Bottom line: LeTV’s strong smartphone launch shows that stiff competition in China won’t ease soon, which could push Lenovo’s mobile operations further into the red and prompt ZTE to further lighten its efforts in the market.
LeTV smartphones make strong debut
A series of smartphone items are in the headlines as we close out the week, spotlighting the tough situation in a China market that is at once the world’s largest but also extremely competitive. That competition just got a bit louder, with the first headline that says new arrival LeTV (Shenzhen: 300104) debuted quite strongly with when its first smartphone models went on sale this week. Meantime, industry stalwarts Lenovo (HKEx: 992) and ZTE (HKEx: 763; Shenzhen: 000063) continue to reflect the stresses of selling in China, with the former posting a big loss for its mobile business last year while the latter continues to lighten its reliance on the market by looking for growth in the US. 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…
A trio of Chinese tech firms with global dreams is taking a page from the western marketing playbook, signing a recent series of celebrity and sports team endorsements aimed at winning over US and European consumers. Such a strategy looks smart, and could help ZTE (HKEx: 763; Shenzhen: 000063), Lenovo (HKEx: 992) and Huawei shed their image as Chinese firms and look more international as they try to sell their smartphones to the west. Read Full Post…
I want to mark this week’s return to work for most of China with a look at 3 new foreign partnerships announced over the past week, 1 each involving home appliance maker Haier (Shanghai: 600690), the Twitter-like Sina (Nasdaq: SINA) Weibo and telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063). All 3 of the tie-ups are different in nature, but they do look innovative and encouraging and should have positive implications for each company’s future development. Read Full Post…
