Freedom 251: Will cheaper smartphones come at cost of labour rights?

Ringing Bells', the infamous company responsible for pitching a Rs 251 smartphone, hopes its low price will allow millions of the poorest people to own a mobile phone in the Indian market, which has only 10% penetration.

But labour rights campaigners worry that push to churn out cheap handsets and tablets may lead to greater abuse of workers' rights in India, the world's fastest-growing smartphone market.

Ringing Bells' Freedom 251 smartphone, whose launch in February crashed the company's website, is priced at Rs 251 -- possibly the cheapest Android smartphone in the world.

On Thursday, the company's chief executive Mohit Goel said the first shipment of about two lakh handsets was due next week.

Ringing Bells pays fair wages to its workers and its pricier models will help offset the cost of the Rs 251 phone, he added.

"Our vision is to make mobile phones more affordable to the millions of poor Indians who do not own one," Goel told the Thomson Reuters Foundation.

India sold 103 million handsets last year, an increase of 29% on the year before.

With only one in 10 Indians owning a mobile phone, there is enormous potential -- much of it at the lower end of the market where dozens of local and foreign brands are vying for customers with some handsets selling for less than $25.

However, the pressure to keep costs low is pushing manufacturers to pay low wages, rely on cheaper contract labour and insist on unpaid overtime, activists say.

"Responsibility of the supply chain and workers lies with brand companies," said Gopinath Parakuni, general secretary at Cividep, a workers' rights campaign group.

"Our regulations simply aren't strong enough to ensure workers in the electronics industry are taken care of," he said.

'WHO PAYS THE PRICE?'

Last month Cividep and Amsterdam-based Good Electronics issued a report on Samsung Electronics, the leader in India's mobile market, which found that Samsung workers were poorly paid with no way to effectively have their grievances addressed.

A Samsung India spokesman said the company complies by all relevant labour laws and regulations wherever it operates.

"Fairness and respect for all are the values that form the foundation of our business," the spokesman said in a statement.

While most of the 100-odd phone companies in India largely import from China and Taiwan, companies are increasingly heeding Prime Minister Narendra Modi's call to "Make in India", an initiative launched in 2014 to emulate China's export miracle.

Chinese phone maker Xiaomi rolled out its first locally made smartphones last year from a facility in the southern Indian state of Andhra Pradesh.

The "Make in India" drive to boost manufacturing is aimed at luring more investment, raising economic growth and creating jobs in industries such as electronics and apparel.

But these efforts lack sufficient checks and balances for millions of workers who face archaic labour laws, low wages, few benefits and little job security in businesses that often flout laws on safety or underage workers, activists say.

In the country's electronics industry, working conditions are "among the worst", according to a 2013 report by Hong Kong-based labour rights non-profit Asia Monitor Resource Centre.

Not all efforts to produce cheap electronics have been successful. In 2008, the Indian government unveiled a $10 laptop that ended up costing more than $100, while a $20 Android tablet sold through a subsidy scheme failed to capture significant market share.

"Companies like to say cheap phones and computers is about digital empowerment and democracy," said Raphel Jose at the Centre for Responsible Business in New Delhi.

"But we must stop and ask, 'what is the real cost of these cheap devices? Who pays the price?' Cheap is not always good," he said.

Source: Freedom 251: Will cheaper smartphones come at cost of labour rights?

Game of Smartphones: Why neither Apple nor Google can win this war with China

Image: HBO/ZDNet

How about that season six finale of Game of Thrones? Awesome, right? Ok, no spoilers here. But if you haven't watched it and are considerably behind, consider binging the show over this long holiday weekend,

I see a lot of parallels between Game of Thones andthe technology industry. In fact, a lot of tech industry opinion you see on the Internet nowadays is analogous to the fandom surrounding Game of Thones -- there are all kinds of theories regarding what is likely to happen, who is going to get wiped out next, which player is going to come out on top, et cetera.

As it relates to the mobile tech industry, a lot of the theories of who is going to beat whom and how they are going to do it are as fanciful as a dragon-flying army of half-naked Valyrian she-warriors wielding giant broadswords coming back through a time portal in order to destroy the Lannisters before they can seize the Iron Throne before Season 1, thus altering future history.

Dude it just ain't gonna happen. But sign me up to write the script for HBO.

I realize it is fun to watch the seemingly never-ending Google versus Apple "war" and micro-analyze every single OS and product release and predict how some upcoming minor feature or technology advancement gives one party the edge over another.

For geeks this is spectator sport. We like the shedding of blood, the incestuous litigation, and public feuds. We like watching our beloved and despised products and our favored/disliked vendors get hammered or succeed in the marketplace.

It's not unlike how we've been subjected to the entire main plot line of Game of Thrones for six years, which involves competing houses fighting for supremacy and ultimate possession of the Iron Throne.

So much wasted effort by dramatis personae, only to get their hopes and lives dashed so quickly. Watching the balance of power between families shift back and forth.

All while unbeknownst to most of the characters, a giant army of Ice Zombies approaching from beyond The Wall prepares to kill them all.

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And yeah, I realize the pretty blonde with three full grown dragons, a huge army of Unsullied and Dothraki barbarians and a massive fleet of Iron Island warships is coming across the Narrow Sea. But stay with the analogy for the moment.

The Giant Freakin' Army of Ice Zombies, or the Wights, led by the White Walkers, were created millennia ago by the Children of the Forest during their war against the First Men. The White Walkers create more zombies from people their army conquers.

Basically they got an endless supply of zombies. They are a renewable resource. Are you following me?

Google created Android. They open sourced it. It's out there. It's extremely unlikely, because of the massive developer bad will it would generate, but could certainly close-source future versions of it.

However the genie is out of the bottle, and Android Open Source Project could be forked as a derivative work. Endless amounts of Android devices can be made by 3rd-parties without Google having any say in it.

Sure, they could make their own Uber-Nexus, go to market with that to try to distract from all that Android fragmentation, and do magical things to try to steal market share away from Apple. That seems like a strong possibility.

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That would be an interesting battle to watch, but it ain't gonna stop the Giant Freaking Army of Ice Zombies. And when I mean Ice Zombies I mean extremely competent and powerful Chinese manufacturing giants such as Huawei, Xiaomi and ZTE. And instead of the North they're coming from Shenzen.

By the way, these Ice Zombie smartphones are pretty damn impressive. I embrace my Ice Zombie overlords. Sign me up, the health benefits alone are extremely attractive.

And Apple? I'm pretty sure Apple already knows about the Ice Zombies, they know the iPhone business is in a slow decline, and they know they can continue to make money from a loyal customer base for some time to come.

But they know they can't defeat the Ice Zombies. If they go to war with the Giant Freaking Army of Ice Zombies, they are toast.

They know most people can't afford to pay $600 for a smartphone. If a perfectly viable alternative exists for $200, most consumers are going to opt for that instead. They know they are a luxury goods manufacturer. They know they have pretty much maxed out market share for what they have, and they are in maintenance mode.

Most people can't afford to buy luxury goods, and no amount of fan theories about iPhone 7/8 or fantasy Google Uber-Nexi by a bunch of millennial hack tech bloggers who don't know their heads from their asses about large scale manufacturing or supply chain management or basic economics is going to change that.

China is going to transform the mobile industry landscape. That much is certain. Apple and Google and its most favored Android OEMs and are living on borrowed time. The Ice Zombies are going to lay waste to the current smartphone industry, and nothing is going to stop them regardless of who ends up in the Iron Throne in Washington in November.

The only defense Apple and Google has -- and my bet is on Apple to be the one that figures it out first -- is innovation, and moving on to the next thing, and creating a new market entirely before that one is also mowed down by the Ice Zombies.

What market is that? It could be wearables. It could be augmented and virtual reality. It could be the next wave of IoT. All I know is it isn't smartphones.

The Ice Zombies are always going to be there. The Ice Zombies were always there. Now they are mobilized, and they are more enabled than ever.

Who is ready for the Ice Zombies? I'm going to start taking courses in Zombinese. Talk Back and Let Me Know.

Source: Game of Smartphones: Why neither Apple nor Google can win this war with China

Did you know the third largest OS in the world is from China?

Somewhat like IndusOS, only on a larger scale.

You've heard of Android, you've heard of iOS, you may even have heard of something called IndusOS, but have you heard of YunOS? Developed by China's Alibaba Group, this is a Unix-based smart Operating System, meant for everything from smartphones to air conditioners. The company says, YunOS has grown by 700 percent for smartphones year-on-year in 2015, and operates on over 100 million smart terminals. During a media tour of its booth at MWC, Shanghai, the company claimed that YunOS is the third largest OS in terms of smartphone shipments, in the world. According to Alibaba Group, YunOS has been shipped on 70 million smartphones by May 2016.

On display here at its booth is a Meizu smartphone, running on FlyMe OS. It looks exactly like the Android-based FlyMe OS that we see in India, except that this one runs on YunOS. Spokespeople here clarified that the YunOS version of the Meizu smartphone is not shipped anywhere except China, but eventually, the units do transcend the country's borders. YunOS already has a virtual machine built into it, which allows most Android apps to run. Developers can also build directly for the OS itself. The features include everything - from regular push notifications to more gimmicky applications like face recognition. We also saw the OS running a home automation robot that looks much like the Aguabot from Milagrow, available in India.

The use of YunOS in smartphones is confined to China at the moment, but that's not the only thing that the OS powers. The company displayed air conditioners, televisions from Pioneer, smart screens and smartwatches,  all running on YunOS. In smartwatches, the OS comes with NFC-powered payment abilities as well. The company showcased a YunOS-based smartwatch from FIYTA, which can deliver notifications to your smartphone, as well as make payments on NFC-based services.

Perhaps none of that makes YunOS quite as interesting as having it on a car, though. The company is launching what it calls the first Internet-connected car, soon. The details of YunOS' features on the car are rather hushed, but the representatives here confirmed that it'll support both 4G and 5G, and has the first automobile map in China. YunOS also has the capacitiy to connect devices running on it, meaning you can control all of them from a single app, if the developer wants so. That's somewhat like a derived implementation of what Apple has done with its multiple operating systems for varying form factors.

YunOS, on first look, seems like a Chinese answer to Android, like Baidu is to Google, or Weibo is to Twitter. As of now, I can only wonder whether all these Chinese firms will one day take it beyond the country.

Prasid Banerjee  prasid.banerjee@9dot9.in

You haven't known tech unless your parents listen to what you say without looking at you as if you speak hebrew.

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Source: Did you know the third largest OS in the world is from China?

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Source: Honor 8 flagship smartphone to launch in July: Report

Nubia launches flagship frameless smartphone

Ni Fei, co-founder of Nubia Technology Ltd speaks at the launching ceremony of the Nubia Z11 in Beijing on June 28, 2016. [Photo provided to chinadaily.com.cn]

Nubia, ZTE Corp's upmarket smartphone brand, unveiled a 5.5-inch screen handset on Tuesday in Beijing, reinforcing its edge in the rimless smartphone market.

With the help of "arc Refractive Conduction" (aRC) 2.0 upgraded technology, the flagship frameless Z11 makes the phone frame hidden under the display's matrix.

"The frameless device is the fruit of imagination, which has been recognized by consumers at home and abroad. We hope Nobia's imagination can become the driving force behind the smartphone industry," said Ni Fei, co-founder of Nubia Technology Ltd.

The domestic smartphone vendor rushed into the public eye when China's first lady, Peng Liyuan, was spotted taking pictures with a Nubia Z5 Mini during a State visit to Germany in 2014.

Equipped with a rear camera based on the sensor Sony IMX298 resolution of 16 megapixels, the new model continues to emphasize Nubia's strength in shooting.

Nubia Z11 has a HD screen for the surface, the currently most powerful Snapdragon 820 processor at its heart and a built-in 3000mAh battery.

Priced at 2,499 yuan, the standard version is equipped with 4GB RAM and 64GB ROM. The exclusive version, which is 1,000 yuan higher in price, has 6GB RAM and 128GB ROM.

Online orders began Tuesday and the first shipment will be made on July 6.

People try out Nubia's latest handsets at the launching ceremony of the Nubia Z11 in Beijing on June 28, 2016. [Photo provided to chinadaily.com.cn]

As the smartphone maker signed Portuguese soccer superstar Cristiano Ronaldo as its global ambassador last month, Z11 also offered a limited edition with the Real Madrid star's signature on the back.

In December, Nubia secured 1.93 billion yuan in investment from an investment arm of Suning Commerce Group, one of China's largest electronics retailers.

According to consulting company International Data Corporation (IDC), the growth rate of the smartphone market will continually suffer a slowdown in 2016. IDC estimated that global shipping volume will reach 1.48 billion units, up 3.1 percent. That's lower than the same figures achieved in the past two years, 10.5 percent and 27.8 percent, respectively.

Source: Nubia launches flagship frameless smartphone

This company is making a $4 smartphone

BII

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Smartphones typically cost in the triple digits, but one company is looking to drastically reduce that price tag.

Indian company Ringing Bells will start shipping the Freedom 251, an Android-based smartphone that will sell for an almost unthinkable $4. The company expects to ship 200,000 smartphones starting on June 30, reports Engadget.

The phone has generated controversy since it was revealed in February because of confusion about the incredibly low price and the fact that it's almost identical to the Chinese phone Adcom Ikon 4 that retails for $54.

Ringing Bells CEO Mohet Goel said in a recent interview that the company actually loses approximately $2 per handset sold. But the company wants to make up for this loss by increasing how many handsets it sells through bulk orders, by forging partnerships with app developers to put products on its phone, and by using subsidies from the Indian government or private donors.

The technical specifications of the phone are not all that impressive. It has a 4-inch 960x540 screen, a 1.3GHz quad-core processor, 1GB memory with 8GB expandable storage, an 8-megapixel rear camera, and a 3.2 megapixel front camera. The phone uses Android Lollipop 5.1 with 3G capabilities.

Analysts have understandably questioned if Ringing Bells' business model is sustainable. Regardless, the Indian market is the second-largest smartphone market in the world after China and is also one of the fastest-growing international markets.

Smartphone manufacturers that can manufacture inexpensive devices have a tremendous opportunity, as the Indian market for smartphones that cost less than $150 is expected to grow 44% in 2016.

This is crucial because the global smartphone market is expected to slow considerably over the next few years. Despite a record-setting holiday quarter, 2015 was likely the last year of double-digit growth for smartphone shipments.

Mature markets were at the heart of this year's deceleration. Adoption has reached new highs in key markets in the United States, Europe, and China. The pool of first-time buyers in these countries is shrinking rapidly, and sales are now primarily coming from phone upgrades.

Meanwhile, emerging markets will continue to see robust shipment growth. India and Indonesia, in particular, will help fuel a large share of the shipments growth within the global smartphone market over the next few years.

Will McKitterick, senior research analyst at BI Intelligence, Business Insider's premium research service, has compiled a detailed report on smartphones by country that forecasts the market through 2021 to reflect slower, stabilizing growth in the long term.

Here are some key points from the report:

The global smartphone market is still growing at a steady pace due to more widespread adoption in emerging markets. We estimate the global market will hit about 2.1 billion units shipped in 2021.

Shipments growth over the past few years has been driven by the falling price of smartphones, which has made handsets more accessible in emerging markets. The average selling price of a smartphone in India nearly halved between 2010 and 2015.

With relatively low smartphone penetration, we forecast Indian smartphone shipments to grow rapidly over the next five years. Nevertheless, India has a long way to go before it surpasses China as the world's leading market for smart handsets. India is estimated to account for roughly 10% of the global smartphone market in 2016, considerably less than China's 30% share.

The global platform wars are over, even as smartphone adoption continues to rise across various markets worldwide. Android and iOS are estimated to account for 97.3% of global platform market share in 2015, compared to 96.3% last year.

Apple closed the year with another strong quarter on the back of its iPhone 6s and iPhone 6s Plus launches. Still, the vendor saw a slight decline in YoY growth of its share of the market in the face of stiff competition from Samsung and Chinese vendors such as Huawei.

In full, the report:

Forecasts global smartphone shipments through 2021.

Explores why India is the next high-growth smartphone market.

Breaks down the global smartphone platform wars.

Discusses smartphone vendor performance market share.

To get your copy of this invaluable guide, choose one of these options:

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Source: This company is making a $4 smartphone

JDI to sell factory in southern China to Jiangxi Holitech Technology

JDI to sell factory in southern China to Jiangxi Holitech Technology

Fan Ren-chi, Taipei; Adam Hwang, DIGITIMES [Monday 27 June 2016]

Japan-based panel maker Japan Display Inc. (JDI) will sell a small- to medium-size LCD module factory in southern China owned by Morningstar Optronics Zhuhai (MOZ) to China-based touch panel maker Jiangxi Holitech Technology at JPY1.65 billion (US$16.15 million), according to Japan-based Nikkan Industrial News.

MOZ is a subsidiary of Taiwan-based LCD module maker Star World Technology, of which the majority shareholder Taiwan Display is JDI's wholly owned subsidiary. Through the sale of MOZ's factory, Taiwan Display will have a 100% stake in Star World Technology.

JDI has set up three LCD module subsidiary makers, JDI Device and JDI Electronics in Suzhou, eastern China, and Shenzhen JDI in Shenzhen, southern China, for producing touch panels mainly for supply for China-based smartphone vendors. Viewing that the China smartphone market has undergone a large change, JDI has decided to dispose of its production bases in China. JDI will decide on detailed plans to dispose of the three China-based subsidiaries by the end of July.

Source: JDI to sell factory in southern China to Jiangxi Holitech Technology

The $4 smartphone is real, and it could change the world

In a market as competitive as smartphones, you can bet that every once in a while a company is going to come around and shake things up. Today that company seems to be India's Ringing Bells, which has announced that it will begin delivering its Freedom 251 smartphone to eager consumers on June 30. What's making these customers eager isn't the phone's list of specifications or some form of brand loyalty, but rather the handset's price - coming in at Rs 251, this phone is sporting a price tag that's a whopping $3.70.

There were no misplaced decimals in that figure, as Ringing Bells is indeed rolling out a smartphone that costs less than $4. An insane figure to be sure, and it shouldn't come as much of a surprise that Ringing Bells CEO Mohit Goel says the company will be taking a loss on each handset sold. The goal here is volume, and Ringing Bells definitely has the inventory: Goel says that his company has 200,000 handsets to deliver to consumers at the end of this month.

The Freedom 251 offers a four-inch qHD display, 3G capabilities, a 1.3Ghz quad-core processor, 8GB of internal memory, and an 8MP rear shooter. Add to that an 1,800 mAh battery and 1GB of RAM, and you can see why the spec list isn't the main attraction here. Still, for $4, it's hard to complain about the specifications no matter how lackluster the final list may be.

It would seem that a fairly large number of Indian consumers agree with that notion, and it isn't hard to see why. As smartphones become more and more advanced, their price tags keep inflating. Carriers here in the US are happy to waive the upfront cost of a device in return for monthly payments tacked onto your wireless bill, but many consumers are discovering that larger monthly bills aren't exactly a good alternative to the subsidized phones of the past. In the end, you're left with two choices: pay a ton of money upfront to buy the phone outright or opt for monthly installments and dread opening your wireless bill month after month until the phone is paid off. It's not really a pleasant decision to be faced with making.

That's what makes the Freedom 251 so appealing, though. For someone who just needs a smartphone to do a few simple things - making calls, sending texts, checking email, and some light web browsing - the phone may just be good enough. It's not as if you can really go wrong for $4, either. If the phone's a total bust, you're not out much money, and if it does what you require of it, then you just saved a ton of cash while landing a phone that meets your needs.

We also need to consider that this phone is launching in India, which is one of the largest smartphone markets in the world. In places like China and India, high-end phones seem to take a backseat to more budget-friendly devices, and smartphone manufacturers are feeling that pinch. American and European consumers might go crazy for the latest and greatest, but it's going to be increasingly difficult to ignore two of the largest smartphone markets, which often seem willing to sacrifice flair and power for utility and value.

With that in mind, the Freedom 251 might just end up being a hit. Ringing Bells is certainly betting on it, as it expects to sell 200,000 units each month from here on out. Will it be a bust or will it be a winner? That remains to be seen, but what's clear at this moment is that we should absolutely pay attention to Ringing Bells and its new handset. If it manages to succeed, it could have big implications for the smartphone market.

Source: The $4 smartphone is real, and it could change the world

Chinese OEMs Xiaomi & LeEco Rumored To Be Interested In Dual Cameras

The dual camera smartphone design has exactly caught on. We've seen some OEMs such as HTC attempt to create such a design, but like we said, it hasn't exactly caught on because we're not exactly seeing other smartphone makers rush out to include similar features in their handsets, but it seems that more companies are starting to warm up to the idea.

According to the latest rumors, both Xiaomi and LeEco are said to be interested in dual camera designs, so much so that they will be purchasing the components from a division of Samsung's that makes the dual camera modules. However this isn't where it ends as Samsung is also said to be supplying Oppo with similar modules.

Interestingly enough while Samsung is said to be creating and supplying these dual camera modules to other OEMs, the company has yet to implement such a design in their own smartphones. So far Samsung's smartphone cameras have yielded pretty good results, so maybe that's why they haven't really seen the need for a dual camera setup.

In the meantime, there are also rumors that Apple could be going with a similar design with the iPhone 7 Plus. The rumors claim that there could be a special variant of the iPhone 7 Plus that will feature the dual camera modules, but it should probably be taken with a grain of salt for now.

Filed in Cellphones >Photo-Video >Rumors. Read more about Samsung and Xiaomi.

Source: Chinese OEMs Xiaomi & LeEco Rumored To Be Interested In Dual Cameras

Qualcomm Sues Alibaba-Backed Smartphone Maker Meizu for Patent Infringement

Updated June 24, 2016 9:57 a.m. ET

HONG KONG—Qualcomm Inc. is suing a Chinese smartphone maker backed by online-shopping giant Alibaba Group Holding Ltd., in the latest patent-infringement case involving technology companies.

The U.S. chip maker said it has filed a complaint in a Beijing court against Meizu Technology Co. over its alleged violation of intellectual property.

Qualcomm's litigation against Meizu, in which Alibaba holds a stake, is part of the U.S. company's attempt to protect its licensing business in the world's largest smartphone market, where it has faced regulatory challenges in recent years including an antitrust investigation by Beijing. Since Qualcomm reached a settlement with Chinese authorities last year and agreed to pay a fine, the chip maker has signed patent-licensing agreements with a number of Chinese clients, including Huawei Technologies Co. and Xiaomi Corp.

"Meizu is choosing to use [Qualcomm's] technologies without a license, which is not only unlawful, but is unfair to other licensees that are acting in good faith and respectful of patent rights, and ultimately damaging to the mobile ecosystem and consumers," said Don Rosenberg, executive vice president and general counsel of Qualcomm, in a statement.

Qualcomm said it had negotiated with Meizu to sign a licensing agreement, but the Chinese company was unwilling to do so, prompting the U.S. firm to take legal action. For Qualcomm, technology licensing is a crucial part of its business, accounting for more than half of its profit.

"Meizu has always been staying in close communication with Qualcomm on the patent issue, and has conducted several in-depth discussions with them. We respect Qualcomm's right to take legal action if they're not satisfied with the business negotiation," Meizu Vice President Li Nan wrote on his official page on the WeChat messaging application. If Qualcomm wanted to resume their discussions, Meizu would welcome it, Mr. Li added.

An Alibaba spokeswoman declined to comment.

Meizu, a closely held company based in the southern city of Zhuhai, is one of many Chinese smartphone makers offering devices with high-end features at bargain prices. Last year, Alibaba invested $590 million in Meizu, without disclosing the exact size of its stake.

The latest legal dispute comes as patent battles heat up in China among domestic and international competitors. Shenzhen Baili, a little-known Chinese startup that barely exists, has won a surprise injunction against sales of Apple's iPhone 6 and iPhone 6 Plus in Beijing, based on a design-related patent it claims to own in China. Last month, Chinese telecommunications giant Huawei, the world's third-largest smartphone maker, sued Samsung Electronics Co. in China and the U.S., claiming that the South Korean smartphone giant violated 11 of its mobile patents.

Write to Juro Osawa at juro.osawa@wsj.com

Source: Qualcomm Sues Alibaba-Backed Smartphone Maker Meizu for Patent Infringement

Qualcomm caught in patent wars in China

The mobile patent wars are heating up in China.

Qualcomm sued a Chinese smartphone maker backed by billionaire Jack Ma's Alibaba shopping site, accusing it of using its technology without a license. The Chinese smartphone brand, Meizu, which is offering high-end features at bargain prices, denies it is flouting copyright laws.

Qualcomm is in a tight spot after tangling with Beijing authorities in recent months over antitrust rules, resulting in a fine of nearly $1 billion. Even worse, Qualcomm was forced in a settlement to take lower royalty rates in China, which accounts for more than half its profits.

China's smartphone makers "have a huge home-field advantage over foreign companies" when using Qualcomm parts for China-bound smartphones, said Erick Robinson of law firm Rouse & Co., who is also a former Qualcomm exec.

"They get Qualcomm chips for a huge discount compared to what Qualcomm charges non-Chinese companies," Robinson said.

Meizu's operating without a license from Qualcomm is "not only unlawful, but is unfair to other licensees that are acting in good faith and respectful of patent rights,"

Qualcomm's general counsel Don Rosenberg said in a statement.

The tiff comes amid growing tensions between US manufacturers and China's patent courts. Apple lost a Beijing ruling last week over sales of its iPhone 6 and 6 Plus after a challenge by Shenzhen Baili — a Chinese firm whose very existence has been questioned.

Source: Qualcomm caught in patent wars in China

China’s TCL to launch smartphone with Iris scanner in India

By IANS on Jun 25, 2016 at 11:04 AM comments Tags: Smartphone TCL News

Unlock your phone with blink of the eye soon. One of China's biggest electronics manufacturers TCL Corporation is all set to launch in India a smartphone that will have the unique eye-biometric (retina-based) verification feature. Sporting a curved design, the device with 1.1GHz quad-core processor will also be a delight for selfie-lovers.

TCL, which currently sells smartphones in over 170 countries (including India) in partnership with Alcatel, will unveil the new brand in the first week of July in India, company sources told IANS. They, however, did not divulge more details as of now.

A range of Android-based smartphones have been launched under the Alcatel OneTouch brand in India. According to US-based market research company IC Insights, TCL was at tenth spot in list of top-12 companies who have sold the most number of smartphones worldwide in the first quarter of the year.

ALSO READ: F-Secure partners TCL to protect Android users with online privacy, encryption

TCL Corporation also sells products including television sets, mobile phones, air conditioners, washing machines, refrigerators and small electrical appliances.

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Source: China's TCL to launch smartphone with Iris scanner in India

Qualcomm Sues China's Meizu for Patent Infringement

Qualcomm is going after Chinese smartphone maker Meizu for an alleged intellectual property violation.

The US chip giant on Thursday announced it has filed a complaint in Beijing Intellectual Property Court against Meizu, a popular Chinese smartphone marker that's largely unknown here in the US, after failing to reach a patent license agreement with the company.

"Meizu is choosing to use [Qualcomm's] technologies without a license, which is not only unlawful, but is unfair to other licensees that are acting in good faith and respectful of patent rights, and ultimately damaging to the mobile ecosystem and consumers," Don Rosenberg, executive vice president and general counsel of Qualcomm Incorporated, said in a statement.

The suit comes after Chinese regulators last year fined Qualcomm 6.088 billion yuan ($975 million) and issued new terms for the chip maker to license its technology in China following a lengthy antitrust investigation. Since that settlement, Qualcomm has signed patent-licensing agreements with several Chinese clients, including Huawei and Xiaomi, according to The Wall Street Journal.

Qualcomm said it "negotiated extensively" with Meizu to sign a licensing agreement, but the Chinese company has been unwilling to do so, all the while "expanding its business through the use of Qualcomm's innovations" without compensating the chip maker.

"We are, and have been, a good partner in China, and we are pleased to see how China's mobile ecosystem is thriving," Rosenberg added. "Chinese smartphone suppliers are succeeding both domestically and globally, and we are pleased to help drive that growth. Qualcomm looks forward to continuing to increase its level of commitment to, and investment in, China across both the wireless and semiconductor ecosystems."

Fledgling provider US Mobile in February took it upon itself to introduce Americans to Meizu and Xiaomi, but that idea quickly crashed and burned.

Source: Qualcomm Sues China's Meizu for Patent Infringement

Qualcomm seeks Chinese court’s help against defiant phone maker

Qualcomm is seeking the help of a Chinese court to get a local smartphone maker, Meizu, to agree to licensing terms for patents that the company broadly agreed to with the Chinese government last year.

The chip company said Friday it has asked the Beijing Intellectual Property Court for a ruling that the terms of a patent license it offered Meizu comply with China's Anti-Monopoly Law, and the U.S. company's "fair, reasonable and non-discriminatory licensing obligations."

Qualcomm alleges that Meizu in Zhuhai is refusing to sign the patent agreement although over 100 players, including top Chinese phone makers, have accepted the terms under a new rectification plan agreed with China's National Development and Reform Commission (NDRC) last year.

Set up in 2003, Meizu has more than 1,000 employees and sells its smartphones through 600 retail stores. Besides selling in China, it claims a global presence in Hong Kong, Russia, Israel and Ukraine, according to its website. The company did not immediately comment on the court complaint.

In February last year, Qualcomm said it had agreed to pay a US$975 million fine to Chinese authorities for alleged monopolistic business practices relating to its patent licensing business. It also agreed to modify its business practices. NDRC had been investigating Qualcomm for allegedly engaging in possible anti-competitive behavior by overcharging device makers in the country.

Qualcomm has been building its bridges in China, including by setting up a server chipset design and sales unit with the Guizhou provincial government. The company has also announced other collaborations in the country that would help it gain access to the local market, including for the local production of its Snapdragon mobile processors by Semiconductor Manufacturing International Corporation.

SMIC said this week that it had started mass production of the Qualcomm Snapdragon 425 processor in Beijing.

Qualcomm charged Meizu with "unfairly expanding its business through the use of Qualcomm's innovations without compensating Qualcomm for the use of Qualcomm's valuable technologies." It added that Meizu's move to use the technologies without a license was also unfair to other licensees.

Apple is also facing legal issues in China with its iPhone 6 and iPhone 6 Plus facing a potential sales ban in the country. A Beijing intellectual property office ruled that the iPhone 6 and iPhone 6 Plus infringe a design patent held by device maker Shenzhen Baili.

Source: Qualcomm seeks Chinese court's help against defiant phone maker

Chinese company suing Apple to ban iPhone 6 'barely exists,' says report

Apple is being sued for patent infringement over the iPhone 6 by a Chinese company no one can seem to locate.

Sarah Tew/CNET

A Chinese company suing Apple for patent infringement appears to be virtually non-existent.

Known as Shenzhen Baili Marketing Services, the company filed a lawsuit against Apple in 2014, claiming that the iPhone 6 and 6S looked too much like its 100C phone. Baili wanted a ban placed on iPhone 6 sales in Beijing, something the capital city's intellectual property regulator was prepared to do. But Apple filed an appeal, which means the iPhone 6 lineup remains on sale in Beijing.

Phone calls to Baili, which is owned by Chinese smartphone manufacturer Digione, were unanswered, according to the Wall Street Journal. Baili's websites no longer exist. And visits by the Journal to the three registered locations turned up no company offices.

CNET attempted to track down Baili but couldn't find a website for the company.

Further, Baili and Digione are both broke as their debt is greater than their overall assets. Digione's colla pse was the result of "buggy products, mismanagement and fierce competition," former employees and investors told the Journal.

The lack of any obvious presence is just the latest wrinkle in the bizarre case that has wrapped up Apple in yet another patent infringement case. The lawsuit highlights the tough environment Apple faces in China, which also ruled earlier this year that Apple doesn't own the rights to the iPhone trademark.

Despite its lack of presence, Baili is "still operational in its necessary functions," and will continue to fight Apple in court, Digione lawyer Andy Yang told the Journal. Baili may even think about escalating its lawsuit to include the iPhone 6S and iPhone 6S Plus, Yang added. But with its appeal in place, Apple needn't worry about a ban on iPhone sales in Beijing, at least not for now.

Apple did not immediately respond to CNET's request for comment.

Source: Chinese company suing Apple to ban iPhone 6 'barely exists,' says report

Digitimes Research: NFC-based mobile payments will struggle to replace 3rd-party e-payments in China

Digitimes Research: NFC-based mobile payments will struggle to replace 3rd-party e-payments in China

Benson Wu, DIGITIMES Research, Taipei [Wednesday 22 June 2016]

While the launch of Apple Pay services in the China market on February 18, 2016 has stimulated use of NFC-based mobile payment services, NFC services will find it difficult to replace third-party e-payments, such as Baidu Wallet, Alipay, TenPay and YeePay, mainly because NFC-enabled POS devices are not deployed widely enough and only high-end and some mid-range smartphone models support NFC, according to Digitimes Research.

The total transaction value of NFC- and 2D barcode-based mobile payment services in the China market in 2015 reached CNY108.2 trillion (US$17.22 trillion), hiking 379% on year, Digitimes Research indicated. However, providers of third-party e-payment services offered subsidies to maintain their user bases and market shares.

For NFC-based mobile payment services, banks tend to play a role of increased importance, and in contrast mobile telecom carriers are losing influence in the market. In addition, growing use of NFC-based mobile payment services is expected to result in a reshuffle of market shares among smartphone vendors.

Source: Digitimes Research: NFC-based mobile payments will struggle to replace 3rd-party e-payments in China

TCL looks to innovation to counter smartphone slowdown

China-based device maker TCL Communication is participating in another CNY10 billion ($1.5 billion) M&A fund, and is looking to boost its presence in markets such as VR, as it sees continued tough times in its smart devices business.

The company, which uses the Alcatel brand for its international products, said that to 31 May, it has sold 14.6 million smart devices, down 14 per cent from 17 million in the same period last year. Total sales of handsets and other products was 28 million units, up 3 per cent.

It previously noted that as its Chinese counterparts have also looked to expand into international markets, competition has intensified, pressuring its prices and profitability.

The company highlighted the rollout of its latest products worldwide, noting its "ambition to regain its market share in Asia Pacific region".

InvestmentFollowing the creation of a CNY10 billion industry M&A fund by TCL and Tsinghua Unigroup earlier this year, TCL has now partnered with Hubei Province Yangtze River Guide Fund and Hubei Science and Technology Investment in May to set up another similar-sized pot.

The company said the effort is "investing with a focus on fields such as semiconductors and Internet+ to establish an industry-chain-integrated ecosystem, promote comprehensive 'Intelligence+Internet' strategic transformation and to build and enhance the Product+Service business model".

Virtual realityTCL also said it is working with VR, including being one of the first global handset brands to support Google's Daydream platform. The intention is to launch a Daydream-ready smartphone in the first half of 2017.

"Currently, the group's engineers and designers are working closely with Google to enhance the user experience of the platform, by offering an immersive audio experience, better display and premium content, including music, gaming and entertainment," it said.

The company also said it is "enriching the VR ecosystem by providing innovative solutions ranging from hardware, content and user experience".

Source: TCL looks to innovation to counter smartphone slowdown

Sony smartphones will no longer be manufactured in Brazil

The entire Sony Xperia X line-up is ready for pre-orders in the US, and the timing is right, as we've just recently wrapped up our Xperia X review (we'll also shortly review the flagship X Performance). Foxconn and Arima were the companies building some previous Sony smartphones in São Paulo, but Sony has decided to stop manufacturing smartphones in Brazil.

The decision has been confirmed by Sony's marketing director Ana Peretti, and the reasons behind it are purely financial, as Brazil has put an end of tax exemptions concerning smartphones produced locally. The new Xperia X Sony smartphones sold in the country are already coming from batches manufactured in China and Thailand.

As a reminder, Xiaomi has also ceased its smartphone production in Brazil.

Source: ZDNet

Source: Sony smartphones will no longer be manufactured in Brazil

Daily Report: China Has the World’s Most Powerful Computer (Again)

Photo

By some measures, China now has the world's best computer. The question is whether America should worry about it.

As John Markoff writes, China dominates the newest list of the world's fastest supercomputers, with both the fastest calculating machine and the most computers among the world's 500 fastest machines.

The United States was a strong second, but it used to dominate the list. From the American point of view, not good.

On raw numbers, the winning machine is quite a piece of engineering. Supercomputer performance is measured in what are called "floating-point operations," or flops, which are the math exercises involvi ng numbers carrying a decimal point. This year's winner from China does 93 quadrillion (a thousand million, times a million) of them a second. That's about three times faster than last year's winner from China.

Perhaps as impressive as the outcome is the means by which the machines' engineers arrived at the output. The United States does not allow the shipment of advanced semiconductors to China, because chips of that kind can be used in weapons design. So the winning team figured out how to string together over 40,000 Chinese-made chips, each with the processing power of a nice smartphone.

That achievement also underlines some shortcomings in viewing this as a straightforward competition, however. The winning computer required as much power as would be needed for 15,000 American homes, and seemed to hit that power level by using relatively little memory.

It is a fine machine, but it may not be a very practical machine. The real race now may be how quickly China can develop its own artificial intelligence industry, along with high-performance semiconductors. These could, if combined with the networking know-how shown by this machine, make a severely daunting computer. It is spending billions on that effort.

Even more than for the bragging rights, supercomputers now matter for everythin g from weather forecasting to packaged-goods design. They are increasingly important for the great number of products and processes that are being developed using A.I.

The United States lost the race to the top in supercomputers, but it still placed pretty well. It had 165 machines on the list, compared with 167 for China. Japan, which came in third, had 29 computers on the list. The United States had the largest number of supercomputers in the top 20.

And the United States has leading researchers in A.I., both in universities and at companies like Google, Amazon and Facebook. The companies matter because they have lots and lots of data on which to train machines, a critical part of making algorithms work better.

Inte l, the world's largest maker of semiconductors, is now focusing on the use of high-performance chips in commercial A.I., particularly as part of overall computing systems of chips and data. On Monday, Intel showed the latest A.I. features of its high-end commercial chips at an international supercomputing conference in Germany.

One feature that figured in the presentation was the ability to deliver nine times the performance of other commercial A.I. systems for the same money. That is a metric the supercomputing list doesn't consider. But, as they say, it's money that matters.

"People miss the importance of making powerful machines accessible to everyone," said Nidhi Campbell, who runs Intel's work in this area. "This has implications for lots of things in the future, like autonomous cars, bu t first it has to work easily and well."

Continue reading the main story
Source: Daily Report: China Has the World's Most Powerful Computer (Again)

China Smartphone Makers Snap Up Patents in Fight for Market Dominance

Updated June 20, 2016 10:43 a.m. ET

HONG KONG—China's smartphone makers increasingly are turning to patents as ammunition as they try to reel in global leaders Apple Inc. AAPL -0.24 % and Samsung Electronics Co. SSNHZ 0.00 %

Chinese technology giants from Huawei Technologies Co. to ZTE Corp. ZTCOY 4.55 % and Lenovo Group Ltd. LNVGY 0.20 % are acquiring patents through licensing deals, acquisitions and hefty spending on research and development—moves that could signal more legal challenges for Apple and Samsung not just in China, but overseas as well.

Huawei, which has an ambitious goal of becoming the world's top smartphone maker in five years, sued Samsung in the U.S. last month, claiming the South Korean company violated 11 of its mobile patents. Samsung has said it would defend itself in the lawsuit. The suit marked the first major legal challenge by a Chinese smartphone maker against a market leader, turning on its head the idea of Chinese manufacturers being on the receiving end of patent disputes.

Last year, Huawei, the world's third-largest smartphone maker and the leader in the telecommunications-equipment market, was the largest filer of international patent applications under the Patent Cooperation Treaty, which makes it easier for companies to file patents in multiple countries, accordi ng to the Geneva-based World Intellectual Property Organization. Huawei was followed by U.S. chip maker Qualcomm Inc. QCOM 0.63 % and China's ZTE.

Patents are also playing a role in the harsher mobile landscape Apple and Samsung are navigating in China, where regulators increasingly insist that foreign companies play by Beijing's rules. Shenzhen Baili, a little-known Chinese startup, won a surprise injunction against sales of Apple's iPhone 6 and iPhone 6 Plus in Beijing, based on a design-related patent it claims to own in China.

Apple contests the claims, which analysts and legal experts say are an indication of the country's political climate. But, at the same time, major Chinese competitors such as Huawei are mounting serious efforts to build patent rights and take on the industry's big two. Three of the world's top five smartphone makers by sales were Chinese in the first quarter, including Huawei, according to research firm Gartner.

"We are going to see a lot more Chinese companies filing patents outside China, and more deals and lawsuits involving patents and technologies," said Benjamin Bai, a partner at Allen & Overy LLP in Shanghai who advises Chinese companies on international intellectual-property strategies.

A single smartphone can involve thousands of patents. The issues are so complex and thorny that Apple and Samsung have been locked in patent litigation around the world since 2011 as they battle for market dominance.

Huawei has increased its patent portfolio mainly from its extensive research-and-development investment. Over the past five years, Huawei has spent nearly $30 billion on R&D. Last year, its R&D spending rose 46% to $9.2 billion, beating the $8.1 billion Apple spent in its most recent fiscal year. Huawei now has 16 R&D centers around the world, including in the U.S. and Europe.

In a sign that Huawei is making progress in building its intellectual-property portfolio, earlier this year Apple and Huawei struck a licensing deal whereby the Cupertino, Calif., company is paying royalties for the Chinese company's patents, according to a person familiar with the matter.

Richard Yu, head of Huawei's consumer business, told about 100 engineers at its Beijing research center in a speech in January that the company would pour more money into R&D. He added that engineers' bonuses would increase as the business grows.

"We can be as big as Apple," Mr. Yu told the engineers, according to people who heard his speech.

Other Chinese smartphone makers such as Xiaomi Corp., are buying patents from Western rivals to catch up. Last month, Xiaomi agreed to purchase about 1,500 patents from Microsoft Corp. MSFT -0.12 % as it seeks to one day sell its devices beyond developing markets such as India and Brazil.

"We must systematically negotiate licenses to international patents and build a strong IP portfolio for defensive purposes, by both filing and acquiring patents," Xiaomi Vice President Hugo Barra said. Mr. Barra said Xiaomi is looking toward Western markets such as the U.S. and Europe.

Analysts said Xiaomi's intellectual property isn't strong enough to expand in developed markets such as the U.S. Xiaomi said it filed 3,738 patents in China and overseas last year, up from 2,045 in 2014.

To be sure, success in the smartphone market also requires more than just investing in patents and R&D, analysts say.

When Lenovo bought Motorola Mobility in a $2.91 billion deal in 2014, the Chinese personal-computer maker cited Motorola's patents as a reason for acquiring the company. Even with Motorola's patents, the company has struggled in the global smartphone market.

ZTE, which has expanded its patent portfolio, R&D and marketing, has become the fourth-largest smartphone maker in the U.S., according to research firm Canalys. But it ran into trade issues with the U.S. government earlier this year, which it is trying to resolve.

Still Huawei is hopeful that it can take on rivals with hefty R&D spending. At Huawei, a smartphone antenna-design team in Beijing has expanded 10-fold over the past five years to about 50 engineers. The team—one of several mobile antenna-design teams at Huawei—files four or five new patents every year, according to an employee.

When Apple released the iPhone 6S and iPhone 6S Plus last year, the team disassembled the phones and tested their antennas inside insulated rooms to compare them with Huawei's own antennas.

"We are still behind Apple, but we think the gap is narrowing," the Huawei employee said.

Write to Juro Osawa at juro.osawa@wsj.com

Source: China Smartphone Makers Snap Up Patents in Fight for Market Dominance

Apple’s patent fight loss in China seen emboldening rivals

Jun 20, 2016 - 01:34 PM UTC — AAPL: 95.88 (+0.55, +0.58%) | NASDAQ: 4864.89 (+64.55, +1.34%)

Monday, June 20, 2016 · 9:59 am · 7 Comments

"The Beijing Intellectual Property Office ruled last week that some Apple devices violate the design patents of little-known Chinese smartphone vendor Shenzhen Baili," David Ramli and Selina Wang report for Bloomberg. "While the iPhone maker appealed to keep its best-selling gadgets on the market, it could face a rising tide of lawsuits and a threat to its sales if the ruling creates a precedent, according to Counterpoint Research."

"Baili is just one of scores of smartphone brands trying to cash in on the country's mobile boom. Legitimate lawsuits are on the rise as Chinese companies build up their intellectual property through research and development, said James Yan, Beijing-based research director at Counterpoint," Ramli and Wang report. "'Chinese makers have been building their own IP pools over the past years and are able to somehow fight against industry giants,' he said. 'Apple isn't willing to publicly lose an IP case in China and the best option for them is to offer settlement fees.'"

"Apple should really have caught the potential patent violation before it reached the courts, said Benjamin Bai, the head of Allen & Overy's IP practice," Ramli and Wang report. "'They should've found the patent and dealt with it – this should never be a surprise,' said Bai, who previously had Apple as a client at his former firm. But 'there are a lot more things Apple can do to get out of this mess. You pay license fees and settle this mess. The second is to appeal and in the meantime try to invalidate the patent.'"

Read more in the full article here.

MacDailyNews Take: It's either a shakedown or stupidity because there is no infringement. If Apple's iPhone infringe on Baili's, then virtually every smartphone introduced since the iPhone debuted in 2007 infringes on Apple's design patents.

The devices compared:

Baili 100+ 100C phone

 

Apple iPhone 6

SEE ALSO:Jim Cramer: Reports of Apple iPhone's demise in China are greatly exaggerated – June 17, 2016Not even Apple can depend on fair treatment in China – June 17, 2016No, the iPhone hasn't been hit with a China sales ban, but Apple is in a sticky situation – June 17, 2016Beijing regulator orders Apple to stop sales of iPhone 6/Plus models – June 17, 2016Chinese company sues Apple for alleging 'copying' their design in iPhone 6 – June 16, 2016

Source: Apple's patent fight loss in China seen emboldening rivals

Apple’s iPhone 6 faces potential sales ban in China

Michael Kan by Michael Kan - June 20th, 2016

Apple's iPhone 6 and iPhone 6 Plus face a potential sales ban in China due to a patent dispute with a local company.

The phones infringe a design patent held by Chinese device maker Shenzhen Baili, a Beijing intellectual property office ruled, according to a report.

The office ordered Apple and its partners to halt sales of both products, though Apple has appealed and the phones are currently still on sale there. "We appealed an administrative order from a regional patent tribunal in Beijing last month and as a result the order has been stayed pending review by the Beijing IP Court," Apple said Friday in a statement.

The iPhone 6 models violate an "exterior design patent" held by Shenzhen Baili. The company was granted the patent in China in July 2014, shortly before Apple released the iPhone 6.

Shenzhen Baili used the patented design to make smartphones under its 100+ brand. The devices start at only CNY 799, or about $120, while the iPhone 6 initially sold for CNY 5,288.

Shenzhen Baili warned Apple in 2014 that it might sue for patent infringement.

It's not Apple's first legal challenge in China. In 2012 the company battled a different company there which claimed ownership of the iPad trademark. Apple ended up paying US$60 to resolve that dispute – not a huge sum considering the importance of the Chinese market.

Earlier this year, Chinese regulators shut down Apple's iTunes Movies and iBooks services without publicly stating why. Those services appear to be still offline.

China is the world's biggest smartphone market but Apple products face stiff competition there from local handset makers. In the first quarter this year, Apple ranked fifth among smartphone makers in China, according to research firm Canalys.

"'Local vendors, such as Huawei, Vivo and Oppo, are eating into the premium segment that Samsung and Apple considered their own," Canalys said at the time.

Originally published on IDG News Service. Reprinted with permission from IDG.net. Story copyright 2016 International Data Group. All rights reserved.

Source: Apple's iPhone 6 faces potential sales ban in China