Production decreased with HTC due to low demand - or is it? - Mobilegeeks

HTC

it currently has not been easy. After various other problems, now provide reports of unrest, according to which the company has partially cut back production because you should have funding problems. However, HTC has denied appropriate messages immediately.

Previously, the Wall Street Journal and Reuters had reported that HTC has its own production lines in Taiwan recently appeared partially closed. According to Reuters, at least one of the four main production lines from HTC was apparently closed. This should normally comprise 20 percent of the total capacity. HTC has begun to outsource some of its production, in part because the company gradually the money is to go out because of falling sales. Even

at its site in Shanghai Chinese HTC is said to have largely stopped, and the production is currently only build a few units for sale in China. Normally, this plant has a capacity of two million units per month, but now it is considered to dispose of the unused production lines, it said.

HTC was immediately heard a denial, because according to the company intends to close or sell production lines. They have extensive cash reserves, the report said. HTC trying in his planning as any other manufacturer to optimize the use of production lines, so as to keep operating costs low. Whether the production capacity would be used depends on the demand and expectations of HTC’s own – there is a lower demand, less production lines would operate to reduce costs

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