The Nikkei has reported that following on from the problems at LeEco (LeEco Still Struggling to Survive), smaller smartphone suppliers in China are also in some trouble and has highlighted Gionee as being in particular difficulties after a court intervened to freeze assets including a stake held in the company by its CEO and Chairman, Liu Lirong. Nikkei said that it has seen reports that Gionee is struggling to pay suppliers and that Gionee had confirmed that it is involved with the court.
At the moment, analysts do not see bankruptcy as imminent for the firm, but worry about the longer term trend for smaller phone suppliers.
Separately, FIH, which makes smartphones for Huawei and Xiaomi among others, is expected to announce losses of as much as $400 million for the year. It is not known whether Gionee is a client of FIH.
