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Budget smartphone Mobiistar exits India – allegedly leaves unpaid suppliers in its wake

Vietnamese smartphone brand Mobiistar has withdrawn from the Indian market a little over a year after launch, following the bankruptcy of its manufacturing partner Vsun Technologies. 

In a comment thread on LinkedIn, a former executive with the company had spoken about being “not aware of the scams that are actually taking place, including in my own company”.

He also made reference to the phone brand’s partners and said: “For the past one month, I saw the plight of all the vendors, suppliers, distributors – what they had to go through and how these companies disappear overnight.”

Dentsu Impact had won the business for Mobiistar last October, and had created several campaigns for its flagship model last December.

Asked if it had been affected by the exit of the business, a spokesperson for the agency said: “Almost all of our money has come in but we don’t want to comment on financial matters.”

Mobiistar is the latest in a long list of smartphone companies that allegedly have exited India after financial troubles. Others include Gionee which went bankrupt and LeEco.

In the case of LeEco, its erstwhile agency partners Madison and Leo Burnett had taken legal action in 2017 suing the company for approximately US$6 million.

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