HTC Corp announced that it is shutting down its office in São Paulo which primarily managed sales as well as distribution in Latin America, as the Taiwanese smartphone manufacturer confronts growing headwinds amid escalating rivalry from competitors at different price points.
As per market analysts, the company's pullout of the Brazilian market is along the lines of HTC's approach of concentrating on other growing market regions like China and India, where the medium to high-price client sections—HTC's key markets—have added room for expansion and where the Taiwanese brand is more familiar.
Brazil is one of the globe's fastest-rising smartphone markets, driven by a broad variety of low-priced devices, substantial handset subsidies from network manipulators and supremacy of prepaid packages, which cost users a lot less than postpaid transactions.
Handset manufacturers comprising ZTE Corp., Lenovo Group Ltd. and even Nokia have made inroads to Brazil by marketing handsets as low-priced as $100.
An HTC handset values around $200 in the Brazilian market.
In an emailed report, HTC stated, “After careful analysis of our lines of business, HTC is closing our office in Brazil.”
"This decision does not have an impact on HTC's business outside of Brazil," HTC also said.
HTC doesn't have any manufacturing facilities in Brazil, and the Taiwanese phone manufacturer will carry on offering up after-sales supports for existing clients.
The company refused to remark further.
It is not clear if the company will roll out novel products there in the future.
As per U.S.-based research firm International Data Corp., Brazil is now the globe's tenth largest smartphone market in shipment terms, and is predict to climb to fourth by the next 4 years, after the U.S., China and India.
HTC, which was a contract handset manufacturer when it first set up in the year 1997, commenced making cellphones carrying its own brand in the year 2006.
A few market analysts attributed the company's decline to its feeble sales and marketing movement internationally, whilst others have urged the Taiwanese firms to enter into low-price handsets, although the company has repeatedly resisted such a push.