Feeds

HTC leaves South Korea to Samsung, LG et al

Exits quietly, but not very brilliantly ...

Boost IT visibility and business value

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. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.