HTC closes office in South Korea where its smartphones struggled

The company had a 2 percent share of South Korea's smartphone market in 2011

Taiwanese smartphone maker HTC has closed its office in South Korea, a country where its handset sales have been low, it said Monday.

HTC did not specifically mention layoffs, and said it was encouraging affected employees to apply for open positions within the company. "This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years," it said in a statement.

South Korea has been a challenging market for foreign vendors including HTC to break into, said Nicole Peng, an analyst with research firm Canalys.

HTC had a 2 percent share of the smartphone market in the country for the year 2011, and a 1 percent share in this year's first quarter, she said in an email. Korean vendors, including Samsung, LG and Pantech, dominate with about a 90 percent of the market.

"They (HTC) have to invest in the more obvious opportunities in the short term," she said, pointing to China, which has become the world's largest smartphone market by shipments, according to research firms. In China, HTC has been quick to bring its latest devices, and earlier this year also launched a new "Kewang" series of lower-end handsets exclusively for the country.

In June, HTC also closed its Brazil office in order to streamline its operations, leaving only an after-sales office in the country. HTC's smartphone market share in Brazil was at less than 1 percent in the first quarter of this year, according to Peng.

HTC's has seen its profit growth decline in recent quarters, as competition with Samsung and Apple has heated up.

The company had originally expected to see this year's second quarter earnings stabilize with the launch of its new HTC One series of smartphones. But in June, the company lowered its revenue forecast for the quarter, with sales in Europe down further than anticipated, and shipments of smartphones to the U.S. delayed because of its patent battles with Apple.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?