China’s saturated smartphone market saw another victim on Tuesday, as Chinese media reported the extreme downsizing of domestic smartphone company IUNI, which cut around 60 percent of its staff. IUNI is a wholly owned subsidiary of fellow smartphone vendor Gionee Communications Equipment Co. Ltd.

“After this round of layoffs, the only employees left will be product development and marketing staff. IUNI has given up on the domestic market and its core business will now focus on the overseas market,” stated a IUNI employee in an interview with Tencent Tech (link in Chinese).

The Shenzhen-based company’s product line includes the 999 RMB (about $153 USD) N1 smartphone, another cheap-but-decent smartphone currently a dime a dozen in China’s smartphone market. In addition to the N1 and IUNI’s other budget phones, such as the U1 and U2, the company has also developed its own OS called the IUNI OS. Reminiscent of Xiaomi, the company has also branched out into other, somewhat baffling, product verticals, including water bottles, pillows, backpacks, and stationary.

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Eva Xiao

Eva Xiao is a tech reporter based in Shanghai. Contact her at eva.xiao@technode.com or evawxiao (wechat & twitter).