techcrunch.com
engadget.com
LeEco, which has been selling smartphones at ridiculously low prices to gain market share all while pouring hundreds of millions of dollars to develop their own electric car, is in dire financial strait after burning through investor money at an alarming rate while failing to meet market share goals.
The fact that LeEco is having trouble raising more capital is indicative of the Chinese VC market cooling.
>The fact that LeEco is having trouble raising more capital is indicative of the Chinese VC market cooling.
it seems more like evidence that having no plan to get out of negative cash flow is a retarded idea.
lots of businesses spend more than they make at some phase or another (including to build marketshare), but it's not clear what benefit leeco could possibly have by acquiring marketshare of the smartphone market, so selling at a loss proved a stupid plan.
We got some sweet chink phones with Snapdragon 820 and American LTE bands for $230 though.
>Le
kys
yeah and what was leeco going to do with that victory? nothing.
it's like they looked at uber and didi kuaidi and thought "those fuckers are burning capital. that must be something successful companies do!" and proceeded to do so, and it didn't occur to leeco that those companies were spending money hand over fist to develop a worker & consumer network, which proves incredibly difficult to dislodge (like almost as hard as a monopoly engaging in anti-competitive practices)
Shouldn't have chosen such a retarded name.
>le eco le pro
>le le le
They were obviously Redditors.
also this is like a microcosm of chinese companies looking at a successful case study and blindly copying random aspects of it, without any apparent insight into the thing that made that company or product successful.
and sometimes it seems like they have absolutely no clue what the fuck it was that made it work. like most knockoffs in the US at least produce a facsimile of the genuine, but china seems to take a random aspect and copy that.
it's like if aliens showed up trying to learn about humans.
leEco is vizio.
>Not just letting the Chinks go full retard with the spending, while we get cheap shit.
Android phones are the buyer's market. If Business starting caring about profit, you start running the business like Apple.
>leEco
tips
So is any of their phones worth the money? The most expensive one? I guess it's the best time to grab one soon once the company is broke.
They probably wouldn't be struggling so much if they'd kept the headphone Jack.
Retards.
Wtf they spend billion acquiring vizion and suddenly they out of money?
China accounting and China corporate governance.
Banks and board of directors will sign off on cash acquisitions that will completely drain the company cash balance and possibly cause bankruptcy within a few months of the deal closing.
Xiaomi and Huawei don't have this problem.
Why did they buy Vizio for $2B if they weren't going to leverage that brand? fucking retards.
Anything is better than "Le Eco".
Huawei is a massive conglomerate spanning from telecom switches, semiconductors, business consulting, to smartphones.
Xiaomi sticks with consumer electronics where the investment required to start churning out a new product is relatively small. It also does strict inventory control to prevent losses from having manufactured too many of a certain model.
This, Le Eco sounds stupid.
You could've released a phone called "install gentoo" and would've been better.
They were trying to out-Apple Samsung.
Why else would an upstart be doing both a phone and a car?
I mentioned this company a few weeks ago. During their recent press conference they were unable to show off the car in action and the CEO gave this very long winded, probably bullshit story for why.
That immediately raised questions of whether the car was even functional. It looks a lot like a bullshit concept that'll never get put into production.
LeEco is the Chinese copy of both YouTube and Netflix. They probably figured more of the same would lead to more of the same success.
The thing though is that this model doesn't work without government subsidy. This was apparent before LeEco was going through obvious problems, and confirmed now that the company is proceeding to crash and burn immediately upon US entry.
The VC market is general is cooling right now but Chinese VC money has invaded the west for some time now. Though apparently not with the same ideals as native money; the money comes with backwards dealings and shitty terms
washingtonpost.com
>Mountain View, Calif., start-up Quixey was the envy of many in Silicon Valley when the company announced a multimillion-dollar investment from one of China’s largest and most powerful technology companies, Alibaba
>But then, something went very wrong: Alibaba stopped paying
>The start-up was left in the lurch, until Alibaba fired back with a hard bargain: We’ll give you a loan and you must promise not to sue
There have been prominent Silicon Valley venture capitalists that have been warning of these kinds of terms coming along with a slowing venture market
>trying to get into the marketshare meme
They deserve it.
You sound like you have no idea what you're talking about.
I thought google doesn't make that much money from YouTube?
You sound like you have an idea what I'm talking about.
>Mountain View, Calif., start-up Quixey was the envy of many in Silicon Valley when the company announced a multimillion-dollar investment from one of China’s largest and most powerful technology companies, Alibaba
>But then, something went very wrong: Alibaba stopped paying
>The start-up was left in the lurch, until Alibaba fired back with a hard bargain: We’ll give you a loan and you must promise not to sue
CHINKED
H
I
N
K
E
D
Good, fuck them, I ordered a lelele 3 pro and it came with a dent near the front camera and the fingerprint sensor fucked, i didn't knew it had no SD slot or 3.5mm jack either, at least it makes for a decent shitposting/emulation machine for when I leave the house.
>lelele
more like mememe
who come with such a retarded name, it's like it's straight out of reddit
Le Eco sounds cool though