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.
══════════════════════════════════════════════════════
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: Lenovo’s branding relaunch set for April could see it retire some of its local brands obtained through recent acquisitions, helping to improve its sales through better consumer awareness.
Lenovo prepares for brand overhaul
PC maker Lenovo (HKEx: 992) is hinting at a major overhaul for its crowded stable of brands later this year, in a move to simplify the many names it has acquired in a buying spree over the last decade. This kind of move is long overdue for Lenovo, which launched its global buying binge a decade ago with a landmark deal to buy the PC business of IBM (NYSE: IBM). To this day Lenovo still counts the Think name it got from IBM as one of its leading PC brands, though it has also added a number of other major names over the last 10 years. Read Full Post…
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.
══════════════════════════════════════════════════════
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)
Bottom line: TCL and Lenovo will face uphill battles in rebuilding the Palm and Motorola brands due to stiff competition and lack of experience building upscale brands.
TCL to resuscitate Palm
It’s no secret that PC giant Lenovo (HKEx: 992) has big plans for its recently acquired Motorola smartphone brand, and now we’re learning that cellphone stalwart TCL (HKEx: 2618; Shenzhen: 000100) has similar plans for the former superstar Palm brand. That’s the latest word coming from Las Vegas, where Lenovo, TCL and other Chinese gadget makers are showing off their latest wares at CES, the world’s biggest consumer electronics show that happens this time each year. While TCL was low-profile about its newly acquired Palm brand, Lenovo was much louder about its plans to relaunch Motorola smartphones in its home market next month. 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: The NDRC should force Qualcomm to change some of its licensing practices but not force it to lower prices in its upcoming antitrust settlement against the company.
Qualcomm judgment coming soon
All eyes will be on China’s anti-monopoly regulator in the days ahead, when it’s expected to rule in a case involving the pricing and licensing policies of global smartphone chip leader Qualcomm (Nasdaq: QCOM). The case is the latest in a string of recent similar antitrust probes by Beijing against major companies. But it’s also quite different because it involves licensing practices for proprietary technology, which aren’t typically included in the conventional definition of monopolies. 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…
Two scandals in China’s tech world were hot topics in the microblogging realm this past week, drawing heated discussion on allegations of copycatting and other unethical business behavior at smartphone sensation Xiaomi and newly listed social networking app maker Momo (Nasdaq: MOMO). The debate reflected the wide range of views on the many dubious business practices like intellectual property theft and violation of business contracts that are a regular feature in China’s corporate business landscape.
In less controversial chatter, computing giant Lenovo (HKEx: 992) was also tooting its own horn loud and clear as it celebrated the 10th anniversary of its landmark purchase of IBM’s (NYSE: IBM) PC business. As a long-time China tech writer it was hard for me to believe that historic deal is already a decade in the past, and it certainly kicked off a drive that would propel Lenovo to become the world’s biggest PC brand. Read Full Post…
