Bottom line: Apple will continue to post strong iPhone growth in China but could lose some momentum if the stock market sell-off continues, while Xiaomi’s new push into Africa won’t offset its own rapidly slowing momentum.
iPhone China sales continue strong
Apple (Nasdaq: AAPL) and Chinese imitator Xiaomi are both in the headlines, as the former continues to consolidate its China position at the expense of the fading latter. In this case, Apple’s continuing China surge is reflected in new remarks from CEO Tim Cook, who says his company’s business has remained strong in China during the summer months despite concerns of a slowdown linked to the nation’s tanking stock markets.
While Apple has been feasting on China, Xiaomi is feeling growing pressure at home and is looking to other global markets for growth as it struggles to meet the lofty expectations it set for itself. According to the latest headlines, the latest stop on Xiaomi’s global roadmap is Africa, where the company is eyeing another BRICS country in South Africa. Such a move would put Xiaomi in 4 of the 5 BRICS, following its earlier moves into India and Brazil. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 26. To view a full article or story, click on the link next to the headline.
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IDC Forecasts China Smartphone Market to Grow 1.2 Pct This Year (Chinese article)
Asia’s Richest Man Wang Jianlin Heads List of Big Losers in China Crash (English article)
Boeing (NYSE: BA) Raises China 20-Year Aircraft Demand, Says Outlook Rosy (English article)
E-House (NYSE: EJ) Reports Second Quarter 2015 Results (PRNewswire)
Smithfield CFO Says China Pork Exports Rise 45 Pct in First Half (English article)
The following press releases and media reports about Chinese companies were carried on August 25. To view a full article or story, click on the link next to the headline.
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China’s State-Owned Telecoms Firms Shuffle Top Executives (English article)
Apple’s (Nasdaq: AAPL) China Business Strong in July and Aug: CEO (English article)
Bottom line: Yum’s new leadership change marks the start of a new period of sustained same-store sales growth for KFC in China, which could include a spin-off of the company’s China business over the next 2 years.
Yum names new China head
Market wisdom often says that China is too big to ignore for most multinationals, despite the market’s complexities and many restrictions. Now a new trend is emerging that says China is too big and complex to be run as part of a company’s bigger global operations, and needs to be split off into a separate unit for major global firms.
That’s the interpretation some are making following Yum Brands’ (NYSE: YUM) naming of a new China chief, and growing speculation that the parent of the KFC and Pizza Hut chains will spin off its China business into a separate company. In this case, Yum’s naming of Micky Pant as CEO of Yum Brands China comes as KFC is in the midst of a major overhaul for its largest market outside the US. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 21. To view a full article or story, click on the link next to the headline.
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China Smartphone Sales Fall for First Time: Gartner (English article)
P2P Lending Site Dianrong Raises $200 Mln in C-Series Funding (Chinese article)
China Mobile (HKEx: 941) Announces 2015 Interim Results (HKEx announcement)
MIIT to Convene Meeting of 3 Major Telcos, Leadership Change Possible (Chinese article)
The following press releases and media reports about Chinese companies were carried on August 20. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on August 15-17. To view a full article or story, click on the link next to the headline.
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Soros Cuts Stakes in Internet Giants Alibaba (NYSE: BABA), Baidu (Nasdaq: BIDU) (English article)
Bottom line: Lenovo’s attempt to make Motorola the flagship for its smartphone business looks set to fizzle, in a major setback for the company’s drive into mobile devices.
Moto sales on downward slide
I’ve predicted gloom and doom before for PC giant Lenovo (HKEx: 992), China’s first truly global high-tech brand, and each time the company has proven me wrong. But Lenovo’s latest quarterly financial report really does look like cause for concern once more, showing results that can only be described as terrible. Anchoring the misery was a huge sales plunge for its recently acquired Motorola brand, which was meant to become a cornerstone for Lenovo’s emerging smartphone business.
In some ways this particular cycle looks like deja vu, since Lenovo followed a similar pattern when it burst onto the global stage a decade ago with its landmark purchase of IBM’s (NYSE: IBM) PC business. That acquisition also later created major headaches for Lenovo, and resulted in a massive restructuring that ultimately laid the groundwork for the company to become the world’s leading PC brand. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 14. To view a full article or story, click on the link next to the headline.
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Lenovo (HKEx: 992) faces Motorola Hangover, Cuts 3,200 Jobs as Sales Slide (English article)
Xiaomi Announces New Products, Including MIUI 7 Operating System (Chinese article)
Amazon (Nasdaq: AMZN) China to Accelerate Local Investment – President (Chinese article)
The following press releases and media reports about Chinese companies were carried on August 13. To view a full article or story, click on the link next to the headline.
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Alibaba Group (NYSE: BABA) Announces June Quarter 2015 Results (Businesswire)
The following press releases and media reports about Chinese companies were carried on August 12. To view a full article or story, click on the link next to the headline.
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Xiaomi Kicks Off India Production for Strengthened Redmi 2 Edition (Chinese article)
China Jails Former Bright Food Chief For 18 years For Embezzling $30 Mln (English article)
Tencent (HKEx: 700) Reports 360 (NYSE: QIHU) Cloud Service for Pornography (Chinese article)
ChemChina, Camfin to Launch Tender Offer for Rest of Pirelli (Milan: PECI) (English article)
Phoenix New Media (NYSE: FENG) Reports Q2 Unaudited Financial Results (PRNewswire)
