Amidst Gloom, LeEco Chairman Sees India as a Bright Spot
LeEco is currently going through a rough patch as the company struggles to expand due to financing limitations. A recent report disclosed that the Chinese conglomerate will be shifting towards a moderate pace in order to sustain further expansions and advancements. As a result, questions were raised about their presence and growth in newly established and existing grounds, most notably India. In response to that, YT Jia, co-founder, and chairman has reassured that LeEco will remain committed to the Indian users.
At an investor meeting held in Beijing, Jia, highlighting the recent events, stated that “India represents the future and its user value may surpass China in a few years”. He further added that, regardless of the conditions and cash curbs, they’ll continue to reinforce and launch new products. Additionally, LeEco, as of now, will be majorly focusing on three countries namely China, America, and India. Since the inception, LeEco has launched two generations of its smartphone lineups, a range of televisions under the SuperTV brand, and entertainment membership services. The company has already been able to build a strong foothold in three crucial Indian cities with hundreds of staff and a local research center.
The company letter sent by Jia to the shareholders revealed some staggering issues LeEco has faced due to their eccentric rush into a series of new sectors and markets such as automobiles, televisions, smartphones, and more. The CEO, additionally, stated that his income will be demoted to merely 1 yuan (15 cents) until conditions alleviate. Moreover, in order to maintain balance, he suggested to slow LeEco’s pace for now and shift to a relatively moderate phase of growth.
While LeEco’s budget handset, Le 2 has successfully been able to fabricate a positive image among its customers, their flagship products and televisions have reportedly not made a significant impact despite the price cuts. It will be fascinating to see how the company progresses from here given the cost-cutting programs they will have to execute and the reduction in subsidies for buyers.