Is HTC shutting down factories following a sales slump? That's what a Reuters report has claimed, but HTC has denied this is the case.
Reuters claimed the Taiwanese company had "halted at least one of its four main manufacturing lines" which make up a fifth of its total capacity.
Sources claimed that a factory at HTC's headquarters in Taoyuan, just north of Taipei, had its loading docks shuttered. A sign on the door read: "Lobby is temporarily closed for use. Thank you for your cooperation."
HTC is having a tough time at the moment. Despite its HTC One receiving rave reviews, the company's sales are struggling against the likes of Samsung and Apple. HTC reported its first quarterly loss this month, and recently enlisted Robert Downey Jr. to front a high-profile ad campaign signalling change.
It denies closing any factories. It said in a statement: "HTC is not shutting down, nor does it have any plans to sell any of its factory assets. HTC has a very strong balance sheet and will provide the latest financials in our upcoming earnings call to investors and the broader community."
Though chief maketing officer Ben Ho said such measures weren't unheard of. He told Reuters: "Like any manufacturer, we do volume planning to optimise our lines, our manufacturing and production facilities.
"Whether we are operating those facilities depends on market demand and our own expectations," he went on. "When you have less demand you work with less facilities to optimise your costs. When you have demand, or bigger growth, you definitely have to activate all these facilities."