Big-talking smartphone maker Smartisan might be in trouble

Smartisan’s founder Luo Yonghao has claimed that his smartphones are the best in the world, but they may not make smartphones for much longer

Reading Time:2 minutes

Big-talking smartphone maker Smartisan might be in trouble

Published: 8:34pm, 21 Nov 2018Updated: 8:46am, 20 Sep 2019

This article originally appeared on ABACUS

Smartphone maker Smartisan has attracted more attention for its eccentric leader and feverish fans than the actual products they make. Now, the company is catching attention for its apparent slide.

Last week, local media reported that Smartisan has a cash crunch, and is planning to lay off as many as 40% of its workers. Rumors have also been swirling that the company’s charismatic founder Luo Yonghao -- likely the only tech leader that’s managed to charge users to attend product launches -- is suffering from depression.

Luo swiftly responded with threats to sue the “hoodlums” and even offered to go to the hospital to check his mental health. But Luo is not denying that Smartisan is in trouble.

“The company really is in a crunch, but please give Smartisan time,” Luo told local press.

And this week, more bad news hit after a subsidiary of tablet maker Coolpad says it will sue Smartisan. Yulong Communications Technology says it’s owed US$650,000 by the smartphone maker for components.

The chain of events has been tough for Smartisan, with analysts saying that while it’s been ahead of the curve in terms of products, it’s also out of touch with the fast-moving smartphone market.