HTC pulls out of Brazilian smartphone market, citing poor sales

HTC pulls out of Brazilian smartphone market, citing poor sales
According to an HTC spokesperson speaking to AndroidPIT, HTC has decided to cancel the impending launch of the HTC One line in Brazil, and will be exiting the smartphone market in Brazil completely in the coming weeks. HTC once produced phones in Brazil, and had been steadily losing market share since they pulled their productions lines from the country.

To get a feel for how steep the odds were for HTC in Brazil, StatCounter indicates that HTC phones had a mere 0.11% market share in the first quarter of this year. That means that not only was HTC trailing industry leaders like Samsung, Apple, and Nokia, but they were behind companies like LG, RIM< and ZTE as well.

Their inability to compete in the Brazilian market may hurt them in the long run, as Brazil has a quickly growing economy; smartphone sales are growing accordingly, with 8.9 million devices sold last year. Within the next 4 years Brazil is expected to pass up the U.K. to become the fourth largest smartphone market.

Given these market conditions HTC had to make a tough decision. Their refusal to make low-margin phones to compete with Nokia and ZTE may have further reduced their chance to grow sales. As a result of this move most HTC employees in Brazil will see their jobs disappear, although it is reported that HTC will keep on a small contingent of customer service employees to provide support for existing customers.

source: AndroidPIT via The Verge

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30 Comments

1. jmoita2

Posts: 930; Member since: Dec 23, 2011

A stupid move, they should have redoubled their marketing efforts as Brazil is one of the world's biggest cell markets.

2. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

Brasilians love only four things: 1. iPhones 2. Beach 3. Sex 4. Samba That's it, and it that order!

3. groupsacc

Posts: 232; Member since: Feb 28, 2012

I agree with your listing, but you have the order wrong ;)

6. ltavaress

Posts: 30; Member since: Feb 20, 2012

I don't agree, I'm brazilian and I hate beaches and iphones and samba

7. jmoita2

Posts: 930; Member since: Dec 23, 2011

You forgot Jiu Jitsu!!! lol I'm with you, Itavaress.

9. fabiaguilafc

Posts: 2; Member since: Nov 22, 2011

Please, the No. 1 thing Brasilians love is soccer!! Come on!! That is what Brasil is known for around the world!!

10. ltavaress

Posts: 30; Member since: Feb 20, 2012

I don't like soccer either

11. ltavaress

Posts: 30; Member since: Feb 20, 2012

I guess they should kick me off of Brazil

13. jmoita2

Posts: 930; Member since: Dec 23, 2011

Come to America... we need more Brasileiros!!! lol

20. bolaG

Posts: 468; Member since: Aug 15, 2011

Sim deveria vem pro EUA haha porque Brasiliero que nao gosta de praia ta deficil

22. ltavaress

Posts: 30; Member since: Feb 20, 2012

Sure, I just need a place to live over there and someone to love me. You guys are the funniest when you speak portuguese

19. bolaG

Posts: 468; Member since: Aug 15, 2011

Good list but if your going for the stereotypical brazilian it would be: 1. Women 2. Soccer 3. Cars 4. Fighting/MMA

29. jmoita2

Posts: 930; Member since: Dec 23, 2011

Hey, that's me!!! lol

24. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

you totally forgot about steroid. HTC should develop steroid and sell it there. They would probably make more money :P

4. AnukulVcool unregistered

it means Brazilians are smart

5. gustavo.saiki

Posts: 4; Member since: Jun 22, 2012

I'm quite sure a Brazilian made that list, given the "s" in brazilians. Anyway, I live in brazil and can honestly say I hate samba. So stop giving foreigners reasons to label us as this underdeveloped country that cares about nothing. Now, about HTC: I have an HTC Android smartphone and think it's really superior to some Samsungs and Motorolas in the same price range. Thing is, I bought mine before HTC even restated their business here, less than a year ago. Since then I haven't seen a single piece of advertising on HTC phones in Brazil, be it on TV, magazines, internet, whatever. So if they failed here, it's because they wanted to.

8. jmoita2

Posts: 930; Member since: Dec 23, 2011

It's like saying: All Americans love Rap music...

25. thedarkside

Posts: 654; Member since: Apr 30, 2012

i hate rap. i like music that actually has talented musicians making it.

12. Joshing4fun

Posts: 1245; Member since: Aug 13, 2010

Oh, Htc I'm worried about you...

14. RoundBallmer

Posts: 43; Member since: Jun 19, 2012

Android = lag. Brazilians are smart not to buy it

26. thedarkside

Posts: 654; Member since: Apr 30, 2012

you must be from 2009.

15. Caralho

Posts: 119; Member since: Jun 18, 2012

We also like tight asses and big boobs.

18. bolaG

Posts: 468; Member since: Aug 15, 2011

Thats the winner irmao :)

16. Forsaken77

Posts: 553; Member since: Jun 09, 2011

Well if Brazillians only like low-end, crap phones... then it doesn't pay for HTC to stay there. HTC is more about high-end now. So it's either lose money or leave. They made the right call.

21. gustavo.saiki

Posts: 4; Member since: Jun 22, 2012

People love to talk about other places like they lived there... You couldn't be more wrong. Brazilian people are paying big bucks to have high-end phones, cars and all the rest. And consider this is a country where taxes makes everything cost twice as much (or more, in some cases) as they do in the US. The difference is people here aren't that crazed about gadgets as north-americans are. They go to a carrier shop and want to know what they need there. I'm not part of that lot, but the average brazilian doesn't really care. They just want a good product and, most of the time, they get it. It's HTC's fault they didn't have success here, as I said it before, they didn't even advertise their phones.

17. jmoita2

Posts: 930; Member since: Dec 23, 2011

Forsaken, you are a scumbag.

23. ryq24

Posts: 875; Member since: Oct 17, 2011

htc by now should know they cannot compete only in the high end market. they are not apple. they should study samsung and copy their phones and marketing strategy..

27. thedarkside

Posts: 654; Member since: Apr 30, 2012

htc makes solid phones for the most part. they just dont advertise like they used to. i cant remember the last time i saw an HTC commercial. i see commercials all the time for the droid line and the iphone.

28. DanBal76

Posts: 3; Member since: Jun 24, 2012

I remember seeing some overpriced Windows Mobile phones from HTC here in Brazil some years ago. Now, with some good Android offerings from Samsung, LG and Motorola, and virtually no new offerings from HTC for quite some time (the ones that matter anyway), i don't think HTC will be missed.

30. Claudio88

Posts: 5; Member since: May 11, 2012

Gosto dos aparelhos HTC. Pena que sairĂ£o aqui do Brasil. :/

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