HTC may reduce component orders for HTC One M9 by 30%, say sources

HTC may cut its orders for related parts and components for its flagship smartphone, the HTC One M9, by as much as 30% due to lower-than-expected sales for the model in the end-market, according to sources at Taiwan's handset supply chain.

HTC declined to comment on market reports.

However, the sources noted that sales of the One M9 have been flat as its design is identical to its predecessor the M8 and its hardware specifications are just comparable to other flagship models launched by other vendors.

Additionally, HTC is also facing strong competition from China-based vendors, including Xiaomi Technology, Huawei, Vivo, Oppo, Lenovo and Coolpad, in the entry-level to mid-range segment, making it difficult for HTC to ramp up sales for entry-level and mid-range models.
Advertisement Although HTC has adjusted its product and marketing strategy by introducing the HTC M9+ to its high-end product line, it remains to be seen if the flagship models will complement each other, commented the sources.

HTC's share prices dropped NT$1.50 (US$0.05) to close at NT$103.5 on the Taiwan Stock Exchange (TSE) on the May 20 session, the lowest level in over 10 years

HTC seems to not be selling as many One M9 units worldwide as it had anticipated before the device's launch. While exact numbers are hard to come by, we assume the Taiwanese company would have publicly bragged if it had reached some impressive milestones.

Instead, HTC is now rumored to be cutting component orders for the One M9 by 30%. This obviously means it's not moving enough phones to justify keeping the current component order levels.


The information allegedly comes from "sources at Taiwan's handset supply chain", so do take it with a small pinch of salt. Then again, the situation it describes does not feel at all implausible.
Advertisement The aforementioned sources go on to claim that sales of the One M9 have been "flat", because it basically looks exactly like its predecessor and doesn't have any distinguishing hardware features when compared to its direct competitors.

On top of all that, Chinese vendors such as Xiaomi, Huawei, Oppo, Vivo, Lenovo, and Coolpad are all attacking HTC's lower-tier models, thus making it harder for the company to sell more entry-level and midrange offerings.

So things aren't going that well at HTC. On May 20, its share price dropped to a ten-year low on the Taiwan Stock Exchange.

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