Bottom line: The absence of Xiaomi and other newer Chinese smartphone makers from the world’s leading telecoms show reflects their focus on emerging markets and limited promotional budgets due to stiff competition at home.
Xiaomi missing at world’s top telecoms show
I’m in Barcelona this week for what has become the world’s biggest annual telecoms show, and thought I’d kick off my coverage with a look at who is attending from China this year. The list contains most of the big names you’d expect, including Huawei, ZTE (HKEx: 763; Shenzhen: 000063) and Lenovo (HKEx: 992), though Lenovo has decided to keep its name off the “made in China” list and is opting to call itself a US company.
But equally noteworthy is who isn’t on the list, at least not as an exhibitor. That list of absentees includes all of China’s newer smartphone makers, led by the fast-rising Xiaomi that has come from nowhere over the last 3 years to become the world’s third biggest brand. Others that aren’t on the list include locally well-known Chinese names Coolpad (HKEx: 2369) and Meizu, which have recently formed tie-ups with major Internet companies Qihoo 360 (NYSE: QIHU) and Alibaba (NYSE: BABA, respectively. Read Full Post…
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…
Bottom line: New online service platforms from Lenovo and Tencent could both do reasonably well, but will face challenges due to inexperience and product limitations, respectively.
Hisense, Tencent join hands in gaming smart TV
The “platform” concept is becoming a hot area in China’s overcharged Internet world, as companies look for newer and better ways to deliver their products and services over a growing number of devices and online channels. That rush is behind 2 of the latest big moves in the space, one from PC giant Lenovo (HKEx: 992) and the other from Internet titan Tencent (HKEx: 700).
Lenovo’s new foray into online products and services has been in the headlines for the last few months, but I’ve finally received some clarification on what exactly is behind its plans for an online platform with the new name of ShenQi. Meantime, Tencent is aiming to boost its leading position in the online gaming space through a new tie-up with household electronics giant Hisense (Shanghai: 600060). That tie-up looks set to produce a new gaming TV that could compete with more traditional consoles from Microsoft (Nasdaq: MSFT) and Sony (Tokyo: 6753). Read Full Post…
The Super Bowl may be the most watched TV program in the US, but it’s still relatively unknown in China due to the lack of popularity of American football. But the sport gained at least a few Chinese fans with its latest airing, as top executives from the likes of PC giant Lenovo (HKEx: 992) and online video firm LeTV (Shenzhen: 300104) tuned in to watch this year’s match-up that saw the New England Patriots defeat the Seattle Seahawks.
Meantime, an executive from the struggling Sina Weibo (Nasdaq: WB) was busy criticizing rival Tencent (HKEx: 700) for the latter’s freeze-out of several major Internet firms from its hugely popular WeChat instant messaging platform. Finally, we’ll end this week’s round-up of tech executive chatter with buzz that hints a former online literature pioneer may be preparing to emerge from a forced retirement, as he returns after a tough business battle of the sort that’s quite common in China. Read Full Post…
Bottom line: New global e-commerce moves by JD and LightInTheBox look well conceived and could yield some strong results, while Baidu’s new e-commerce investment reflects its lack of focus and broader strategy in the space.
LightInTheBox opens US warehouse
A flurry of e-commerce moves are in the headlines today, including new globalization steps by number-two player JD.com (Nasdaq: JD) and the struggling LightInTheBox (NYSE: LITB). Meantime, search leader Baidu (Nasdaq: BIDU) is also in the headlines as it searches for its own e-commerce business model, with reports it has made a major investment in a site being developed by PC giant Lenovo (HKEx: 992). The flurry of moves reflects the hyperactive state of competition in China’s e-commerce market, which requires constant innovation in order to survive. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 5. To view a full article or story, click on the link next to the headline.
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Yum’s (NYSE: YUM) China Sales Fall Less Than Expected, Shares Rise (English article)
Baidu (Nasdaq: BIDU) to Invest $100 Mln In Lenovo Unit Fancy Maker – Source (English article)
The following press releases and media reports about Chinese companies were carried on February 4. To view a full article or story, click on the link next to the headline.
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Bottom line: Motorola’s China homecoming looks well-designed conceptually, but will have trouble due to stiff competition and is unlikely to become a major player in the next 2-3 years.
Moto returns to China
I’ve written quite a bit already about Lenovo’s (HKEx: 992) big plans for its recently acquired Motorola brand, which has just made its formal return to China with the local launch of the Moto X smartphone. But what’s surprised me a bit is the magnitude of the campaign that Lenovo has given to this homecoming, which hints at the big hopes it has for the brand whose name whose cutting-edge phones were once the ultimate in “cool” and “trendy”.
It’s been a number of years now since that image was relevant, and many younger Chinese might not even remember the Motorola name at all. But Lenovo is clearly hoping that this homecoming and all the accompanying fanfare will reawaken some of those former impressions among China’s older consumers, in a certain form of “retro-cool” to counter the more recent rise of names like Xiaomi and Coolpad (HKEx: 2369). Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 27. To view a full article or story, click on the link next to the headline.
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Just 58.7 Pct Of Products Genuine In Random Government E-commerce Audit (Chinese article)
WeChat Unveils First Big Advertisers For Moments Function, Includes BMW, Vivo (Chinese article)
Actress Zhao Wei Invests HK$5.1 Bln In Alibaba (NYSE: BABA) Film Unit (Chinese article)
Wanda Invests $1 Bln In Sydney Land Development Project (Chinese article)
Lenovo (HKEx: 992) Brings Motorola Back to China as Moto X Phone Released (English article)
Internet executives were busy quashing a number of rumors on their microblogs this week, with smartphone sensation Xiaomi trying to stamp out reports of bitter relations with SNS giant Facebook (Nasdaq: FB), and e-commerce giant Alibaba (NYSE: BABA) quashing talk of a major new investment in South Korea. But some of the more interesting chatter focused on the concept of company valuations, and just how widely such valuations can vary for China’s dynamic tech firms.
At the same time, a coming flurry of year-end parties began to kick off in the run-up to the Chinese New Year holiday that’s just a month away. The microblogging realm saw e-commerce giant JD.com (Nasdaq: JD) singing its own praises at the company’s annual party, taking a shot at fast-fading rival Dangdang (NYSE: DANG) in the process. At around the same time, a stumbling Sina Weibo (Nasdaq: WB) also held an annual awards ceremony for notable microbloggers, in its own attempt to remain relevant in the social networking realm. Read Full Post…
Bottom line: This year is likely to see 6-9 New York IPOs by Chinese tech firms, mostly in the $50-$100 million range, while Legend’s planned IPO in Hong Kong or China is likely to get a mixed reception.
Lenovo parent Legend eyes H2 IPO
A new forecast on Chinese high-tech IPOs for the year ahead is stating the obvious, namely that new listings are set to slow dramatically in 2015 after a bumper harvest in 2014. In fact, the record year for fund-raising in 2014 is a bit misleading, as it really represents about 3 years worth of offerings that accumulated during a frosty period that led to a near freeze for IPOs starting in 2011. Now that much of the backlog has been cleared, it’s not surprising that there are few major new companies that are still at the right stage of development for listings.
At the same time, another report says that Legend Holdings, parent of PC giant Lenovo (HKEx: 992), has decided to list in Hong Kong, forgoing previous plans to make an IPO in its home China market. That decision isn’t a huge surprise if it’s true, and could provide a highlight for international tech investors in this year’s muted IPO parade for high-tech firms. Read Full Post…
