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Earlier today, the Wall Street Journal and Reuters reported that HTC is looking to shut down one of its factories and outsource its handset production to cut costs and prevent further loses.
The report suggested that the above action is a direct response to the company’s falling sales and to cut down its costs. However, this piece of news has been shot down by HTC officials saying the company does not intend on shutting down or selling any of its factories.
Below is the official response from HTC -:
“HTC is not shutting down nor does it have plans to sell any of its factory assets. HTC has a very strong balance sheet and will provide the latest financials in our upcoming earnings call to investors and the broader community.”
Reports do suggest that HTC is seeking to re-use one of its factories to manufacture one of the rumoured handsets that it is, apparently, working with on Amazon.
HTC reported its first ever loss since its inception, in the previous quarter making people question how long it will survive in the competitive mobile industry.
