Another Chinese Smartphone Firm Files For Bankruptcy

0
Advertisement

Share and Enjoy !

Once famous for its products in India and China, Gionee started facing strong head winds starting 2013. Company’s chairman, Liu Lirong had lost more than CNY 1 billion in gambling

credits – pixabay

In a twist of tale, another Chinese smartphone brand, Gionee has filed for bankruptcy in a court in Shenzhen. Gionee had sold nearly 40 million mobile handsets in India and China in 2016. The company was founded in China in 2002.

A company executive, who did not wished to be named, said that whispers about Gionee’s ‘not so bright future’ had started doing rounds during late 2017. He had joined another India based consumer appliances and electronics brand in early 2018.

The brand had also claimed to have presence in over 42,000 retail stores in India. Apart from 600 exclusive service centers, Gionee in the past, had said that the brand enjoyed a customer base of 1.25 crore people in the country.

Gionee in India

Gionee’s last two smartphone launches in the country came in the month of April this year. Several reports at that time had claimed that the brand was going under restructuring process in the country.

It is to be noted here that Gionee India’s CEO and Managing Director Arvind Vohra, had stepped down from his position in August 2017. David Chang, who lead global sales for Gionee at that time had taken over Vohra’s position in the country.

Company’s chairman and chief executive, Liu Lirong had also lost more than CNY 1 billion in gambling at a time when the brand was facing strong headwinds in the market.

A report published by Counterpoint research had claimed that Gionee had only shipped 150,000 smartphone units in the first quarter of 2018. These figures represent the lowest shipments by the band in any quarter.

Gionee owes an approximate CNY 20.2 billion (nearly $3 billion) to more than 640 creditors. Liu Lirong, in an interview given to ‘Securites Times’ had admitted that the company owed CNY 10 billion to banks, CNY 5 billion to suppliers and CNY 2 billion to advertising agencies.

LeEco, another China based smartphone maker had shut its operations in India last year.

Share and Enjoy !

LEAVE A REPLY

Please enter your comment!
Please enter your name here