HTC is to pull out of South Korea after its marketshare continued to fall in the face of fierce competition from native manufacturers Samsung, LG and Pantech.
Taiwanese manufacturer HTC’s share of the Korean market fell to 1% in the first quarter of this year from a high of 13% in 2008.
The news follows HTC’s financial results last week, which revealed £156.5m in net profits for the second quarter, down 58% from a year ago.
HTC announced its decision to close its South Korean office this week. In a statement, the company said: ‘This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years.’
It added that the move will ‘increase efficiency for our business operations in the future.’
HTC has yet to reveal whether there will be any redundancies. It said its withdrawal from the South Korean market would be a long-term process ‘as we want to cause the least disturbance for our customers here and continue after-sales services'.
The manufacturer also withdrew its business from Brazil last month as part of wider cost cutting moves in the face of increased competition from rivals Samsung and Apple on the global market.