According to the Indian newspaper ET Telecom, most of Mobiistar's management team in India has left the company, including CEO Carl Ngo who has returned to Vietnam without providing any information about the situation. works with partners.
Mobiistar has stopped smartphone business in India after 1 year of joining this market. The reason was attributed to manufacturing partner Vsun Technologies to stop production in India after declaring bankruptcy in China on May 19 and firing all employees in India on the same day, leading to supply. Mobiistar products are broken.
Vsun Technologies, based in Shenzhen, is a mobile phone manufacturer for many phone brands, including Mobiistar. This company has a factory in India located in Bawal city. Before declaring bankruptcy in both China and India, Vsun Technologies owed its partners parts suppliers about $ 24.6 million.
The sources share with ET Telecom, most of Mobiistar's management team in India has left the company, including Carl Ngo's CEO who has also returned to Vietnam without providing any updates. Any day about the operation situation for its partners.
Moreover, ET Telecom also quoted Ajay Dua, once Mobiistar's chief financial officer in India, confirming that the company is facing many problems in India. He added that after Vsun Technologies stopped supporting Mobiistar's Indian operations, CEO Carl Ngo negotiated with some investors in India and Vietnam to seek capital to maintain. works but fails.
According to ET Telecom, Mobiistar has not paid much fees for marketing and distribution partners. In an email replying to ET Telecom, Anruddha Deb – Mobiistar's marketing director in India said the company will pay 50% of the outstanding fee to its partners after liquidating the inventory. However, many marketing partners of Mobiistar said that the company stopped contacting them and had not paid the debt.
Mobiistar's latest smartphone launched in India is the X1 Notch 6 months ago. During the Indian market, the company launched a total of 9 new smartphones.
Before Mobiistar, there were many Chinese phone brands like Gionee, Comio, Homtom and even global brands like HTC and Sony abandoned the Indian market. Analysts predict there will be more small phone brands to break up the Indian market in the near future as big brands like Samsung, Oppo, Vivo and Xiaomi continue to consolidate their market share. Counterpoint Research predicts that at least 15 carriers will leave the Indian market in 2019.