Category Archives: Mobile and Cloud

ZTE, JD Form Strategic Partnership For Marketing

ZTE and JD Group announced the signing of a strategic cooperation agreement in New York under which the two parties will work together in mobile terminal development; online and offline channel sales; and brand marketing.

Cheng Lixin, chief executive officer of ZTE’s terminal business unit, said that mobile technology ecosystem and consumer habits have changed tremendously. By cooperating with JD, ZTE will provide more innovative mobile devices to Chinese consumers.

At the same time, ZTE launched its dual-screen foldable smartphone Axon M for the global market. Once this new product is available in China, JD will be its exclusive online debut channel. JD will participate in the software customization of Axon M and implement customized development in accordance to the dual-screen feature of this product. In addition, JD will use its big data analyzing capability to help ZTE target customers accurately and provide various solutions in marketing, channel, and product sectors.

ZTE and JD already reached a strategic cooperating relationship in December 2015. The two parties realized cooperation in marketing and post-sales service.

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Huawei Plans USA Splash In Early 2018

With technology security rumblings in the United States surrounding China’s Huawei, the Chinese firm is forging ahead in establishing a beachhead in North America.

As part of this initiative, Huawei’s Richard Yu, CEO of the company’s Consumer Business Group, has been named as the keynote speaker at the Consumer Technology Association’s CES in early January 2018 in Las Vegas.

Huawei launched its Consumer Business Group in 2003. Since then, it has emerged as one of the top three smartphone brands, and has pushed the industry forward through meaningful and innovative consumer technology. Huawei serves over 170 countries and more than one third of the world’s population.

Yu originally took the CES 2017 keynote stage to discuss the future of mobility, especially in the areas of AI, virtual reality and connected technologies. He returns in 2018 to share Huawei’s exploration on future connectivity and strategy in AI, IoT and new smart devices.

In 2012, the U.S. government asserted that Huawei and Chinese rival ZTE were allegedly creating backdoors in their equipment. These backdoors could then be used for spying. Huawei stepped back for a time but has since started to slowly creep back into the U.S. consumer market with the sales of smartphones.

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China's Mobile Phone Shipments Decrease 7.4%

Mobile phone shipments in China decreased by 7.4% year-on-year when comparing September 2016 to September 2017.

The China Academy of Information and Communications Technology published a report on the Chinese mobile phone market for September 2017, and stated mobile phone shipments in the Chinese domestic market were 44.186 million units in September 2017, representing a decrease of 7.4% compared with the same period of last year; and the number of newly launched mobile phone models was 123, a year-on-year increase of 0.8%.

From January to September 2017, China’s total mobile phone shipments were 367 million units, a year-on-year decrease of 8.2%; and the number of newly launched mobile phone models was 823, a year-on-year decrease of 28%.

Meanwhile, China’s 4G phone shipments were 41.596 million units in September 2017, a year-on-year decrease of 3.3%; and the number of newly launched 4G phone models was 90, a year-on-year decrease of 9.1%. From January to September 2017, China’s total 4G phone shipments were 346 million, a year-on-year decrease of 6.3%; and the number of newly launched 4G phone modes was 651, a year-on-year decrease of 33.2%.

In addition, the smartphone shipment in September 2017 was 41.556 million units, a year-on-year decrease of 3.8%. Of that total, 33.901 million were Android smartphones. During the first nine months of 2017, China’s total smartphone shipments decreased by 7% year-on-year to 345 million units, and 288 million were Android smartphones.

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Xiaomi To Build East China Headquarters In Nanjing

Chinese smartphone maker Xiaomi is building its East China headquarters in Nanjing, Jiangsu Province.

Lei Jun, chairman and chief executive officer of Xiaomi, said that Xiaomi currently has two stores in Nanjing and they plan to increase the number to four by the end of 2017. By the end of 2018, they expect to have 11 stores in this city.

Lei said Xiaomi is undergoing a new round of high-speed growth and they need to further expand development opportunities to promote the sustainable development of the company. Xiaomi’s East China headquarters will focus on the breakthrough of new technologies and new models as well as the development of smart hardware and Internet of Things services. By integrating upstream and downstream enterprises, it will enable Xiaomi to maximize use of its supply chain.

Xiaomi already established a research and development center in Nanjing six years ago. According to Lei, Xiaomi smartphone and MIUI development teams have nearly 100 employees in Nanjing and they are recruiting new staff. In addition, Xiaomi has supply chain and marketing branches and many partners in Nanjing.

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HTC To Sell Mobile Phone Assets To Google For USD1.1 Billion

Taiwanese smartphone maker HTC has signed an agreement with Alphabet subsidiary Google to sell some of its mobile phone businesses to the latter for USD1.1 billion.

With this transaction, HTC’s nearly 2,000 employees who worked with the company on its Pixel smartphone will join Google. Meanwhile, HTC will provide non-exclusive licenses to some of its intellectual properties to Google.

Cher Wang, chairman of HTC, said that HTC has been the best promoter for Google’s Android market expansion. With this new acquisition agreement, the two parties will further enhance their long-term stable partnership, which will not only inject strong innovative research and development into Google’s hardware business, but also will ensure HTC’s continuous innovation in smartphone and VR sectors.

It is said that the acquisition does not involve factory transfer. In addition, HTC’s chief financial officer Peter Shen revealed at a press conference that except for those employees who will transfer to Google, HTC currently does not have any layoff plan.

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Motorola Solutions Appoints New China President

Lenovo’s Motorola announced that the company has appointed Fu Lili, former acting president of Motorola Solutions China division, as new president of Motorola Solutions.

Fu joined Motorola in 2016. Before that, she worked for Avaya as vice president of China division.

Fu has over 25 years of senior management experience in high-tech and communications industries, which gives her a deep insight of the development history and future trend of the communications industry and a business sense about this market.

In her new role, Fu will be responsible for dealing government-related departments, major clients and channel partners in China, a strategic market for Motorola. She will lead various corporate affairs, including market and sales, government affairs, industrial partnership establishment, and governance and compliance in China. At the same time, she will be in charge of the planning of the future development strategy of Motorola Solutions in China.

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China Telecom Reaches Over 161 Million 4G Users

China Telecom added 2.66 million new mobile users in August, reaching a total of 235.49 million users.

China Telecom added 4.71 million new 4G users, accumulating a total of 161.76 million 4G users by the end of the reporting period, according to the company’s recently published its operating statistics for August 2017.

China Telecom’s fixed-line phone users decreased by 370,000 to 123.6 million in August 2017; while its fixed-line broadband service gained 800,000 new users to 129.77 million.

By the end of June 2017, China Telecom’s FTTH users reached about 117.23 million, representing a net increase of about 11.24 million users during the first half of 2017.

According to China Telecom’s latest financial statistics, the company realized operating revenue of CNY184.118 billion in the first half of 2017, a year-on-year increase of 4.1%. Of the total operating revenue, service revenue was CNY165.847 billion, a year-on-year increase of 6.8%. The company’s net profit attributable to shareholders was CNY12.537 billion, a year-on-year increase of 7.4%.

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China's JD To Set Up Two JVs With Central Group In Thailand

JD Group, JD Finance, Thailand’s leading retailer Central Group, and Provident Capital together announced that they would set up two joint ventures in Thailand to provide e-commerce service and fintech services with total investments of USD500 million.

According to the agreement, Central Group will provide half of the funds; while JD Group, JD Finance, and JD’s Indonesian e-commerce business strategic cooperating partner Provident Capital will provide the other half.

JD will provide extensive professional skill support to the e-commerce joint venture, covering technology, e-commerce, and logistics. JD Finance will offer related fintech experience and technologies such as artificial intelligence, cloud computing, and other industry-leading technologies.

At the same time, Central Group will use its retail resource advantages, including a physical store network, brand relationships and vendor resources, and its popular membership program “The 1 Card”, to contribute for the development of the two joint ventures. In addition, Central Group will open several flagship stores on the platform of the e-commerce joint venture to introduce its department store, major retail chain stores, and its owned or operated brands.

Liu Qiangdong, chairman and chief executive officer of JD Group, said that Thailand has a large population and developed infrastructure, including a strong national logistics network, which represents huge potential for the development of e-commerce and fintech. By cooperating with a strong retail group like Central Group, JD will gain a huge competitive advantage in its expansion in Southeast Asia.

Tos Chirathivat, chief executive officer of Central Group, said that JD Group achieved huge successes in the Chinese e-commerce market and it is the best choice for an e-commerce partner. With the growing of mobile Internet users and improving of customer spending power, Thailand’s e-commerce will soon have an explosive development. By cooperating with JD, Central Group will seize this opportunity to become a leading e-commerce provider in Thailand.

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Foxconn Wants To Build New Factory In Nanjing

Foxconn signed an agreement with the municipal government of Nanjing, Jiangsu Province, planning to invest over CNY37.5 billion to build a new smartphone plant in the city.

Under this basic agreement, Foxconn’s new plant will not only produce smartphones, but also will include a LCD TV factory and R&D center, facility for semiconductor manufacturing equipment, and logistics center. The municipal government of Nanjing will probably provide capital and land support in infrastructure construction, but totals have not yet been made public.

Foxconn confirmed this investment plan, but did not reveal any details. The company already has a smartphone factory in Nanjing, but it is small. The construction of this new plant indicates the company’s intention to expand its production system and gain more orders from the growing Chinese smartphone brands.

Foxconn decided in February to build a new panel factory with a scale of JPY1 trillion in Guangzhou. In addition, the company also plans to build a LCD panel factory in Wisconsin, U.S., with an investment of USD10 billion.

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Chinese Used Goods Platform Cooperates With Foxconn For iPhone Recycling

Used goods trading platform Zhuanzhuan announced a strategic deal with Foxconn, aiming to promote the standardization of the trading of used phones.

Under the deal, Zhuanzhuan and Taiwan-based Foxconn will work together in phone quality inspections, supervision and guidance by assigning staff for quality inspections to promote the standardization of used phones. Financial terms of the deal were not released.

Meanwhile, for iPhones recycled in Apple’s offline retail stores, Foxconn will also begin quality checks and select those suitable for online sales to sell them via Zhuanzhuan’s platform. Foxconn is an original equipment manufacturer for Apple.

Huang Wei, chief executive officer of Zhuanzhuan, told local media that China’s used goods market has a great potential; however, the industry lacks standards and is “in chaos”. Zhuanzhuan would like to bring revolution to the industry by standardization.

In August 2017, Zhuanzhuan’s trade volume reached CNY2.48 billion, of which 31% was contributed by the second-hand mobile phone business. During the second quarter of 2017, the trading of mobile phones on Zhuanzhuan reached 2.1 million units.

Foxconn said that they decided to cooperate with Zhuanzhuan to improve the standardization within the used mobile phone industry. With the strategic cooperation, the two parties will establish a used mobile phone quality inspection system which is in line with Apple’s official standards and then sell used iPhones on Zhuanzhuan.

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