On August 30, 2017, it was rumored that "the rain is coming to the building," which seems particularly fitting for LeTV. Ever since the capital chain explosion last year, LeTV, once riding high, has spiraled into a series of controversies. Recently, Foxconn unexpectedly pulled out of its partnership with LeTV. This sudden move, coupled with rumors of production halts, has brought LeTV's financial struggles into sharp relief.
Despite Sun Hongbin’s efforts to stabilize the company through Sunac Financial and a new leadership team, focusing on profitability remains crucial. Establishing a solid foundation in the TV screen market is key, but given the financial challenges faced by LeTV’s associated entities, Sun Hongbin’s efforts might face limitations. The latest semi-annual report reveals that LeTV lost 637 million yuan in the first half of the year, a 323.91% decline year-over-year.
Back in 2013, Jia Yueting managed to persuade Gou of Foxconn to become an OEM supplier during his trip to Taiwan, securing an exclusive agreement. How LeTV managed to sway Foxconn and secure such an agreement remains a mystery. However, it’s clear that at the time, LeTV was relatively unknown in the TV manufacturing space and needed a partner like Foxconn, whose clientele included major brands like Apple, Sony, Microsoft, and Amazon.
What’s surprising is that this partnership lasted just over four years before Foxconn distanced itself. With Foxconn's withdrawal, LeTV faced significant challenges, though some reports suggest that production hasn’t entirely ceased, just slowed. Relevant sources told the Securities Daily that the rumors of full-scale production halts aren't accurate. Foxconn has indeed stopped providing OEM services, but LeTV continues to produce, albeit at a reduced pace.
Moreover, LeTV has maintained relationships with several manufacturers even post-Foxconn’s exit. Currently, LeTV collaborates with four foundries—TPV, Yichang, TCL, and Zhongqiang—and is in talks with additional suppliers. After these discussions, LeTV plans to add two to three more foundries, potentially increasing their total to seven.
Since the financial crisis erupted, LeTV has been besieged by troubles. Jia Yueting stepped down, and LeEco introduced a new leadership structure within the listed system. While this change might seem strategic, it remains to be seen whether it will help LeTV navigate its current challenges.
For those interested in smart TVs and boxes, platforms like Smart TV Information Network and Sofa Butler provide comprehensive resources, covering everything from product reviews to software updates. These platforms remain a go-to source for insights and answers regarding the ever-evolving world of smart TVs and boxes in China.
With each passing day, LeTV faces new hurdles, but whether it can weather the storm remains to be seen.
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