- HTC will reportedly halt smartphone operations in India, following disappointing results in the market.
- The company has struggled to gain marketshare as rivals such as Samsung and Xiaomi streak ahead.
- It’s believed that the brand will still sell Vive virtual reality headsets in the country.
HTC’s financial struggles have been well-documented in recent years and it seems like the company’s woes are continuing as it will reportedly halt smartphone operations in India.
According to The Economic Times, citing three senior executives at the brand, HTC India’s top-level management team is leaving the company. The Taiwanese firm has also asked most of its 70-80 member Indian team to leave, the sources say. Exceptions are reportedly being made for a few employees, however, such as the chief financial officer.
It’s believed that the firm is also terminating distribution agreements in the country and that it owes money to at least one distributor.
An executive told the outlet that HTC isn’t exiting the Indian market completely, as it will still sell its Vive virtual reality headsets in the country. “This will be like an extremely small business,” the executive was quoted as saying.
Another source said the company might re-enter the market as an online exclusive brand (akin perhaps to Huawei’s Honor). This move will be contingent on the firm’s ability to revive its global sales, according to the source.
A company spokesperson confirmed the layoffs but said there were still over ten employees at the Indian office “providing full functionality.”
HTC’s sliding share of the pie
The news comes after the firm’s Indian market share plummeted in recent years. The firm’s Q1 2017 market share in the region was pegged at just 0.26 percent, according to a report last year. The report added that HTC’s Q1 2017 market share in the 50,000 rupees and higher (~$724) segment was 1.82 percent.
Furthermore, Cybermedia Research found that the Taiwanese brand was the biggest loser in India when it came to year-on-year growth from 2016 to 2017. While Xiaomi, iTel, LYF, and Vivo saw triple-digit figures for year-on-year growth, HTC dropped by 79 percent.
We’ve contacted the brand’s representatives for further comment on the matter and will update the story accordingly.
July 19, 2018 at 02:55AM