HTC recently cancelled plans to launch the HTC One line of Google Android smartphones in Brazil and now the company says it will pull out of the Brazilian market completely, leaving only a small staff behind to support devices already sold to customers in the country.
HTC has not had much luck in Brazil where it has only managed to gain 0.11 percent marketshare, finishing in last place behind Apple, Samsung, Motorola, LG, RIM, ZTE and Nokia.
In announcing the decision to pull out of Brazil HTC said in a public statement:
“After careful analysis of our lines of business, HTC is closing our office in Brazil. We will continue after-sales support for our products, so this should not result in a change in service for current customers. This decision does not have an impact on HTC’s business outside of Brazil.”
The announcement is not good news for HTC, last year Brazil was responsible for 9 million smartphone sales and analysts believe it will be the fourth largest phone market by 2016.
HTC for its part has barely advertised in the country and its retail presence has been dwarfed by all of its competitors. HTC has also suffered because it does not build any devices in Brazil. Under the countries electronics goods import law the company is forced to pay a 60 percent sales tax. Nokia, Samsung and Apple all maintain manufacturing plants in Brazil which affords them special tax breaks which in turn pushes down the cost of selling their devices to local residents.