EXCLUSIVE: Hisense Allocates Millions For Warranty Claims
Hisense Australia’s latest financials for 2020 reveal an alarming increase in provisions for warranty claims, with insiders at the Chinese Company telling ChannelNews there are “major” problems associated with their VIDAA U OS.
In 2019, Hisense Australia provisioned $16.9M for service warranties. In 2020, this blew out to an additional provision of $34.6M being allocated, with the Company allowing for claims of up to 5 per cent, which is well above the industry standard of between 1% and 1.5% for TV’s.
The warranty claims on their books also allows for Hisense appliance claims.
One of Australia’s largest importers of TVs says Harvey Norman and JB Hi-Fi experience around “A 1% return or warranty claim.”
The problem appears to be the decision by the Chinese Company to use their own VIDAA operating system, which is causing problems with applications such as Netflix.
According to one source at Hisense Australia, the now-sacked customer service manager Afroditi Myron, who Chinese management are accusing of being involved in a claimed major fraud of up to $3.37M, attempted to shift their customer service operation to the Philippines, but this “went pear-shaped” after just two months.
As warranty-claim problems were mounting at the local subsidiary, a fight broke out between Hisense Australia and Hisense management in China over payment for software fixes, with China insisting the local subsidiary pay for any software coding.
One problem app for Hisense operating on the VIDAA OS has been Netflix.
ChannelNews understands Hisense TVs are not officially approved by the US streaming Company. Those that are approved include Samsung, Sony LG and TVs running Web OS and Android TV operating systems.
A visit to the Product Review website reveals their Hisense A7G Series TVs are only ranked at 2.5 out of five, with no five or four-star reviews.
John from Sydney wrote.
“The VIDAA OS is an insulting abomination that actively makes this TV worse”.
Another visitor who ranked the 7 Series with a two-star rating said, “Overall the TV has good features; however, the system is TERRIBLE”.
They added “ It is constantly freezing, Netflix, Stan, YouTube, or even normal open Channels won’t work. I contacted Hisense, but there was not much help, they only sent an email describing the steps to ‘restore’ the system, which was not helpful”.
Currently, Hisense is looking to lift their profile in the belief their TVs rank alongside those of LG, Samsung and Sony.
Hisense Australia or their PR Company have not commented for this story.