Friday 3 March 2017

This is how the great LeEco India story went bust



NEW DELHI: After arriving in India in January last year, Chinese internet and technology conglomerate LeEco fast became the "true disrupter" in the evolving Indian smartphone market with its huge marketing spend -- and the announcement of a state-of-the-art assembling/manufacturing unit.

News that the company has fired 85 per cent of its India staff across the sales, marketing and distribution departments -- and confirmed by a company source to IANS on Friday -- has effectively punctured a mammoth dream just within a year.

The source also confirmed to IANS that both Atul Jain, Chief Operating Officer, Smart Electronics Business, and Debashish Ghosh, Chief Operating Officer for Internet Applications, Services and Content, were "asked to leave" and had not quit as reported.

Speculation is also rife that LeEco may finally exit the country after spending millions on promoting its ecosystem of "superphones" and "super TVs". 

"LeEco is in serious financial trouble and has, as a consequence, practically ceased India operations. The staff layoffs are a direct consequence of this. Even in the previous quarter, their shipments were close to zero," Jaideep Mehta, Managing Director, IDC South Asia, told IANS. 




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