The China Mirage: LeEco Crashes

Reality Bytes: A Highflying Tech Entrepreneur Crashes Back to Earth

“People are saying that LeEco is a fraud, a Ponzi scheme. But what about the many bike-sharing and power bank-sharing ventures? Are their stories more credible?” says a midlevel LeEco executive who’s leaving the company.

Nope, they aren’t. Except to gullible American tech writers — of which there seem to be many.

Ramos tried to switch — “pivot” in the Silicon Valleyese — from tablets to phones. That killed them.

Other companies died never being able to switch from tablets (hello, FNF/iFive).

The moment LeEco — at the time still LeTV — announced a phone, I should have seen the end was inevitable. The announcement of them buying Vizio and the plans to build an electric car should have made savvy investors run for the hills. Instead, they poured even more money in!

Which Chinese company hyped by rah-rah American tech writers will be next? Perhaps Xiaomi?

Many of the tech businesses in China are fragile. They want the glory but won’t do the necessary work. Huawei and ZTE seem to be exceptions, but that remains to be seen. China politics can still upset everything.

The foremost thing to keep in mind is that China is not Japan. Japanese companies didn’t bray. They did the hard work. And for a time, their brand names — Sharp, Panasonic, Sony, and others — seemed to rule the world. But they too fell.

Previously here:

The China Mirage Continues
The China Mirage: VR
The China Mirage, Part Two
The China Mirage

This entry was posted in fraud. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.