Both assemblers began to mass produce smartphones for HTC this spring, the people said. Traditionally, HTC has produced all of its phones at its own factories".
"The move accompanies other efforts by HTC to turn around its business. ChairwomanCher Wang has taken a more active role in management in the past year, and the company recently hired Samsung Electronics Co.'s former U.S. marketing chief, Paul Golden , as a consultant to beef up its marketing.
HTC has long focused on high-end phones and resisted outsourcing, even as competitors from Apple Inc. to Nokia Corp. have turned to contract manufacturers to focus on design and save costs over the years. 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".
"Once the world's largest smartphone maker by shipments at its peak in 2011, HTC has contended with a stock slump of more than 86% amid unsuccessful marketing campaigns, supply-chain mishaps and growing competition. The mistakes brought HTC its second net loss on record in the first quarter, and it has fallen out of the world's top-10 smartphone makers since last year. The company's stock rose by the maximum daily limit of 6.9% on Monday to 169 New Taiwan dollars (US$5.59) on expectations that HTC would forecast a return to profit for the second quarter when it releases guidance on Tuesday".
