Last week, local media reported that Smartisan has a cash crunch, and is planning to lay off as many as 40 percent of its workers.
Rumors have also been swirling that the company’s charismatic founder Luo Yonghao – likely the only tech leader that’s managed to charge users to attend product launches – is suffering from depression.
Luo swiftly responded with threats to sue the “hoodlums” and even offered to go to the hospital to check his mental health.
“The company really is in a crunch, but please give Smartisan time,” Luo told local press.
And this week, more bad news hit after a subsidiary of tablet maker Coolpad said it will sue Smartisan.
The chain of events has been tough for Smartisan, with analysts saying that while it’s been ahead of the curve in terms of products, it’s also out of touch with the fast-moving smartphone market.