HTC to Sell the Shanghai Factory for Reducing Operational Expenses

The latest news from HTC is that they are letting go about 15 percent of their work force in order to decrease operational expenses. Actually, HTC is looking for the way to shed off work resources by selling the Shanghai factory. It is clear to all that the demand of HTC phones has been decreased nowadays and the giant success story of this name has become the past tale. In such condition the company requires to make a strong strategy for reducing expenses. The Taiwanese phone manufacturing company is ambitious to struggle against big names like Apple and Samsung. But the problem is that HTC’s middle range handsets are being beaten by those Chinese venders who offer featured handsets at very low cost.

The financial challenge being faced by HTC has made it hard to stay profitable further with current conditions. According to the recent report, the OEM is facing loss of $257 to $291 million. To counter some of these financial loses, the company has decided to sell the shanghai factory to a Chinese manufacturer the name of whom is mystery till now.

HTC has its chain of factories in leading regions of Taiwan and China where it manufacturers it’s featured smartphones. The shanghai factory which has been planned to be sold costs $32.2 million. In 2010, the company was experiencing grand success and earned skyrocketed revenue; that time the shanghai factory has operated with double capacity. Now selling this factory will help the company to inject some cash into the dwindling bank account. This all cannot connected with a thought that the company has become disheartened in this hard time. According to leaked information, HTC is planning to launch a smart-phone which will be powered by snapdragon 820. This represents that the company has not leave its ambition of designing high end devices.

This represents that selling the shanghai factory is not any sign of lost hope for HTC but an important part of their strategic planning of cost reduction. The company wants to hold consistency in the mobile market, that’s why, tough financial conditions needs to be beaten by the management to end this trying time. Interesting thing to know is that HTC is not alone to take such decisions for handling financial scarcity but many other OEMs are also there to take similar measures to bring their golden success back.

With the idea of selling the shanghai factory, HTC will have to face some big lay-offs too for losing some of the skilled current staff and this is the question of rebuilding company’s manufacturing platform. Many good things are still in favor of the company such as various manufacturing factories scattered in Taiwan and China; this is a plus point to avoid problems that can affect availability and distribution of devices. In this tough time too, the OEM has high hopes. The news of upcoming HTC smartphone has already made it clear to industrial reviewers that the company has a lot further to influence the global mobile market.