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WSJ: HTC Outsourcing Production of Mid-Range Desire Smartphones

May 5, 2014 - Written By Alexander Maxham

HTC is looking to cut down costs, while still manufacturing their mid-range smartphones – which appear to be selling pretty well over in Asia – HTC is reportedly outsourcing the production of their Desire line of smartphones. According to The Wall Street Journal, HTC has outsourced the production of their mid-range smartphones to Compal Electronics Inc of Taiwan and Chinese manufacturer Wingtech Group. Outsourcing can be a good thing for HTC, especially since they aren’t in the best financial shape. And this could help them cut costs and make a bit more of a profit, which they desperately need to do. 

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 Inc., is readying to mass produce the Desire 616.”

The Desire 616 and a few other Desire devices that HTC have announced this year already have been doing pretty well. The Desire 616 got about a million pre-orders over the course of a couple of days, which is great for HTC, especially with them struggling lately. Their Desire mid-range smartphones are probably some of the best mid-range devices, as far as build quality goes. But as we all know, everyone has their own opinion, so not everyone will love the build of the HTC Desire line, especially since it’s not metal like the HTC One M7 and M8.

Hopefully this move will help keep costs down for HTC, and help them turn a profit. It’ll be interesting to see their earnings for the next couple of quarters to see how things have changed for them since outsourcing the production of their mid-range smartphones. How many of you are looking to pick up one of HTC’s new Desire smartphones? Let us know in the comments below.