Bottom line: LeEco’s major new push into the US smart TV market could achieve some success due to its recent Vizio purchase, though its concurrent smartphone drive will be a dud due to lawsuits and mediocre product quality.
LeEco revs for US smart TV launch
Watch out, Comcast (Nasdaq: CMCSA) and Apple (Nasdaq: AAPL). Chinese online video superstar LeEco (Shenzhen: 300104) is taking direct aim at the lucrative US online video and smartphone markets, with plans for major new product launches later this month. I’ll admit I’m doing a bit of educated guessing here, since the company formally known as LeTV hasn’t made any formal announcements yet on its US ambitions.
But all the signs certainly point in that direction, following LeEco’s headline-making $2 billion July purchase of Vizio, a struggling maker of cheap, no-name TVs that is one of the biggest and also most obscure names in the huge US market. Added to that is LeEco’s recent issue of invitations to an event set for October 19 in San Francisco, where it says it will announce its “disruptive vision of a connected ecosystem of content-driven smart devices to the US market.” (English article) Read Full Post…
The following press releases and news reports about China companies were carried on September 29. To view a full article or story, click on the link next to the headline.
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China Postal Savings Bank (HKEx: 1658) Fails to Make Waves in $7.4 Bln HK Debut (English article)
New Century Cruise (Shenzhen: 002558) to Buy Mobile Games Business Playtika (English article)
Fosun (HKEx: 656) Joins First Public-Private Funded High-Speed Rail Line Group (Chinese article)
Apple (Nasdaq: AAPL) Picks Beijing for First China R&D Center, to Invest 300 Mln Yuan (Chinese article)
Baidu (Nasdaq: BIDU) Self-Driving Car to Debut in 2018, Cost More Than 1 Mln Yuan (Chinese article)
Bottom line: Lenovo’s big job cuts at Motorola could auger a write-off of the brand in the next half year, while Xiaomi’s huge offline expansion looks necessary but will further undermine its trendy high-tech image.
Lenovo slashes jobs at Moto
Two former smartphone high-flyers are in the headlines today, with PC giant Lenovo (HKEx: 992) and Xiaomi both taking steps to try and regain their former glory. Lenovo’s move looks like a major retreat for its struggling Motorola brand, which has just slashed more than half of its staff. Meantime, Xiaomi has just rolled out two higher-end models in a bid to go upscale. But what caught my attention were details of the company’s plans to sharply boost its offline presence in the latest reports.
Both stories reflect companies in transition, after each tumbled from the ranks of China’s top smartphone brands due to failure to build a loyal customer base. Lenovo bought Motorola for $2.9 billion 2 years ago and was hoping to position the faded brand as its premium product line. Meantime, Xiaomi skyrocketed to fame 3 years ago partly on an online-only sales model that helped it control costs and position itself as a trendy, cutting-edge brand. Read Full Post…
The following press releases and news reports about China companies were carried on September 28. To view a full article or story, click on the link next to the headline.
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Lenovo (HKEx: 992) Cuts 1,000, Including More than Half of Motorola Staff (Chinese article)
Blizzard, NetEase (Nasdaq: NTES) Renew Operation Agreement in China (PRNewswire)
Paid Q&A Service Fenda Reappears After 47 Day Pause, Only Offers Medical Advice (Chinese article)
Starbucks (Nasdaq: SBUX), Master Kong in Tie-Up for Drinks from 10 Yuan (Chinese article)
Xiaomi Guns for Apple (Nasdaq: AAPL) With Latest Premium Smartphone (English article)
Bottom line: A new global tie-up between UnionPay and PayPal could auger another alliance by the end of the year that would allow the US company to launch a domestic electronic payments service in China by the end of this year.
PayPal in tie-up with UnionPay
In what must certainly be one of the slowest marches to China of all time, US electronic payments giant PayPal (Nasdaq: PYPL) has just formed a tie-up with UnionPay, operator of China’s largest electronic transactions settlement network. On reading the headline I thought that PayPal had finally cracked the market for domestic transactions in China, following more than a decade of trying to enter the lucrative business. But it turns out the new tie-up only covers cross-border transactions and is mostly for UnionPay’s benefit, meaning PayPal is still being locked out of the domestic China market. Read Full Post…
Bottom line: Apple’s decision to keep iPhone 7 prices in China roughly the same as the 6s is aimed at reversing its sliding sales, but won’t have much effect due to lack of major new features and stiff competition from domestic rivals.
Apple holds firm on iPhone 7 prices in China
Despite skidding sales and early bets that its latest smartphone won’t do well in China, Apple (Nasdaq: AAPL) won’t be giving any bargains to its fans in the world’s biggest smartphone market, according to newly released global prices for the iPhone 7. The move comes as a bit of a surprise, since Apple desperately needs to reverse its recent downward plunge in China, which is now its second biggest global market after only the US. But a number of factors are at play here, including a rapidly devaluing Chinese currency and also Apple’s hesitation to lower its prices into the same realm as some of its fast-rising homegrown Chinese rivals. Read Full Post…
Bottom line: The iPhone 7 series of smartphones will log lower sales in China at their launch than the previous iPhone 6 series, due to minimal changes and similar designs to their predecessors.
iPhone 7 to get tepid China reception
By Xiaohan Tay
Apple(Nasdaq: AAPL) announced the launch of its latest iPhone 7 and 7 Plus on 7 September and there were a few things that stood out. The new iPhone is finally IP67 certified and water resistant, has a better dual camera with a lower aperture, and longer battery life. These are upgraded features that consumers will appreciate. Read Full Post…
Bottom line: Xiaomi’s progress in India shows its global expansion is moving ahead despite a recent setback in Brazil, but it will need to replicate that success in other markets to revive its sputtering fortunes.
Xiaomi wristband wins North Korean fans
Former smartphone sensation Xiaomi is in a couple of headlines as the week winds down, both showing how the company is looking to foreign markets to offset its sputtering business in China. The bigger of the items shows how quickly Xiaomi is advancing in India, where it has consolidated its position as the third largest brand just 2 years after entering the market. The second item is a bit quirkier, saying that Xiaomi’s wearable fitness band has become a hot-seller in North Korea, a market that isn’t exactly known for its consumer culture. Read Full Post…
The following press releases and news reports about China companies were carried on September 7. To view a full article or story, click on the link next to the headline.
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Meituan-Dianping in Rumored Merger Talks with Baidu’s Nuomi, Dining Service (Chinese article)
Ctrip.com Proposes Offering of $750 Mln Convertible Senior Notes (PRNewswire)
China’s Online Chatter Muted Ahead of Apple (Nasdaq: AAPL) iPhone 7 Launch (English article)
Didi Chuxing Raises Shunfeng Car Service Prices 20-50 Pct in Some Cities (Chinese article)
Bottom line: UnionPay’s announcement that its cards are usable at nearly all US ATMs shows it is targeting local US customers, while stiff competition will limit the success of new Xiaomi and Huawei e-payment services.
UnionPay makes big gains in US
It’s been a busy week for Chinese companies in the electronic payments headlines, with 3 major names making big moves in the space. Leading the pack is industry stalwart UnionPay, China’s equivalent of MasterCard (NYSE: MA) and Visa (NYSE: V), which is saying its own credit cards are now accepted by an impressive 80 percent of US merchants. The other headlines are coming from smartphone makers Huawei and Xiaomi, which have announced roll-outs for China-based electronic payment services that will compete with other similar products from Apple (Nasdaq: AAPL) and Samsung (Seoul: 005930). Read Full Post…
Bottom line: Xiaomi could launch in the US within the next 12 months and benefit from its recent tie-up with Microsoft, but it will face a big uphill battle due to stiff competition, lack of name recognition and unexciting models.
Xiaomi eyes US — again
Following several recent false starts, fading Chinese smartphone sensation Xiaomiis saying it’s aiming to enter the tough US market soon. We’ve heard similar talk before, and at one time such a move would have been quite exciting and controversial when some were comparing Xiaomi to a China’s homegrown answer to Apple (Nasadq: AAPL). But Xiaomi’s star has faded considerably over the last year, partly due to intense competition in China but just as much due to a reputation for shoddy quality and unexciting phones. Read Full Post…
