Tag Archives: Unicom

China Unicom latest Business & Financial news from Doug Young, the Expert on Chinese High Tech Market, (former Journalist and Chief editor at Reuters)

News Digest: February 3, 2012 报摘： 2012年2月3日

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The following press releases and media reports about Chinese companies were carried on February 3. To view a full article or story, click on the link next to the headline.

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◙ Jaguar Land Rover Said to Plan Partnership With Chery to Expand in China (English article)

◙ Unicom (HKEx: 762) Studies Structural Change, Some Sub-Provincial Units to Use Vertical Mgmt (Chinese article)

◙ Amazon China Opens Tianjin Operations Center (English article)

◙ WuXi Pharmatech (NYSE: WX) Profit Margins Dwarfing U.S. Lead China’s Drug Deal Targets (English article)

◙ China Publishes Full List of IPO Applicants For 1st Time (English article)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

Google, Apple OS Rivalry Intensifies 苹果与谷歌在华智能手机战白热化

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The intense rivalry between Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) is heating up in China, with the former hosting a somewhat unruly launch of its latest iPhone 4S in Beijing and Shanghai as the latter prepares to launch an app store for competing smartphones using its Android operating system. Apple made headlines in China over the weekend after scuffles broke out at some of its stores when the iPhone 4S formally went on sale the day before under service contracts with China Unicom (HKEx: 762; NYSE: CHU), China’s second biggest mobile carrier and Apple’s only iPhone partner in China so far. The biggest scuffle occurred when one Beijing store decide not to open due to safety concerns after large crowds lined up overnight to buy the phones as soon as they went on sale. (English article) Such news certainly isn’t great publicity for Apple and could provide some negative impact in the short term. But it also shows just how popular Apple products are in China, since the launch was still able to generate that much buzz even though the 4S was already available on the gray market following its US launch 3 months ago. That fact bodes well for China Telecom (HKEx: 728), China’s smallest mobile carrier, which is also reportedly near its own deal to offer the iPhone 4S on its 3G network and could hold launch the model as soon as next month. (previous post) Meantime, Chinese media are reporting that Google is preparing to launch a mainland Chinese version of its app store for Android phones, which would come just 2 months after Apple made a similar move by starting to accept payments in local currency, the renminbi, for its own China app store. (English article) Of course all this just shows the war between Apple and Google in the smartphone space will only intensify in the Year of the Dragon, and I wouldn’t be surprised to see the former sue the latter in China later this year as part of its global strategy of fighting Android through litigation.

Bottom line: The smartphone war between Apple and Google is heating up in China with new products from both, and could see Apple launch China-based lawsuits targeting Google’s Android later this year.

Related postings 相关文章:

◙ Apple Suffers Setback in China Lawsuit Loss 苹果在华商标侵权案初尝苦果

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

◙ Apple Overlooks China — Again 苹果再次撇开中国内地市场

Xiaomi: A Fresh Face In Smartphones　　小米：智能手机新面孔

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A start-up smartphone maker named Xiaomi has been bubbling up regularly in the headlines since launching its inaugural low-cost, high-performance Android smartphone in August, but what finally caught my attention were some numbers that look impressive in terms of both investment and sales. The company, clearly looking to inject some buzz into its flagship product, held a press conference this week, where CEO Lei Jun told the world that Xiaomi has sold nearly 400,000 of its MI-ONE phones so far, and hinted that China Unicom (HKEx: 762), the country’s second biggest mobile carrier, has placed orders for more than 1 million more. (Chinese article) The MI-ONE looks interesting for a number of reasons, including its relatively low price of around $300 for what reviewers are saying is a very high performance smartphone that can finally take advantage of Unicom’s 3G service, China’s fastest network which is also highly underutilized due to numerous internal problems at the carrier. (previous post) Xiaomi is also taking the interesting tack of using its product to try and build up its Miliao mobile instant messaging service, which the company says now has more than 1 million active users and could be a future revenue source. The company’s prospects have attracted some big names, with big names, with IDG, Temasek and Qualcomm (Nasdaq: QCOM) all among an investor group that recently handed Xiaomi, whose name means “little rice” in Chinese, a hearty $90 million in new funding. Clearly Xiaomi has some strong momentum behind it, though the Unicom deal will be crucial as it will show whether Chinese consumers like this product, which in turn could lead to big overseas orders for consumers looking for lower cost alternatives to popular models from Apple (Nasdaq: AAPL), HTC (Taipei: 2498) and others. Xiaomi will still have a tough road ahead, as Unicom is also preparing to roll out Apple’s popular iPhone 4S in January, and is selling many other 3G models as well in a bid to try to gain some momentum in the domestic 3G market. Xiaomi will most likely need another big funding round soon, as its position as a cellphone maker means it will have to spend big bucks on both manufacturing and new product development. But the signs do look promising, at least initially, and if the Unicom partnership goes well this could clearly be a company to watch for an IPO as soon as late next year.

Bottom line: Xiaomi has good potential as a niche maker of relatively low-cost, high-performance smartphones, and will get its first real test from a new partnership with Unicom.

Related postings 相关文章:

◙ Unicom’s Sputtering 3G: Blame It On the Handsets 联通幡然醒悟 借低价手机扩张3G市场

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

◙ ZTE Faces More Profit Erosion With Latest Low-Cost Moves 中兴通讯以低价机抢占市场恐损及获利

News Digest: December 20, 2011

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The following press releases and media reports about Chinese companies were carried on December 20. To view a full article or story, click on the link next to the headline.

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◙ Yanzhou Coal (HKEx: 1171) Is Said to Plan $2 Billion Purchase of Australia’s Gloucester (English article)

◙ Beijing to Extend Real Name Beyond Microblogs – Source (English article)

◙ CNOOC (HKEx: 883) Unit Finds A Leakage In Zhuhai Terminal’s Subsea Pipeline (PRNewswire)

◙ China Unicom (HKEx: 762) Announces Operational Statistics for November (HK Stock Exchange)

◙ Saab Automobile Submits Filing for Bankruptcy (English article)

2011: China Unicom’s Lost Year 中国联通失落的一年

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Early this year I predicted that 2011 would be a breakthrough year for China Unicom (HKEx: 762; NYSE: CHU) (previous post), as it capitalized on its superior 3G technology and status as Apple’s (Nasdaq: AAPL) only official partner in China to take market share from its rivals. But as we head into the new year, history is much more likely to dub 2011 a year of lost opportunities for China’s perennial No 2 mobile carrier. What’s worse, 2012 doesn’t look much better, with Unicom on the cusp of losing its position as China’s second biggest player in the critical 3G market to more aggressive and better organized rival China Telecom (HKEx: 728; CHA). The latest signs of disarray at Unicom crop up almost daily, as the company seems to never have fully recovered from a major merger nearly 3 years ago that led to its current form. Chinese media are now reporting that Unicom is in the midst of its latest shakeup of top management at many of its biggest provincial subsidiaries, though even that process appears to be riddled with problems. (Chinese article) This shakeup has been going on since at least the middle of the year (previous post), and is obviously a huge distraction for the company which instead should have been focused on using its superior technology and Apple relationship to build up its 3G business. As a result of the internal chaos, the company’s 3G market share has held steady at around 30 percent all year, even as industry leader China Mobile (HKEx: 941; NYSE: CHL) has lost steady share in this critical new area to China Telecom, whose share has risen from about 24 early this year to 28 now. At this rate China Telecom will probably pass Unicom as the second biggest 3G carrier by next February or March. Reflecting just how inept Unicom has become, Chinese media are reporting that the company has only just now announced it will offer the latest Apple iPhone, the 4S, by January, months after its global roll-out. (English article) No reason was given for the delay, but previous reports have indicated Unicom was slow to get Apple’s latest hot product tested for compatibility with its system. And in one final show of incompetence to end the year, Chinese media are reporting Unicom won’t even offer the 3G version of the popular iPad 2 tablet PC due to weak sales for the non-3G iPad 2 in China. (Chinese article) This company sorely needs to get itself straightened out, or face a potentially disastrous 2012.

Bottom line: China Unicom has seen a steady stream of lost opportunities in 2011, and its slide is likely to continue next year as it loses the No 2 spot to China Telecom in the important 3G market.

Related postings 相关文章:

◙ Sputtering Unicom’s Latest Excuse: Lack of Leadership

◙  Unicom’s Sputtering 3G: Blame It On the Handsets 联通幡然醒悟 借低价手机扩张3G市场

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

News Digest: December 3-5, 2011

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The following press releases and media reports about Chinese companies were carried on December 3-5. To view a full article or story, click on the link next to the headline.

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◙ US Solar Firms Hurt by Chinese Imports, Trade Panel Says (English article)

◙ China Telecom (HKEx: 728), Unicom (HKEx: 762) Say To Mend Ways After Broadband Probe (English article)

◙ 64 Overseas-Listed China Firms Launch $300 Mln in Share Buybacks – Report (Chinese article)

◙ Shanda Interactive (Nasdaq: SNDA) Reports Q3 Unaudited Results (PRNewswire)

◙ JA Solar (Nasdaq: JASO) Completes Acquisition of Solar Silicon Valley (Globe Newswire)

News Digest: November 10, 2011

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The following press releases and media reports about Chinese companies were carried on November 10. To view a full article or story, click on the link next to the headline.

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◙ Goldman (NYSE: GS) Selling Up to $1.54 Billion in China ICBC (HKEx: 1398) Stake (English article)

◙ China Telecom (HKEx: 728), China Unicom (HKEx: 762) Face Monopoly Probe (English article)

◙ Tencent (HKEx: 700) Announces 2011 Q3 Results (PRNewswire)

◙ Suntech (NYSE: STP) Announces Preliminary Results for Q3 2011 (PRNewswire)

◙ Sina (Nasdaq: SINA) Weibo Reaches 250 Mln Users (English article)

Sputtering Unicom’s Latest Excuse: Lack of Leadership

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China Unicom (HKEx: 762; NYSE: CHU) is reportedly conducting a massive search for top-level managers in many provinces, once again underscoring how the company is badly in need of strong new leadership as it increasingly appears to be squandering its golden opportunity to gain market share over dominant carrier China Mobile (HKEx: 941; NYSE: CHL). According to Chinese media reports, Unicom is looking for people to head its operations in a large number of provinces, continuing a search that dates back as far as February last year. (Chinese article). It’s been nearly 3 years now since Unicom merged with rival China Netcom in a major industry restructuring, and certainly the company can be forgiven for not filling key positions for the first year or so after such a big change. But 3 years is quite a long time, and if it’s taking them this long to fill these key positions it’s no surprise that the company is making little or no progress at bolstering its position in China’s mobile market. Most will recall that Unicom was given a golden opportunity to gain share over China Mobile, which controls over two-thirds of China’s mobile market, nearly 3 years ago when it was awarded a 3G license based on the world’s best technological standard. By comparison, China Mobile received a big handicap by having to develop its 3G service using a homegrown standard with lots of problems. Despite that, Unicom’s share of the 3G market has remained stagnant since the beginning of the year, at around 30 percent. Meantime, China Mobile’s 3G share has eroded from 45 percent in April to 42 percent in September, with the country’s third-largest carrier, China Telecom (HKEx: 728; NYSE: CHA) picking up all of those loses. Unicom, which also has the enviable advantage as China’s only official seller of Apple’s (Nasdaq: AAPL) iPhones, previously blamed a lack of 3G handsets for its failure to pick up share despite its obvious technological advantages. Now it looks like it’s blaming lack of strong management at the provincial level. Either way, Unicom seems to be better at making excuses than doing good business, and I’m fast losing confidence in its ability to bolster its position under current management.

Bottom line: Unicom’s latest problems in filling top management jobs at the provincial level reflect a poorly run company that is fast squandering its golden opportunity to pick up market share from rivals.

Related postings 相关文章:

◙ Unicom’s Sputtering 3G: Blame It On the Handsets 联通幡然醒悟 借低价手机扩张3G市场

◙ China Mobile Shuffle: Sea Change Coming? 中移动高层变动或引发重大变化？

◙ China Telecom Set for Boost With Imminent iPhone Deal 中国电信借力iPhone

News Digest: September 23, 2011

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The following press releases and media reports about Chinese companies were carried on September 23. To view a full article or story, click on the link next to the headline.

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◙ Unicom (HKEx: 762) Buys 8 Mln 3G Smartphones to Ease Supply Shortage (Chinese article)

◙ Alibaba Said to Be Valued at $32 Billion as Temasek, DST Invest in Company (English article)

◙ Ctrip (Nasdaq: CTRP) Announces Plan to Repurchase Up to $15 Million in Shares (PRNewswire)

◙ SMG, Endemol Partner on TV Content Production (English article)

◙ Deadline Announced for Lead Plaintiffs in the Class Action Suit Against SinoTech Energy (Businesswire)