Acer suspends smartphone business in India [Report]

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Acer India has suspended its smartphone business in India after failing to attract customers. This move was confirmed to Business Standard by company’s India Managing Director Harish Kohli.

Acer smartphones could get attention of buyers in India due to high competition. None of Acer smartphone had any USP to attract customers.

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It is worth to note that Acer re-entered in smartphone market last year with two new models. The company also invested $10 million in setting up an assembly unit for smartphone in India. Currently Acer is selling smartphones through e-commerce sites. You can check list of Acer smartphones here.

Harish Kohli said that mobile business is now risky because major players are delivering smartphones at cheaper price than focusing on quality.

“Today, mobiles have become a commodity from a price-point basis, rather than an experience basis. There are very few products based on experience. When you are into that kind of a space, it is a decision you need to take, whether to produce a quality product and bleed or just copy others and make a product for a particular price-point.

If we go deep into the stats, smartphone business accounted for just 1% of its overall revenue n Q3. This is down from the 2% share in the same quarter last year. The total reported revenue of NT$ 58,593 million (Taiwanese Dollar) in Q3 2016 is also 12% down from NT$ 67,239 in the same quarter last year. So, the company wants to rethink its business strategy and focus on profitable business.

Acer makes majority of its revenues from PC segment that accounted by over76% of overall revenues during the Q3 2016. It us 1% up from 75% share in same quarter last year. As the PC shipment is also going down, Acer is also thinking to bring easy-to-use products which are lightweight.

What do you think about Acer as a smartphone company? Share your views with us in comments.

Source: Business Standard


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