HTC Pulls out of Brazilian Smartphone Market

An HTC spokesperson announced that HTC is going to cancel the impending launch of the HTC One line in Brazil and during the coming weeks the Taiwanese company will exit the smartphone market in Brazil completely. The reason may be the fact that HTC once produced smartphones in Brazil and lose market share since they pulled their productions lines from the country.

According to Stat Counter HTC phones had a mere 0.11% market share in the Q1 2012. This means not only HTC was trailing industry leaders like Samsung, Apple, and Nokia, but they were behind companies like LG, RIM and ZTE.
The inability of the companies in the Brazilian market may hurt them since Brazil is famous for its growing economy. The sales of the smartphones in Brazil grow accordingly; for about 8.9 million devices were sold last year. During the coming next 4 years Brazil will most likely pass the UK and will become the fourth largest smartphone market.
Thus, HTC had to make a tough decision. The fact they refused to produce low-margin phones to compete with Nokia and ZTE may be the reason to grow sales. Unfortunately, many HTC employees in Brazil will lose their jobs but HTC promised to keep on a small contingent of customer service employees for providing support for the existing users.