Bottom line: Xiaomi’s sales growth will slow this year as it faces stronger competition outside China, while recent momentum by Huawei could position it as the country’s solid number-two manufacturer.
Huawei shakes up Honor brand
I previously gave Xiaomi my award for China’s top tech company of 2014, and now the smartphone superstar has cemented that title by formally unseating global giant Samsung (Seoul: 005930) as last year’s leading Chinese brand. In a separate smartphone news bit, the stodgier and older Huawei has changed the chief for its Honor brand, in one of a series of recent developments that could position the company to become China’s second best-selling manufacturer this year.
As a regular writer about the China smartphone market, I’ve watched the many twists and turns in the rapid development of both Xioami and Huawei, which have emerged as my 2 major players to watch this year. Rivals Lenovo (HKEx: 992) and ZTE (HKEx: 763; Shenzhen: 000063) are also names to keep an eye on; but if I had to bet money, I would say Xiaomi and Huawei are likely to end 2015 as China’s 2 largest smartphone makers by a comfortable margin. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 23-24. To view a full article or story, click on the link next to the headline.
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Xiaomi Smartphone Sales Surge To Top Samsung (Seoul: 005930) As China’s No. 1 (English article)
The following press releases and media reports about Chinese companies were carried on February 12. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU) Announces Q4 And Fiscal Year 2014 Results (PRNewswire)
Ant Financial To Invest In Tebon Fund Management – Source (English article)
China’s Huawei Says Its Ready For Transparency (English article)
500.com Ltd (NYSE: WBAI) Reports Q4and Full Year 2014 Financial Results (English article)
Waldorf Astoria Sale Marks Tip Of Chinese Money Into US Hotels (English article)
Bottom line: Wanda is sending a bad signal by emphasizing its government ties in its latest overseas mega-purchase, reflecting the complex relationship between major Chinese firms and Beijing.
Wanda bounces into sports marketing
If big Chinese companies are trying to show their independence from Beijing, then property giant Dalian Wanda isn’t doing a very good job with its just-announced $1.2 billion purchase of a major European sports marketing firm. The mega purchase of Swiss firm Infront Sports & Media is certainly a major feat, but Wanda has made a questionable decision in focusing on the how the deal will help Beijing’s bid to win more major sporting events, including the 2022 Winter Olympics. Of course I’m being just a tad cynical here, but this kind of talk certainly won’t help Wanda and other major private Chinese companies convince western skeptics of their independence from Beijing. Read Full Post…
Bottom line: China’s new rules for technology manufacturers over cybersecurity concerns will erupt into a war of words between Beijing and the west this year, and could result in one or more formal complaints to the WTO.
Western firms respond to tough cybersecurity restrictions
After clashing for much of 2014 over a series of antitrust probes that seemed to target big multinationals, China and the west look set for a new showdown in 2015 over broadening rules by Beijing aimed at protecting national security. The growing clash saw the foreign companies, many from the US, take the unusual step of formally complaining last week over new Beijing rules that they complain are increasingly intrusive and opaque. Beijing fired back by saying the rights of foreign technology firms would be protected in accordance with Chinese law. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 7-9. To view a full article or story, click on the link next to the headline.
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China Says Will Protect US Firms’ Interests, Amid New Cybersecurity Rules (English article)
SEC, Big Four Accounting Firms in China Settle Dispute (English article)
Renren (NYSE: RENN) Leads $110 Mln Investment in Used Car Sales Platform Cheyipai (English article)
Tencent (HKEx: 700) Taps Overseas Debt Amid China New Economy Appeal (English article)
Strong Demand For Mate 7 Phablet Surprises Huawei (Chinese article)
Bottom line: China could end 2015 with up to 450 million 4G subscribers, with telcos, 4G smartphone makers and mobile-focused Internet firms most likely to benefit from the massive migration.
China Telecom targets 100 mln 4G users
China Telecom (HKEx: 728; NYSE: CHA) has just become the final of China’s big 3 telcos to announce an extremely aggressive subscriber target for its new 4G service, confirming my earlier prediction that the nation could end 2015 with as many as 450 million 4G users if everyone meets their goals. If they do reach those targets, it would represent a remarkable transformation that would see around one-third of the nation’s mobile users switching to 4G service by year end. That could provide a bonanza for not only the telcos, but also the smartphone makers and Internet service providers that would also benefit from such a mass migration. Read Full Post…
Bottom line: Foreign technology suppliers will complain about new requirements for them to reveal source codes to Beijing for selling to Chinese banks, but will ultimately comply over fears of being shut out of the market.
Beijing to force new security rules on foreign tech
China’s sudden obsession with national security risks posed by foreign technology has taken yet another step forward, with word that Beijing is preparing to place yet more restrictions on foreign firms that supply networking products and services to Chinese banks. As a longtime industry watcher, I need to quickly add my own view that this particular move isn’t really discriminatory against firms like IBM (NYSE: IBM), Cisco (Nasdaq: CSCO) and Hewlett-Packard (NYSE: HPQ), which are likely to feel the biggest effects. Read Full Post…
Bottom line: Apple’s surge in fourth-quarter China sales owes to its iPhone 6 release and growing relationship with China Mobile, though it could have trouble retaining its new crown as the nation’s top smartphone brand.
iPhone sales zoom in China
Skeptics who thought Apple (Nasdaq: AAPL) might be losing its luster in China might have to rethink that theory, following release of a new report that says the gadget giant grabbed the title of China’s biggest smartphone seller for the first time ever in the fourth quarter. That surprising result came as Apple released new quarterly earnings that showed China sales also surged 70 percent in its latest quarter, more than double the pace of its global revenue growth.
The surprising China surge comes as Apple works closely to address Beijing’s concerns about national security risks and the privacy of Chinese iPhone users, issues that reflect one of the continuing challenges it will face in the market. Read Full Post…
Two of China’s most successful tech companies, Xiaomi and Huawei, took center stage in the microblogging realm over the past week, engaging in a rare direct war of words over their competing products in the nation’s overheated smartphone market. Their online sparring aside, the pair of tech stars also engaged in their own separate globally-focused activities that emphasized attempts by each to become the nation’s first truly international smartphone brand.
Huawei’s media-shy founder Ren Zhengfei traveled to the World Economic Forum in Davos, Switzerland, where he gave a rare public speech in which he appealed to the US to accept his company’s products, in remarks chronicled by some of his top deputies on their microblogs. Meantime, several recently recruited member of Xiaomi’s high-profile international team met at the company’s headquarters in Beijing, where they were talking strategy as the company continues its global expansion. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 28. To view a full article or story, click on the link next to the headline.
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Yahoo to Spin Off Alibaba (NYSE: BABA) Stake Tax-Free As Public Company (English article)
Taobao Publishes Merchant Letter Questioning Accuracy Of Govt Piracy Audit (Chinese article)
JD.com (Nasdaq: JD) Launches Major Imported Foods Initiative (GlobeNewswire)
Apple (Nasdaq: AAPL) Ranked As Top China Smartphone Seller In Q4 – Report (Chinese article)
Huawei Eyes $16 Bln In 2015 Smartphone Sales With High-End, Export Push (Chinese article)
