Taiwanese smartphone maker HTC is planning to change its strategy in North Asia, by shifting its attention on Japan and reducing its focus on the Korean market.
A main reason for the change is the fast growing smartphone market in Japan, 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 Japan than in Korea, while the market is twice as big in Japan. The growth potential is also bigger in Japan, where the market is more open to international brands, according to the official of the company.