Fast-rising smartphone maker Xiaomi is back in the headlines with an update on a high-profile bet made last year by chief Lei Jun, who predicted his company would surpass the older and much larger appliance giant Gree (Shenzhen: 000651) in the next 5 years. At the same time, Lei has also updated a previous pledge that his company won’t go public during that time, which probably reflects the fact that Xiaomi will probably be losing money for much of the next 5 years. Lastly a separate news bit has Xiaomi investing in a GPS technology company, in a further indication that the company intends to follow a path similar to role model Apple (Nasdaq: AAPL) in its future development. Read Full Post…
I’m not a close follower of global game console leaders Microsoft (Nasdaq: MSFT) and Sony (Tokyo: 6753), but the latest reports of the latter’s launch plans for its PlayStation in China seem to reflect the recent state of disarray at the ailing Japanese giant. Microsoft was quick to formulate a China plan for its popular Xbox after Beijing recently lifted a decade-old ban on foreign consoles, forming a joint venture and launching the consoles last month. By comparison, only sporadic reports have emerged over that time about Sony’s plans, including the latest confusing reports that indicate the company will try to launch its PlayStation 4 in China by the end of the year. Read Full Post…
Several significant telecoms stories are buzzing through the headlines as China returns to work after a long holiday, led by news that iPhone sales have gotten off to a roaring start after initially hitting a regulatory roadblock in the world’s largest mobile market. Also of interest is word that China and the European Union are close to settling a long-running dispute that could give European networking equipment makers better access to the lucrative Chinese market. And finally there’s a bit of regulatory news that looks like a positive sign, showing China is trying to cut its vast bureaucracy to provide easier market access for makers of telecoms products. Read Full Post…
The microblogging realm has been relatively quiet this past week as Chinese tech executives enjoy the long October 1 holiday. Still, a few couldn’t completely stay away from their online accounts, led by TCL’s (Shenzhen: 000100) thoughtful Chairman Li Dongsheng who hinted at a possible tie-up with struggling former Taiwanese smartphone giant HTC (Taipei: 2498).
Meantime, LinkedIn’s (NYSE: LNKD) China chief Derek Shen commented on the current overheated investment environment in China’s Internet, reinforcing a view I’ve been stating for a while now. Finally there was Lenovo (HKEx: 992) CEO Yang Yuanqing, who let his deputies do the talking on his behalf as he donated a portion of his annual bonus to rank-and-file company employees in a goodwill gesture for the third straight year. Read Full Post…
So much has been written already about the sudden approval of the iPhone 6 in China, after several weeks of unexplained delays, that I thought I would focus on the broader implications of this surprise move in the ongoing war of words between the US and China over cyber security.
I praised iPhone maker Apple (Nasdaq: AAPL) in August for emerging as a voice of reason in this war of words after it decided to use China-based servers for to store some of its local user data (previous post), and it seems like more praise is in order this time as well. Only this time the praise should go to Beijing, for finally taking a break from the cyber security war of words by realizing that companies like Apple are far more interested in doing business than engaging in cloak-and-dagger spying games. Read Full Post…
A trio of headlines are shining a spotlight on a new twist in the brutally competitive smartphone market, where national security is suddenly becoming a major new headache for manufacturers. In one headline, Chinese smartphone sensation Xiaomi is being investigated in Taiwan for national security risks related to the storage of local user data on some offshore mainland Chinese-based computers. In a similar news bit, Beijing is reportedly considering forbidding government workers from using foreign-made smartphones.
And in yet another related story, global smartphone giant Apple (Nasdaq: AAPL) is reportedly finally on the cusp of winning approval to sell its new iPhone 6 in China, following an embarrassing delay that may be related to the cybersecurity issue. Read Full Post…
Microsoft (Nasdaq: MSFT) and Intel (Nasdaq: INTC), the sputtering “Wintel” pair that once dominated the high-tech industry, are both in the China headlines today, as each tries to reverse its downward slide in the important market. In the first case, Microsoft’s new CEO Satya Nadella is visiting China in his first overseas trip since assuming his current title, and is quickly finding himself quite busy putting out fires on a number of fronts. In the latter case, Intel is paying a hefty premium for a Chinese cellphone chipmaker as it attempts to find a place in a critical sector that is rapidly overtaking its core business making chips for traditional PCs. Read Full Post…
Product development centers aren’t extremely expensive as investments, but they carry a much higher level of prestige for developing countries due to their status as cutting-edge centers for innovation. Against that backdrop, major new R&D moves by global corporate giants Adobe Systems (Nasdaq: ADBE) and Visa (NYSE: V) certainly don’t look too good for China. In the former case, software giant Adobe has announced it will shutter its China R&D facility, resulting in the loss of hundreds of jobs. In the latter, financial services giant Visa has also snubbed China by announcing a major new global technology development strategy that includes a new center in neighboring India but not in China. Read Full Post…
Two news bits involving employee movements are casting a spotlight on major stories that have rippled through the Chinese corporate headlines over these last few months. The first has employees of leading PC maker Lenovo (HKEx: 992) moving into the Chinese corporate headquarters of faded cellphone giant Motorola, indicating the former is confident of closing its landmark purchase of the latter. The second has US-owned meat processor Husi laying off most of the workers at its Shanghai plant, which is reeling from a massive downturn after investigative TV reporters uncovered food safety violations at the facility. Read Full Post…
Several news bits are casting a spotlight on growing stress in the low-end smartphone market, where a crowded field of Chinese companies have been engaged in a cut-throat series of price wars for the past year. Leading the headlines is word that Coolpad, a leading homegrown brand, is cutting 10 percent of its workforce as it explores a new joint venture with some of its distributors. At the same time, other reports say that China Mobile (HKEx: 941; NYSE: CHL) won’t be coming to the rescue of these struggling companies by selling their smartphones to its subscribers at subsidized prices, as the leading Chinese carrier embarks on its own cost-cutting campaign to bolster its sagging profits. Read Full Post…
With Alibaba’s blockbuster IPO nearly in the past, attention will turn over the next few weeks to tech giant Apple (Nasdaq: AAPL) and the mystery surrounding the lack of a launch schedule for its new iPhone 6 in China. While Alibaba is a story of hype, the iPhone 6 saga is quickly becoming a tale of intrigue, as everyone tries to guess what’s happening behind the scenes to delay this other highly anticipated event. China’s own media are helping to fuel the suspense, with a new report from the Xinhua central news agency providing clues about what looks like a tangle with China’s censors. Read Full Post…
