LeEco as Coolpad’s largest shareholder will not only benefit from added product research, patents, marketing and after-sales capabilities, but also allow the companies to strengthen its respective brands and change the mapping of global smartphone industry.
On the strategic level, the support of Coolpad’s smartphone resources will bring valuable advancement to LeEco’s Superphones. The strategic stake will allow the ecosystem model to integrate with Coolpad’s near-billion intelligent terminals within a very short time.
From an R&D standpoint, Coolpad has a 3000-strong team, with over 7000 patents including more than 500 patents overseas, and has already established 7 major R&D centers around the world, which will greatly strength LeEco’s R&D capabilities and speeds up the globalization of LeEco.
LeEco will also benefit from Coolpad’s strong sales channels. Besides more than 500 direct offline stores in China, Coolpad also has strong sales in North America, Europe, Asia and Africa. Before the stock deal, Coolpad’s 2016 global sales target was 30 billion yuan (US$4.6 billion), in which 70% from China and 30% from overseas, and the company predicted its overseas market sale will increase 100% year over year within the next 3-5 years, making its overseas sales equivalent to its China sales.
Also worth noting is that LeEco, as Coolpad’s largest shareholder, will enjoy the advantage of ingraining its ecosystem model into Coolpad’s near-billion smart devices, with access to its smartphone users, 50% of whom could be converted to LeEco’s ecosystem-based users, further enhancing LeEco’s stance in the mobile Internet industry.