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HTC knows when to pack up and go home.
The company announced today that it’s closing its office in South Korea, a country where it has struggled to gain a foothold. With the move, HTC cedes control of South Korea’s smartphone market to the likes of Samsung, LG, and Pantech, PC World reports.
The company says the move is a part of an ongoing effort to “streamline operations.” In June, the company closed up shop in Brazil, another country where it has fared poorly.
In South Korea, however, HTC never really stood a chance. As with Japanese consumers, South Korean consumers are notorious for their nationalistic spending habits. This gives South Korean companies like Samsung a natural advantage over the Taiwanese HTC.
HTC has been in dire straits as of late, with earnings dropping 58 percent in the most recent quarter. With sales forecasts slashed, HTC has had no choice but to cut its losses in areas that aren’t generating revenue. (The company made a similar move when it took back 25 percent of its $300 million investment in Beats Electronics earlier this month.)
What’s amazing is that all of this comes the year after HTC posted quarter after quarter of record profits. Clearly, things change quickly in the smartphone world.