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ZTE China. Latest Business and financial news of ZTE corporation news overview of an expert of Chinese Companies Doug Young

SMARTPHONES: Xiaomi, Vivo Skip Barcelona Telecoms Bash

UPDATE: After publishing this earlier this morning, a source in Barcelona informs me that Oppo is indeed attending and is holding a press event to show off their newest products. Headline and photo caption changed to reflect Oppo’s attendance, but the rest of the original post remains the same.

Bottom line: The absence of Oppo and Vivo from the world’s top telecoms trade show in Spain this week reflects their overwhelming reliance on China sales, while Xiaomi’s absence from the show could be a cash conservation move.

Vivo, Xiaomi absent from top telecoms trade show

Most eyes from the telecoms world will be focused on Barcelona this week, where an annual show that’s arguably the world’s most important for smartphones is taking place. That seems like a good opportunity to look at who from China’s crowded smartphone arena is attending this year’s Mobile World Congress (MWC) in Spain, even though I’m personally not at the show.

Attending the event is by no means cheap, which is probably why some companies may choose the skip the affair. But the decision to attend or not does provide some insight as to what companies are thinking, since you would expect anyone with truly global aspirations to make an appearance at this showcase for the newest telecoms products. Read Full Post…

CONSUMER: ZTE Hops Into Smart Cars, Gome Into Smartphones

Bottom line: ZTE’s move into smart cars and Gome’s into smartphones follow a typical Chinese pattern of herd mentality investing, and are both likely to fare poorly. 

ZTE buys car maker Granton

A couple of headlines are shining a spotlight on the herd mentality you often see among Chinese companies looking for the next big growth opportunity. One of those has telecoms stalwart ZTE (HKEx: 763; Shenzhen: 000063) buying a small bus maker, parroting a trend among a growing number of firms who see the future in smart vehicles. The other has the increasingly irrelevant electronics retailer Gome (HKEx: 493) rolling into the smartphone business, an area in desperate need of consolidation due to cutthroat competition. Read Full Post…

SMARTPHONES: Oppo Surges, Xiaomi Tries New Look, ZTE Resets

Bottom line: Huawei may have lost its top position in China’s smartphone market in the third quarter, while Xiaomi’s new model with a screen that takes up the entire front surface could bring some buzz back to the company.

Huawei loses ground in China smartphone race

A trio of smartphone headlines nicely summarize the rapid changes constantly gripping the space, where today’s superstar can become little more than a footnote in just a year. The latest rising superstar Oppo is leading the headlines, with a new report saying it overtook Huawei to become China’s smartphone leader in the third quarter. Meantime, former market leader Xiaomi is also in headlines as it rolls out a new intriguing model in a bid to regain its former glory. Last but not least is the faded ZTE (HKEx: 763; Shenzhen: 000063), one of the industry’s oldest players, which is changing smartphone chiefs in its own bid to find new relevance in the tough market. Read Full Post…

China News Digest: October 25, 2016

The following press releases and news reports about China companies were carried on October 25. To view a full article or story, click on the link next to the headline.
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  • HNA Group Acquires 25 Pct Equity Interest in Hilton (NYSE: HLT) for $6.5 Bln (Businesswire)
  • Syngenta Slumps After EU Watchdog Sparks ChemChina Deal Doubts (English article)
  • JD.com (Nasdaq: JD) Corruption Incident Nets More Than 10 Workers (Chinese article)
  • Sohu (Nasdaq: SOHU) Reports Q3 Unaudited Financial Results (PRNewswire)
  • ZTE (HKEx: 763) Replaces Head of Smartphone Division (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

TELECOMS: US Keeps ZTE on Tight Leash, Eyes Huawei

Bottom line: Washington’s 2 month extension of a temporary license for ZTE to keep buying from its US suppliers indicates a final ruling is likely by year end in a similar probe against Huawei for illegally selling US products to Iran.

US extends export license for ZTE

After a tense period earlier this year when it appeared it could lose access to some of its key suppliers, telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063) has been given continued access to those suppliers under a new extension of its earlier deal with Washington. The clash stemmed from a Washington ruling that ZTE sold US-manufactured telecoms equipment to Iran in violation of trade restrictions. Washington was set to punish ZTE by cutting it off from its many US suppliers, but later relented after the Chinese company agreed to cooperate with an investigation into the matter. Read Full Post…

China News Digest: June 29, 2016

The following press releases and news reports about China companies were carried on June 29. To view a full article or story, click on the link next to the headline.
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  • Yum (NYSE: YUM) China Stake Sale Said Delayed as Suitors Miss Deadline (English article)
  • Pfizer (NYSE: PFE) to Invest $350 Mln in China Biotech Hub, First in Asia (English article)
  • Fosun (HKEx: 656) Plans to List US Insurer Ironshore ‘As Soon As Possible’ (English article)
  • ZTE (HKEx: 763) Says Temporary License Extended for Import of US Goods (HKEx announcement)
  • Qihoo 360 (NYSE: QIHU) Receives Update on Going Private Transaction (PRNewswire)

MULTINATIONALS: US Casts Wary Eye on Huawei, Berlin on Midea

Bottom line: Washington is likely to find Huawei guilty of illegally selling US equipment to Iran, while Germany is likely to scuttle a Midea-Kuka alliance by finding an alternate strategic local investor for Kuka.

US seeks documents from Huawei
US seeks documents from Huawei

Cross-border trade involving sensitive technologies is dominating the headlines as we head into summer, lead by a new development in Washington that looks ominous for Chinese telecoms giant Huawei. That news has the US asking Huawei for documents related to previous sanctions against the company, implying new sanctions could be coming over sales to Iran that may have violated US trade rules. The other headline shows opposition continuing to grow in Germany over a proposed purchase of 30 percent of local robotics firm Kuka (Frankfurt: KU2G) by Chinese home appliance giant Midea (Shenzhen: 000333). Read Full Post…

SMARTPHONES: Xiaomi’s BRICS Dream Crumbles in Brazil

Bottom line: Xiaomi’s Brazilian retrenchment will ultimately become a withdrawal from the country, and reflects a lack of preparation and understanding when it entered the market a year ago. 

Brazil vexes Xiaomi

The bad news keeps coming for sputtering smartphone maker Xiaomi, which is retrenching its Brazilian operation less than a year after entering the market. I have to admit that reports on this latest setback reflect a recent media fascination with any sort of failure for Xiaomi, which was once a media darling with its hip-and-trendy smartphones and slick marketing campaigns. But that said, this particular setback does look a bit more serious than some of the other recent bad news, as it appears to mark a big disappointment in a market where Xiaomi had big hopes. Read Full Post…

IPOs: SF Express Eyes Back Door; China Music in NY; ZTE Thinks Small

Bottom line: A backdoor listing plan by SF Express in Shenzhen, a New York IPO plan by China Music Corp and 3 new China OTC listings by ZTE units reflect creative approaches to new listings by Chinese firms due to bottlenecks for traditional IPOs.

SF Express eyes backdoor listing

A trio of IPO stories in the headlines are quite revealing, as none are happening through traditional channels on China’s 3 main stock exchanges in Shanghai and Shenzhen. Instead, the largest of the 3 plans has parcel delivery giant SF Express eyeing a backdoor listing using a shell company from the minerals business. Meantime, music streaming company China Music Corp has popped up across the Pacific in New York, where it is reportedly planning an IPO that could be the largest of its kind this year. Read Full Post…

China News Digest: May 7-9, 2016

The following press releases and news reports about China companies were carried on May 7-9. To view a full article or story, click on the link next to the headline.
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  • US Opens Patent Probe Against ZTE (HKEx: 763), Lenovo (HKEx: 992), 5 Others (English article)
  • China’s Latest Censorship Target: Cloud Storage (English article)
  • CSRC May Slow Domestic Re-Listings for Privatizing US-Listed China Stocks (Chinese article)
  • Tsinghua, Hewlett Packard Enterprise (NYSE: HPE) in ‘New H3C’ IT Services Venture (Chinese article)
  • Apple (Nasdaq: AAPL) China App Store Sees Malfunctions, Some Apps Disappear (Chinese article)
  • Latest calendar for Q1 earnings reports (Earnings calendar)

SMARTPHONES: Lenovo Brings Zuk Home, TCL China Sales Plunge

Bottom line: Lenovo’s new emphasis on its year-old Zuk smartphone brand and TCL’s plunging sales reflect ongoing cutthroat competition in China, though neither company is likely to give up the domestic market anytime soon.

Lenovo launches new Zuk phone

New headlines surrounding 2 of China’s bigger stumbling smartphone makers reflect the market’s current state of chaos, as more than a dozen well-funded brands battle for surpremacy. Leading the headlines is PC titan Lenovo (HKEx: 992), which has decided to bring its young Zuk smartphone brand back into the parent company after initially letting it operate independently.

At the same time, faded giant TCL (HKEx: 2618) has just reported worrisome quarterly results that show its China smartphone sales plunged by more than half due to the market’s fierce competition. Both Lenovo and TCL are rapidly becoming victims in China’s bloody smartphone wars, though each is unlikely to withdraw from the market anytime soon due to strong backing from a cash-rich parent. Read Full Post…