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 newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
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

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?