Tag Archives: Huawei

China’s Huawei, one of the world’s largest smartphone providers
Latest news about Huawei Technologies Co, Chinese IT and telecommunications company

TELECOMS: Huawei in US Hot Seat Over Iran Sales?

Bottom line: Huawei is likely to be found guilty of selling products to Iran in violation of US sanctions, and could be fined up to $2 billion but won’t face additional punishment.

Huawei being probed for Iran violations?

When word first emerged four years ago that telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063) was being investigated for selling American equipment to Iran in violation of US sanctions, other reports also indicated that crosstown rival Huawei was also being probed over the same matter. Huawei’s name later disappeared from the headlines, though it was never really clear if the company had been cleared of suspicion in the matter. Now it appears the company may still be under investigation, meaning it could potentially be slapped with a fine even bigger than the nearly $1 billion levied on ZTE. Read Full Post…

SMARTPHONES: Oppo Shows India Resolve with Cricket Deal

Bottom line: Oppo’s major new cricket sponsorship deal shows its commitment to India, but may have to be renegotiated if and when the company’s fortunes decline in the next 1-2 years following its meteoric rise.

Oppo in India cricket deal

Smartphone high-flyer Oppo is trying to show the world it’s serious about India, with word it will pay 1.1 billion yuan ($160 million) for rights to sponsor the nation’s national cricket team. News of the deal comes just three months after China’s top smartphone brand announced plans to build a production facility in the hotly contested India market, which has become a magnet for Chinese brands over the last year.

All that raises the question of whether Oppo is for real, or just another passing fad in China’s constantly changing smartphone landscape. That landscape has seen players like Lenovo (HKEx: 992), Xiaomi and Huawei become dominant players in the world’s largest smartphone market one day, only to rapidly fade the next. It’s obviously still too early to say if Oppo will follow in that trajectory, though my educated guess would be the answer to that question is quite possibly “yes”. Read Full Post…

SMARTPHONES: Xiaomi, Vivo Skip Barcelona Telecoms Bash

UPDATE: After publishing this earlier this morning, a source in Barcelona informs me that Oppo is indeed attending and is holding a press event to show off their newest products. Headline and photo caption changed to reflect Oppo’s attendance, but the rest of the original post remains the same.

Bottom line: The absence of Oppo and Vivo from the world’s top telecoms trade show in Spain this week reflects their overwhelming reliance on China sales, while Xiaomi’s absence from the show could be a cash conservation move.

Vivo, Xiaomi absent from top telecoms trade show

Most eyes from the telecoms world will be focused on Barcelona this week, where an annual show that’s arguably the world’s most important for smartphones is taking place. That seems like a good opportunity to look at who from China’s crowded smartphone arena is attending this year’s Mobile World Congress (MWC) in Spain, even though I’m personally not at the show.

Attending the event is by no means cheap, which is probably why some companies may choose the skip the affair. But the decision to attend or not does provide some insight as to what companies are thinking, since you would expect anyone with truly global aspirations to make an appearance at this showcase for the newest telecoms products. Read Full Post…

SMARTPHONES: Huawei Meets 2016 Goals, Xiaomi Looks to 2017

Bottom line: Xiaomi could return to growth mode in China this year on the strength of stronger models, while Huawei’s local market share will contract as it focuses on profitable sales and backs away from money-losing businesses.

Huawei meets reduced smartphone target

Two of China’s former smartphone leaders are in the headlines going into the weekend, casting a spotlight on the difficulties these past high-flyers face after becoming king of the world’s biggest market. In one story the faded Xiaomi is saying the worst is behind it, and the company is aiming for a relatively ambitious 100 billion yuan ($14.5 billion) in sales this year.

In the other, the still-buoyant Huawei is announcing its smartphone sales rose an impressive 29 percent last year. But that figure is still below its earlier target, and also is being revealed just a week after the company said it was abandoning its older model of growth at any cost. Accordingly, I expect we’ll see sharply slower growth this year for Huawei in China, as it looks for profitable gains over simply getting more market share. Read Full Post…

SMARTPHONES: China Exports Price Wars to India; Nokia Returns to China

Bottom line: Chinese smartphone brands with local production are most likely to survive upcoming price wars they are exporting to India, while Nokia’s new smartphones are unlikely to make any inroads in China over the next 2-3 years. 

China exports smartphone price wars to India

A case of deja vu is rapidly shaping up in India, where Chinese smartphone makers have flocked over the last two years in search of growth outside their overheated home market. In this case media are reporting that Chinese brands have surged to take half of the Indian market by dumping millions of their cheap look-alike Android phones into the country.

Meantime back in their own home country, nostalgia has become the word of the moment with word that Nokia (Helsinki: NOK1V) has officially re-entered a market it once dominated. Nokia joins a number of other faded brands to rediscover China, including former arch-rival Motorola, which has become the smartphone flagship of the brand’s current owner Lenovo (HKEx: 992). Read Full Post…

TELECOMS: Huawei Declares End to Growth at Any Cost

Bottom line: Huawei’s revenue growth for 2017 is likely to drop by more than half from 2016’s rate of 32 percent as it cuts its money-losing businesses, with the biggest slowdown likely to come in its smartphone unit.

Huawei to focus on profitability in 2017

Quality over quantity is a growing theme in China these days, as the nation puts aside its previous pursuit of high growth at any cost in exchange for more sustainable expansion in high-quality areas. After starting at the top in Beijing, that theme is trickling down the corporate food chain to telecoms giant Huawei, whose New Year’s message hints that company growth could slow sharply this year.

Or course everything is relative, since Huawei has just announced preliminary results that show its revenue for 2016 jumped an impressive 32 percent to 520 billion yuan, or a whopping $74 billion. To put things in perspective, its biggest global rival Ericsson (Stockholm: ERICb) is seeing its sales contract, and is expected to post about $65 billion in revenue this year. Read Full Post…

SMARTPHONES: Oppo Surges, Xiaomi Tries New Look, ZTE Resets

Bottom line: Huawei may have lost its top position in China’s smartphone market in the third quarter, while Xiaomi’s new model with a screen that takes up the entire front surface could bring some buzz back to the company.

Huawei loses ground in China smartphone race

A trio of smartphone headlines nicely summarize the rapid changes constantly gripping the space, where today’s superstar can become little more than a footnote in just a year. The latest rising superstar Oppo is leading the headlines, with a new report saying it overtook Huawei to become China’s smartphone leader in the third quarter. Meantime, former market leader Xiaomi is also in headlines as it rolls out a new intriguing model in a bid to regain its former glory. Last but not least is the faded ZTE (HKEx: 763; Shenzhen: 000063), one of the industry’s oldest players, which is changing smartphone chiefs in its own bid to find new relevance in the tough market. Read Full Post…

China News Digest: October 26, 2016

The following press releases and news reports about China companies were carried on October 26. To view a full article or story, click on the link next to the headline.
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  • Germany Withdraws Approval for Chinese Takeover of Aixtron (Frankfurt: AIXA) (English article)
  • Oppo, Vivo Pass Huawei in China Smartphone Market in Q3 – Counterpoint (Chinese article)
  • ChemChina Ready for Concessions to Clinch Delayed Syngenta Deal: Source (English article)
  • New Oriental (NYSE: EDU) Announces Results for the First Fiscal Quarter (PRNewswire)
  • Student Loan Specialist Qufenqi Posts 540 Mln Yuan Loss in 2015 (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

SMARTPHONES: Huawei Slips in Q3, Meizu Gets New Investors

Huawei slips in Q3

The first third-quarter smartphone sales data are out, revealing that Huawei retained its leading position in the fiercely competitive Chinese market. But the high flying Huawei also saw its share drop by more than one percentage point, indicating its momentum may be slowing. At the same time, other reports are saying that Meizu, the Alibaba-backed (NYSE: BABA) smartphone brand that isn’t in the China top 5, has signed on a small group of new investors in a deal that hints at a possible upcoming IPO.

Let’s jump right in with the big-picture numbers, which are coming in new quarterly data from TrendForce. According to that data, Huawei controlled 19.1 percent of the Chinese smartphone market in the third quarter, down from 20.4 percent in the previous quarter. (Chinese article) Total smartphone sales in China reached 168 million for the quarter. Read Full Post…

China News Digest: October 22-24, 2016

The following press releases and news reports about China companies were carried on October 22-24. To view a full article or story, click on the link next to the headline.
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  • Huawei Keeps Top Spot in China Smartphone Market in Q3 – Trendforce (Chinese article)
  • Walmart (NYSE: WMT) Invests in Logistics and O2O Grocery Platform New Dada (Businesswire)
  • China Telecom (HKEx: 728) Hebei Subsidiary Cancels All Roaming Fees (Chinese article)
  • Yili (Shanghai: 600887) to Raise 9 Bln Yuan, Sunshine Insurance to Hold 4.56 Pct (Chinese article)
  • China Resources Pharma Said to Raise $1.8 Bln From IPO (English article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

SMARTPHONES: Huawei in Late-Year Surge, As Apple Tries to Halt Skid

Bottom line: Apple will need to lower its prices to stabilize its position in China, while Huawei could also soon face pricing pressure due to growing challenges from up-and-comers like Oppo and Vivo.

Huawei’s sales surge in Q3

Two of China’s top smartphone brands have been in the headlines in recent days, spotlighting a rapid ascension of the homegrown Huawei and the equally rapid decline of global giant Apple (Nasdaq: AAPL).

On the upside of the story, the surging Huawei announced it recently passed the 100 million mark in smartphones produced this year, reaching the milestone two months faster than in 2015. Meantime, Apple’s CEO was in China for at least the third time this year, announcing a new research and development center in a push to revive his company’s fast-fading position in its largest market after the United States. Read Full Post…