Last month, HTC launched its Desire 12 and Desire 12+ smartphones in India giving us no hints of it shutting down its business in the second largest smartphone market in the world. However, reports of the company closing its smartphone operations have been doing the rounds lately, with many HTC India's top management said to have departed the company. Gadgets 360 has learnt that while the the company has optimised its workforce, it intends to continue to sell its smartphones in India.
HTC confirms that it is optimising its workforce to better suit the Indian market needs, but it does not intend to pull the plug on its smartphone business. "HTC will continue to sell its award-winning smartphones in India; indeed, we have just launched the HTC Desire 12 and HTC Desire 12+ in the India market. HTC always seeks new efficiencies in operation, and regularly reviews the channel and product strategy to ensure appropriate offerings in each market," the company told Gadgets 360 in a statement.
The company confirmed that while many employees have been let go, "more than 10 employees" continue to remain with HTC. The company was recently also reported to have let go 1,500 employees from its manufacturing unit in Taiwan. "HTC recently optimised the organisation to bring the businesses under common leadership in the regions, and continues to realign resources against its key strategic initiatives. The recent reduction in workforce in the India office is designed to more appropriately reflect local and regional market conditions, and will help HTC more effectively advance into a new stage of growth and innovation. There are still more than ten employees in the India office providing full functionality," the company said.
"Being an important market to HTC, we will continue to invest in India in the right segments and at the right time. We value our customer distribution partners and will have a bright future together. As an innovator leader, we shall continue to look for talents in strategic areas for further growth," it added.
An Economic Times report claims that relationships between HTC and its distributors in the country have soured, with the latter said to be planning to take legal action over the non-payment of dues and other issues. The company in its statement to Gadgets 360 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." The report adds that HTC has asked most of its 70 to 80 employee team in India to leave, and cites executives at the firm to claim the company is also snapping all distribution agreements in the country after halting local manufacturing for almost a year now. The executives are cited to say that HTC only plans to sell virtual reality devices online in India moving forward, with operations said to be handled only by the Taiwan team.