Taiwanese multinational Acer, which started its smartphone journey in India six years ago revealed on Friday, that they will quit smartphone sales in India and will now just focus on Hardware and computer business in the country.
India is the fastest growing smartphone market in the world, as recently reported India could take over US in market of smartphones.
The announcement came when Acer’s Managing Director of India, Harish Kohli said that providing quality products in a price sensitive market was proving difficult. He also mentioned that the smartphone dynamics adhered by other manufacturers is risky, since they are more focused on pricing than quality.
Analysts justified the move of Acer by looking into its low sales figures to an all-time low, which makes it a reasonable consideration to remove themselves from the market.
Problems never ended for Acer
Acer had 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, 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.
Xiaomi which entered Indian market with their smartphone have stated to selling over 3 million smartphone while Acer sold nearly 30,000 during last year. Therefore it would not be wrong to consider that Acer has admitted its defeat to a price sensitive country.
But the company stated that it would not be giving up the smartphone entirely and may regroup and re-strategise on its smartphone to make a strong comeback in the country.
