Mindtree decides to leave cash-sucking Android phone biz

For the last one year, we have been reporting that Indian IT services firm Mindtree will be making an Android phone. The phone was supposed to be first available in US, for that company was even in talks with telecom operators.

But it all came down yesterday, when Mindtree announced that it is winding down its ready-to-brand Android-based handsets business, which was sucking up too much cash and eating into its profitability, reported Financial Express.

The Company CEO & MD Krishnakumar Natarajan said it was a practical decision given that the highly-competitive handset business would have required a capital infusion of $50-70 million to sustain. “At this juncture, this is the right decision considering our stakeholders’ interest. We see a tremendous services opportunity around the capabilities that we have developed,” he added.

One thought on “Mindtree decides to leave cash-sucking Android phone biz

  1. Mindtree claimed at the end of the september that they are in serious talks with one US carrier to launch their phone, only to announce 20days later that they are exiting the business. And this is for what reason? Because continual investment would erode shareholder value? It would, of course, if the management could not showcase the potential in product sales, and even then only in the short term. Maybe it was a greater failure of management on both sides of the acquisition who could not understand each other

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