Emir BardakçıWhat happened to Black Shark, this one-time ambitious gaming-smartphone sub-brand owned by Xiaomi, is a question on every fan’s mind. The question is: “Is Black Shark bankrupt?” or “Why are there no new models coming out?” What happened is actually much more complex than even this. Black Shark Technology (Shenzhen) Co., Ltd. is, in fact, still operating. However, Black Shark’s mobile phone business basically stopped in 2023 because it failed in acquiring $459 million worth of stocks in Tencent. Such a failure resulted in it ceasing all developments for flagship models such as Black Shark 6.
The Fall of a Gaming Titan
Black Shark was established in 2017. Its goal was to conquer the mobile gaming market through superior hardware capabilities and innovative designs. However, this was until 2022 when Tencent Holdings made a bid to acquire Black Shark in a bid to create a VR/AR hardware business unit. This partnership would ensure Black Shark’s future and position it for success in the metaverse age.
Unfortunately, this purchase was cancelled in May 2022 due to a failure to gain approval by Chinese officials. This resulted in layoffs, unpaid salaries, and closing down their Smartphone Research and Development Division.
Reasons Why Black Shark 6 Never Came
The Black Shark 5 Series, launched in March 2022, was the last flagship series for this brand. The supposed successor to this line, Black Shark 6, was canceled due to it losing both funds and human resources because of the failed deal with Tencent. By early 2023, More than 90% of Black Shark’s staff have been let go, thus ceasing all phone production.
The main investor in this brand, Xiaomi, did not get involved, presumably due to their own restructuring process and competition with POCO and Xiaomi T-series models. Consequently, Black Shark’s business in smartphones has de-facto ceased to exist.
The New Black Shark: From Phones to Accessories
Although Black Shark failed in the smartphone market, it has been revived with a new orientation. Black Shark now manufactures different gaming accessories for enhancing gaming experiences, such as:
- Black Shark GT3 Neo Smartwatch
- Black Shark Pad 6 Tablet
- FunCooler 4 Pro Cooling Fan
- Black Shark Blade 2 Power Bank (10000mAh)
- Green Ghost Gamepad Controller
Such a shift towards low-cost, high-margin peripherals will ultimately ensure that the “brand will survive with this gaming DNA intact.” Analysts term this process a “ghost brand strategy,” because “existing appreciation will sustain a peripheral business model.”
Final Analysis: A Brand Reborn, Not Bankrupt
Black Shark’s line of smartphones ended with Black Shark 5, but it continues in another role: gaming ecosystem brand. The failed takeover by Tencent, government pressure, and intracompany competition between Xiaomi created a situation that led to this change. Today, the Black Shark line lives on – not as a purveyor of innovative smartphones but as a gaming lifestyle brand in the overall Xiaomi ecosystem.
