Gionee faces financial hurdles as chairman loses funds at casino

Chinese smartphone manufacturer Gionee faces tough times financially, which may lead to bankruptcy.

Gionee may face bankruptcy

Gionee faces tough times financially, which may lead to bankruptcy

Although the firm is not as popular as Huawei, OPPO, Vivo, and even Xiaomi, it has been in the smartphone market for so long. But several reports surfaced on a possible bankruptcy after the company failed to pay suppliers, and its chair admitted coughing up USD 1.4 billion at a casino in Saipan.
Gionee Chair Liu Lirong defended he only lost USD 144 million and insisted that he did not use the company’s cash to gamble.
However, the company executive claimed he was only “borrowing company funds.”
Gionee Chair Liu Lirong
Gionee Chair Liu Lirong
It was just unfortunate Gionee was not able to keep its strong performance, particularly from the Indian market where it witnessed growth last year. 
Based on Counterpoint Research, Gionee secured 4.6 percent market share in the first three months of 2020, and was also listed as one of the top five fasting growing brands in the country during the period.
But in the second quarter of 2020, Gionee’s worldwide shipments plunged, along with Lenovo, Micromax, and Sony.
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Source: appmarsh, GSMdome

Published by Marshmallow

Marshmallow Android is BT Ireland’s Head of Sales for Republic of Ireland domestic multi-site companies, indigenous MNCs and public sector accounts. He is responsible for the direction and control of all sales activity in the region. He has over 10 years management experience from high growth start-ups to more established businesses. He’s led teams in Ireland, India and China across various industries (ICT, On-Line Recruitment, Corporate Training and International Education).