TCL Communications who also operate as TCT Mobile has seen their smartphone business in Australia plunge, after Chinese management took over in December 2020 when the business was in third spot behind Samsung and Apple.

According to financials obtained by ChannelNews, sales at the mobile operator fell 60% in 2021, they are also unprofitable, after a new management team was appointed to restructure the business in Australia, after the dumping of the Alcatel brand, and the exit of Sam Skontos who successfully grew the Chinese Companies market share during his 12 years running the business in Australia.

Questions are now being asked about the long term, viability of the Company in Australia, with parent Company TCT Mobile International Limited already providing loans to the business of $2.5M.

Credit: TCL

Following the exit of Sam Skontos along with several other senior executives including, Paul Lakkis Director of Sales, and Arnaud Abad Director of Technical and Support who joined Skontos in a new distribution Company, TCL, appointed Michael Kwok as general manager for Oceania.

Also hired was Fei Xin, who was appointed as deputy general manager of TCL Communications, she is also responsible for sales under the new structure.

Fei Zin the Deputy General Manager Of TCL Mobile operations Australia

Prior to joining TCL, Xin, spent six months working as a sales executive at Optus and prior to that she was employed by Huawei, who shut down their Australian operation due to poor sales in Australia.

TCL also hired another Huawei executive with Joseph Corrente, taking on the role of Channel Manager and Marketing Manager for TCL Communication Australia,

At December 2020 TCL Mobile had revenues of $21.5M this slumped to $13.3M in December 2021 despite several brands including Apple, Samsung and Motorola reporting an increase in sales during 2021.

Motorola who has taken third spot doubled sales at the expense of TCL in 2021.

TCL also reported a loss for the year of $139,000 Vs a $240,000 profit in 2020.

The fall in sales occurred despite a $1.69M increase in Advertising and sponsorship which included a mover to sponsor soccer via the Optus streaming network.

Advertising costs went from $562,569 to $1.7M despite the 60% slump in sales.

Credit: TCL

The Company has also failed to explain how travel and accommodation costs doubled during COVID lockdowns in 2021 Vs 2020 when people were allowed to travel.

Prior to 2020 the business was on a role with more than 700,000 Alcatel mobiles sold in Australia primarily via carriers. This ended after TCL who held the license for the brand decided that they wanted to grow sales of TCL branded mobiles Vs the Alcatel brand.

Also dropped was the Blackberry brand with TCL Communications dropping the license globally for both smartphone brands.

This resulted in ZTE who are banned in the USA picking up business with carriers.

Among the carriers Telstra, Optus, and Vodafone only Vodafone is listing the TCL 20 Pro 5G for $11.07 a month.

In Australia TCL operate as TCT Mobile (Australasia) Pty Ltd, TCL Communications is a business name only, a key partner for ther business is Harvey Norman who are ranging four TCL smartphones.

Recently the business launched a new tablet, they have not said when the next generation of Smart Glasses will be launched in Australia.