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HTC closes office in South Korea following slow sales

HTC has announced it is to close its office in South Korea, according to reports from Korean news agency Yonhap​. The move reportedly follows slow sales of HTC's smartphones in the country, and continuing difficulty in competing with Samsung in its own back yard.

In a market dominated by domestic manufacturers, analysts at Canalys estimate HTC had just one percent market share in South Korea in the first quarter of the year, down from two percent in 2011. By comparison, a recent report from Korea's ​MK​ news site estimated up to a 70 percent share of the Korean market for Samsung by the end of July, following the recent Galaxy S3 launch in the country.

HTC has taken a beating in terms of profits and market share over the past six months, after it saw record earnings in 2011. The Taiwanese manufacturer saw a 57.8 percent year-on-year fall in net profits during the second quarter of 2012, a situation it blamed on lackluster European sales of the HTC One series, in addition to litigation from Apple which briefly delayed the phones' U.S. launch.

Source: Yonhap; via: ZDNet

Alex Dobie
Alex Dobie

Alex was with Android Central for over a decade, producing written and video content for the site, and served as global Executive Editor from 2016 to 2022.

  • although i dont own any htc devices, it saddens me to see an android oem suffer
  • I agree. I am actually a fan of HTC from the first DInc. But the writing has been on the wall for them since around the TBolt launch. They have chosen to ignore what the customer really wants, and just try to pump out as many mediocre products as possible. Take the ReZound for example. Great screen, great specs and great looks, but they failed by making it too thick and too heavy and bloating it with Sense. The HTC One line was a great concept. But they didn't follow through correctly. The One X should have been a true flagship device with more storage and more RAM,and it should have been released on ALL carriers in the same form. The One S should have had slightly better specs and the One V should have been left in 2009 where it belongs. HTC needs a change in leadership or it will not survive.
  • +1
  • +1 I hate to say it(me being an HTC zealot) but I agree with U on most of your points. I didn't like the Tbolt or Rezound, but, I have been pleased by the Dinc line(I may be one of the few AC members that has been) since the the OG. One X should have been more like the Evo 4g with better styling, instead it seems as if they tried to make it the android version of an iPhone.
  • While you make some decent points I think it has more to do with marketing. HTC simply isn't marketing enough in the US and is instead focusing on emerging markets like China where they don't have to deal with our telecom BS. I don't agree with this tactic and I'm hoping it changes soon. I like my HTC EVO lte and I don't agree that Sense is "bloat". I feel it actually adds a lot to the experience beyond what stock android does. It's all about marketing and Samsung and apple are just pumping millions into it where HTC is not.
  • And people keep saying that the majority of consumers don't care about the bloat of Sense. Maybe most consumers that check the phones out on display don't understand what Sense bloat is, BUT when they pick up the phone and play with it on display they can see that it's slower and more laggy then it's Samsung competition. They don't need to understand that the Sense ROMs are bloated to over 600mb to see that it just performs slower. HTC needs a change in direction. And quickly. They need to remove Sense and focus on development of the hardware side. They need to focus on timely software updates and not be full versions of Android behind. Get your act together or in another 6 months you will be joining RIM in the smartphone cemetery
  • this is what happens when you fail to innovate and instead rely on gimmicks. do you hear me Chou??????????????????????
  • Maybe they can keep those job numbers up...seems like the ICS crew could use some help getting ICS to the REZOUND!
  • What are you talking about? The ReZound is getting ICS in early 2012. Pay attention man
  • i like sense but they should maybe allow users the choice to download the Widgets they want like with the fladhlight. I don't know how much space on the rom would be saved if they did though. I also believed HTC fell behind on the sgs2 and now they are playing from behind instead of leading. Just the way the app drawer opens on the s3 compared to my evolte, s3 is better. Now that's just one thing but says alot. I still prefer the evolte only because of the weight and feel of the phone. I also think the new HTC phones address three biggest problems with previous builds, camera, screen and battery.
  • It does not supprise me that there sales are down! As a desire HD owner i wont be buying anything from HTC they promises to give andriod uprades then after a long wait they cancel a week before its due to be out!! The petition from customers hit over the million mark thats last time i looked a few days ago & its getting bigger!! with most like myself never to buy from HTC again there a company that lets you down!! Ile never trust HTC again!! There lack of comunication is another issue!! The Samsung S3 in my opinion is a far better smartphone than any of the one series phones leaving the memory card slot out & only having a built in battary was a big mistake for HTC there slow pace with andriod updates & canceling them will be there downfall too. Why they dont listen to customers needs instead of rushing out phones without supporting the ones customers have bought will only loose there customer baes as they should now be seeing
  • meh HTC been crappy the pass 9 months.... samsung has been on the rise. BUT i'll say this. the last flag phone motorolla had was the razrs from early this year so since then they haven't been making headlines. HTC has somewhat so I'd count Sam as #1 android provider, htc 2nd then motorolla. 4th umm oh yeah LG
  • Their hardware shell and design is amazing. Their low light camera response is awesome. They need to work on marketing like Samsung does. Show how it does things that other phones like the iPhone don't do. Make a damn competitive commercial that slams Apple to get attention...and make it true. Don't buckle to carriers to make a special version. Don't cripple multitasking and put too little memory in another phone, ever. Lots and lots of people have used HTC phones and are willing to come back and use them again if they were just as good at marketing. HTC can come back, I know they can. One angle they can use is software updates. They blow Samsung away at software update timeliness. They need to use that!
  • HTC, cmon what are you guys doing there? You have everything you need to make the best devices, hire me and il help you make a phone to outsell the GS3. really. You have everything it takes, but you keep screwing up on the corners, and corners mean a lot these days. Just look at your devices, they are heavy bricks of poor battery life and unchanged design in years. Look at Samsung? they have barely changed the Galaxy design in 3 years and have made bank each time. and get rid of sense for the love of god, its killing you. I was installing roms on windows mobile to get rid of sense, and 5 years later i am still installing roms on htc phones to get rid of it. Sure some people may like it, but at least give them an option. Send me an email and il help you make the phone to give you all the sales you need. HTC one x the way it should have been.
  • Heavy bricks of poor battery life?! The One X makes the S3 look downright ugly and gets better battery life than the S3 despite having a smaller battery.
  • Your kidding with the software update timeline right!?, yea your kidding.
  • Sigh... I need to buy shorts in the companies I buy phones from. Yes, after 3 years I get rid of my Launch Day Palm Pre for a Pre Launch Day HTC EVO 4G LTE. Not only to have it suck (I hate the way it non-multi-tasks even the launcher!) but know it looks like the companies going the way of Palm... Maybe HP will buy them out too. Is it too late for me to trade up to an SIII?