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Why LeEco Failed Completely?

Chinese technology manufacturing company ‘LeEco’ is almost going to die. The company was making automobiles, mobile phones, televisions, virtual reality and many more.

In this article, I will share the reasons why LeEco started failing after January 2016.

The company was founded in September 2011. LeEco was growing rapidly in the initial stage of the company.

They created so many innovative products which were highly popular in the Chinese market. Not only innovative but also they had created high-quality products. That’s the main reason, the company was growing speedily.

Then, the company started to expand its business to the US and India. Because these two countries have still one of the biggest smartphone markets in the world.

Also read: Why Twitter is Failing to Generate Revenue?

The main focus of the company was to create products with great design and features. LeEco was the first company to enter in the Indian smartphone industry with the metal body design. It was a totally new concept in India and that’s why smartphones were looking premium.

Also Read : The Truth Behind Paytm Success

7 Reasons Why LeEco Failed Completely

  1. Advertising Cost: While entering in India, the company spent too much money on advertising. Rather than focusing on digital ads, the company only focused on traditional ads. Generally, traditional ads are too much costly compared to digital ads.
  2. After Selling Service: The after selling service of LeEco was very poor. The company had sold millions of smartphones because of a huge marketing budget. Consumers were complaining about so many things which could not be handled by the company.
  3. Phones getting heated: The phones had a metal body and that’s why while charging the phone, it started getting heated too much.
  4. Lack of Camera Quality: The camera quality was dull compared to other smartphone companies such as Samsung, Motorola, Xiaomi and Lenovo.
  5. Last Mover: LeEco was the last mover to enter in the Indian smartphone industry. Samsung and Xiaomi had started covering a large market share.
  6. Financial Issues: The company was facing serious financial issues and that’s why top executive left the company.
  7. Display Issues: The quality of the display was looking premium. There were providing 1080px display at the low range when no other company were providing. But, displays had a poor build quality.

These are the fundamental reasons for failing the company.

The smarphone market is becoming more and more competitive in India. If any company will not provide high-quality service at the cheapest possible rate, it will go out of the business.

If you find this article useful, then let me know in the comment area. Share if you find something informative. 

Thank You 

Anuj Vohra

Hi , I am Anuj Vohra. Founder of Itsfacile.com & Saral Investment.

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