Feeds

HTC leaves South Korea to Samsung, LG et al

Exits quietly, but not very brilliantly ...

Secure remote control for conventional and virtual desktops

Mobile device biz HTC has abandoned its operations from Samsung’s home market of South Korea, in yet another blow to the beleaguered Taiwanese handset giant.

The firm announced in a widely reported statement that the move was being made to “streamline operations”.

"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 added.

It seems that several years of failing to make an impact in a market dominated by local hero Samsung and several other home-grown players has finally taken its toll.

HTC never really pushed beyond a five per cent market share, hitting that high in Q4 2010, according to Gartner. Since then it has languished with one or two per cent over the past couple of years.

“Globally, many players are struggling to maintain market share as Samsung and Apple share the majority of profit in the smart phone market,” Ovum analyst Mark Ranson told The Reg.

“The Korean market is especially difficult because of the dominance of not just Samsung but other local players, LG, and Pantech – Korean players are even more dominant in the local LTE smart phone market.”

Gartner’s Seoul-based analyst CG Lee explained that this local dominance in the LTE space is “because there’s no standard frequency band between countries”, making it hard for foreign handsets to make an impact.

“Without economies of scale, foreign vendors also find it difficult to survive in a communications market where huge marketing dollars are needed,” he told El Reg.

Although HTC announced its intention to pull out of Brazil last month and has been hit with a run of poor financial results recently, the Korean departure is not necessarily a bad move for the company, according to Ovum’s Ranson.

“Ovum expects HTC will treat every market on a case-by-case basis, assessing which offer the best growth potential – few other nations will offer such difficult and unique market conditions as South Korea,” he said. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.