Last September, Vietnam’s VinSmart tried to steal ZTE’s thunder when it announced its own smartphone with an under-display camera. Now, the phone which launched as the Vsmart Aris Pro won’t be getting a successor as Vingroup, the parent company, has announced it is shutting down VinSmart’s smartphone and TV division and will instead be focusing on electric vehicles.
The announcement has come as a big surprise considering VinSmart is a pretty new player in the smartphone market. It was established in June 2018, and back in December 2020, it announced it will begin shipping its smartphones to other regions including Europe, India, and the US.
Bloomberg reports that an official statement released by the company on Sunday said the closure of VinSmart is to “mobilize all resources” for the development of VinFast, its carmaking division. It added that it “is a strategic step towards the aim of making VinFast one of the world’s leading firms in electric and smart vehicles”.
The manufacturer stated that it will uphold the warranty of sold devices and continue to offer after-sales services to owners of its smartphones and smart TVs for as long as they are in use. It added that the software department will continue to work on releasing updates for existing devices.
Vinsmart will now pivot to making smart solutions for vehicles and developing infotainment for VinFast, Vingroup’s automobile company established in 2017. It has also been reported that it will continue its research on IoT devices, smart homes, and smart cities.
VinFast which has been offering cars powered by BMW-licensed engines plans to get listed in the United States at a valuation of up to $60 billion. It is also considering a public offering that is expected to raise $2 billion.
It plans to sell its electric SUVs in North America and Europe starting next year with a battery leasing program. The cars will be cheaper because the cost of the battery will not be included in the total price. However, buyers will likely pay a monthly fee that is said to be equal to the average cost of fueling a car per month. The battery will then be replaced after reaching 70% of its lifespan.
Do you think VinFast be able to take on Tesla, Toyota, General Motors, and Volkswagen?
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