Feeds

HTC leaves South Korea to Samsung, LG et al

Exits quietly, but not very brilliantly ...

Maximizing your infrastructure through virtualization

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 Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
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
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
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.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.