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

News Digest: February 17, 2012 报摘： 2012年2月17日

By on

The following press releases and media reports about Chinese companies were carried on February 17. To view a full article or story, click on the link next to the headline.

══════════════════════════════════════════════════════

◙ Baidu (Nasdaq: BIDU) Announces Q4 and Fiscal Year 2011 Results (PRNewswire)

◙ Alibaba to Offer HK$13.5 Per Alibaba.com (HKEx: 1688) Share in Privatization, For 46 Premium (Chinese article)

◙ “Kung Fu Panda” Maker DreamWorks Animation (NYSE: DWA) May Set Up Studio in China (English article)

◙ Facebook Registers Several Dozen Trademarks in China to Avoid Future Disputes (Chinese article)

◙ Huawei President Ren Zhengfei: Getting Pushed Out By Employees Is a Good Thing (Chinese article)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

Huawei and ZTE: Swapping Networking for Cellphones? 华为和中兴：转型进军手机市场？

By on

Telecoms superstars Huawei and ZTE (HKEx: 763; Shenzhen: 000063) continue to send out new signals underscoring how serious they are about developing their cellphone business, as both realize that growth potential could be severely limited for their traditional networking equipment business. In yet the latest signal coming from Huawei, the company is bragging that it shipped some 20 million smartphones last year, up 5-fold over the previous year. (Chinese article) That figure was enough to propel Huawei to the world’s sixth largest cellphone seller in 2011, with total cellphone sales jumping 40 percent to $6.8 billion. Of course that is still just a small part of the company’s overall sales, which are now in the $30 billion range. But Huawei clearly has big plans in the cellphone space, saying late last year it aims to become one of the world’s top 3 brands in the next 5 years. (previous post) Crosstown rival ZTE has made similar moves into the cellphone space, and has become particularly aggressive into low-end smartphone by making Android-based models that retail for less than $100. ZTE has also previously said it aims to become one of the world’s top 5 cellphone makers within the next 2 years, meaning that both of these Chinese companies could finding themselves increasingly fighting for the same customers on the global stage. The drive into cellphones, while risky and more competitive than traditional telecoms networking equipment, looks like a smart move for both companies, which increasingly realize that their traditional business is a difficult one with limited growth potential. Most of the world’s major telecoms equipment players are now struggling or have left the business outright, with names like Motorola and Nortel that were dominant players just a decade ago now non-existent. The few remaining names, including Nokia Siemens Networks and Alcatel Lucent (Paris: ALUA) have also struggled to remain profitable, with both making recent layoffs. Even Huawei itself reportedly recently delayed plans for a new factory in the important India market, where new network construction has virtually come to a halt amid a major government corruption scandal. (previous post) The networking equipment business is also notoriously cyclical, unlike cellphones that experience relatively constant demand. With all those factors in play, it’s not surprising to see both Huawei and ZTE looking to cellphones for stability, and I wouldn’t be surprised to see at least one of these 2 companies become one of the world’s top 3 brands in the next 3-5 years.

Bottom line: Huawei and ZTE are pursuing cellphones in response to higher risk and slowing growth in their networking business, with at least one likely to become a top global player in the space.

Related postings 相关文章:

◙ Huawei Discovers Cellphones 华为手机要向世界前三进军

◙ ZTE Gambles With Smartphone Share Grab 中兴通讯押注智能手机业务

◙ Huawei Puts Brakes on India Drive 华为印度建厂计划推迟

News Digest: February 11-13, 2012 报摘： 2012年2月11-13日

By on

The following press releases and media reports about Chinese companies were carried on February 11-13. To view a full article or story, click on the link next to the headline.

══════════════════════════════════════════════════════

◙ Huawei Makes 20 Mln Smartphones in 2011, Up 5 Times From Previous Year (Chinese article)

◙ Wind Tower Makers in U.S. Hurt by China Imports, Trade Commission Finds (English article)

◙ Dangdang (NYSE: DANG), Gome Form Strategic Partnership – Source (English article)

◙ Geely (HKEx: 175) Announces January Sales (HKEx filing)

◙ Joy Global Completes Tender Offer for International Mining Machinery (HKEx: 1683) (Businesswire)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

News Digest: February 4-6, 2012 报摘： 2012年2月4-6日

By on

The following press releases and media reports about Chinese companies were carried on February 4-6. To view a full article or story, click on the link next to the headline.

══════════════════════════════════════════════════════

◙ 7-Eleven To Start Online Development in Interior China Next Year (Chinese article)

◙ Tudou (Nasdaq: TUDO) In Enhanced Video Sharing on Sina (Nasdaq: SINA) Weibo (PRNewswire)

◙ Alibaba’s $3 Bln Capital Raising for Stake Buy-Out Rooted in 6 Banks (Chinese article)

◙ PetroChina (HKEx: 857), Shell Deepen Ties for ‘Powerful’ Shale Potential (English article)

◙ Huawei Could Take Telecoms Equipment Making Crown From Ericsson (Stockholm: ERICb) (Chinese article)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

News Digest: January 18, 2012

By on

The following press releases and media reports about Chinese companies were carried on January 18. To view a full article or story, click on the link next to the headline.

══════════════════════════════════════════════════════

◙ ZTE (HKEx: 763) Aims to Pass Rival Huawei in Smartphone Sales in China (English article)

◙ China Telecom (HKEx: 728; NYSE: CHA) Targets Sales of 45 Mln Smartphones in 2012 (English article)

◙ New Oriental (NYSE: EDU) Announces Results for Fiscal Q2 Ended Nov 30 (PRNewswire)

◙ Ku6 Media (Nasdaq: KUTV) and YouTube Form Tie-Up, Ku6 Stocks Jumps 139 Percent (Chinese article)

◙ Ming Yang (NYSE: MY) Announces Issuance of Up to RMB 1.0 Billion 3 Year Notes (PRNewswire)

Huawei Discovers Cellphones 华为手机要向世界前三进军

By on

Huawei Technologies, one of China’s most successful exporters but also one of its most frustrated, is following in the footsteps of crosstown rival ZTE (HKEx: 763; Shenzhen 000063) in discovering cellphones, a far less controversial product than its traditional networking equipment business. The move looks like a smart one for Huawei, even if the company is a little late coming to this product area, with many interesting implications. Chinese media are quoting an executive saying Huawei is aiming to become one of the world’s top 3 cellphone makers within the next 5 years — a big order for a company that is currently just a minor player but certainly not impossible for one with Huawei’s vast resources. (Chinese article) Equally significant was where the executive made his remarks, namely at the Consumer Electronics Show (CES) last week in Las Vegas, the world’s largest consumer electronics show that Huawei was attending for the first time. The new push will add an interesting new competitor to the market, posing a challenge not only for domestic rivals like ZTE and Lenovo (HKEx: 992), but also for foreign companies like Motorola Mobility (NYSE: MMI) and even faded global leader Nokia (Helsinki: NOK1V). Huawei is no doubt finally realizing that cellphones are far less sensitive as a product than its core telecoms equipment business, which is showing signs of quickly slowing amid resistance in western markets like the US, where security is a concern (previous post), and even in India, where a corruption scandal has brought the industry to a standstill. (previous post) As a product area, cellphones are also far less cyclical than traditional networking equipment, whose sales tend to spike when new technologies like 4G or wi-fi come out, but then subside afterwards. Lastly and perhaps most interesting, the development of a strong cellphone business could provide Huawei with an opportunity for something that’s been talked about for years but has never happened, namely a Huawei IPO. Huawei tried to sell of its cellphone business several years ago but failed after it didn’t get the price it wanted. But that business was very small at the time, making it not very attractive to outside buyers. If it was one of the world’s top 3 players, on the other hand, it would certainly become a much more attractive candidate for an international IPO, finally giving investors a chance to buy into this interesting buy controversial company.

Bottom line: Huawei’s new drive into cellphones could create a major new global player in a short time, with a potential IPO for the unit in the next 5 years if the drive is successful.

Related postings 相关文章:

◙ Huawei Puts Brakes on India Drive 华为印度建厂计划推迟

◙ US China Bashing Hits New High With Telecoms Probe 华为中兴应巧选时机应对调查

◙ ZTE Gambles With Smartphone Share Grab 中兴通讯押注智能手机业务

News Digest: January 17, 2012

By on

The following press releases and media reports about Chinese companies were carried on January 17. To view a full article or story, click on the link next to the headline.

══════════════════════════════════════════════════════

◙ China to Ease Controls on HK Listings: Regulator (English article)

◙ Vancl 2011 Revenue Increases 150% YoY (English article)

◙ Baidu-Invested (Nasdaq: BIDU) Qunar Considers US IPO (Chinese article)

◙ China Telecom (HKEx: 728; NYSE: CHA) to Launch iPhone 4S by March – Source (English article)

◙ Huawei Aims To Become One of World’s Top 3 Cellphone Brand in 3 Years (Chinese article)

Huawei Puts Brakes on India Drive 华为印度建厂计划推迟

By on

Telecoms equipment maker Huawei Technologies, which hit numerous roadblocks ast year in its drive to enter the US, has hit another obstacle in the fast developing and important India market as well, indefinitely postponing plans to build a major factory there. (Chinese article) The decision comes a couple of years after a major flare-up between China and India that saw the latter ban the import of telecoms equipment from both Huawei and Chinese rival ZTE (HKEx: 763; Shenzhen: 000063) for several months over security concerns. This latest move by Huawei, which probably would have involved an investment of $100 million or more, looks more related to a series of government corruption scandals that has gripped India’s telecoms industry in the last year, paralyzing new development. Reports in the Chinese media cite a Huawei official saying the new plant was designed to localize more of the company’s production and also address some of India’s security concerns, but that recent sputtering demand in light of the industry’s paralysis has made such new investment unnecessary. That kind of explanation is probably true, but also means that both Huawei and ZTE will take a hit in their India business this year, which is one of their most important Asian markets. It also shows that Huawei and ZTE will continue to face numerous obstacles as they try to expand in overseas markets, where concerns run high that their equipment may contain security loopholes designed for Beijing to use for spying purposes. Huawei has met with repeated resistance in the US due to such concerns, and with the presidential election coming there this year I wouldn’t expect the company to make its first major deal in the market until 2013 at the earliest. That reality, combined with the latest problems in India and weakening demand in Europe as it struggles with its ongoing debt crisis, means that 2012 could be a bleak year for both Huawei and ZTE in terms of telecoms equipment sales, with no relief in sight until 2013 at the earliest.

Bottom line: Huawei’s plans to delay construction of a major new factory in India reflects recent difficulty in the important market, and augers a difficult year for the company in 2012.

Related postings 相关文章:

◙ US China Bashing Hits New High With Telecoms Probe 华为中兴应巧选时机应对调查

◙ Huawei: Fight Them With Innovation 华为欲借创新论低调进军美国市场

◙ Huawei Undermines US Push With Foolish Request 华为讨要说法很不明智唯有阻碍进军美国市场

Bristol-Myers, EMC Tap China Priorities With New Tie-Ups　　趁中国政策导向东风 百时美施贵宝与EMC联姻本土企业

By on

A couple of new tie-ups involving major foreign players in pharmaceuticals and computing provide an interesting glimpse at how multinationals are trying to target their China initiatives to be in sync with Beijing’s latest policy agendas. The strategy of working with a local partner isn’t all that new, but in this case what’s more interesting is the targeted approach these two new tie-ups are taking, the first aimed at taking advantage of China’s ongoing massive overhaul of its healthcare system and the second at Beijing’s push to become a leader in cloud computing. Let’s look at the pharmaceuticals deal first, which is seeing Bristol-Myers Squibb (NYSE: BMY) teaming up with local drugmaker Simcere Pharmaceutical (NYSE: SCR) to make and sell a cardiovascular compound in China. (company announcement) The compound was developed by Bristol-Meyers Squibb, but Simcere will make and sell the drug in China, drawing on its strong connections to local regulators and other health care officials. This kind of deal is smart as it gives Bristol-Myers exposure to a coming boom for quality medicines as Beijing signs a series of multimillion-dollar deals to make those drugs available under its ongoing overhaul to make basic healthcare affordable for everyone. The second deal will see faded PC firm Great Wall Computer form a cloud computing joint venture with EMC (NYSE: EMC), the world’s biggest maker of data storage devices. (Chinese article) China has repeatedly said that cloud computing will be a major focus for development in the next few years, prompting a wide range of players to get in on the action, including Huawei and Alibaba. I see no reason why a big western name like EMC should try to get a piece of the action, and indeed, Microsoft (Nasdaq: MSFT) made a similar move last month with its own China-based R&D initiative in the space. (previous post) My only cause for concern with EMC is that Great Wall is hardly a big name in China anymore, and it also has a strong legacy as a state-run company, meaning it might not be the best partner for this kind of venture that calls for a more entrepreneurial approach. But that said, at least I have to credit EMC for being foresighted enough to get into this space while it’s still in the formative stages in China.

Bottom line: New China tie-ups between Bristol Myers-Squibb and EMC with partners in their respective sectors look like smart moves to take advantage of Beijing’s latest development priorities.

Related postings 相关文章:

◙ Microsoft Looks for Place in China Cloud 微软投身中国云计算大潮

◙ Merck Finds Potent China Partner in Simcere 默克牵手先声药业

◙ Growth-Addicted Huawei Looks to the Cloud 华为渴求增长上瘾 着眼云计算

Telecoms: Huawei Quits Iran, Broadband Probe Continues 中国电信业三大热门事件

By on

The telecoms world was buzzing over the weekend with a number of interesting news bits, including Huawei’s latest bid to win Western approval, a new wrinkle in an ongoing anti-monopoly probe in the broadband space, and the latest rumors of the imminent arrival of Apple’s (Nasdaq: AAPL) iPhone 4S to China. Let’s start with Huawei, China’s telecoms superstar whose efforts to enter the US have been repeatedly thwarted by politicians worried that the company is just a spying arm of Beijing despite its steady stream of efforts to prove otherwise. In the latest of those efforts, Huawei has said it will voluntarily restrict its business in Iran, a regular nemesis of the US and other Western nations that suspect it is trying to develop atomic weapons. (English article) The US in particular is trying to punish Iran with economic sanctions to get it to halt its nuclear program; so in that light, this latest move by Huawei should earn it some goodwill by showing the company won’t deal with rogue nations like Iran. This kind of move should help diffuse at least some of the bad feelings towards it by US politicians, but I still believe the company won’t earn any major contracts in the US until 2013 at earliest, after next year’s presidential elections. Moving on to broadband, Chinese media are reporting that the NDRC, China’s state planner which is conducting an anti-monopoly investigation into China Telecom (HKEx: 728; NYSE: CHA) and China Unicom (HKEx: 762; NYSE: CHU), has rejected a plan by the former to lower prices and improve service in exchange for ending the probe. (Chinese article) The NDRC is instead calling for both telcos to negotiate a more holistic approach to addressing the issue, which looks like a smarter approach than letting the companies simply offer their own piecemeal solutions. I expect this conflict will get solved in the next few months through this kind of negotiation, to the benefit of Chinese consumers and detriment of the top and bottom lines of the 2 telcos. Last but not least, media are saying the iPhone 4S, now on sale for several months in most major markets, has finally won approval from China’s telecoms regulator. (Chinese article) If this news is true, I would expect to see Unicom offer the latest iPhone as soon as January with China Telecom to potentially follow soon thereafter with its first iPhone deal. (previous post)

Bottom line: Huawei’s pledge to limit its Iran activity will win it goodwill in its drive to enter the US, while the NDRC’s broadband anti-monopoly probe will probably reach a settlement in mid 2012.

Related postings 相关文章:

◙ US China Bashing Hits New High With Telecoms Probe 华为中兴应巧选时机应对调查

◙ China Telecom, Unicom Enter Contrition Mode 中国电信和中国联通悔过自新

◙ Unicom, China Telecom in iPhone 4S 中国电信有望领先推出iPhone 4S Race

Spreadtrum, Mediatek in Cheap Smartphone Plays

By on

Two chip designers, Taiwan’s MediaTek (Taipei: 2454) and China’s own Spreadtrum (Nasdaq: SPRD) are looking like interesting bets these days, as they seek to profit from burgeoning demand for cheap smartphones in emerging markets like China and India where carriers are trying to boost recently built 3G networks. In fact, MediaTek has always been a specialist at cheap cellphone chips, allowing it to play at the low end of a market otherwise dominated by the likes of Qualcomm (Nasdaq: QCOM) and Texas Instruments (NYSE: TXN). It entered the smartphone market with an Android-based chip earlier this year, and, after landing supply deals with names like Lenovo (HKEx: 992) and ZTE (HKEx: 763; Shenzhen: 000063) is reportedly in talks for another big deal that could see it supply Huawei, another leading cheap smartphone maker. (English article) Meantime, Spreadtrum is making its own interesting cheap smartphone play, focusing on the very limited market making chips for the homegrown Chinese 3G standard known as TD-SCDMA, whose only major proponent is China Mobile (HKEx: 941; NYSE: CHL). Spreadtrum has just announced its launch of an ultra-cheap chipset that will allow handset manufacturers to make TD-SCDMA smartphones for as little as $40 each, meaning such phones could easily retail below the $100 mark considered a key threshold for cost-conscious middle- to lower-end users. (company announcement) A lack of compelling handsets has been a major factor hindering China Mobile’s efforts to build up its 3G business to date. (previous post) The availability of a wide range of ultra-low-cost TD-SCDMA phones, assuming Spreadtrum can find customers for its new chips, could be just the catalyst that China Mobile needs to breath some new life into its 3G network. Equally important for Spreadtrum, its development of a TD-SCDMA smartphone chip seems to indicate it is also dedicated to the standard’s 4G successor, TD-LTE, which could put it in a strong position to be a big supplier in chips for that standard which is already being tested out in China and a number of other major markets, including Japan and India.

Bottom line: MediaTek and Spreadtrum are looking like strong bets in the cheap smartphone chip market, which should see strong demand from 3G and 4G consumers in emerging markets.

Related postings 相关文章:

◙ Spreadtrum Takes Smart Gamble on China 3G

◙ China Mobile: Poor 3G Approach Yields Weak Results 中移动3G策略不当 拖累公司三季度业绩

◙ Baidu, ZTE Earnings: More of the Same 百度和中兴财报：看上去没变化