HTC confirms it’s on the lookout for manufacturing partner options in India
Taiwanese smartphone maker HTC Corp. ( ) confirmed on Thursday it is looking for two contract manufacturers in India to help the company reduce costs and tap into the world’s thirdlargest smartphone market.
The pending plan to team up with multiple electronic manufacturing services (EMS) providers in India is aimed at diversifying the supply risks given that HTC phones are complicated to assemble, said Chang Chia-lin, chief financial officer and president of global sales at HTC, at a press briefing after the company’s conference call with investors.
The new partners are expected to be finalized as soon as the second half of this year, he said, adding that HTC did not discuss the plan with Taiwan’s Hon Hai Precision Industry Co. ( ) but would not rule out such a possibility of cooperation.
The executive noted that HTC’s second-quarter sales volume in India had doubled from a year earlier, with its Desire 526 midtier phone gaining popularity there.
In late June, Indian telecom news site ET Telecom reported that HTC had signed an agreement with contract manufacturer Global Device Network to produce entry-level and mid-range smartphones in India.
The HTC smartphones made in India will be from the Desire series, priced between 10,000 Indian rupees ( US$ 157) and 25,000 Indian rupees, the report said.
HTC did not confirm the report at the time, saying only that it would consider various options to bring its products to market.
Chang’s remarks came a day after Hon Hai, the world’s largest contract electronics maker, announced a 10-year investment plan in India.
In a news conference held during his visit to New Delhi, Terry Gou ( ), chairman of Hon Hai, which is also known as Foxconn Technology Group ( ) outside Taiwan, said that future investments in the South Asian country will not be limited to product assembly.
Gou said he has been encouraged by Indian Prime Minister Narendra Modi’s “Make in India” initiative, which has been promoted since September 2014 to attract businesses from around the world to make the country a manufacturing hub.