We all know that HTC is not in a good place right now, in fact, the Taiwanese handset maker hasn’t been in a ‘good place’ for a long, long time, perhaps as far back as when the M8 launched. Having said that it would be laying off 1,500 employees at the beginning of July, and then announcing an almost 70% drop in sales just ten days ago, HTC is now said to be exiting the Indian market after its year-on-year sales dropped by 79%.
According to The Economic Times, HTC has requested the majority of its 70-80 members of its Indian team to leave, with exceptions being made for selected employees such as the Chief Financial Officer, Rajeev Tayal. Top management is also leaving the company, including the heads of the sales and product divisions.
Besides the decline in sales, HTC could soon face legal action by distributors for the non-payment of dues and lack of compensation for stock already in the channel, although an HTC spokesperson said that it was aware of the issue and that:
“We are working with channel partners to ensure no disruption on business and service to our customers,”
It’s thought that HTC may emulate Huawei e-brand, Honor, and re-enter the Indian market at some point selling its handsets exclusively online after it has revived its brand globally, whenever that is.
One of the reasons HTC has seen its share of the Indian market decline so severely is that Chinese brands such as Xiaomi and Vivo have experienced big leaps in year-on-year growth. How big? Well, according to Cybermedia Research, as big as triple-digit figures.
HTC will continue to sell its Vive virtual reality headsets in the meantime, with a company spokesperson saying that the ten-plus employees at the India office can provide “full-functionality.”
It’s yet another footnote in the slow decline of a once-great smartphone company that, it has to be said, seems to be circling the drain. Still, perhaps the launch of the Exodus blockchain phone in Q3 will be just the tonic that is required, what do you think?
Source: The Economic Times