The following press releases and media reports about Chinese companies were carried on January 22. To view a full article or story, click on the link next to the headline.
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Spring Airlines (Shanghai: 601021) Jumps 44 Pct In Shanghai Trading Debut (Chinese article)
Alibaba (NYSE: BABA) Seeks Stake In Insurer New China Life (HKEx: 1336) – Paper (English article)
Huawei, Global Union Partner On OTT TV Service (English article)
Dalian Wanda Group Pays 45 Mln Euros For Soccer Club Atletico Madrid (Chinese article)
eHi (Nasdaq: EHIC), Ctrip (Nasdaq: CTRP) Launch Next Phase Of Partnership (PRNewswire)
Bottom line: China and the west should sign an agreement for telecoms networking equipment trade that creates a transparent and fair playing field for fair trade while protecting national security.
Transparency needed in global telecoms trade
A simmering national security standoff between China and the west involving telecoms networks could soon heat up again, with word that China Telecom, the smallest of China’s 3 state-run carriers, is preparing a bid to build a new wireless network in Mexico. Analysts say the US might object to such a Chinese-run network so close to its borders, fearing it could contain backdoors and other hidden features that might accommodate spying by Beijing.
Similar previous concerns have locked Chinese telecoms equipment makers out of the lucrative US market, and cost leading manufacturer Huawei a chance to help build a cutting-edge broadband network in Australia. Read Full Post…
Bottom line: Xiaomi’s new more upscale Mi Note phablet should get a strong reception and sell well, drawing on the company’s trendy name and growing base of loyal buyers.
Xiaomi goes upscale with new Mi Note
Smartphone sensation Xiaomi doesn’t seem content to only follow its role model Apple (Nasdaq: AAPL) anymore, and is also taking a page from stumbling sector leader Samsung (Seoul: 005930) with its latest model as it seeks a long-term direction for its products. Of course I’m being just a little facetious with my comparison to Apple, since the only thing Xiaomi shares with the US company is a cool and trendy image. Apple is firmly placed at the top end of the smartphone market, whereas Xiaomi began its life in the mid-range and has steadily moved downmarket since then. Read Full Post…
Bottom line: China’s smartphone market is likely to contract another 10 percent this year, forcing some newer domestic manufacturers out of business, while Huawei’s bid to go upscale in the space is likely to face difficulty.
Huawei posts strong growth on smartphones
New data on China’s booming smartphone sector show the industry crossed a tipping point in 2014, with sales starting to sag after several years of explosive growth. That earlier growth was fueled by companies like Huawei, one of the nation’s largest manufacturers, which has just given some preliminary financial data for 2014. Huawei cited a big jump in smartphone sales as a major factor behind its 20 percent jump in total revenue last year, as strong gains for its consumer products division offset slower growth in its older telecoms networking equipment unit. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 14. To view a full article or story, click on the link next to the headline.
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User Sues Xiaomi In Shanghai For Making False Claims (Chinese article)
Huawei Revenue Increases 20 Pct on Sales of Higher-End Smartphones (English article)
Bottom line: Huawei could make significant progress in the US smartphone market this year if it devotes more resources to the campaign, while LeTV’s smartphone foray looks necessary but could face difficulty due to stiff competition.
Huawei to step up US smartphone campaign
Rapid developments in the smartphone space are showing no sign of slowing in the New Year, with the latest reports that stalwart Huawei is preparing for a major new push in the US, as online video specialist LeTV (Shenzhen: 300104) prepares its own campaign to enter the crowded arena. Of these 2 news bits, the Huawei one looks like the most significant, as it will see the company make a major play at a US market that is the world’s largest but has been elusive for the Chinese telecoms giant. LeTV previously hinted at its plans to enter the crowded smartphone space, and its relatively late arrival means its endeavor in the crowded field could ultimately fail. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 9. To view a full article or story, click on the link next to the headline.
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Huawei In Major Adjustment For US Market Accounting For Just 4 Pct Of Sales (Chinese article)
China Bans Private Cars From Providing Taxi Services Via Apps (English article)
Dunkin’ (Nasdaq: DNKN) Strikes Deal To Open 1,400 Stores In China (English article)
Baidu (Nasdaq: BIDU) Introduces Online Real Estate Platform (English article)
Lenovo (HKEx: 992) To Launch New Brand Campaign In April (Chinese article)
Tech executives welcomed in the New Year with some intriguing hints on their microblogs, with posts suggesting major new moves in China from global media titan News Corp (Nasdsaq: NWSA) and online video operator LeTV (Shenzhen: 300104). In the former case, a local tech executive posted a photo of himself meeting with Rupert Murdoch in China, indicating the News Corp chief was back doing business in the country after a long absence. In the latter case, LeTV chief Jia Yueting was hinting that his company could soon become the latest Chinese Internet firm to enter the overheated smartphone market. Read Full Post…
Bottom line: ZTE’s relaunch to focus on a wider range of interconnectivity products and services looks smart and well-conceived, but could be harder to execute if it tries to do too much too quickly.
ZTE launches new logo
The last few years have been a difficult time for telecoms equipment giant ZTE (HKEx: 763; Shenzhen: 000063), but the company is hoping to kick off a new chapter this year with the launch of a new strategy that focuses on interconnectivity at all levels. A news release and CEO’s letter detailing this new approach are filled with hype and buzzwords, though the broader idea looks strategically smart. I’ll admit I’m just a little skeptical that this company is capable of such a broad transformation, though I’m also hopeful that it can achieve at least some of its goals to jump-start its prospects. Read Full Post…
Bottom line: Huawei’s low-cost Honor brand is likely to gain global market share in 2015 at the expense of multinationals like Samsung, which is likely to lose its spot as China’s top smartphone seller in the new year.
Sales soar at Huawei’s Honor brand
Two of China’s leading smartphone sellers are in the headlines today moving in opposite directions, reflecting turbulent conditions in the world’s largest but also most competitive market. On the upside, media are reporting that sales are booming for domestic giant Huawei’s low-end Honor brand, as the company borrows a low-cost marketing strategy from domestic rival Xiaomi. Meantime, other reports say market leader and Korean giant Samsung (Seoul: 005930) is sending an emergency team of rescuers to China in a bid to reverse the company’s sudden slide in the market. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 26. To view a full article or story, click on the link next to the headline.
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