HTC is not doing well in South Korea. Actually, the sales have been so low in the country that the Taiwanese company is withdrawing operations from the South Korean market. Despite the great range of phones released in 2012, the company is struggling to keep up with competitors as Samsung – on its own turf. Company officially announced today that they will be withdrawing their complete operations from South Korea because of fierce competition. It also announced that the company will be closing all South Korean offices but will keep providing customer services in the country.
HTC is one of the major players in the smartphone business and this news is cause for concern. HTC faced strong competition from both Samsung and LG in Korea, even Apple’s iPhone 4S is penetrating its way into the Korean market as well. HTC’s Korea manager was fired just after 6 months of his appointment. HTC’s rumored smartphone launch in South Korea in the second half of 2012 is most likely cancelled due to the withdrawal.
Last month HTC announced in a similar statement that it will be withdrawing from Brazil as well, closing all offices while keeping the after sales services in the country. Looks like HTC is not doing very well financially thus the closure in two major smartphone markets. HTC also reported that the profit was down 57% year-on-year, with revenue also down to 26.8%
HTC is losing money and if they don’t come up with a safe strategy to balance the company’s finances then you might hear some more closures across the globe in the coming months. HTC’s One series is not doing very well in the European market and the stock prices are slowly declining over the past couple of months. All we can do is wait and anticipate, what HTC’s next move will be.