LeEco, the latest entrant in the smartphone market in India is attempting to make what no other maker has done so far. The Chinese company is planning to set up its own delivery network in ten cities such as Mumbai and Delhi in order to provide its contents to those who use its devices including smartohones and televisions in future.
LeEco is establishing local servers in ten cities for seamless and faster distribution of content. The company is trying to differentiate itself from the crowded, commoditized and intensely competitive market in the country. It is aiming to become the leading online player in two months and one of the top three smartphone makers by the end of this year.
Atul Jain, the COO for India Operations at LeEco stated that the mobile phones are a zero profit game now. They are setting up a CDN (Content Delivery Network) in the country in ten cities. They have already done the same in Mumbai and Delhi. He added that they are in talks with some operators and that the discussions are in the final stage with a few operators. The discussions are for the tie-ups in the country that is one of the high focus markets across the world.
A content delivery network is nothing but an interconnected system of many cached servers that are deployed in the geographical locations that are close to where the users are. It will better user experience when streaming video contents on the internet.
In India, the company entered in the last month and it plans to partner with service providers to deliver the third party contents to the users. It is also planning to tie-up for exclusive content and it might even produce its own local content here. It has already established partnerships with Yupp TV and Eros for contents for its mobile phones.
As per the experts, the strategy of the company is to ride on the content and not on the devices. This sets LeEco apart from its challengers in the country such as Xiaomi, Meizu, Oppo, Coolpad, and Zopo. The companies such as Micromax have focusing on mobile wallets on smartphones. The focus on content is something new and this makes LeEco different from others in the country.