China’s LeEco eyes top 5 smartphone ranks after Coolpad deal

Chinese tech conglomerate LeEco, the largest shareholder of Chinese smartphone maker Coolpad, aims to sell over 50 million smartphones this year under its dual-brand strategy and earn a spot within the top 5 smartphone manufacturers in China, according to a senior executive.

The company announced last week that chief executive Jia Yueting would become chairman of Shenzhen-based Coolpad, after it finalised a deal which saw LeEco purchase an 11 per cent stake in the smartphone maker for about HK$1 billion from the former largest shareholder Data Dreamland. LeEco will now hold a 28.9 per cent stake in Coolpad.

“Although LeEco and Coolpad will operate under separate brands, we will combine them onto one platform,” Hank Liu, co-founder and vice chairman of LeEco, said in an interview. “Users of both LeEco and Coolpad smartphones will receive a uniform experience.”

LeEco’s decision to take a stake in Coolpad stems from the latter’s sales and market share in China, which could give LeEco a boost in its smartphone business, according to Liu.

“Coolpad sold over 30 million phones in China in 2015 ... and LeEco has also sold over 10 million smartphones in just over a year,” Liu said, adding that he believes sales of both brands combined could help LeEco join the ranks of the top 5 Chinese smartphone makers in 2016.

LeEco, which runs an internet ecosystem of services including video and content streaming on its mobile devices and smart televisions, will also help Coolpad move away from being just a hardware maker.