HTC may shift supplied to attack low-end

htc logo Previously pretty much married to Qualcomm, HTC’s new strategy of increasing low to mid-range sales means margins are not as high as they used to, and that means they need to cut cost somewhere.

Digitimes reports on the rumour that HTC may partner with MediaTek for price-competitive handset IC solutions and to leverage MediaTek’s connections in China. Taiwan IC designers Richtek Technology, Novatek Microelectronics and Ralink Technology are also likely to enter HTC’s supply chain in the future due to HTC’s cost-down strategy.

This will also mean suppliers Qualcomm, Synaptics and Elan Microelectronics will see lower sales, which may last for another 2 quarters as HTC sells through built-up inventory.

What this means for buyers it unclear – while buyers prefer high quality products one can not necessarily say that about HTC’s existing chipsets, so any change may be good.

Read more at Digitimes here.

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