HTC Shutters Seoul Office as Apple, Samsung Continue to Dominate

Taiwanese smartphone maker HTC has closed its office in South Korea, a country where its handset sales have been low, it said Monday.

HTC did not specifically mention layoffs, and said it was encouraging affected employees to apply for open positions within the company. “This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years,” it said in a statement.

South Korea has been a challenging market for foreign vendors including HTC to break into, said Nicole Peng, an analyst with research firm Canalys.

HTC had a 2 percent share of the smartphone market in the country for the year 2011, and a 1 percent share in this year’s first quarter, she said in an email. Korean vendors, including Samsung, LG and Pantech, dominate with about a 90 percent of the market.

“They (HTC) have to invest in the more obvious opportunities in the short term,” she said, pointing to China, which has become the world’s largest smartphone market by shipments, according to research firms. In China, HTC has been quick to bring its latest devices, and earlier this year also launched a new “Kewang” series of lower-end handsets exclusively for the country.

In June, HTC also closed its Brazil office in order to streamline its operations, leaving only an after-sales office in the country. HTC’s smartphone market share in Brazil was at less than 1 percent in the first quarter of this year, according to Peng.

HTC’s has seen its profit growth decline in recent quarters, as competition with Samsung and Apple has heated up.

The company had originally expected to see this year’s second quarter earnings stabilize with the launch of its new HTC One series of smartphones. But in June, the company lowered its revenue forecast for the quarter, with sales in Europe down further than anticipated, and shipments of smartphones to the U.S. delayed because of its patent battles with Apple.

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

From Roblox to Python: How game development educates kids on AI principles

AI is no longer in the distant future, discussed only in university classrooms or interactive…

12 hours ago

M&A: The art of the deal

The Tech Panda takes a look at recent mergers and acquisitions within various tech ecosystems…

2 days ago

As we seek to create robots that’re more ‘human’ who’s helping? AI

As robotics progresses towards creating humanoid robot helpers, our tendency is to create them in…

5 days ago

Japan’s Web3 Strategy: A Safe Haven for Chinese Investors Fleeing Capital Controls?

On June 7, 2025, Japan enacted a series of regulations aimed at enabling stronger consumer protections…

5 days ago

Agentic AI Is Reshaping Data Infrastructure—Are Data Warehouses Obsolete?

Introduction: The Signal Behind Snowflake’s CEO Change In the spring of 2024, Snowflake, a star…

5 days ago

The new space race: How politics is shaping the battle for the final frontier

The modern space race is increasingly political, driven by national pride, military strategy, and economic…

6 days ago