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Latest News of Google in China, overview of the Business expert on Chinese market Doug Young

Google: Getting Mapped Out of China? 谷歌地图:会退出中国市场吗?

When you’re the world’s biggest Internet company even the smallest hiccups can make headlines, which is what Google (Nasdaq: GOOG) seems to be learning amid a flurry of chatter about the future of its online mapping service in China. The current saga actually began last year, when China required all mapping service providers to get new licenses, and it wasn’t clear whether Google would apply, leading some to predict another high-profile pull-out could be coming after the company moved its China search site to Hong Kong in 2010. (previous post) Google didn’t say much throughout the saga, perhaps due to the sensitivity of the matter, but eventually word got out that it had set up a joint venture as required by Beijing and indeed applied for a license. What has the world buzzing now is that a February 1 deadline has now passed for all mapping service providers to get their licenses, but Google still has yet to receive one. Reports have sprung up in the Chinese media like weeds in the last 2 days, most simply quoting the regulator saying Google has yet to receive its license without any further explanation. (Chinese article; English article) Of course, the lack of a reason has everyone guessing what is happening, with the implication that Google and Beijing are once again at an impasse similar to the one that saw it withdraw from the China search market. The only problem with all these theories is they make no sense, as there’s clearly no censorship issues, which were the major point of contention in the search dispute, involved with the mapping business. One of the more rational reports out is saying the delay is being caused by a technical issue, namely that some people at Google’s mapping venture are still waiting to get necessary clearances for the license to be issued. Clearly Beijing and Google have very little to gain from another high-profile spat, which is probably the reason both are trying to keep a low profile until the license is finally granted, which I fully expect in the next month or 2. In the meantime, look for the noisy Chinese media to keep printing conspiracy stories about what would be an insignificant story if it was about anyone else besides Google. At the end of the day, Google is still firmly committed to China, and, as I said at one point last year, I wouldn’t be surprised if it ultimately returned its search engine business to the country over the medium- to longer-term. (previous post)

Bottom line: Google’s failure to get a China mapping license before a February 1 deadline is most likely due to administrative issues, and it is likely to get the license in the next 1-2 months.

Related postings 相关文章:

Latest Google Move: Gearing Up For China Return? 谷歌最新动向:打回中国市场?

Google Map Impasse Resolved With New JV 谷歌地图风波解决

Google Falling Off The China Map 谷歌地图:谈判也没用

News Digest: February 1, 2012 报摘: 2012年2月1日

The following press releases and media reports about Chinese companies were carried on February 1. To view a full article or story, click on the link next to the headline.

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Citron Continues Qihoo 360 (NYSE: QIHU) Attack, Qihoo Says Won’t Engage Verbal War (Chinese article)

◙ New Internet Map Rules to Take Effect, Google (Nasdaq: GOOG) Still Awaiting Approval (Chinese article)

◙ Lawmakers Press Obama on China Auto Parts (English article)

China Telecom (HKEx: 728) Reportedly to Establish Cloud Computing Subsidiary (English article)

55tuan Says IPO Moving Ahead on Schedule, No Plans to Change Underwriter (Chinese article)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

News Digest: January 21-25, 2012

The following press releases and media reports about Chinese companies were carried on January 21-25. To view a full article or story, click on the link next to the headline.

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Baidu, Google, Sogou Lead China’s Search Engine Market in Q4 – Analysys (Chinese article)

◙ Chinese Websites Concerned about Real-Name System (English article)

AsiaInfo-Linkage (Nasdaq: ASIA) Announces Receipt of “Going Private” Proposal (PRNewswire)

◙ US to Probe Imports of China, Vietnam Wind Towers (English article)

Ericsson (Stockholm: ERICb) Says ZTE (HKEx: 763) Patent Lawsuit Already Settled (Chinese article)

Yang Departure Cuts Final Yahoo-Alibaba Ties 雅虎即将与阿里撇清关系

If Yahoo (Nasdaq: YHOO) was looking for a way to tell the world that its troubled relationship with Chinese e-commerce giant Alibaba Group was nearing an end, then the just-announced resignation of Yahoo co-founder Jerry Yang from all his posts at both companies looks like the perfect and very appropriate signal. Yang’s resignation means he will relinquish his positions as a director on the boards of both Yahoo and Alibaba, marking a quiet end to a stormy chapter in both companies’ history. (English article) Yang and Alibaba founder Jack Ma made headlines in 2005 when they announced that Yahoo would buy 40 percent of Alibaba for $1 billion to create a potent partnership that would combine Alibaba’s expertise in e-commerce with Yahoo’s in online search. But it soon became clear that Jack Ma was more interested in Yahoo’s money than anything Yang or his company had to offer in terms of advice — a reality that was fine with both sides as Yang focused on trying to rebuild Yahoo’s core US-focused business as it rapidly lost share to a more nimble Google (Nasdaq: GOOG). All that changed when Yang resigned as Yahoo CEO and yielded the job to Carol Bartz, an executive whose aggressive style clashed with Ma’s own similar style and led to a prolonged period of tense relations between the 2 companies. Through all of that, Yang, who remained as a non-executive board member of Yahoo, continued to maintain personal ties with Alibaba, getting invitations and often attending the Chinese company’s Alifest big annual conference in its hometown of Hangzhou. Yang’s resignation from both the Alibaba and Yahoo boards comes just 2 weeks after Yahoo named Scott Thompson as its new CEO, filling the position that has been vacant since Bartz was fired last year. I suspect the departure was a condition when Thompson agreed to take the job, aimed at giving him a clear mandate to run the company with a fresh start. Alibaba and its bankers have been sending a nonstop series of signals to the market that they have raised enough money to buy out Yahoo’s 40 percent Alibaba stake, and Yang’s departure should remove the final reminder of the forces behind the original tie-up that can let this much-needed divorce finally go forward. When that happens, which could be in the next 2 months, I wouldn’t be at all surprised to see Yang suddenly appear in Alibaba, either as an investor or perhaps even an executive in one of the company’s units.

Bottom line: Jerry Yang’s resignation from the boards of Yahoo and Alibaba signal a pending divorce of the 2 companies, which could see Yang ultimately end up as an investor or executive at Alibaba.

Related postings 相关文章:

Yahoo, Alibaba Dance Nears Finale  雅虎应与阿里巴巴撇清干系

Alibaba Scrambles to Prove High Valuation 阿里巴巴高估值或将作茧自缚

Alibaba Tests Waters for Yahoo Buyout – Again 阿里巴巴再试水竞购雅虎股权

Google, Apple OS Rivalry Intensifies 苹果与谷歌在华智能手机战白热化

The intense rivalry between Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) is heating up in China, with the former hosting a somewhat unruly launch of its latest iPhone 4S in Beijing and Shanghai as the latter prepares to launch an app store for competing smartphones using its Android operating system. Apple made headlines in China over the weekend after scuffles broke out at some of its stores when the iPhone 4S formally went on sale the day before under service contracts with China Unicom (HKEx: 762; NYSE: CHU), China’s second biggest mobile carrier and Apple’s only iPhone partner in China so far. The biggest scuffle occurred when one Beijing store decide not to open due to safety concerns after large crowds lined up overnight to buy the phones as soon as they went on sale. (English article) Such news certainly isn’t great publicity for Apple and could provide some negative impact in the short term. But it also shows just how popular Apple products are in China, since the launch was still able to generate that much buzz even though the 4S was already available on the gray market following its US launch 3 months ago. That fact bodes well for China Telecom (HKEx: 728), China’s smallest mobile carrier, which is also reportedly near its own deal to offer the iPhone 4S on its 3G network and could hold launch the model as soon as next month. (previous post) Meantime, Chinese media are reporting that Google is preparing to launch a mainland Chinese version of its app store for Android phones, which would come just 2 months after Apple made a similar move by starting to accept payments in local currency, the renminbi, for its own China app store. (English article) Of course all this just shows the war between Apple and Google in the smartphone space will only intensify in the Year of the Dragon, and I wouldn’t be surprised to see the former sue the latter in China later this year as part of its global strategy of fighting Android through litigation.

Bottom line: The smartphone war between Apple and Google is heating up in China with new products from both, and could see Apple launch China-based lawsuits targeting Google’s Android later this year.

Related postings 相关文章:

Apple Suffers Setback in China Lawsuit Loss 苹果在华商标侵权案初尝苦果

Unicom, China Telecom in iPhone 4S 中国电信有望领先推出iPhone 4S Race

Apple Overlooks China — Again 苹果再次撇开中国内地市场

News Digest: January 14-16, 2012

The following press releases and media reports about Chinese companies were carried on January 14-16. To view a full article or story, click on the link next to the headline.

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◙ Jilin City’s Beijing Office Warns Over Bogus Weibo User, Plans to Sue Sina (Nasdaq: SINA) (Chinese article)

Google (Nasdaq: GOOG) to Launch Android App Store in China (English article)

Apple (Nasdaq: AAPL) Suspends iPhone Sales in China After Crowd Turns Violent (English article)

◙ Battle For China Gas (HKEx: 384) Heats Up As SK Holdings (Seoul: 003600) Boosts Stake (English article)

People’s Daily Website Gets Regulatory Approval For A-Share IPO (Chinese article)

HTC Goes To Court to Shore Up Shares HTC诉花旗分析师力保股价

Former smartphone rising star HTC (Taipei: 2498) is looking everywhere except for the mirror in its quest to blame anyone for its sudden reversal of fortune, this time turning to the court room where it is suing Citigroup’s (NYSE: C) research unit for publishing false information about it. (English article) HTC saw its shares soar over the last few years as sales of its popular Android-based smartphones boomed, and it scored an impressive feat back in April when it passed Nokia (Helsinki: NOK1V) in terms of market cap. (previous post) Since then, however, its shares have lost about two-thirds of their value, and its market cap now stands at just under $14 billion, or well below Nokia’s $18.7 billion despite Nokia’s own sharp share decline in recent months. In this latest twist for HTC, a Taiwan prosecutor is saying that HTC submitted its criminal complaint back in August, and the prosecutor’s office is now processing the matter. It strikes me as a little strange that HTC is trying to lay some or all of the blame for its rapid decline on Citi, as the company has been the main architect of its tumble by twice reducing its earnings outlook recently as its smartphones struggled to compete in the increasingly competitive smartphone space with popular models from Apple (Nasdaq: AAPL), Samsung (Seoul: 005930) and others. HTC has also been hobbled by a series of lawsuits against it by Apple, which is accusing it of intellectual property theft through its use of Google’s (Nasdaq: GOOG) popular Android operating system. Those lawsuits could ultimately prove a huge setback if US courts find in Apple’s favor, which would force HTC to stop selling some or all of its Android phones in that critical market. With all those factors working against it, perhaps HTC should take a step back and realize that the blame for its rapid decline lies squarely inside its own house, rather than on outsiders like Citi. If it’s smart, it will quietly drop this lawsuit against Citi, and focus its energies on pouring more resources into R&D and sales, and perhaps even find an alternative to Android to try and regain some of its fast fading luster.

Bottom line: HTC’s recent lawsuit against Citi looks like a diversion to blame outsiders for its rapid decline, which is largely due to the company’s own missteps and stiff competition.

Related postings 相关文章:

Apple Suffers Setback in China Lawsuit Loss 苹果在华商标侵权案初尝苦果

Nokia Looks For Fresh China Start With New Country Chief 诺基亚中国区新官欲扭颓势

Guest Post: Move Over Nokia and RIM, Here Comes HTC

 

Apple Suffers Setback in China Lawsuit Loss 苹果在华商标侵权案初尝苦果

Apple (Nasdaq: AAPL) may be able to bully big names like Samsung (Seoul: 005930) by suing them in Western courtrooms over intellectual property (IP) infringement claims, but it may find the tactic more difficult to pursue in China, where it has just lost a major trademark lawsuit to a much smaller Taiwanese player. According to domestic media reports, a court in the southern boomtown of Shenzhen has ruled against Apple, the world’s biggest tech company, in a lawsuit it brought against Proview (HKEx: 334) claiming infringement of its iPad trademark. (English article)  The case looks a bit complex, as Proview apparently registered the iPad name all the way back in 2000, well before iPads or even iPhones existed. Apple sued Proview in Britain in 2006 over the matter, claiming the Taiwan company was no longer using the name and thus had lost the rights to it. But clearly the matter was never fully settled, leading to the latest action in Shenzhen. Proview is a relatively big Taiwanese company, but still nowhere near as large as Samsung, which is being sued by Apple in various courts throughout the world over IP infringement allegations related to Samsung’s use of Google’s (Nasdaq: GOOG) Android operating system in its smartphones. Back in September, Apple filed for and received a number of Chinese patents related to its IP and trademarks, leading me to suspect it was planning to bring its “fight them with litigation” approach to China, targeting not only Samsung but also a wide range of domestic handset makers including Lenovo (HKEx: 992) and ZTE (HKEx: 763; Shenzhen: 000063) that also produce models using Android. (previous post) This setback for Apple in Shenzhen shows that the Chinese courts may not be as receptive to Apple’s bullying tactics as some Western courts, which may make the company think twice about its use of litigation as a tool in China for its ongoing global anti-Android drive.

Bottom line: Apple’s loss of a trademark infringement case in Shenzhen means it may have a difficult time bringing its litigious anti-Android campaign to China.

Related postings 相关文章:

Apple Prepares to Bring Anti-Android Drive to China 苹果计划在华反击Android

Apple Prepares to Take on China Pirates 苹果开始接受人民币付款购买应用软件

Apple Overlooks China — Again 苹果再次撇开中国内地市场

ZTE Faces More Profit Erosion With Latest Low-Cost Moves 中兴通讯以低价机抢占市场恐损及获利

ZTE’s (HKEx: 763; Shenzhen: 000063) latest strategy of flooding the world with low-cost cellphones appears to be working, as the first phase of the its risky bid to become a global brand yields results. According to the latest information from IT data tracking firm IDC, ZTE zoomed past Apple (Nasdaq: AAPL) to become the world’s fourth biggest cellphone seller in the third quarter of the year, shipping more than 19 million handsets to take nearly 5 percent of the global market. (English article) ZTE has previously stated its aim of becoming one of the world’s top 3 cellphone brands, relying in part on a strategy of grabbing market share by selling low-end smarphones powered by Google’s (Nasdaq: GOOG) Android system for $100 or less for little or no profit. That strategy has showed up in ZTE’s results in the last 2 quarters, with profit dropping steadily even as cellphone revenue has soared. The strategy is a very risky one, as it’s often very difficult to raise your prices and corporate image after establishing yourself as a maker of low-cost products. Taiwan’s Acer (Taipei: 2353) learned this lesson about a decade ago, and is now learning it again. But for at least the next year or two, look for ZTE to steadily increase its global cellphone market share, even as its profits continue to erode. In a separate development along similar lines, Brazilian media are reporting that ZTE is preparing another major new initiative in contract manufacturing, opening a new factory in that country that has landed Apple itself as one of its first customers. (Chinese article) The reports are quite brief, but say that ZTE will assemble both iPads and iPhones for Apple in the city of Hortolandia, putting it in direct competition with Taiwanese OEM giant Foxconn (HKEx: 2038), which has also opened a plant in the same city. To this development I say: congratulations to ZTE for winning this prestigious business from Apple, if the reports are true. But at the same time, I suspect ZTE will be assembling the Apple products for little or no profit and most likely at a loss, meaning we could see its bottom line erode even more quickly.

Bottom line: ZTE’s latest aggressive moves to generate new business will erode its profits for the next 2 years at least, with only a 50-50 chance for long-term success.

Related postings 相关文章:

Baidu, ZTE Earnings: More of the Same 百度和中兴财报:看上去没变化

Ericsson, ZTE Spat May be Near Resolution 爱立信与中兴的官司尘埃落定?

Low-Cost Apple iPhone to Bite ZTE, Lenovo 苹果推低端iPhone 冲击中兴和联想

Baidu, ZTE Earnings: More of the Same 百度和中兴财报:看上去没变化

Chinese firms are flooding the market with third-quarter results, with industry bellwethers Baidu (Nasdaq: BIDU) and ZTE (HKEx: 763; Shenzhen: 000063) both reporting figures that show continuation of recent trends. First Baidu, which reported a healthy rise of around 80 percent in both revenue and profit, as it banked on strong demand for ads on its search site, China’s dominant player with more than two-thirds of the market. (company announcement) Baidu further predicted that revenue will continue to grow at similar rates in the fourth quarter, as healthy demand continues. I previously predicted a sharp slowdown in ad spending could be looming as a much-needed correction looms for China’s overinflated Internet bubble, but clearly Baidu is seeing no signs of that yet. I still think such a correction is coming, and will hit Baidu’s top and bottom lines when it does; but despite signs of trouble from the group buying sector and some e-commerce firms, we won’t see the first real signs of a downturn until the first or most likely the second quarter of next year. As to ZTE, the company also reported third-quarter revenue grew at a healthy 37 percent, accelerating from the first half of the year as it focused on building up its cellphone business, which was up more than 50 percent in the first 9 months of 2011. (Chinese article) But while revenue rose, its third quarter profit fell by nearly 40 percent, also accelerating from the first half of the year, as it continued its risky strategy of grabbing global market share for its handset business by selling its low-end smartphones at prices near or perhaps even below its costs. This strategy could work in the end if ZTE can raise its prices after it gains market share. But it could also backfire if consumers come to associate the company with cheap products and aren’t willing to pay a premium for its cellphones. The company’s heavy reliance on Google’s (Nasdaq: GOOG) Android smartphone operating system also puts it at risk of potential lawsuits from Apple (Nasdaq: AAPL), which has already files similar suits against some other major cellphone makers.

Bottom line: The latest Baidu and ZTE results show continuation of recent trends, though the former remains at risk due to a possible Internet bubble, and the latter from a risky expansion strategy.

Related postings 相关文章:

Baidu Mobile OS, Homepage Revamp Look Like Dicey Bets 百度新举措旨在冒险一搏

Low-Cost Apple iPhone to Bite ZTE, Lenovo 苹果推低端iPhone 冲击中兴和联想

ZTE Gambles With Smartphone Share Grab 中兴通讯押注智能手机业务

Apple Prepares to Bring Anti-Android Drive to China 苹果计划在华反击Android

Apple (Nasdaq: AAPL) has taken the interesting step of getting 40 new patents in China, in what looks like an opening move that could ultimately see it target the growing number of Chinese cellphone makers that use Google’s (Nasdaq: GOOG) popular Android cellphone operating system. (English article) The report in the China Daily focuses on the more obvious potential aims of the patents, such as closing a slew of bogus Apple stores that have sprung up in China as Apple’s sales have soared to surpass those of leading PC maker Lenovo (HKEx: 992). (previous post) But the article points out the new patents also cover Apple’s popular user-friendly smartphone operating system (OS), which has been largely responsible for the huge boom in its iPhone and smartphone sales in general over the last 3 years. Apple has argued that Google’s free Android OS, which has been embraced by many of the world’s top cellphone makers, is a copycat of its own OS, and has successfully sued to halt the sale of popular Android-based smartphones and tablet PCs from Taiwan’s HTC (Taipei: 2498) and Korea’s Samsung (Seoul: 005930). Based on that behavior, this new round of patent filings in China looks like Apple is preparing to sue Chinese smartphone makers like ZTE (HKEx: 763; Shenzhen: 000063), Lenovo and TCL Communications (HKEx: 2618; Shenzhen: 000100), which all use Android. ZTE in particular could be at big risk, as its recent drive to become a global leader in smartphones costing as little as $100 each (previous post) relies heavily on Android. If Apple does file such a lawsuit, it will be interesting to see how China’s courts react as obviously any ruling in Apple’s favor could deal a big blow to the domestic industry. But anyone industry watchers should also note that Chinese courts don’t appear to have any power to make temporary rulings like judges do in the US, meaning any enforcement action can only occur after a judge makes a final decision — a process that could take months or even a year. Still, considering Apple’s success so far in the US against giants like Samsung and HTC, Chinese smartphone makers would be well advised to start drawing up plans for new Android alternatives if and when Apple moves its anti-Android battle to China.

Bottom line: Apple’s new round of patents in China look like the prelude to lawsuits against domestic smartphone makers like ZTE, which rely heavily on Google’s free Android operating system.

苹果(AAPL.O)在华成功申请了40项新专利,其终极目标看似是对采用谷歌(GOOG.O)Android系统的中国手机商亮剑的第一步。《中国日报》的报导侧重苹果旨在专利维权的一面,例如关闭苹果山寨零售店等。由于苹果电脑在华销量大涨,超过PC领军企业联想(0992.HK),苹果山寨店如雨後春笋般涌现。但文章指出,苹果新申请的专利还包括其界面友好的智能手机操作系统(OS),这一操作系统是过去三年推动iPhone和智能手机销量整体上升的重要原因。苹果辩称,全球许多顶级手机商采用的谷歌免费提供的Android系统,是抄袭苹果OS系统的设计。苹果还在宏达电(HTC)(2498.TW)和三星(005930.KS)专利侵权案中胜诉,成功迫使两家公司的Android智能手机和平板电脑暂停销售。鉴于此举,苹果在华新一轮的专利申请,看似将准备起诉使用Android系统的中国智能手机制造商,例如中兴通讯(000063.SZ; 0763.HK)、联想和TCL通讯(2618.HK)。中兴通讯面临的风险尤其大,因为其近期力争成为售价低至100美元的智能手机的全球领军企业,该公司的这一计划严重依赖Anroid系统。如果苹果提出侵权诉讼,中国法院如何回应是件有趣的事情,因为任何明显有利于苹果的判决,都将重创中国手机产业。但业内观察者也指出,中国法庭进行终裁後才会有执行举措,而法庭裁判过程往往耗时数月甚至一年。话说回来,考虑到苹果在美胜诉三星和宏达电侵权,中国智能手机商最好早做打算,制定替代Android的新计划,以防苹果万一在华打响反击Android战役。

一句话:苹果在华新一轮专利申请,看似是起诉中兴通讯等中国智能手机商的前奏,这些本土企业严重依赖谷歌免费提供的Android操作系统。

Related postings 相关文章:

Low-Cost Apple iPhone to Bite ZTE, Lenovo 苹果推低端iPhone 冲击中兴和联想

Apple on a China Roll, Ambushing Nokia, Lenovo 苹果伏击诺基亚和联想 在华发展势如破竹

Apple’s COO Comes Calling on China Mobile 苹果首席运营官造访中移动