In the latest signal of the growing popularity of Internet TV, leading search engine Baidu (Nasdaq: BIDU) is reportedly preparing a tie-up in the space to promote its iQiyi online video service with top domestic TV maker TCL Multimedia (HKEx: 1070). The rapid growth in this area over the last year has been quite interesting to watch, as a number of major private companies have been piling into the space with new Internet-based offerings in a bid to challenge China’s notoriously slow and uncreative traditional TV sector. Read Full Post…
Software security specialist Qihoo 360 (NYSE: QIHU) is pouncing on a recent rally in its shares to announce a massive new bond offering, becoming the latest in a select group of top Chinese tech firms to raise big new funds as investor enthusiasm returns to the sector. Following its announcement of upbeat earnings earlier this week, Qihoo has followed with word of the plan to offer senior 5-year notes worth $600 million. To put things in perspective, that amount is equal to more than 6 percent of the company’s market value, which is already quite inflated after Qihoo’s shares have nearly quadrupled over the last year. Read Full Post…
I’ve been saying for a while now that China’s booming smartphone market will undergo a major correction soon due to huge oversupply, and now we’re starting to see the first signs of stress from 2 major players. Among domestic manufacturers, media are reporting that struggling giant ZTE (HKEx: 763; Shenzhen: 000063) is preparing an overhaul of its handset business to improve its performance in China. Meantime, faded Taiwanese superstar HTC (Taipei: 2498) is also announcing its own major overhaul and making bold predictions about its plans to become a top player in China. Read Full Post…
Telecoms stalwart China Mobile (HKEx: 941; NYSE: CHL) and up-and-comer Xiaomi are creating new buzz in the sector these last few days, as speculation builds that the former may be near a long-awaited deal with Apple (Nasdaq: AAPL) to finally offer the iPhone on its network. Meantime, Xiaomi is making headlines with word that it expects its revenue to double this year, following a strong reception for Hongmi, its latest smartphone that retails for just 799 yuan or about $130. Read Full Post…
As we get bombarded with a slew of quarterly reports from the likes of NetEase (Nasdaq: NTES) and Tencent (HKEx: 700) about their health in the present, I want to turn my attention to the future with a look at an interesting report on potential Chinese suitors for tumbling smartphone maker BlackBerry (Toronto: BB). The report that caught my attention mentions PC giant Lenovo (HKEx: 992) and telecoms equipment maker Huawei as 2 leading candidates to buy BlackBerry, which formally put itself up for sale earlier this week. Read Full Post…
Embattled telecoms equipment maker Huawei is hoping that Britain will become the key turning point in its quest for acceptance by the west, based on its recent flurry of initiatives there designed to show portray itself as a good corporate citizen. I’ve been reporting on China for a while now, and will openly say that Huawei is certainly doing a good job of trying to look like a western-style company by highlighting its contributions to the markets where it does business. Among the companies I follow, only PC giant Lenovo (HKEx: 992) engages in a similar level of this kind of PR. Read Full Post…
I’ve been reporting on China’s cellphone market long enough to know that change can come suddenly and without much warning, and that a superstar one day might be struggling for survival just a year or two later. Such transformations often come in waves, and it appears the newest shake-up could be coming as consumers start to shun prestigious high-end smartphones in favor of booming lower-end models that perform many of the same functions for a fraction of the price. China’s slowing economy could cause the trend to accelerate, since many consumers are now looking for ways to cut back their spending due to uncertainty about the future. Read Full Post…
I’ve often criticized PC giant Lenovo (HKEx: 992) for its overly aggressive policies towards M&A and expansion, so I’m quite happy to offer some praise for the company’s sudden ability to say “no” in 2 recent moves that looked problematic. In the last 2 weeks, the company that formerly couldn’t walk away from any expansion deal has suddenly scrapped 2 potential new initiatives, one in smartphones and the other in online gaming consoles. The former instance has seen Lenovo walk away from a plan to take over the struggling cellphone business of Japan’s NEC (Tokyo: 6701), while the latter has seen the company get rid of its game console business called Eedoo. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 18. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China Blocks GSK (London: GSK) Finance Head From Leaving Country (English article)
The following press releases and media reports about Chinese companies were carried on July 11. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Lenovo’s (HKEx: 992) Eedoo Sold to Unnamed Software Company – Source (English article)
Tencent (HKEx: 700) In Talks To Buy Ctrip (Nasdaq: CTRP) Stake – Source (Chinese article)
Social E-Commerce Firm The Fancy Raises $53 Mln (Chinese article)
Smithfield (NYSE: SFD) CEO faces Senate heat over sale to China (English article)
Qihoo 360 (NYSE: QIHU) Protects Against Android Vulnerability (PRNewswire)
The inevitable price wars may finally be coming to China’s smartphone market, in an all-too-common pattern seen time and again for popular new products. Media have been so busy reporting about how China will become the world’s biggest smartphone market this year that no one has really stepped back to examine the phenomenon and why it’s happening. At least one media is finally doing that, and reporting that inventories are suddenly building up to dangerous levels at the homegrown smartphone makers that are the main force behind China’s recent smartphone boom. Read Full Post…
