Russias sole domestic tv manufacturer Kvant has ceased production due to low need and high costs, the Kommersant business newspaperreported Wednesday, pointing out the CEOs letter to shareholders.Kvant CEO Mikhail Etonov reportedly wrote in the March 17 letter that the company stopped making Irbis tv at its Voronezh-based plant and does not prepare to resume production this year.Kvant was the only Russian TV maker signed up with Russias Ministry of Industry and Trade, according to Kommersant.
Anonymous sources near to the company said the decision to end production was because of sluggish need and the troublesome documents needed to remain on the ministrys registry.Irbis TVs were priced higher than lots of foreign competitors and struggled to get traction in the customer sector, stated Vladislav Borodin, head of consumer electronics at the Russian tech supplier OCS.
He included that service sales were not enough to keep operations viable.Government procurement data showed state organizations largely choosing foreign brand names, including LG, Sony, Samsung, Xiaomi and Haier, over Irbis TVs.Kvant used to be a professional in producing electronic devices for the Chinese business Xiaomi and TCL, according to Kommersant.
However, the 2 companies have considering that stopped delivering elements to the Russian plant over sanctions risks.Founded in 2016 in the Moscow residential area of Zelenograd, Kvant published revenues of 15.9 billion rubles ($184 million) and a net revenue of 3.2 million rubles ($37,000) in 2023.