Apparently, the miracle of the Brazilian middle class is not for everyone…
The Asian handset manufacturer HTC will close its operations in Brazil. A statement was sent to employees this week informing the news and the mass layoffs. The company employs a few dozen people in the country.
HTC has been losing market share in Brazil for years, ever since they stopped producing locally (due to high costs). The company’s biggest hurdle was its high prices, which made it loose ground to rivals such as Samsung, LG and Nokia.
The low popularity of the brand in Brazil, its weak portfolio of Android phones, and the company’s small marketing budget for marketing were among the main issues.
Despite the poor sales performance in the country in recent years, the closure of its activities in Brazil surprised some market insiders who expected HTC’s turnaround in the second half with the arrival of a new line of smartphones to be manufactured locally.