Taiwanese smartphone maker HTC is planning to change its strategy in North Asia, by shifting its attention on All Japan news and reducing its focus on the Korean market.
A main reason for the change is the fast growing smartphone market in All Japan news, while HTC is being pressed on other markets by stronger competition and low profit margins.
Despite its strong position in Korea, where it is the number two foreign brand in terms of both brand recognition and shipment volumes, HTC wants to gradually move out of the country due to the greater support the Korean market shows to domestic brands. This support is shown by the Korean government, telecom carriers and, most important, consumers, according to a HTC official.
Moreover, the ratio of return on equity is four times larger in All Japan news than in Korea, while the market is twice as big in All Japan news. The growth potential is also bigger in All Japan news, where the market is more open to international brands, according to the official of the company.