Android Phones

HTC faces component shortage as it struggles to manufacture enough One devices

March 19, 2013 | by Natesh Sood

Android Phones, HTC

HTC One Product Image

The HTC One is a prime position to contend with the Samsung Galaxy S 4 and iPhone 5 based on intial reviews.  However, there is one major obstacle holding HTC back from even launching the One on time — component shortages.

According to a report from the WSJ, HTC is having trouble procuring enough rear facing cameras as well as metal casings.  As a result, the production lines aren’t churning out as many HTC One devices as they could.  After having less than stellar performances in the past few quarters with its other devices, HTC had to seriously revise its demand forecasts.  Some of HTC’s suppliers have downgraded HTC’s status from a tier-one customer.

Being able to efficiently manage a supply chain is a necessary factor in achieving success, and it appears HTC is having trouble accurately communicating needs with its suppliers.

The launch time frame has been pushed back from March to early April in many markets.  HTC planned to get the One on store shevles well ahead of the Galaxy S 4, but now that goal seems impossible.

To make the story into even more of a saga, let’s toss in some drama.  The WSJ is also reporting that HTC’s CEO, Peter Chou, will step down if the One is not successful.  We’re not exactly sure how what specific measures HTC will employ to decide whether the One is a success or not, but so far it is not starting out well.  It will be interesting to see if HTC opts to release any official statements, but perhaps they should reconsider disparaging the Samsung Galaxy S 4 when they have clear problems of their own.

[The Verge]