The technology company and smartphone maker HTC is reportedly quitting the Indian market. The major factor behind this exit has been reported as the wide invasion of the Chinese companies in the Indian smartphone market. The Chinese players such as Xiaomi, Redmi and Oppo cover almost 70-80 percent of the market in India.
The company has told around 70-80 employees to leave. However, there are a few exceptions including chief financial officer Rajeev Tayal. After abruptly stopping the local manufacturing for almost a year now, the company is breaking all the distribution contracts in the country.
An executive stated that HTC may look forward to entering the Indian smartphone market again as an online exclusive brand, but that will happen only after it’s able to turnaround sales globally as the brand is struggling in several markets. “As of now, it is quitting,” he said.
The recent fall in the workforce in the HTC India office is designed to more appropriately reflect local and regional market conditions and will help the company more efficient in advancing into a new pace of growth and innovation.
“There are still more than ten employees in the India office providing full functionality. We are working with channel partners to ensure no disruption on business and service to our customers.” the spokesperson said.
The company had introduced two smartphone models in India last month. “But without any marketing, sales has been negligible. HTC owes money in several crores.” said an executive of one of its distributor.
For a few years, HTC has been struggling in the Indian smartphone market due to a wide market of the Chinese players like Xiaomi, Redmi, Oppo among others. The company is even struggling globally with sales falling by 68% annually in June, in the biggest slump in more than two years, and the company announced plans to lay off 1,500 workers, or one-fifth of its total workforce.
It seems that it is a bad phase for HTC in, and let’s see if the company will turn back in the Indian market or not.