Acer has decided to do the most practical for its business which is to discontinue the sale of its smartphones in India.
Acer Inc. took the decision to cease all sales operations in the country due to overwhelming competition by other phone manufacturers who have beaten Acer’s offerings by a large margin. The announcement came when Acer’s Managing Director of India – Harish Kohli said that providing quality products in such a price sensitive market was proving to be too difficult. He also mentioned the smartphone dynamics that are being adhered to by other manufacturers is risky since they are more focused on pricing than quality.
On top of that, the Demonetisation woes that have been plaguing the country of late are affecting all businesses, especially one that isn’t doing really well like Acer’s. It’s plunging their already low sales figures to an all-time low, which makes it a reasonable consideration to remove themselves from the market.
Acer had already restarted its smartphone business in 2014. It had collaborated with two smartphone makers and also partnered with Amazon and Flipkart to sell its handsets. Unfortunately, even that didn’t work out for the better. Even analysts aren’t surprised by Acer’s move since even newcomers like Huawei and Vivo have dominated Indian sales in the smartphone market. Flash sales have made them popular brands and the Indian consumer is more price-focused than quality focused, if recent trends are to be believed.
But unlike what other companies that have failed in the smartphone segment have been through with regard to failure and just given up, Acer is doing the smart thing. They’re ceasing all operations for their smartphones for now and are instead going to move their focus on the laptop and computer segment, where it’s faring quite well.
The company has stated that it won’t be giving up entirely on its smartphone business just yet, but instead will be regrouping and re-strategizing on their smartphone business until they’re ready to enter the race once again. Hopefully, they give the Indian consumers something new next time around.
Despite the trying times that the new currency policy is bringing to the people of India, a number of companies have faced the same amount of distress. In recent times, lots of companies have been making a strong comeback to the Indian market. One good example is Motorola.