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LeTV to Disrupt US Markets selling Smartphones & SmartTV Online

LeTV, the new entrant in the already crowded Chinese smartphone market has been successful in competing with other Chinese brands. The budget smartphone category is what more manufacturers are keenly focused, leaving the high-end market share to the major manufacturers like Apple and Samsung. By debuting with three smartphones in early 2015, LeTV had more focused on the high-end market.

According to LeTV, it is the fastest smartphone brand to reach one million sales, which the company had achieved in just two months after launching. Recently the company has organized the annual sale event, where it had sold more than $280 million worth of devices in just a single day. Apart from Smartphones, the company had earlier launched Smart TV’s.

LeTV is a well-known name in China as the video content provider and also has movie production house called ‘LeVision Pictures’ located in the U.S. Now the company has laid down a road plan to enter the U.S market smartphone market. The Chinese brands aren’t that successful in the U.S because of the brand image of the low-quality Chinese products. While the Xiaomi hasn’t still find the way to launch the smartphones in the western countries despite of its popularity in the emerging markets. It has launched the online store earlier this year in the U.S and few other European markets for selling its accessories.

The major Chinese brands like Huawei and ZTE are showing more interest in the western countries because of the declined growth in China. Recently, Huawei in partnership with Google had even launched the first Nexus smartphone ever manufactured by a Chinese company.

Talking to a Media Publication, Brian Hui, senior VP of Lemall International said, “We’re a global company that doesn’t distinguish between our US and Chinese consumers, and are committed to delivering a high-quality, seamless experiences across all of our devices and platforms, regardless of location.”

According to the above statement, we think the same way of doing business in two countries might give two different results. In the U.S, the weekly flash sales may not create hype in the customers. They also care about the design and the after sales service which LeTV have to work hard to make a perfect entry. The U.S carriers who are moving away from carrier based subsidies on the smartphone is also a positive point for the Chinese brands to enter the U.S market.

He also added, “Because we are new to the US market, we’re aware there is a learning curve. Over the past year, we’ve done a lot of work to grow an elite and agile team in the US, to carry out what we call our tri-city strategy: implementation and application in Beijing, technology and innovation in Silicon Valley, and media and entertainment in Los Angeles. In the process, we’ve been adapting and fine-tuning our US efforts to address the needs of our audiences.”

The company might also think of making the device available on cross-platform instead of going for an exclusive store launches. The Le Superphones came with a better build quality along with high-end specifications. The U.S launch of Xiaomi and Meizu smartphones will depend on the result of LeTV smartphone sales.

Micromax, India’s second largest smartphone maker is also rumored to enter the U.S market with its YU brand of smartphones. Once launched, the rumored YU Yutopia will be most powerful smartphone ever launched by an Indian manufacturer. It leaked specifications suggest the device to sport a 2K display along with Snapdragon 810 processor and 4GB of RAM. The YU Yutopia that sports powerful specifications will be the right device for the company to enter international markets.

By Teja Chedalla on Wednesday 7th of Oct 2015


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