Bottom line: New online service platforms from Lenovo and Tencent could both do reasonably well, but will face challenges due to inexperience and product limitations, respectively.
Hisense, Tencent join hands in gaming smart TV
The “platform” concept is becoming a hot area in China’s overcharged Internet world, as companies look for newer and better ways to deliver their products and services over a growing number of devices and online channels. That rush is behind 2 of the latest big moves in the space, one from PC giant Lenovo (HKEx: 992) and the other from Internet titan Tencent (HKEx: 700).
Lenovo’s new foray into online products and services has been in the headlines for the last few months, but I’ve finally received some clarification on what exactly is behind its plans for an online platform with the new name of ShenQi. Meantime, Tencent is aiming to boost its leading position in the online gaming space through a new tie-up with household electronics giant Hisense (Shanghai: 600060). That tie-up looks set to produce a new gaming TV that could compete with more traditional consoles from Microsoft (Nasdaq: MSFT) and Sony (Tokyo: 6753). Read Full Post…
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.
══════════════════════════════════════════════════════
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: Best Buy’s sale of its Five Star chain represents a long-overdue withdrawal from traditional retailing in China, and it would be wise to consider an e-commerce option if it tries to return later.
Best Buy sells Five Star chain
Some might see retailing giant Best Buy’s (NYSE: BBY) newly announced sale of its Five Star electronics chain as a retreat from China, but I would personally congratulate the company for a shrewd move that was long overdue. That’s because traditional retailing is rapidly dying in China, as shoppers opt for the convenience, better selection and lower prices of e-commerce. What’s more, the traditional electronics retailing sector is already overcrowded and highly competitive, dominated by big national chains led by Suning (Shenzhen: 002024) and Gome (HKEx: 493) Read Full Post…
Bottom line: Sony’s stalling fortunes in China’s smartphone market are the prelude to its eventual pullout, while Lenovo’s high-end push with the Motorola brand is likely to fall flat.
Sony smartphones in China setback
The latest news bits from the overheated Chinese cellphone market show an increasingly grim battle that’s claiming a growing number of victims at the lower and even middle ends. The latest bad news comes from struggling Japanese giant Sony (Tokyo: 6753), which has announced a significant pullback in the market as part of a broader global retrenchment. That could bode poorly for the equally struggling mid-range Motorola, as media report the brand will also target the mid- to upper-range of the Chinese smartphone market under its new ownership by PC giant Lenovo (HKEx: 992). Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 6. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
GM (NYSE: GM) China Sales Expand at Slowest Pace In 20 Months (English article)
China’s MIIT To Issue FDD-LTE 4G Licenses In December- Source (English article)
Gap (NYSE: GPS) Brand Surpasses 100 Stores In Greater China Region (Businesswire)
NetEase (Nasdaq: NTES) To Shutter Microblogging Service (Chinese article)
Sony (Tokyo: 6753) Mobile China Layoffs To Reach 700-800, Denies Leaving Market (Chinese article)
Latest calendar for Q3 earnings reports (Earnings calendar)
New reports are saying that Alibaba (NYSE: BABA) CEO Jack Ma, flush with cash just weeks after his company’s blockbuster New York IPO, is headed to Hollywood to talk deals with the industry’s top players. The reports focus mostly on the potential for new content-purchasing deals, as Alibaba looks for a spot in China’s booming market for movies and online video. But what caught my attention was a brief mention in the reports that Ma may be looking for something bigger on his trip, namely a stake in a major or mid-sized Hollywood studio. Read Full Post…
After a year of mostly hype, Shanghai’s new Free Trade Zone (FTZ) has finally begun showing the world some substance in the last 2 months with a recent string of high-profile announcements by major companies that plan to set up in its borders. Microsoft (Nasdaq: MSFT) and Amazon (Nasdaq: AMZN) were among the first to announce plans, and were joined last week by US retail giant Costco (Nasdaq: COST) and top Chinese oil refiner Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP). Read Full Post…
I’m not a close follower of global game console leaders Microsoft (Nasdaq: MSFT) and Sony (Tokyo: 6753), but the latest reports of the latter’s launch plans for its PlayStation in China seem to reflect the recent state of disarray at the ailing Japanese giant. Microsoft was quick to formulate a China plan for its popular Xbox after Beijing recently lifted a decade-old ban on foreign consoles, forming a joint venture and launching the consoles last month. By comparison, only sporadic reports have emerged over that time about Sony’s plans, including the latest confusing reports that indicate the company will try to launch its PlayStation 4 in China by the end of the year. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 10. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Baidu (Nasdaq: BIDU) Buys Control Of Brazil’s Peixe Urbano In Expansion Push (English article)
US software giant Microsoft (Nasdaq: MSFT) is the subject of 2 major news stories today, casting a spotlight on a pair of very different trends involving e-commerce and foreign companies in China. The first news bit has the world’s largest software company formally launching sales of its Xbox gaming console in China through a tie-up with JD.com (Nasdaq: JD), spotlighting the rapid rise of China’s second largest e-commerce company following its own tie-up with Internet giant Tencent (HKEx: 700) earlier this year. The second news bit looks more ominous, with word that Microsoft is being probed by one of China’s anti-trust regulators. Read Full Post…
Shanghai is quickly emerging as ground zero for the world’s top 2 gaming console makers to enter China, with word that Sony (Tokyo: 6753) has formed a new local tie-up aimed at bringing its PlayStation to the market. The company’s new plan comes just weeks after word emerged of a similar plan by rival Microsoft (Nasdaq: MSFT) for its popular Xbox in partnership with another Shanghai media company. Both companies are seeking to tap China’s massive appetite for electronic gaming, after Beijing recently lifted a decade-long ban on the sale of foreign consoles in the market. Read Full Post…
