HTC Phones

HTC’S NEW STRATEGY:-

Having faced some lost in the recent past, HTC is now planning of outsourcing their Smartphone production to the other companies so that they can cut the costs and return to the profitability.

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Therefore for the outsourcing pact that they are thinking of indulging in, this Taiwanese Smartphone maker is now placing across its treaty to the major contract manufacturers such as the BlackBerry supplier Wistron Corp., the unit of Hon Hai Precision Industry Co. and a few more.

HTC at present makes the productions of the Smartphones in-house at the factories of Taiwan and China. They had themselves originally begun as a contract manufacturer for the other handset companies in the year 1997, slowly growing from there the company started producing phones under the name of their own brand since the year 2006. There was no looking back for HTC since then. They experienced an increase in a very short span especially in the US and it is then that they became a leading Smartphone maker in the year 2011.

However, it is a sad thing for them that the rapid way in which they had succeeded, in a similar swift way they faced a descent as their sales could no longer keep that velocity as they faced competitions with those of Samsung and Apple. The critics feel that the reason behind their decline was the marketing and the production problems, and it is just this problem which has removed their name from the top 10 Smartphone makers of the year.

A study says that the company’s third- quarter sale fell 33% from a year earlier and this left behind the factory capacity idle in Taiwan and Shanghai. Not only this, their cash position is also known to be deteriorating. A year back where the company had $55.5 billion, this year’s second quarter result showed that they are left with just $1.63 billion.

Therefore facing such crisis, HTC was left with no option but to seek for a turnaround plan. The loss has taken such a stand that the company even had to ask a few companies whether they would want to buy one of HTC’s factories.

Though the chairman of the company made certain prepositions just, some changes have already been made. The company is now aimed at putting more emphasis on the China market and is determined to spend more for the marketing purposes, as they believe that it is the marketing strategy that can bring about a complete change in the business structure. And the strategy has already been implied prior the launch of the latest HTC phone, the HTC One Max for which the Hollywood actor, Robert Downey was engaged for the marketing campaign.

Will the new strategy make a difference to their cash structure? One can only wonder.

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