Category Archives: Mobile and Cloud
HTC is planning to sell its mobile phone manufacturing plant in Shanghai, and the money gained will be invested into the virtual reality operations of the business.
HTC’s board of directors has decided to sell its Shanghai manufacturing plant to a Chinese mainland company for USD91 million, which is about CNY630 million, with the aim of allocating more money to expand its VR business. HTC emphasized that the sale of the plant would not affect the overall business of its mobile phone unit. The buyer of the factory is reportedly Xingbao Information Technology.
HTC’s Shanghai mobile phone manufacturing plant was built in 2009 with an area of 114,000 square meters and it is mainly engaged in making smartphones sold in mainland China. In 2011, the factory boasted monthly production of two million units. However, with the decline of HTC’s mobile phone business, many product lines of this factory went idle.
HTC sold one factory in Taoyuan, Taiwan in December 2015 for USD183 million. At present, the company still has three factories in Taoyuan.
In 2016, the company’s operating revenue was NTD78.16 billion, a year-on-year decline of 35%, and it was the lowest point over the past 11 years. The company’s operating revenue once reached NTD465.8 billion in 2011.
VR is the future hope for HTC. In 2016, the company’s high-end VR product HTC Vive realized sales of 450,000 units. Statistics from the market research firm Canalys show that China is the world’s second largest market for high-end VR devices in 2016 with a total shipment of about 300,000 units, of which 17.7% were HTC Vive, ranking first in this marketplace.
China Unicom’s operating revenue was CNY274.2 billion in 2016, a year-on-year decrease of 1%; and its net profit was CNY630 million, a year-on-year decrease of 94.1%.
China Unicom’s mobile business services realized revenue of CNY145.02 billion, a year-on-year increase of 1.7%; its fixed-line business services realized revenue of CNY94.66 billion, a year-on-year increase of 3.7%; its broadband access revenue was CNY43.87 billion, which was at the same level as that in 2015; and its IDC and cloud computing business revenue was CNY9.45 billion, a year-on-year increase of 33.7%.
In 2016, China Unicom’s total capital expenditure was CNY72.11 billion, which was mainly spent on the construction of mobile networks, broadband and data services, and infrastructure and transmission networks. The company invested CNY27.74 billion in mobile networks, CNY16.84 billion in broadband and data businesses, and CNY19.71 billion in infrastructure and transmission networks.
By the end of 2016, China Unicom’s total assets reached CNY614.15 billion; its total debts changed to CNY386.47 billion; and its asset-liability ratio changed to 62.9%. Meanwhile, the company’s free cash flow was CNY2.48 billion.
China Unicom’s mobile users saw a net increase of 11.51 million to a total of 263.82 million during the reporting period. Its 4G users saw a net increase of 60.4 million to a total of 104.55 million. The number of its 4G base stations reached 736,000, a net increase of 337,000.
In addition, China Unicom’s fixed-line broadband users saw a year-on-year increase of 4% to 75.24 million, of which 71.2% were FTTH users.
Chinese e-commerce giant Alibaba Group realized USD11 billion mobile advertising revenue in 2016, accounting for 40.3% market share in the Chinese mobile advertising market.
According to the latest statistics provided by the market research firm eMarketer, Baidu achieved mobile advertising revenue of USD5.5 billion in 2016, accounting for nearly 20% market share in China. Tencent’s mobile advertising revenue was USD3.2 billion, accounting for 11.6% market share.
eMarketer predicted that by 2019, China’s mobile advertising market scale will increase from USD27.31 billion in 2016 to USD60.25 billion. With 40% market share, Alibaba’s mobile advertising revenue will reach USD24.1 billion, which is over double compared with that of 2016.
Cindy Liu, an analyst from eMarketer, told local media that due to the increased participation of Taobao users and its continuous offering of highly relevant advertisements to consumers, Alibaba’s advertising revenue shows no sign of slowing.
Alipay, Shareco, and Hainan Airlines jointly announced that Hainan Airlines will formally launch inflight mobile payment services on its first batch of 15 planes which will allow travelers to pay for goods and class upgrades.
By the end of 2017, the services will be deployed to cover 129 planes.
When taking Hainan Airlines’ Internet-enabled airliners, passengers can access Wi-Fi provided by Shareco, the online platform operating company under Hainan Airlines, to browse Shareco’s aerial shopping mall, purchase discounted products, and complete payments with Alipay.
According to Pan Yunbin, chief executive officer of Shareco, the aerial mobile payment will be rolled-out along with the modification of Internet-enabled airliners. By the end of 2017, Internet airliner modifications are expected to reach 129 planes, covering Hainan Airlines, Capital Airlines, and Yangtze River Airlines. Those planes will transport about 600,000 passengers every week.
As part of SAP’s IoT Influencer program, I had the honor of interviewing Hitachi’s Rob Tiffany on Industrial IoT platforms, mobility platforms and the role of artificial intelligence at Mobile World Congress 2017.
Have any of you spent time considering how digital transformation, artificial intelligence, IoT, mobility and virtual and augmented reality are impacted by computer memory? Me neither until this week at GSMA’s Mobile World Congress 2017 in Barcelona. I had the privilege of interviewing Micron Technologies’ Gino Skulick, II and getting educated on it. Very cool information!!!
The United States Department of Commerce has reportedly agreed to extend ZTE’s temporary export license to March 29, 2017, allowing American companies to continue to provide software, technologies, and restrictive components published in March 2016 to ZTE.
Prior to this, the Chinese telecom device manufacturer received an export restriction from the American government and its export license was due for expiration on February 27, 2017. However, the extension is shorter than the previously approved 90 days by the United States Department of Commerce, which means ZTE is still facing pressure.
ZTE stated on February 14 that they were negotiating with the United States Department of Commerce, United States Department of the Treasury, and United States Department of Justice to end their investigation about ZTE’s violation of American laws by exporting U.S.-made products to Iran and other sanctioned countries.
ZTE also said that the expected punishment may bring a huge impact to the financial performance of the company. At present, ZTE’s annual sales are over USD15 billion.
ZTE is one of the largest telecom device manufacturers in the world and it has about 10% market share in the U.S., where its suppliers include Qualcomm, Microsoft, and Intel. The company is also the fourth largest smartphone supplier in the U.S. and its clients include AT&T, T-Mobile, and Sprint.
Chinese smartphone maker Xiaomi recently confirmed that Manu Kumar Jain, Xiaomi’s director of its Indian market business, has been promoted to global vice president.
Prior to this, Xiaomi’s global vice president Hugo Barra departed the Beijing-based company due to work pressure and health reasons associated with living in China. Barra has since joined Facebook in the United States to lead its virtual reality business.
Jain is a co-founder of India’s local e-commerce company Jabong and he joined Xiaomi in 2016. He played an important role in Xiaomi’s rapid development in the Indian market. Under his leadership, Xiaomi sold 2.5 million to 3 million smartphones each quarter in the Indian market and about 75% of those phones were made in India.
Jain previously revealed that Xiaomi had submitted a branded retail store license application to the Indian government and they are expected to get approval over the next few months. Once the license is granted, Xiaomi’s awareness in India will be further improved. At present, Xiaomi has already seized nearly 30% market share in the Indian online smartphone market and the figure may further increase in the future.
Apple is reportedly discussing with China’s BOE Technology Group about the supply of OLED displays for its future iPhone products.
If BOE is included in the list of suppliers for Apple, it will become the first Chinese company that provides these types of displays to Apple, in addition to those suppliers in South Korea and Japan.
According to reports in Chinese local media, Apple has implemented several months of tests on BOE’s AMOLED displays. However, a decision is yet to be made if BOE will be the provider.
Compared with large-sized OLED, small- and medium-sized OLED has better quality and more capacity. Because of its flexibility, thinness, and high color gamut, OLED has become the first choice of replacement product for the mobile phone display technology and it is also a standard configuration for high-end phones. Many smartphone makers, including Samsung, Oppo, Vivo, Huawei, and Xiaomi already use OLED on their products.
As one of the largest display manufacturers in China, BOE will invest nearly CNY100 billion, which is about USD14.5 billion, to build two AMOLED factories in Sichuan province to establish future businesses.