22 November 2018
It is a well-known fact that HTC has been struggling in the mobile business for quite long now. Despite numerous efforts, its smartphones are not selling in numbers they used to sell once. And yesterday, a report from ET claimed that the situation has worsened enough that HTC is all set to exit the Indian smartphone market. But soon after the report, HTC has come forward to deny the claims and said that it will continue to sell phones in the country.
The original ET report mentioned that many top HTC management executives have already put in their papers. These included country head Faisal Siddiqui, sales head Vijay Balachandran, and product head R Nayyar. The company was said to have asked about 70-80 to leave as part of its plan of leaving the Indian market.
In response, HTC said that it has recently launched Desire 12 and Desire 12+ smartphones in India and will continue to sell them and new phones in the future. It did accept that some changes were made to the workforce but it termed the same as an optimization step to work in an efficient manner and as per the market conditions. The spokesperson said that there are still "more than ten employees" in the country who are providing full functionality.
Other than the staff reduction, the report claimed that HTC is not on good terms with distributors including MPS Telecom and Link Telecom as it owes a lot of money to them. These distributors were said to be working on appropriate legal actions against HTC over non-payment of dues and no compensations for the stock in trade pipeline. HTC agreed with this part of the report and said it was working on fixing these issues related to distributors.
HTC spokesperson said,
"HTC is aware of the potential litigation issue but is awaiting full details before commenting further. We are liaising with our suppliers and distribution channel partners to ensure no disruption to our customers or our business. Upon receiving the official complaint, HTC will consider all legal options to protect our rights."
It is difficult to say what exactly is the truth or if HTC has plans of exiting the Indian market sooner or later. But it can be said for sure that things are not looking good for the company and even if it is thinking of continuing to sell phones in India, the decision can change anytime.