So much has been written already about the sudden approval of the iPhone 6 in China, after several weeks of unexplained delays, that I thought I would focus on the broader implications of this surprise move in the ongoing war of words between the US and China over cyber security.
I praised iPhone maker Apple (Nasdaq: AAPL) in August for emerging as a voice of reason in this war of words after it decided to use China-based servers for to store some of its local user data (previous post), and it seems like more praise is in order this time as well. Only this time the praise should go to Beijing, for finally taking a break from the cyber security war of words by realizing that companies like Apple are far more interested in doing business than engaging in cloak-and-dagger spying games. Read Full Post…
A trio of headlines are shining a spotlight on a new twist in the brutally competitive smartphone market, where national security is suddenly becoming a major new headache for manufacturers. In one headline, Chinese smartphone sensation Xiaomi is being investigated in Taiwan for national security risks related to the storage of local user data on some offshore mainland Chinese-based computers. In a similar news bit, Beijing is reportedly considering forbidding government workers from using foreign-made smartphones.
And in yet another related story, global smartphone giant Apple (Nasdaq: AAPL) is reportedly finally on the cusp of winning approval to sell its new iPhone 6 in China, following an embarrassing delay that may be related to the cybersecurity issue. Read Full Post…
Two major news events were at the center of the microblogging realm this past week, as tech executives from across the spectrum commented on the blockbuster IPO for Alibaba (NYSE: BABA) and the debut of latest iPhone from Apple (Nasdaq: AAPL). Executives were generally full of praise for the Alibaba IPO, which shattered numerous records when the stock began trading last Friday in New York. But there were also some hints of jealousy, as top executives from fast-fading e-commerce rival Dangdang (NYSE: DANG) and security software maker Qihoo 360 (NYSE: QIHU) suffered from valuation envy.
Meantime, domestic smartphone makers Huawei and ZTE (HKEx: 763; Shenzhen: 000063) took advantage of the iPhone’s formal launch last Friday to tout their own products, which are far cheaper and enjoy a reputation for reasonable quality. But unlike the iPhone, Huawei and ZTE still suffer from the “Made in China” stigma, and don’t command anything near the level of respect and buzz that the iPhone gets. Read Full Post…
Several news bits are casting a spotlight on growing stress in the low-end smartphone market, where a crowded field of Chinese companies have been engaged in a cut-throat series of price wars for the past year. Leading the headlines is word that Coolpad, a leading homegrown brand, is cutting 10 percent of its workforce as it explores a new joint venture with some of its distributors. At the same time, other reports say that China Mobile (HKEx: 941; NYSE: CHL) won’t be coming to the rescue of these struggling companies by selling their smartphones to its subscribers at subsidized prices, as the leading Chinese carrier embarks on its own cost-cutting campaign to bolster its sagging profits. Read Full Post…
Apple’s (Nasdaq: AAPL) highly anticipated iPhone 6 could face an uphill climb in China when it gets released next week, at least based on the first figures I’ve seen for how much the model will cost. According to the latest reports, China Unicom (HKEx: 762; NYSE: CHU), the nation’s second largest carrier and Apple’s oldest partner in China, will sell the new iPhone 6 for a starting price of 5,288 yuan, or about $860. That would be significantly higher than the price tag of $750 that many believe will be the iPhone 6’s starting price when it goes on sale in the US later this month. Read Full Post…
It’s rare that one issue dominates the blogosphere among the many tech executives who like to tweet about their companies on their microblog accounts. But the past week saw one such debate occur around a spat between 2 old friends in the smartphone space. In one corner was Luo Yonghao, a well-known English teacher who has recently moved into the highly competitive smartphone space. In the other was Wang Ziru, a self-styled gadget critic who has become quite influential. As many might guess, the debate centered on a recent critical review by Wang for Luo’s newly launched smartphone model under his Smartisan brand.
While the Luo-Wang spat kept the blogosphere well supplied with musings from a wide range of tech executives, a few other tidbits also provided some intriguing hints of things to come at other leading tech names. A couple of posts from Qihoo 360 (NYSE: QIHU) CEO Zhou Hongyi suggested that a major restructuring could be on the way; and separate musings from an executive at e-commerce giant JD.com (Nasdaq: JD) also hinted at potential similar moves. Read Full Post…
You know a company is starting to mature when it becomes the subject of headlines beyond its control, which is what we’re seeing in the case of 2 of the latest news bits involving smartphone sensation Xiaomi. In the brief 4 years since its founding, Xiaomi has proven itself a master of marketing, able to keep its name constantly in the headlines through a strategic series of news leaks, sensational sales figures and other media savvy tactics. The latest headlines themselves are relatively benign, one involving a new gaming tie-up and the other involving a minor scandal related to pirated products. Read Full Post…
Smartphone makers Xiaomi and Huawei are learning tough new lessons this week, reflecting intense competition in the overheated market where a feisty field of Chinese players are vying for a place alongside global leaders Apple (Nasdaq: AAPL) and Samsung (Seoul: 005930). In Xiaomi’s case, the company has become emboiled in an embarrassing new gaffe in Taiwan involving collection of personal data. Meantime, Huawei’s Honor line of smartphones, which it’s trying to position as an mid- to upscale brand, is rapidly moving into the bargain bin with word that it has slashed the price on a new 4G model to just 799 yuan, or $130. Read Full Post…
I recently wrote how smartphone price wars may be claiming one of their first major victims in ZTE (HKEx: 763; Shenzhen: 000063), and now we’re getting word that crosstown rival Huawei may also be getting crunched in the ongoing battle for supremacy at the low end of the market. The latest reports cite Huawei’s mobile device chief saying the company is formally ducking out of ultra low-end smartphones in its home China market, in what can only be seen as a major retreat for one of China’s biggest tech companies. Read Full Post…
Smartphone chatter has dominated the microblogging realm among tech executives this past week, led by nonstop debate surrounding the hyperactive Xiaomi and its newly launched fourth-generation model. But I’m personally growing a bit tired of this company, and thus thought I’d turn my attention this week to smartphone chatter from 2 lower profile brands, namely the unappreciated Huawei and recently launched Smartisan brand.
Huawei executives were in a state of mourning over the past week following the sudden death of one of their colleagues, cellphone chip executive Wang Jin. Meantime, Smartisan’s top executive was bemoaning problems facing his young company due to capacity constraints, as several CEOs of similar young rival brands looked on in sympathy that was perhaps mixed with just a touch of gloating. Read Full Post…
Customer loyalty poll highlights Xioami’s long march ahead
Cyberchatter over the past week was shining a spotlight on the huge task ahead for domestic Chinese smartphone makers, as they engage in cut-throat competition in their massive home market. A new survey posted by a top regional telecoms executive showed just how little loyalty Chinese customers feel towards most of the domestic brands, underscoring the fact that low prices are still their major attraction.
Meantime, fading e-commerce veteran Dangdang (NYSE: DANG) was also facing its own uphill battle, as its core online book business was reportedly on the cusp of being overtaken by much newer rival JD.com (Nasdaq: JD), China’s second largest player. True to his usual form, Dangdang’s talkative but short-sighted co-founder Li Guoqing was more focused on a new employee incentive plan than the looming negative milestone for a division that was once his company’s core business. Read Full Post…
