Gionee May Shut Business Soon as Chairman Loses $144 Million in Gambling

Gionee, a phone maker that was pretty popular some years ago, lost its spot recently after several the phone companies like Xiaomi, Honor, Realme, and others entered the smartphone space. According to certain reports from Securities Times, Gionee is facing bankruptcy situation, which may lead the company to shut its shop in the days to come. Gionee has reportedly failed to pay its debt from various suppliers. The report further suggests that the as many as 20 suppliers have filed for bankruptcy reorganisation with the Shenzhen Intermediate People’s Court. It looks like this wasn’t enough as Gionee chairman Liu Lirong has lost around ten billion yuan of Gionee’s funds while gambling. Ten billion yuan roughly translates to $1.4 billion.

gionee-business-shutdown

Gionee Chairman Lost Company Funds in Gambling

According to the Securities Times report, Lirong did admit of losing around one billion yuan, which roughly translates to $144 million, but the money he said hasn’t been spent from Gionee’s funds. Lirong said that he has lost money in gambling but insisted that he didn’t use Gionee’s funds for his personal reasons. The entire situation seems to be confusing, as the report further notes that Lirong did accept that he did money from Gionee’s funds.

Go back a couple of years ago and you’ll remember that Gionee was one of the key players in the smartphone business. That position is now gone. There was also a time when Gionee competed against brands like Samsung, Nokia, but soon after Chinese smartphone companies like Xiaomi, Oppo, Vivo, and others entered the smartphone, Gionee eventually lost its place.

Gionee Lost Its Top Spot

According to the findings of Counterpoint Research, Gionee managed to capture almost 4.5% of selfie smartphone market share. But after brands like Xiaomi, Vivo, Oppo and others entered the Indian smartphone space with better camera knowledge, Gionee lost its top spot. Today, when we think of camera phones, the first names that come to mind are — Vivo and Oppo. Other phone makers like Xiaomi, Nokia, Samsung, and others are focusing on delivering great camera performance to their user.

Gionee- Another LeEco in the Making?

Gionee was the first brand in India to launch a selfie-focused smartphone. The very recent launches from the company include Gionee S11 Lite which was launched in India back in April this year. Even in 2017, Gionee launched some smartphones such as the Gionee A1, A1 Plus, A1 Lite and so on, but those phones didn’t help the company regain its lost market. To recall, Gionee was the first Chinese brand to enter India and the company immediately made its impact with its innovative offerings and unique retail chain business model.

However, Oppo and Vivo both followed Gionee’s business model and established a strong foothold in the retail space, which marked the exit gate for Gionee in the sub-continent.

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Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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PriyanshKaushik IMANikhil Mumbai-PuneNTRFaraz Recent comment authors
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Faraz
Faraz

I remember Gionee brought battery beast phone with 5000 mAh back in 2015.. we still want a phone that can last longer than 1 day.

Kaushik IMA
Kaushik IMA

Gionee A1 still has a monster battery. But TBH gionee was only really known for the battery capacity.

Faraz
Faraz

when we think of camera phones, the first names that come to mind are – Motorola, OnePlus etc

OPPO/Vivo for memes .. hehe

Priyansh
Priyansh

+ Thousands, hahaha you’re correct!!

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