Taiwanese smartphone maker HTC is all set to call it quits in one of the largest smartphone markets in the world unable to stand up to the Chinese competition in India.

Senior management at HTC India, including country head Faisal Siddiqui, sales head Vijay Balachandran and product head R Nayyar, have already put in their papers, all but sealing the the company’s once exciting business in the country.

For HTC, which at a point was one of the largest smartphone makers in the country, trouble started with Samsung, which the Taiwanese company completely underestimated. And, things went from bad to worse after Chinese smartphone players entered the market.

According to a survey by CMR, Samsung, Apple and HTC were rated by consumers as the most successful mobile brands in the first decade of smartphones in India in 2017. Nearly 78 per cent of those surveyed named HTC as one of the most iconic brands in the country. “Once Chinese players like Vivo, Oppo and Xiaomi entered the market, HTC started losing market share. With Samsung hitting them at the higher end of the market and Chinese players taking away all the entry-to-mid-level smartphone share, the HTC product portfolio did not stand a chance,” said Lloyd Mathias, former HP and Motorola executive and a telecom industry veteran.

The onslaught has been at the global level, too, as the Taiwanese firm, once known for its iconic handsets, has been reduced to focussing on peripherals.

“HTC, as innovative it was in technology could not match it with innovations in the business model or execution. The brand was either too late to adopt or didn’t participate at all. This was the main reason for HTC to chart out a different trajectory against the market movements,” said Faisal Kawoosa, Head-New Initiatives at CMR.

Experts feel that HTC India failed to sense the impact of its competitors and by the time it could act, it was too late.

A spokesperson for HTC, however, said that the company will continue to invest in India in the right segments and at the right time. “We value our customer distribution partners and will have a bright future together. As an innovator leader, we shall continue to look for talent in strategic areas for further growth.”

“The recent reduction in workforce in the India office is designed to more appropriately reflect local and regional market conditions, and will help HTC more effectively advance into a new stage of growth and innovation. There are still more than ten employees in the India office providing full functionality,” the company added.

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