Not many may have heard of LeEco. That is okay -- the company is after all a relatively new entrant to the global mobile market. In its native homeland China, however, LeEco is considered one of the biggest names when it comes to tech, with products and service that range from smartphone devices and television sets to e-commerce and films. And LeEco just keeps on expanding -- as a matter of fact, the firm has joined forces with Faraday Future in going into the automobile business.
But alas, it turns out that LeEco may be expanding faster than its capital and cash can keep up with. Through a company wide letter, Jia Yueting, one of the founders of LeEco, admitted that the firm may be heading into financial trouble. Jia noted how his organization has over extended its worldwide strategy, and is now showing signs of diminishing performance and redundancies in certain aspects of operations.
Quite simply, LeEco has found that its resources are spread too thin and is now beginning to suffer for it. Looking at recent developments, it is quite difficult to argue. Back in July earlier this year, the firm confirmed its acquisition of American TV manufacturer Vizio for $2 billion. Moreover, the company pledged to put an additional $1.8 billion in setting up an EV factory that should produce 400,000 electric vehicles every year. Oh, don’t forget that LeEco is also looking to penetrate the US market by offering affordable mobile devices, TV sets, vehicles, and bikes.
To his credit, Jia is actually doing something about, especially in trying set an example for his company. He has an estimated net worth of about $6 billion, but he has decided to cut his annual salary to $0.15. Has this gesture made a difference? It is difficult to ascertain for now, but LeEco is planning to initiate some cost cutting efforts, and perhaps pass on additional costs to end users by minimizing the subsidies the company places on the products it sells.
Some may remember that about three weeks ago, LeEco formally announced a couple of new mobile devices, the Le S3 and the Le Pro 3. This pair of handsets are officially the company’s first smartphones released for American consumers. But will US end users take notice? What makes it challenging for LeEco is that it has not yet inked deals with mobile operators in the country. Instead, the company has decided to sell its handsets as unlocked devices via its website.
Wirefly Is America's Most Trusted Source For All Cell Phones, Plans, TV, and Internet Deals
Wirefly offers great deals on a large selection of smartphones, cell phones, tablets, mobile hotspots, and other wireless devices for the nation's most popular carriers. Use Wirefly’s innovative cell phone and plan comparison tools to ensure you are getting the best deal on the market. Shop with confidence knowing that Wirefly wants to help you find the best prices on cell phones, cell phone plans, TV, and Internet service.