HTC One Delayed

19 March 2013

Wall Street Journal:

One HTC executive said the company has a had a problem managing its component suppliers as HTC “changed its order forecasts drastically and frequently following last year’s unexpected slump in shipments.” The executive added that “HTC has had difficulty in securing adequate camera components as it is no longer a tier-one customer.”

In consumer electronic markets, tensions arise because although buyers tend to favour new entrants, suppliers greatly prefer large incumbents due to the economies of scale involved.