Acer is pulling out of the competitive Indian smartphone market due to problems operating in a “price sensitive market”.
According to Business Standard, the company said the majority of players in the country are focused on delivering smartphones at lower price points.
“When you are into that kind of a space, it is a decision you need to take, whether to produce a quality product and bleed or just copy others and make a product for a particular price-point,” Harish Kohli, MD of Acer India, said.
India’s smartphone market is hugely competitive, with international tier-one vendors and fast-growing players battling against a strong local device sector.
Initiatives such as Make in India, designed to drive local manufacture, have also given the country a different landscape to other international markets, helping Q3 smartphone shipments growth to outpace the global average, figures from Counterpoint Research showed.
According to Mashable, Acer sold 30,000 smartphones in India this year, compared with three million for Xiaomi in the first nine months.
Tarun Pathak, a senior analyst with Counterpoint Research, said Acer did not scale its smartphone distribution channels in India, and failed to make an impression with younger buyers, according to the report.
Acer is not alone among the PC giants which have been unable to capitalise on the shift to mobile devices. Around 1 per cent of its Q3 2016 revenue came from smartphones (down from 2 per cent in Q3 2015), and 6 per cent from tablets (up from 5 per cent).