I usually have more criticism than praise for China’s bureaucratic telecoms regulator, but today I have to commend the Ministry of Industry and InformationTechnology (MIIT) for a ground-breaking move that other countries would be wise to follow in the fast-moving smartphone space. That move will require smartphone makers to list all the apps that come pre-installed on their models, much the way that food makers list the ingredients that their products contain. While the move looks good for consumers and the industry’s overall development, smartphone makers are unlikely to embrace this measure that will tell consumers about all the unwanted and often invasive apps that come included on their new smartphones. Read Full Post…
Lenovo compliments Huawei on Italy smartphone push
China’s microblogging sphere is buzzing with a series of new posts that hint at a couple of budding friendships in the nation’s tech realm, one between smartphone aspirants Huawei and Lenovo (HKEx: 992) and the other between e-commerce titan Alibaba and online search leader Baidu (Nasdaq: BIDU). Of course it’s quite possible that the tweeting is just casual conversation by company executives on their Weibo accounts. But both instances also hint at the potential for future tie-ups that could help these all 4 of these companies attain their different strategic aims. Read Full Post…
China smartphone market quickly becoming saturated
Let’s end the week with a look at some new data on China’s cellphone market, which is quickly becoming saturated with cheap smartphones cranked out by a crowded field of domestic companies. The rush by Chinese firms into the smartphone market over the last 2 years is typical of the herd mentality one often sees in China, almost always leading to classic boom-bust cycles. The smartphone sector was already showing signs of overheating when media reported during the summer that inventory was building up at many smartphone makers. Now the latest figures are showing that sales are slowing sharply for many of those firms, hinting a bust could come soon for players that rely heavily on the domestic market. Read Full Post…
China’s unruly markets for emerging sectors are famous for Trojan Horses, which often come as hidden traps in many products and services that ultimately harm consumers. The nation’s tourism authority just launched a new law to eliminate such traps in the travel sector, and now we’re getting word that the telecoms regulator is preparing a similar move against hidden and sometimes malicious apps that often come pre-installed on many new smartphones. This new crackdown will help to rid the market of such unwanted apps, such as ones that provide users’ personal data to third-parties without the users’ knowledge or consent. But the move could also ultimately drive up smartphone prices and perhaps even drive some companies out of business. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 15. To view a full article or story, click on the link next to the headline.
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Vancl In Arrears To Suppliers, Owes Li Ning (HKEx: 2331) More Than 10 Mln Yuan (Chinese article)
Baidu (Nasdaq: BIDU) to Acquire Perfect World Literature Unit – Source (English article)
Huawei Hires Former EU Ambassador to China (English article)
GM-Peugeot Setbacks Set Scene For Dongfeng (HKEx: 489) Deal Push (English article)
After Weeks of Deliberation, China Okays ‘Gravity’ for Theaters (English article)
The following press releases and media reports about Chinese companies were carried on October 12-14. To view a full article or story, click on the link next to the headline.
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China Telecom (HKEx: 728), Unicom (HKEx: 762) Get FDD-LTE Spectrum Allocations (English article)
Let’s end this back-to-work week with a few telecoms news bits, starting with word that leading telco China Mobile (HKEx: 941; NYSE: CHL) has wisely decided to abandon a bid for a Pakistani telco. Media are also reporting that China Mobile is edging closer still to a long-awaited deal to offer iPhones on its network, with word of a new key hiring move by Apple (Nasdaq: AAPL). Lastly there are reports that China Telecom (HKEx: 728; NYSE: CHA), the smallest of China’s 3 carriers, has selected suppliers for the first phase of construction for its 4G networks, giving most of the business to Chinese firms. Read Full Post…
After years of dodgy acquisitions targeting struggling rivals, Chinese PC giant Lenovo (HKEx: 992) is finally making some acquisition bids I like, with reports the company is in talks to buy former Taiwanese smartphone superstar HTC (Taipei: 2498). This new report looks quite interesting, as it comes just 2 months after media speculated that Lenovo could make a bid for BlackBerry (Toronto: BB), another former smartphone high-flyer whose fortunes have also faded rapidly due to its failure to keep up with the latest trends. But Lenovo wisely decided to skip Canada-based BlackBerry, which would have been difficult to turn around for a number of reasons, including cultural and other structural issues due to its roots as an email specialist. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 10. To view a full article or story, click on the link next to the headline.
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Lenovo (HKEx: 992) In Talks To Acquire HTC (Taipei: 2498) – Report (English article)
Ctrip (Nasdaq: CTRP) Announces Proposed Offer Of $500 Mln Convertible Notes (PRNewswire)
Most of China may have taken a holiday during last week’s 3-day Mid Autumn Festival, but it was all work for networking equipment giant Huawei as it used the time to host a global IT forum in Holland. Xu Wenwei, head of Huawei’s enterprise division, used his microblog to hype the event, which looks like the company’s latest effort to convince the world that it’s a global company and not just another maker of cheap “made in China” goods. Meantime, the chatty Lei Jun took time out from his Mid Autumn holiday to drop the latest hint that Xiaomi, the fast-rising smartphone maker he co-founded, is developing its own mobile operating system (OS) that could someday compete with rival products from Google (Nasdaq: GOOG), Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) Read Full Post…
Embattled telecoms equipment makers Huawei and ZTE (HKEx: 763; Shenzhen: 000063) have scored a victory in the US with a new trade ruling in their favor, providing an important show that they can get fair treatment in the market. But that win is largely symbolic, since Washington has already informally banned the import of the technology at the heart of the trade dispute. Instead of US trade barriers, it seems the true enemy of both Huawei and ZTE could be slowing growth, with media quoting a Huawei executive saying the company only expects to post average growth of 10 percent over the next 5 years. Read Full Post…
