HTC reduces production output due to cash flow fears – reports

23 Oct 2013

The HTC One smartphone

Taiwanese smartphone maker HTC is understood to have halted at least one of its four main manufacturing lines – a fifth of total capacity – as reduced sales has put pressure on cash flow, according to a report.

Reuters has reported that HTC’s flagship smartphone One has struggled to gain traction in a market dominated by Apple and Samsung, and its problems have been exacerbated by supply-chain constraints.

Cash flow is understood to have dropped to a negative US$707.2m at the end of June.

HTC has denied that it is shutting down production lines or plans to sell factory assets.

However, citing sources, the report claims HTC has combined production from two lines in Taoyuan, Taiwan, into one, potentially reducing its product capacity by about 1m phones per month.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years