HTC is expected to complete construction of its new plant in Taoyuan, northern Taiwan in early 2012 with a production capacity of 40 million smartphones a year.

Viewing that HTC's smartphone shipments are expected to reach 47-48 million units in 2011, the new capacity, plus the existing production lines in Taiwan and China, will be sufficient to meet HTC's handset production in the next few years, the sources commented.

HTC does not rule out the possibility of outsourcing the production of smartphones but will continue to adhere to its current strategy of running in-house production in the near term, given HTC's prevailing capability to control the production costs of handset hardware, stated HTC FCO Winston Yung.

By: DocMemory
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