HTC scales back production as smartphone sales start to slow

 
City A.M. Reporter
TAIWANESE smartphone maker HTC has halted at least one of its four main manufacturing lines, accounting for at least a fifth of total capacity, and is outsourcing production as a sales slump puts pressure on its cash flow, according to sources with direct knowledge of the situation.

A Reuters reporter who visited an HTC factory at the company's former headquarters in Taoyuan, about an hour’s drive from Taipei, saw loading docks shuttered and a sign on a locked lobby door that read: “Lobby is temporarily closed for use. Thank you for your cooperation.”

HTC launched its latest version of the flagship One series handsets this year but has struggled to gain traction in a market dominated by larger rivals Apple and Samsung.

“HTC is not shutting down nor has plans to sell any of its factory assets,” the company said in an emailed response.

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