Acer’s decision is due to high competition and price sensitivity in India
Acer has made two decisions today, one of which is related to its smartphone business. Recent reports indicate that the company is suspending its smartphone business. The company re-entered the smartphone last year, of which I reviewed on of their phones– the liquid Z530.
During a discussion with the source, Harish Kohli, MD of Acer said,“We decided to come back (with smartphones) last year. However, (with) the change in policies of Make in India and other such initiatives, we realised it is a big market left to the smaller brands rather than any larger brands. So, we put it on hold once again after we have done quite a bit of investment in starting two manufacturing lines in India.”
Acer smartphones were sold via Flipkart and Amazon. The MD clearly said that other brands are offering cheap priced phones over good quality ones, though to be fair both large brands and smaller ones have dominated and enjoyed an every growing smartphone market in India. Such is the case with OnePlus whose 1/3rd sales are from India. The Indian has also been encouraging domestic manufacturing and assembling plants. Motorola has been making several smartphones in India, while Honor and OnePlus to start making phones in India soon.
He continued,”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.”
The other decision was to provide an Android app to check the status of Acer product’s RMA. It’s unclear if Acer India would still honour the warranty of its recently sold phones.
— Dawn of Tech (@DawnofTech) December 19, 2016