Why Lasco Financial Services Ltd stopped selling Unlocked Huawei smartphones as Caricel 5G beckons Blu Sky smartphones

Folks, sad news today!!! No, not the fact that Donald Trump is the new President-elect of the United States of America as is evident in the media!

Rather, it's the fact that Lasco Financial Services Ltd will no longer be selling unlocked Huawei smartphones as noted in the article “Lasco Financial exits mobile phone business”, published Wednesday, November 09, 2016 by Karena Bennett, The Jamaica Observer.

 

After one year of selling unlocked Huawei smartphones as reported in my blog article entitled “Huawei and Lasco to sell Unlocked dual-SIM smartphones - Why Number Portability means Open Market for unlocked smartphone”, Lasco Financial Services Ltd has decided to toss in the towel.

This comes as a surprise as Huawei is clearly ramping up with new products such as the Huawei Mate 9 and Huawei Porsche smartphones that were launched in November 2016 as detailed in my Geezam blog article entitled “Huawei Mate 9 and Porsche Design launches as Icon and Tech Leader meet”. 

Managing Director of Lasco Financial Services Ltd Jacinth Hall Tracey told the Jamaica Observer in an emailed response on Tuesday November 8^th 2016, quote: “The objective of entering the phone distribution business was not being achieved as envisioned, as the turnover of phone sales was slow. We subsequently decided to redeploy our resources and our focus to the growth and development of the existing business lines”.

Apparently Number Portability and the desire to have unlocked smartphones wasn't enough to entice Jamaicans to buy unlocked smartphones locally, as only 60,000 persons had made the switch as noted in the article “60,000 Switch Using Number Portability – Wheatley”, published Friday October 28, 2016, The Jamaica Gleaner.

But were other factors at play!?

Lasco Financial Services Ltd stops selling Huawei smartphones - Digicel and FLOW Jamaica had better sales and marketing 

Lasco Financial Services Ltd just couldn't compete with Digicel and FLOW Jamaica, as they had a much more active marketing and better organized distribution system and to sell their overpriced smartphones as note in my Geezam blog article entitled “FLOW Jamaica Stores Listed for Easy Location”.

 

Despite the growing trend toward Mobile money in the form of NCB Quisk and CONEC Mobile as described in my blog article entitled “How Quisk and AIS Mobile Money 2.0 heralds Cashless Society in Jamaica in July 2016” the trend did not propel more people to buy unlocked smartphones.

Most smartphones from Digicel and FLOW Jamaica aren't dual-SIM.

Dual-SIM smartphones are now all the rage with Jamaicans, especially the Sky and Blu such as the Blu Studio Energy 2 and Blu Energy X as described in my MICO Wars blog article entitled “How US$179 Blu Studio Energy 2 and US$109 Blu Energy X is bringing Dual-SIM Energy”.

Lasco Financial Services Ltd and Unlocked Huawei smartphones - Growing Strong as Caricel 5G beckons Blu Sky smartphones  

Still, Lasco Financial Services Ltd hasn't fared too badly in 2016 when compared to 2015:

1.      124 locations, up from 98 locations in August 2015

2.      7 loans locations up from 1 islandwide

3.      Doubling of employees islandwide

4.      JA$361 million to JA$1.4 billion increase in assets

They'll also be launching stores in Kingston and Montego Bay, with the Kingston store being a relocation of their original store. They may also be planning a push into Mobile money in partnership with Quisk as noted in my blog article entitled “Why VMBS joining AIS and Quisk Mobile Money 2.0 Platform as Avengers Assemble”. 

So as far as Managing Director Jacinth Hall Tracey is concerned, its expansion as usual for Lasco, quote: “This investment was necessary to build capacity in the core business to allow us to continue to achieve our growth objectives. Our staff complement has doubled and now stands at 80 very keen and able professionals who are also integral to our growth objectives. We also continue to engage our customers and support our agents through local, below the line marketing activity and continue to mark our presence in the US diaspora. New for this year is our support of our MoneyGram counterpart in The Bahamas, where we participated in the Jamaican Independence activities in that country”

Plus, they could always re-enter, selling dual-SIM smartphones, especially the Blu and Sky brands at cut-rate prices. something tell me that Lasco Financial Services Ltd will be returning to this business pretty soon, as the potential for growth due to the lack of high quality dual-SIM smartphones and feature phones is still significant!

So until a third Telecom Provider comes in for the form of Caricel to boost Number portability as predicted in my blog article entitled “How Number Portability has stalled in Jamaica but Caricel and 5G on the Horizon by 2020” the sale of unlocked mobile phones will remain a affair of the Christmas Barrel!