As we have commented on other occasions, the trajectories of the Companies they could be likened to roller coaster rides. Sometimes up, sometimes down, and between one point and another, a multitude of points in which the passengers, or in this sense, the directors of the firms, can breathe more calmly and others in which agitation is the dominant tonic. In many cases, this is the result of a technology bubble in which we have been able to find very accelerated growth that was almost impossible to sustain over time.
It seems like LeEco can very well exemplify this statement, since the Chinese company closed 2016 in a somewhat convulsive way. An appearance almost out of nowhere with rapid expansion has had its price and currently, the firm is immersed in a sea of lawsuits, financial losses and other circumstances that may condition its near future. Next we will tell you what is happening within a technology company that, even so, continues to launch terminals such as Le Max 3.
The last exercises
Since its founding back in 2004, LeEco has had a very accelerated expansion process. It has been diversified And it has reached not only smartphones, but also other media such as televisions or household appliances. Over the past year, it acquired a Californian company of these second supports and also absorbed other Chinese specialized in smartphones. All of this quickly wiped out the firm's cash.
Measures
To try to balance the accounts, its managers decided to act forcefully: would close those divisions business that were not profitable, leaving very few such as phablets and conventional smartphones. On the other hand, loyalty offers and discounts were eliminated and also, template was reduced in some markets where LeEco is very present such as India, where around 1.000 jobs were cut between the end of 2016 and the beginning of this year.
Legal issues?
Although the economic situation does not seem to influence the launch of new terminals too much, the truth is that we can find other elements that could be decisive: According to GizChina, LeEco has been denounced by one of its component suppliers for defaults amounting to about 7,5 million of euros. Do you think that all this could have a negative impact on the direction of the company? Do you have any of the brand's devices? What is your opinion? You have more related information available such as, an article in which we analyze whether there has been a technology bubble or not so you can learn more.