HTC denies report that it is closing up shop in India
by Alan Friedman / Jul 19, 2018, 12:34 PM
Earlier this month, we told you that HTC's deteriorating financial condition is forcing it to fire 25% of its remaining workforce globally. Today, a newly published report says that the company is giving up selling smartphones in the Indian market. Three senior executives told the Economic Times that HTC India is losing its chief Faisal Siddiqui, sales chief Vijay Balachandran and product head R Nayyar.
While India is the world's second largest smartphone market after China, the economic conditions in the country are such that companies offering lower-priced handsets and value manufacturers like Xiaomi are doing well there. After all, even Apple, which manufacturers two phones in India, is having trouble generating business in the country. According to Counterpoint Research, HTC has a 1% market share in the market. This is not a market where HTC has the ability to compete. Apple, Samsung and OnePlus sell 95% of the premium smartphones sold in India, which are those units priced at 30,000 Rupees or more ($435 USD).
The report states that outside of its Indian CFO Rajeev Tayal, HTC is terminating employment of the remaining 70-80 members of its Indian team. It is also ending all distribution agreements in the country. Last year, HTC stopped manufacturing devices in India. It still plans to sell its Vive VR system in the country through online sales, although this operation is expected to be small. Speaking of online sales, the report cites another source as saying that HTC could sell its handsets in India again, but this would be done exclusively online under the control of executives at HTC's Taiwan headquarters. And the company would consider this only if it can turnaround its global smartphone business first. "As of now, it is quitting," the source said.
The company denies that it is leaving the Indian smartphone market and claims that it is reducing headcount in the country to better reflect market conditions in India. An HTC India spokesperson says, "There are still more than ten employees in the India office providing full functionality." HTC released two smartphone models in India last month, but hasn't marketed them. As a result, sales have been negligible according to an executive at one of HTC's Indian distributors.
Posts: 389; Member since: Sep 30, 2017
Why this thing still exist?
posted on Jul 19, 2018, 12:48 PM 0
Posts: 451; Member since: Dec 30, 2014
Because Apple is paying HTC royalties with their design. Remember the unibody metal design of HTC One? Ya, iPhone 6 copied them so they are still earning from your rotten Apples ya.
posted on Jul 19, 2018, 12:55 PM 1
Posts: 7385; Member since: Feb 17, 2016
Yeah and it’s legitimately an amazing budget phone. Can be used as a phone AND a mini tablet if need be, gets LTE in the US (reportedly), and has a battery that should last two day minimum. That’s a f**king steal at $250 USD, or $300 USD for since I plan on importing once the global version is released.
posted on Jul 19, 2018, 2:05 PM 2
Posts: 451; Member since: Dec 30, 2014
I feel bad about HTC's current financial status. But it's all their fault. Their phones aren't really overpriced for a flagship but come on, they cannot sell in millions if they are too stubborn not to lower their flagship prices.
posted on Jul 19, 2018, 12:54 PM 6
Posts: 1769; Member since: Oct 20, 2010
It's painful to even hear or read "HTC" now. There was once a time when HTC was a juggernaut that was second to none in terms of design and craftsmanship. Their mobile department needs a total annihilation from head to toe, a complete execution of everyone involved with whatever is going on there. And then from the ashes the phoenix will rise like Nokia and start making solid, smooth and competitively priced Android One phones.
posted on Jul 19, 2018, 1:12 PM 5
Posts: 517; Member since: Apr 06, 2012
Apple is a FAIL in India because of their exorbitant prices, not because Indians can't buy them. iPhone X that costs $999 in US, costs $1400-$1500 in India. Similar is the situation with every other iPhone be it 8, 8 plus, 7, 7s, 7s plus. They are 30-40% costlier than US or many other countries. Apple just can't hope to sell good enough units with decade old 6s series or SE series which Indian people aren't even interested in because they have phones to buy like Oneplus 6, Asus Zenfone 5z, Honor 10/view 10 at similar prices. Bit of a similar case is with HTC. Exorbitant prices, ZERO advertising, ZERO brand pull. How can they even hope to sell anything ?
posted on Jul 19, 2018, 1:53 PM 2
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