The rise of Samsung and Apple’s iPhone against its rivals is causing a squeeze on the profitability of some phone manufacturers.
Most recently, HTC reportedly dropped year on year profits with a 60 percent fall over the first quarter of 2012. The Taiwanese company has had to face up to some harsh realities and take action to reduce costs.
In doing so, HTC have had to make the difficult decision to cut production, jobs and operations in Brazil with immediate effect.
HTC cites poor performance in a statement adding:
An HTC representative told AndroidPIT that the company will be “completely shutting down their operations in Brazil” effective immediately, stopping wholesale device sales and axing “dozens” of jobs.
“After analyzing the sales numbers, we have decided to pull out of the Brazilian market,” the spokesman said.
Earlier in April 2012, HTC’s CEO Peter Chou, had pointed his fingers clearly at the competitive Apple iPhone and Android market eating into the profits of HTC.
The Foxcon factory in Brazil known for its manufacturing of Apple’s iPhone, has recently received new branding with the factory now residing on the renamed Steve Jobs Avenue in honour of Apple’s Iconic, Steve Jobs.
Brazil is one of several developing phone markets with increased smartphone use.
We are not aware as to whether Brazil will be just the first of many markets that HTC will need to pull out of or whether leaving Brazil will be enough to put the finances of HTC back into the black.
We will bring you more on this story as soon as we have it.