HTC had once been known for their premium quality devices, but it has been facing a lot of pressure from fellow Chinese brands for a while. Fresh news has come that the company has decided to exit the offline market in India for now.
The phone manufacturer had already stopped manufacturing in India one year before. It has already asked 70-80 members of their team in India to leave the company premises. That being said, some exceptions like chief financial officer Rajeev Tayal will be continuing with the company.
Moreover, HTC has gotten done with all offline distribution agreements in the country. An HTC executive had informed us earlier that HTC might make a re-entry in the Indian market as an online-exclusive brand, but it won’t do so right now due to the Chinese brands dominating the market right now. HTC is struggling to make a profit in a lot of other markets too.
A spokesperson has said that HTC will be continuing selling their smartphones in India. It will be focusing on investing in specific segments at the right time.
For now, the company will be selling its virtual reality devices online. However, it will be a Taiwanese operation and won’t be large scale. The HTC spokesperson announced that more than 10 members are still working in HTC India and are providing maximum functionality.
However, it looks like HTC is running into a trap, with distributors planning to sue the company for late payment of dues and problems with stock in the trade pipeline. HTC had been distributed by Optiemus group in India and owes figures in crores right now.
The spokesperson commented that the company is working on it right now and are making sure that there is no disruption in providing customers quality service.
The company had fell by more than 50% this July, which made the company announce plans to lay off more than 20% of its total workforce. HTC has less than 1% sales in India right now, while Samsung, Apple and OnePlus has about 95% of the shares in the premium smartphone market.
Even though the company had launched a couple of models in India recently, sales have been negligible. Unless HTC finds a way to climb back, the future of the company is at stake.