I commented last week that Lenovo (HKEx: 992) Chairman Yang Yuanqing didn’t seem extremely enthusiastic about his landmark deal to buy IBM’s (NYSE: IBM) low-end server business, and now perhaps we know why. It seems that as Yang was discussing that deal, the largest ever for Lenovo at the time, he was close to finalizing an even bigger purchase of Motorola, the faded former cellphone titan that was purchased by Google (Nasdaq: GOOG) in 2012. Lenovo is paying $2.9 billion for Motorola, a lofty price but still much less than the $12.5 billion Google paid just 2 years ago. That indicates to me that the company Lenovo is buying is probably just a shell of the Motorola that Google purchased, making the deal look somewhat questionable. Read Full Post…
I have a lot of respect for TV giant TCL (HKEx: 1070; Shenzhen: 000100), which has managed to remain relevant in China’s high-tech gadget space by moving aggressively into products like smartphones and high-end flat-screen TVs. But I’m a bit skeptical of the company’s latest move into the ultra competitive gaming space, following word that TCL plans to make gaming consoles and also specialized gaming TVs. News of this latest move by one of China’s oldest tech names comes just months after TCL announced a tie-up with leading search engine Baidu (Nasdaq: BIDU) to make smart TVs. I was more positive on that venture, though I really do think this new one looks more problematic since it will take TCL into a new area that is very competitive and where it has little or no experience.
The following press releases and media reports about Chinese companies were carried on January 25-27. To view a full article or story, click on the link next to the headline.
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Renren (NYSE: RENN) Sells Remaining Stake In Nuomi to Baidu (Nasdaq: BIDU) (PRNewswire)
The microblogging space was buzzing with a bit of the past, the present and the future last week, with executives from some of China’s top gadget and Internet companies all hyping their various agendas in cyberspace. In a blast from the past, Apple (Nasdaq: AAPL) co-founder Steve Wozniak was all over the place in microblog postings from a number of tech companies executives he visited on a trip to China.
In the present, meanwhile, TCL (HKEx: 1070; Shenzhen: 000100) Chairman Li Dongsheng was at the CES trade show in Las Vegas and also attended a board meeting of Imax (NYSE: IMAX), using both opportunities to hype a new home theater tie-up with the US-based large screen movie format specialist. In the future, Long Wei, the low-key founder of leading online restaurant critic site Dianping, was hyping his company’s recent global expansion, perhaps hinting at more to come. Read Full Post…
I don’t write too much about cloud services in China, mostly because I think the market is too immature despite Beijing’s strong promotion of the industry. Still, the latest announcement by e-commerce giant Amazon (Nasdaq: AMZN) that it’s formally launching cloud computing services in China seems like a good opportunity to re-examine the cloud phenomenon, including how the industry is likely to develop and who is best positioned to emerge as sector leaders. Read Full Post…
First it was smartphones, then it was Internet TV, and now wireless routers have become the latest flavor of the day for Chinese web firms as everyone looks to drive traffic to their sites and services in the fast-evolving market. I previously wrote when security software specialist Qihoo 360 (NYSE: QIHU) entered the router space in June, and now a new report says smartphone maker Xiaomi, search leader Baidu (Nasdaq: BIDU) and game specialist Shanda are preparing to enter the sector as well. Meantime in a separate but related telecoms move, leading telco China Mobile (HKEx: 941; NYSE: CHL) is making a feeble move into the international market with a relaunch of its Jego service that it suspended shortly after an original roll-out earlier this year. Read Full Post…
Chinese firms’ addiction to distressed global assets was back in the spotlight last week with word that car maker Dongfeng Motor (HKEx: 489) is nearing a deal to purchase struggling French automaker Peugeot (Paris: PEUP). This pursuit of a global brand is consistent with Beijing’s call for Chinese firms to go global, and would certainly allow Dongfeng to quickly expand onto the world stage. Read Full Post…
China smartphone market quickly becoming saturated
Let’s end the week with a look at some new data on China’s cellphone market, which is quickly becoming saturated with cheap smartphones cranked out by a crowded field of domestic companies. The rush by Chinese firms into the smartphone market over the last 2 years is typical of the herd mentality one often sees in China, almost always leading to classic boom-bust cycles. The smartphone sector was already showing signs of overheating when media reported during the summer that inventory was building up at many smartphone makers. Now the latest figures are showing that sales are slowing sharply for many of those firms, hinting a bust could come soon for players that rely heavily on the domestic market. Read Full Post…
China’s smart TV space has gotten a big lift in recent months with a flurry of major new developments, including 2 major new moves this past week by industry veteran LeTV (Shenzhen: 300104). This sudden rush to smart TVs, which deliver most of their content over the Internet, is being driven by a number of factors that make China ideal for development of the market. Read Full Post…
I’ve been following the microblogs of some of China’s top tech executives for a while now, and am quickly becoming a fan of Li Dongsheng, the man behind leading TV maker TCL (Shenzhen: 000100). Unlike many other executives, who use their microblogs to hype their latest products, Li has shown a more refreshing tendency to also use his Sina Weibo account for some personal introspection. Read Full Post…
Internet TV is fast becoming the flavor of the day for China’s leading Internet and gadget companies, with word that e-commerce giant Alibaba has now entered the field through a new tie-up with TV maker Skyworth (HKEx: 751). The news comes just a week after online search leader Baidu (Nasdaq: BIDU) announced its own similar tie-up with TCL Multimedia (HKEx: 1070), another leading TV maker, and following other similar recent product roll-outs by names like smartphone maker Xiaomi, video content provider LeTV (Shenzhen: 300104) and PC giant Lenovo (HKEx: 992). Read Full Post…
