Bottom line: Qihoo’s new joint venture looks like a smart tie-up to promote its software and online services, while Xiaomi’s resumption of India sales looks like a hollow win in its patent battle with Ericsson.
Qihoo, Coolpad in JV
A trio of smartphone stories are in the news today, including updates on major news involving security software specialist Qihoo 360 (NYSE: QIHU) and the ultra-cool Xiaomi. The first headline has Qihoo moving into the overheated smartphone space through a major new joint venture with domestic giant Coolpad (HKEx: 2369). In the second headline, Xiaomi has been allowed to resume selling some of its smartphones in India, after a judge last week ordered it to stop sales amid an ongoing patent dispute with Swedish mobile technology giant Ericsson (Stockholm ERICb). Read Full Post…
A national anti-corruption campaign at major state-run firms has filled the headlines these last few months, but a spate of smaller scandals last week cast a spotlight on another lower-profile problem that is far too common in China’s private corporate sector. That problem is deficient business ethics, which created embarrassments twice for smartphone sensation Xiaomi, and also for social networking app developer Momo (Nasdaq: MOMO) and security software specialist NQ Mobile (NYSE: NQ). Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 17. To view a full article or story, click on the link next to the headline.
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Geely (HKEx: 175) 2014 Profit Drops 50 Pct On Forex Loss In Russia (HKEx announcement)
Baidu (Nasdaq: BIDU) To Announce $600 Mln Investment In Uber – Source (Chinese article)
Insurer Delta Lloyd (Amsterdam: DLL) Sells Belgian Bank To China’s Anbang (English article)
Bottom line: The target of Qihoo’s rumored smartphone purchase could be Coolpad, while Xiaomi’s new tie-up with Midea could be followed by similar pairings in a broader drive to develop smart appliances.
Qihoo eying Coolpad?
A couple of big deals are bubbling around in the smartphone space today, led by yet another new tie-up involving smartphone sensation Xiaomi, this time with home appliance maker Midea (Shenzhen: 000333). But the hyperactive Xiaomi is having to share the spotlight with the edgier security software specialist Qihoo 360 (NYSE: QIHU), which is reportedly eying a deal for its own major smartphone acquisition worth up to $1 billion.
Each of these deals has slightly different motivating factors, but the central theme is that companies like Qihoo and Xiaomi increasingly see smartphones as a central element of larger suites of product and services rather than just a stand-alone product. In Xiaomi’s case, the company already counts smartphones as its core central product and is trying to build up an ecosystem of related products and services like smart TVs and air conditioners. Qihoo is eying smartphones as a vehicle for propagating its core software and Internet services. 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…
Bottom line: New copycat claims by a Japanese air purifier maker reflect the kinds of challenges Xiaomi will face as its profile rises, slowing down its global expansion and potentially undermining its cool image.
Xiaomi faces new coypcat allegations
The last couple of months have been a tough time for smartphone sensation Xiaomi, which is becoming a growing target of accusations that increasingly portray the company as China’s leading copycat. The latest such accusations are coming from a Japanese firm, which says its designs were ripped off for a new line of high-tech air purifiers that Xiaomi announced earlier this week. Those allegations come the same week that Xiaomi was penalized in India for illegally using patented technology from telecoms equipment giant Ericsson (Stockholm: ERICb), and 2 months after Xiaomi was slammed by a top Apple (Nasdaq: AAPL) executive for being China’s copycat supreme. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 13-15. To view a full article or story, click on the link next to the headline.
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Tesla’s (Nasdaq: TSLA) China President Resigns After Less Than 9 Months (English article)
BAIC Motor, Investors Said Poised To Raise $1.4 Bln In IPO (English article)
Tencent-Backed (HKEx: 700) Private Bank Approved To Begin Business (Chinese article)
Xiaomi Issues Statement Confirming Sales Suspension In India (Chinese article)
Ctrip To Spend $15 Mln To Boost 3 Pct Stake In Tuniu (Nasdaq: TOUR) – Source (Chinese article)
The following press releases and media reports about Chinese companies were carried on December 12. To view a full article or story, click on the link next to the headline.
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Momo (Nasdaq: MOMO) Shares Shrug Off Allegations Against CEO In Debut (English article)
NQ Mobile (NYSE: NQ) Announces Resignation Of Chairman, Co-CEO Lin (PRNewswire)
Xiaomi Accused Of Copying Air Purifier Design From Japanese Firm (Chinese article)
Sony’s (Tokyo: 6753) PlayStation To Make China Debut Next Month (English article)
Baidu (Nasdaq: BIDU) Invests In Uber – Source (English article)
Bottom line: Xiaomi is likely to quickly settle a patent dispute against it by Ericsson in India, which could slightly raise its costs but won’t affect its longer term development in the market.
India judge crimps Xiaomi’s global expansion
The global expansion plans of fast-rising Xiaomi may have hit a major roadblock, with word that a court has ordered the company to stop importing and selling its popular low-cost smartphones in India. Xiaomi had been targeting India as one of the main drivers in its campaign to become a major global smartphone brand, and has made a number of major moves in the market this year. But now it will have to deal with this new litigation, which is coming from global telecoms equipment giant Ericsson (Stockholm: ERICb) over patent infringement claims. Read Full Post…
Bottom line: Xiaomi’s new smart air purifier looks like a good move to build up its ecosystem of interconnected smart devices, while LeTV’s new EV initiative is more likely a publicity ploy.
China’s entrepreneurial tech firms never miss a good business opportunity, and environmental plays are suddenly the flavor of the day with word of major new pollution-related plays by smartphone sensation Xiaomi and online video firm LeTV (Shenzhen: 300104). Xiaomi has announced it will enter the smart devices space with a new line of air purifiers aimed at consumers tired of breathing polluted Chinese air. Meantime, LeTV has announced its intent to get into the electric vehicle (EV) business, as China opens up that sector to encourage development of more clean technology. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 11. To view a full article or story, click on the link next to the headline.
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China Nuclear Generator CGN Power (HKEx: 1816) Surges On HK Debut (English article)
Momo Responds To Attack On CEO Tang Yan By NetEase (Nasdaq: NTES) (Chinese article)
Chinese Taxi-Hailing App Didi Raises More Than $700 Mln (English article)
India Court Issues Order Banning Import, Sale Of Xiaomi Smartphones (Chinese article)
China Tuna Industry Group Withdraws HK IPO Application (Businesswire)
China’s entrepreneurial tech firms never miss a good business opportunity, and environmental plays are suddenly the flavor of the day with word of major new pollution-related plays by smartphone sensation Xiaomi and online video firm LeTV (Shenzhen: 300104). Xiaomi has announced it will enter the smart devices space with a new line of air purifiers aimed at consumers tired of breathing polluted Chinese air. Meantime, LeTV has announced its intent to get into the electric vehicle (EV) business, as China opens up that sector to encourage development of more clean technology. 
