Rumor: Coolpad to Establish JV with Handset Distributors
NetEase, 9/17/14
According to a company insider, Shenzhen-based handset maker Coolpad (2369.HK) has reached an agreement with a number of its handset distribution partners to form a RMB 1 bln joint venture focusing on the integration of smartphone manufacturing and distribution. The JV is still in the planning stages, with further information to be released at a later date.
The JV is being formed as a direct response to falling handset subsidies from China's major telecom operators, and will see investment from both Coolpad and its handset distribution partners.
Coolpad will reportedly soon lay off around 10% of its staff and undergo a round of corporate restructuring. Upon completion of the restructuring, Coolpad will market its handsets under three brands, Yulong handsets, which will be sold to telecom operators, Coolpad handsets, which will be sold to handset distributors, and Dashen, which will be sold exclusively online.
Keywords: corporate restructuring Yulong handset smartphone wireless Coolpad JV 2369.HK handset vendor Dashen HR branding
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