Coolpad is positive about its business in India this year. The company has not been performing as per expectations in the country due to numerous issues. India is the second-largest smartphone market in the world and the fastest-growing one among the major markets. It recently overtook the USA in terms of total smartphone users. Over 400 million smartphone users in India make the country one of the smartphone market giants. The best part about this huge market is that there are over 700 million potential customers who still haven’t used a smartphone. This means that the potential is just unimaginably large.
This huge potential needs quality players to grab the opportunity and make their dreams come true. The Indian market is dominated by the Chinese smartphone makers such as Xiaomi, Oppo, Vivo and OnePlus. The Chinese players make up almost 60% of the total market share. However, not all Chinese players are good. The best example would be of Coolpad.
Shenzhen based Coolpad Group Limited formerly known as China Wireless Technologies Limited is a Caymans-incorporated holding company. It is a popular smartphone maker in China but has been less successful outside of the country. However, it has not demoralized the company as it is planning something big in India. Coolpad is about to launch a 5G smartphone in India. This will make the brand, the first-ever 5G phone maker in the Indian market ahead of the giants such as Samsung, Xiaomi, Apple or even OnePlus.
According to Toutiao news, Coolpad Group released the latest loss situation announcement recently. The data shows that Cool’s net loss in the first half of this year is expected to decrease by more than 80% compared with HK$332 million (approximately RMB 298 million) in the same period last year.
The Cool Group said that the reason for the sharp decrease in the overall loss this year was mainly due to the increase in the fair value of its equity investment in the shares of Wanjialilian Co., Ltd. At the same time, the Cool Group stated that it actively and effectively improved the Group’s expected gross profit due to operational efficiency and cost control during the reporting period, while a gross loss of HK$25,149,000 was recorded in the same period in 2018.
In addition, there are also foreign media reports recently that Coolpad will launch its first 5G smartphone in India. Coolpad said it will also be the first 5G mobile phone in the Indian market, which will be ready for the 5G infrastructure in India. It was launched the first time, but this time is still not certain.
Having said that, there is little benefit for any company to launch a 5G smartphone at the moment in India. The reason is very simple, lack of 5G network and service providers. The Indian telecom sector is still not ready for 5G networks and the government has not started the 5G spectrum auctions. In such a situation, all the companies can at most rely on the existing 4G networks. Then, there is no use of a 5G enabled smartphone. Moreover, this comes from a less popular company in the country. Had it been launched by someone from OnePlus or Samsung or even Apple, the impact would have been something positive as these brands are known to be the pioneers of new technology. Given the history and performance of Coolpad in India, it is not a very smart move by the company.