After deriding Apple as too slow, China's LeEco hits cash crunch, halts stock trading

Posted:
in iPhone edited December 2016
Ambitious Chinese tech firm LeEco halted stock trading after plummeting share prices reportedly triggered margin calls for its cash-strapped billionaire founder Jia Yueting. LeEco had been hailed as an Apple threat, with tech journalists giddy in reporting Jia's contempt for Apple--a company Jia derided as "extremely slow" and compared to the Nazis.


Fast, cheap and out of control

LeEco trades as LeShi Internet Information and Technology, the company that runs its YouYube-like LeTV video site. However Jia has recently taken aim at rapidly expanding into entirely new businesses, ranging from electric cars to televisions to smartphones and even bicycles.

Last year, LeEco promoted its smartphone by attacking Apple with Nazi imagery that depicted iOS as "tyranny" as Jia wrote of the "arrogant regime of iOS domination," despite the supposed supremacy of Android in terms of unit market share.

This spring, Jia appeared on CNBC to ridicule Apple as "outdated" and portray the iPhone as having "fallen behind," specifically attacking Apple's entry priced iPhone SE as having a "very low level of technology."

In October, LeEco wooed the media with an event that showed off an electric car concept, Android-based TVs, VR headsets and a new $399 Le Pro 3 phone, of which Cult of Mac crowed "packs the same powerful processor as Google's new Pixel phone."Le Pro 3 is not only half as fast as Apple's latest iPhone 7, but is also trounced in typical single core performance by the same iPhone SE the LeEco's chief executive derided as slow and old last spring

Google's HTC-built Pixel, powered by the same Qualcomm Snapdragon 821 as Le Pro 3, is not only half as fast as Apple's latest iPhone 7, but is also trounced in typical single core performance by the same iPhone SE the LeEco's chief executive derided as slow and old last spring.

La merde de LeEco frappe le ventilateur

A larger problem for LeEco than its tired, regurgitated Google talking points about iOS Tyranny and the advantage of platform "openness" is that LeEco is rapidly running itself out of cash. Last month, Jia warned that its ambitious expansion was running short of funding in a letter to employees.

"As we sped ahead blindfolded, and expanded our business by burning cash, we got overstretched in our global strategy," Jia explained. That global strategy involves televisions, bicycles, VR headsets and slow cheap iPhone killers (below).




This summer, LeEco announced plans to acquire low end TV maker Vizio for $2 billion after spending $250 million to buy up 48 acres of Yahoo's land in Silicon Valley. Unsurprisingly, the same tech media sources that announced Apple's Campus 2 was a sign the company was overspending and probably going out of business hailed LeEco's ambitious expenditures financed against hot air as being a smart way to enter the U.S. market.

Since then, LeEco reportedly lined up $600 million in new funding from Chinese investors after a $150 million loan with European banks fell through.

This week however, a report by the Wall Street Journal noted that local media reports in China stated that the collapsing stock of LeShi--which fell 7.9 percent on Tuesday, and is now at half the valuation from early last year--had triggered a margin call for Jia, calling for immediate repayment of loans borrowed against the stock as collateral.

LeEco disputed the reports without clarification, but halted trading on its stock yesterday. In a filing, the company stated, "to protect the interests of the company and of many investors, the company needs to halt trade and investigate these matters."

LeEco echoes le Xiaomi

LeEco is the latest media darling anointed by the tech media to cause great threat and concern to Apple via rapid expansions, expensive acquisitions and flashy futuristic prototypes and technology announcements.

The Wall Street Journal previously promoted China's Xiaomi as being surprisingly profitable despite its business of selling low-end phones at low prices, until it was revealed that the profit figures it published were off by an order of magnitude: Xiaomi had earned just $56 million, rather than a half billion.

Earlier this year, Eva Dou of the Wall Street Journal noted that having "raised vast sums on China's mobile-Internet boom," Xiaomi is now "facing growing pressure to live up to expectations."
lostkiwibrakkencornchip
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Comments

  • Reply 1 of 58
    apple ][apple ][ Posts: 8,680member
    Haha! I hadn't heard about this douchebag before.

    Comparing Apple to Nazis? What is he a liberal or something? :#

    Anyway, I am glad that their stock is crashing and had to be halted.

    Hopefully, it will be reopened soon, so that it can continue to dive.
    edited December 2016 mwhitemacseekerpscooter63netmagepotatoleeksoupbrakkencornchipwatto_cobracali
  • Reply 2 of 58
    Sog35 and his brother Yeuting Jia  have finally had their conspiracy upended/s
    mwhitethewhitefalconsockrolidbuckalecsnype719lostkiwibadmonk
  • Reply 3 of 58
    eriamjheriamjh Posts: 1,134member

    La merde de LeEco frappe le ventilateur

    Le Echo's Shit Hits the Fan.

    Nice.   
    scrutinizerdaren_mitchellbaconstangbrakkencornchipwatto_cobrajony0
  • Reply 4 of 58
    Yep heard about this moron before. pretty much the biggest vaporware, smoke blowing, fake as you get. Even Apple at its worst is better than anything this muppet could produce. 
    lostkiwicornchipwatto_cobra
  • Reply 5 of 58
    If you want to know where the "dot com" bust came from. Here's your answer.
    pscooter63Daekwanlostkiwispice-boymagman1979watto_cobra
  • Reply 6 of 58
    mwhitemwhite Posts: 196member
    Sog35 and his brother Yeuting Jia  have finally had their conspiracy upended/s
    Thanks for the laugh of the day :smiley: 
    snype719
  • Reply 7 of 58
    65026502 Posts: 255member
    China copies everything, even Elizabeth Holmes.
    lostkiwiwatto_cobra
  • Reply 8 of 58
    mtbnutmtbnut Posts: 195member
    Surely doubt China's recent currency manipulation and bubble economy has anything to do with this.
    edited December 2016 lostkiwicornchip
  • Reply 9 of 58
    So is the Vizio sale still expected to go through?


    netmage
  • Reply 10 of 58
    MacProMacPro Posts: 18,302member
    I'm heart broken.
    brakkenwatto_cobra
  • Reply 11 of 58
    The arrogance and the belligerence coming out of that country, in particular it's state and its entrepreneurs, is frankly pathetic. Reeks of an inferiority complex. If they don't watch it, they're soon going to be eating some major national crow. 
    magman1979watto_cobra
  • Reply 12 of 58
    flaneurflaneur Posts: 4,510member
    digitol said:
    Yep heard about this moron before. pretty much the biggest vaporware, smoke blowing, fake as you get. Even Apple at its worst is better than anything this muppet could produce. 
    Your last sentence there. Dumber than anything I've seen you said, and that's really, really dumb. 
    netmage
  • Reply 13 of 58
    I love my SE.
    Mikeymikepscooter63lostkiwimagman1979baconstangwatto_cobra
  • Reply 14 of 58
    sockrolidsockrolid Posts: 2,788member
    "As we sped ahead blindfolded, and expanded our business by burning cash, we got overstretched in our global strategy," Jia explained. 
    Typical running dog capitalist.
    apple jockeymac_dog
  • Reply 15 of 58
    LeEco is a Ponzi.
  • Reply 16 of 58
    slurpyslurpy Posts: 5,154member
    apple ][ said:
    Haha! I hadn't heard about this douchebag before.

    Comparing Apple to Nazis? What is he a liberal or something? :#

    Anyway, I am glad that their stock is crashing and had to be halted.

    Hopefully, it will be reopened soon, so that it can continue to dive.

    Do you have to spout your misguided political trash in EVERY thread? Nobody cares what you think of liberals. What a tiresome troll, just like sog. You two should ride off into the sunset. 
    apple jockeyMacProdsdration altjwolfradarthekatMikeymikelenaMacsplosionDaekwan
  • Reply 17 of 58
    welshdogwelshdog Posts: 1,692member
    This guy comes across like a certain PEOTUS I know of. Total bullshit artist.
    Talks big and fast, hurts lots of people.
    lenaDaekwanlostkiwimagman1979spice-boybaconstang
  • Reply 18 of 58
    apple ][apple ][ Posts: 8,680member
    slurpy said:

    Do you have to spout your misguided political trash in EVERY thread? Nobody cares what you think of liberals. What a tiresome troll, just like sog. You two should ride off into the sunset. 
    I'm no troll, and even though I don't agree with SOG on some issues, I wouldn't say that he is either.

    We are voices of dissent and we sometimes offer a contrarian viewpoint on certain issues.

    Apple is all about diversity, is it not?

    Does that not apply to a diversity of opinions also, or would you prefer to live in a dictatorship, where people like SOG and myself would be thrown in a cold jail cell, for refusing to follow the groupthink, liberal herd mentality, where only accepted opinions are allowed? You don't have to answer that last question. :#
    georgie01gatorguylightknightwatto_cobra
  • Reply 19 of 58
    apple ][apple ][ Posts: 8,680member

    welshdog said:
    This guy comes across like a certain PEOTUS I know of. Total bullshit artist.
    Talks big and fast, hurts lots of people.
    The hurting hasn't even begun yet, just you wait and see. :#
    Daekwan
  • Reply 20 of 58
    apple ][apple ][ Posts: 8,680member

    I love my SE.
    If you mean the phone, then I agree.

    I've been using mine since it first came out, and I think that it's great. :#
    radarthekatpscooter63watto_cobra
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