Acer entered the Indian smartphone market six years ago, but it's never gained much traction in the country. The company now views its handset operations in India as a bad investment and will stop selling smartphones in the market. It'll focus on laptops and other hardware instead.

It's faced a lot of competition from handset makers in China and elsewhere in recent years. Acer temporarily boosted its efforts in India in 2015, but that change wasn't sufficient to really raise its market share.

Analysts say part of Acer's failure came from its decision not to offer online flash sales or engage in marketing efforts directed at young consumers. Those tactics are used by OnePlus, Xiaomi, and others to boost their presence.