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HTC widening chip partnerships to narrow losses

HTC is considering stronger partnerships with a wider pool of chip manufacturers as it attempts to arrest a worrying decline in global sales in the ultra competitive smartphone market.

Focus Taiwan reports that the smartphone manufacturer is considering using other chip manufacturers in addition to its long-time partner Qualcomm as it tries to beat off competition from low-cost devices built by other firms.

It comes after HTC released a new line of Desire smartphones earlier this week with just one featuring a Qualcomm chip and the higher end versions all sporting quad-core chips made by other companies.

The firm is reportedly looking at a similar strategy for its top end devices, like the HTC One, as it plans to introduce devices that are lower cost but retain impressive specifications.

"HTC will evaluate the situation. If most players in the industry are seeking high performance to cost, then we would not be able to ignore such a trend despite good design and applications. From the perspective of Qualcomm, MediaTek Inc. and other chipmakers, they should be thinking about how to take advantage of the overall trend to secure and expand their ground in the market. So there's likely to be a restructuring," Jack Tong, head of China and North Asia at HTC, told Focus Taiwan.

Of the four new models released by HTC, only the 4.3in Desire 300 has a Qualcomm dual-core 1GHz processor with the Desire 501 carrying a ST-Ericsson U8520 dual-core 1.15GHz processor.

The dual-SIM Desire 601 has a Broadcom Java quad-core 1.2GHz chip and lastly the Desire 700 has a Spreadtrum Shark quad-core 1.2GHz processor. The four new mid-range Desire smartphones go on sale in Taiwan at between NT$7,900 [£163] and NT$13,900 [£287] with the company likely to make an announcement about its next line of high spec phones early next year.