Thursday, August 31, 2017

AP Exclusive: China accuses outspoken tycoon in US of rape

Escalating efforts to repatriate one of the ruling Communist Party's most wanted exiles, Chinese police have opened an investigation on a new allegation, rape, against New York-based billionaire Guo Wengui, who has been releasing what he calls official secrets ahead of a pivotal party leadership conference.

Two Chinese officials with direct knowledge of the investigation told The Associated Press that police are requesting a second Interpol arrest notice for Guo, 50, for the alleged sexual assault of a 28-year-old former personal assistant.

Guo and his representatives did not respond to repeated requests for comment, though Guo told a Chinese news outlet Friday the rape allegations were a Chinese government ploy to silence him.

The rape allegation represents a new element in the sprawling case that Chinese prosecutors are building against the real estate tycoon, who is being investigated for at least 19 major criminal cases. Allegatio ns against him include bribing a top Chinese intelligence official, kidnapping, fraud and money laundering.

The Associated Press reviewed documents related to the rape investigation and confirmed their contents with Chinese official sources in Beijing, who requested anonymity to discuss an ongoing case. The Chinese officials' disclosures to the AP — an unusual move given the political sensitivity of Guo's case in China — underscores Beijing's urgent effort to not only bring a fugitive to heel on criminal charges but also silence a potent irritant in the run-up to a key Communist Party congress during which political stability and the stifling of any challenges to the party head, President Xi Jinping, are paramount.

Although the United States does not have an extradition agreement with China, Beijing hopes that a mounting body of evidence could sway the U.S. government against extending the exiled businessman's visa, which is believed to expire in October, the Chinese officials said.

Senior U.S. and Chinese officials have discussed the allegations against G uo, according to a third person with direct knowledge of the talks. The Chinese officials are asking the U.S. to cancel Guo's visa, according to the person, who spoke on condition of anonymity because they weren't authorized to disclose the discussions.

It's unclear what steps Washington plans to take, if any. The White House would not comment on the matter.

The Guo saga highlights how China's efforts to repatriate elite Chinese seeking refuge on American soil have become increasingly contentious. The U.S. government has often refused Beijing's demands to extradite corruption suspects, citing flimsy evidence and China's opaque justice system. But the U.S. has sent back two Chinese fugitives in the past three months, including one suspected of rape.

In recent months, Guo has become a widely followed — and, in the eyes of China's leadership, highly destabilizing — social media presence by serving up sensational, if mostly unverifiable, tales of corruption and scandal within the Communist Party's innermost sanctum, including among Xi's closest allies.

In a daily stream of Twitter posts and YouTube videos tracked by Chinese who follow political gossip, Guo has revealed what he claims are everything from top leaders' secret homes in California to their bank account information and hidden stakes in busin ess empires. He has vowed to continue airing the party's secrets until China unfreezes his assets and releases his relatives who have been detained by authorities, he says, as leverage against him.

Pressure on Guo has been building since April when Interpol issued a "red notice" seeking his arrest on corruption-related charges. Chinese authorities later sentenced several of his employees for fraud in June.

Police in central China opened the rape investigation July 5 after a former employee came forward, the officials said.

In interviews with police, the woman described how she was plucked from her human resources position at Guo's real estate company in Hong Kong in 2015 and sent overseas to become his personal assistant. The woman, whose identity is being withheld by the AP, said that over the next two years, she was raped several times in New York, London and the Bahamas by Guo, who she said demanded sex from female employees as a test of their loyalty.

At times, she said, she languished in virtual detention after Guo's staff confiscated her smartphone, computer, passport and keys and forbade her from leaving her room in his luxury apartment in the high-end London neighborhood of Belgravia. To prove her case, the woman surreptitiously met a lawyer friend in London earlier this year to give a written statement about her ordeal and kept her underwear, pregnancy tests and abortion pills as evidence, according to police documents.

In a brief phone interview with the AP arranged by Chinese officials, the woman confirmed the account and described fleeing Guo's apartment to the Chinese Embassy in London in April to apply for a new passport before returning to China. She said she was speaking of her own volition and that police had assured her she could bring charges against Guo without facing repercussions for having worked for a highly sought-after fugitive.

"I just want him to face justice for what he did to me," she said .

Calls to Guo's mobile phone since Tuesday evening in New York rang unanswered. Guo also did not respond to multiple requests for comment sent by an AP reporter to his WhatsApp mobile messaging account since Tuesday. Lawyers representing him at the New York firm Boies Schiller Flexner did not respond to requests for comment.

In a livestreamed interview early Friday with Mingjing News, a Chinese-language overseas news outlet blocked in China, Guo said the rape allegations were "100 percent baseless."

"If I really raped (the accuser) repeatedly, why didn't she accuse me in New York after the first time, where the law is stronger? Why in China?" he said, adding sardonically that it would have been "great" if he had been detained by police and kept in the U.S.

Guo also acknowledged he received an AP request for comment two days ago and did not respond. "I wanted them to publish," Guo told Mingjing.

Interpol declined to comment about the latest warrant China is seeking for Guo's arrest, referring questions to national authorities as is the policy in ongoing investigations.

Born into poverty in central China, Guo transformed himself from a humble gasoline speculator into a real estate mogul who jet-setted with the likes of former British Prime Minister Tony Blair. Key to his spectacular rise, according to investigative profiles in Chinese media, was an ability to befriend officials in China's powerful security apparatus who helped him intimidate business rivals, secure deals and gain insights into the secret lives of the Chinese elite.

In one instance, according to these reports, Guo won the rights to build the iconic Pangu tower in 2006 as part of Beijing's Olympics development project by working with Ma Jian, who later became China's chief of counterintelligence, to obtain a sex tape of a Beijing vice mayor who had blocked Guo's initial bid.

In 2015, anti-corruption investigators detained Ma and later accused him of accepting $8.8 million in bribes from Guo, who fled the country. Prior to that, Guo had enjoy ed a mutually beneficial relationship with China's intelligence service, even helping to repatriate overseas fugitives, he later said in his YouTube videos.

Guo in 2015 hired American private investigators to fan out across the U.S. to look for Ling Wancheng, the fugitive brother of a disgraced top aide to a former Chinese president who possibly sought to defect, a person involved in that search effort told the AP. The person was legally barred from discussing the case publicly and spoke on condition of anonymity.

Months later, Chinese agents arrived in the U.S. to search for Ling in a covert operation that angered U.S. officials, underscoring how the issue of politically connected Chinese fleeing to the U.S. has strained relations.

"With political cases such as Ling Wancheng and Guo Wengui, the U.S. seems reluctant to send them back because both have valuable classified information about the top echelons of the party," said Willy Lam, an expert on Chinese polit ics at Chinese University of Hong Kong. "This phenomenon is a big plus for the CIA and FBI."

Lam said that although it is unlikely that Washington would send Guo back given his intelligence value, President Donald Trump "could potentially play the 'fugitive card' to put pressure on Beijing to make concessions on issues ranging from trade to North Korea."

The prospect of becoming a bargaining chip has worried Guo, according to a leaked audio recording of a meeting he held earlier this year with former U.S. Secretary of Homeland Security Jeh Johnson, who offered to lobby the Trump administration for a visa extension.

A spokeswoman for Paul, Weiss, Rifkind, Wharton & Garrison, the law firm where Johnson is partner, said a meeting between Guo and Johnson "several months ago about a possible representation appears to have been recorded and released," but the firm ultimately did not take on Guo as a client.

"I want to help you," Johnson says in the edited r ecording that recently surfaced online. "I am the only member of Barack Obama's Cabinet that has met with Donald Trump."

In the recording, Johnson suggests Guo meet with FBI agents and consider donating to human rights organizations to strengthen his case to remain in the U.S. After Guo expresses concern that Trump had already "made a deal" with the Chinese, Johnson and an unidentified woman who appears to be a Guo adviser quickly assure him that Trump would not give him up.

"He would be violating your rights," Johnson says, while the adviser points out that Guo, who goes by the name Miles Kwok, should also consider his membership in a Trump resort in Florida as a factor working in his favor.

"Miles is a member of Mar-a-Lago," she says, before Guo bursts into laughter.

___

AP writers Lori Hinnant in Paris and Julie Pace in Washington contributed to this report.

Copyright 2017 The Associated Press. All rights reserved. This material may not b e published, broadcast, rewritten or redistributed.


Source: AP Exclusive: China accuses outspoken tycoon in US of rape

Wednesday, August 30, 2017

Why Amazon Has Lagged behind in China

News on the Tech Sector: Amazon, Salesforce, Fitbit PART 5 OF 7

By Sean Allen  | Aug 30, 2017 11:33 pm EDT Amazon Prime Membership hasn't taken off in China

For years, Amazon (AMZN) has struggled to penetrate the Chinese market, which is dominated by Alibaba (BABA) and JD.com (JD). The company unveiled its Amazon Prime membership in China in October 2016 in a bid to finally crack the dominance of these local players.

However, Amazon Prime wasn't successful in its initial effort. The popular streaming video content that comes with the membership isn't available in China due to censorship rules.

Why Amazon Has Lagged behind in China

Why Amazon finds it difficult to penetrate the Chinese market

Amazon (AMZN) joins a long list of American tech companies—including Facebook (FB), Apple (AAPL), Alphabet (GOOG), and Microsoft (MSFT)—that have been relatively unsuccessful in tapping into the world's second-largest economy.

This trend was due to a combination of strict control by the Chinese authorities and local competitors that offer similar products at lower costs. For example, Apple's market share fell in China due to the rise of Chinese manufacturers like Oppo, Vivo, Huawei, and Xiaomi.

According to Euromonitor, Alibaba and JD.com make up two-thirds of the Chinese online retail market. Meanwhile, Amazon makes up just 1.3% of that market. Walmart (WMT) now has an 11% stake in JD.com.

Amazon has fallen behind Alibaba and JD.com due to its mobile platform. Alibaba and other local companies offer a popular mobile shopping platform, including discounted deals for consumers. On the other hand, Amazon offers minimal offers and features on its Chinese mobile platform, which is not attractive for Chinese consumers.

According to BCG estimates, smartphone-based online shopping could account for more than 60% of the total Chinese online retail market.


Source: Why Amazon Has Lagged behind in China

Tuesday, August 29, 2017

China Regulator Is Said to Review Apple Antitrust Complaint

(Bloomberg) -- China's State Administration for Industry and Commerce is reviewing an antitrust complaint accusing Apple Inc. of abusing its dominant position in smartphone applications, people familiar with the matter said.

The regulator is studying the information following a complaint filed on behalf of developers before deciding if a formal investigation is necessary, said the people, who asked not to be named because the matter isn't public. The review is preliminary and Chinese antitrust agencies usually review such information before deciding whether a official probe is needed.

Beijing-based law firm Daxiao, or Dare & Sure, said earlier this month it filed complaints on the developers' behalf to the SAIC and the National Development and Reform Commission. The lawyers accused Apple of removing apps without a proper explanation and taking an excessive 30 percent cut of in-app transactions, it said in an Aug. 8 statement. The law firm now represents close to 50 developers, producing games and a number of other apps, according to Lin Wei, managing partner of Dare & Sure.

Apple declined to comment, referring to an earlier statement saying it has guidelines for developers and an escalation process for apps it rejects. SAIC's antitrust bureau didn't answer calls from Bloomberg News seeking comment.

A Chinese Pebble in Apple's Shoe Could Hobble App Riches: Gadfly

The complaint comes just as Apple is expected to introduce its 10th-anniversary iPhone, which could help it regain market share from local rivals such as Oppo and Huawei Technologies Co. Greater China, which includes Hong Kong and Taiwan, is Apple's biggest overseas market, contributing about 18 percent of sales in the most recent quarter.

Chinese firms have complained of monopolistic practices by foreign companies in the past, spurring investigations and, in come cases, sanctions. Qualcomm Inc. in 2015 agreed to pay $975 million to settle a case brought by the NDRC that accused the company of abusing its control over mobile phone chips.

Apple itself has faced the ire of Chinese consumers and been on the receiving end of regulatory crackdowns. Apple's iTunes Movies and iBooks services were shut down last year by regulators after less than seven months of operations, and revenue there has fallen for six consecutive quarters. In 2013, it was forced to apologize after state broadcaster CCTV criticized the company's customer-service standards.

©2017 Bloomberg L.P.


Source: China Regulator Is Said to Review Apple Antitrust Complaint

Monday, August 28, 2017

Galaxy Note 8 Awarded with A+ Grade for the Most Innovative & High-Performance Smartphone Display

DisplayMate is well-known for benchmarking various kinds of displays. The Samsung Galaxy S8 had scored the highest ever score of A+ on tests conducted by DisplayMate. Even the Galaxy S7 and Galaxy S7 Edge from last year were appreciated as the Best Performing Display by DisplayMate. The Samsung Galaxy Note 8 features a slightly larger Infinity Display than the Galaxy S8+. DisplayMate has tested the display of the Note 8 and has awarded the highest grade ever of A+

The Galaxy Note 8 features a 6.3-inch flexible OLED screen flanked with the full-screen design. Its display is 20 percent larger and 22 percent brighter than the 5.8-inch screen of the Galaxy S8. The highest brightness offered by Galaxy Note 8's screen is more than 1,200 nits. No other smartphone offers such a high brightness. DisplayMate claims the Galaxy Note 8 has the most innovative and high-performance smartphone display that it has ever tested.

The Samsung Galaxy Note 8's screen supports a 3K resolution of 2,960 x 1,440 pixels and an aspect ratio of 18.5:9 = 2.05. Most smartphones offer an aspect ratio of 1.78. It supports an accurate 100 percent DCI-P3c color gamut that is mainly used on 4K TV screens.

SM_N950F_GalaxyNote8_Front_Pen_Black_HQ

Read More: Samsung's DJ Koh Defends Galaxy Note 8 On Why It Has a Small Battery and Lack Wow Features

Since it has acquired certification from UHD Alliance and Mobile HDR Premium, it can support the most recent content that has been designed for 4K UHD Premium televisions.The screen is protected by Gorilla Glass 5 and comes with Always-on Display. It offers a pixel density of 521 ppi.

Compared to Galaxy S8, the Galaxy Note 8 comes with various enhancements for absolute color accuracy, view angle, always-on display, personalized auto-brightness control, image processor, performance modes and more. The Galaxy Note 8 also features ambient sensors at its front and rear sides for enhanced automatic brightness. For better night viewing, the phablet features a new night mode blue light filter.

The Galaxy Note 8 is the first Samsung phone to feature dual rear cameras. It is powered by Snapdragon 835 or Exynos 8895 SoC depending on the market. It comes in storage sizes like 64 GB, 128 GB and 256 GB. Other specs include S Pen stylus, Android Nougat OS and 3,300mAh battery.

By rewarding the Galaxy Note 8's screen with A+ grade, DisplayMate calls it the Best Performing Smartphone Display. To know more on the various tests DisplayMate has conducted on the screen of the Note 8, readers can visit the source link.

(source)


Source: Galaxy Note 8 Awarded with A+ Grade for the Most Innovative & High-Performance Smartphone Display

Sunday, August 27, 2017

Lite-On Semi obtains GPP diode orders from major China smartphone vendors

Lite-On Semi obtains GPP diode orders from major China smartphone vendors

Julian Ho, Taipei; Jessie Shen, DIGITIMES [Monday 28 August 2017]

Lite-On Semiconductor with its GPP (glass passivated package) bridge rectifiers has entered the supply chain of major China-based smartphone vendors including Huawei, Oppo, Vivo and Xiaomi, according to industry sources.

Lite-On Semi will likely build additional production capacity in October to meet growing demand for GPP diodes, said the sources, adding that the current capacity is already tight.

Market watchers expect Lite-On Semi to post revenue growth of 5-10% sequentially in the third quarter.

Lite-On Semi president David Lee was quoted in previous reports saying the company had seen orders of GPP bridge rectifiers ramp up 50-60% substantially in the second quarter, with capacity utilization rate of the product line running at 90%.

In addition, On-Bright Electronics, the IC design subsidiary of Lite-On Semi, is seeing robust demand for power management ICs and fast wireless charging chips for smartphones in the third quarter, according to market sources. On-Bright is expected to enjoy revenue growth of 10-15% sequentially in the third quarter.

On-Bright saw its July revenues climb to a record high of NT$396 million. The company's revenues for the second quarter of 2017 increased 58.3% sequentially and 5.7% on year to NT$1.03 billion, also a record high.

Lite-On Semi reported consolidated revenues increased 27% sequentially to about NT$2.9 billion (US$95 million) in the second quarter, while gross margin climbed 3.5pp on quarter to 29%. The company generated EPS of NT$0.57 in the second quarter, and EPS for the first half of 2017 reached NT$0.87 compared with NT$0.57 during the same period a year earlier.

Lite-On Semi, along with subsidiary On-Bright, will post a strong 3Q17

Lite-On Semi and its subsidiary On-Bright are set to post strong 3Q17 results.Photo: Digitimes file photo


Source: Lite-On Semi obtains GPP diode orders from major China smartphone vendors

Saturday, August 26, 2017

Legit iPhone 8 Display Assembly Leaks From Apple’s China Supply Chain; Smartphone Parts Rumored To Cost $5000 On Black Market

2017's Apple iPhone leak season is here in full swing. The smartphone's components have started to leak, signalling that mass production is under way at Foxconn and associates. China's got a rampant black market for Apple's spare parts. The living conditions in the regions around Cupertino's manufacturing facilities are less than stellar, to say the least. Today, we've got another such leak, related directly to the iPhone 8. Take a look below to find out more.

The iPhone 8 is a regular feature of the rumor mill, since 2016's closing months. While Apple might have tried on the iPhone 7, it just didn't try hard enough. The 2016 flagship smartphone lineup from Cupertino did not feature a single aesthetic upgrade in terms of form factor. All we got were some new colors, which were presented as the next big thing, as usual.

To make up for this, the rumor mill started off early with the iPhone 8. We saw claims of a completely revamped smartphone surface as early as November. Since then, a lot of features have come and gone for the device. Initially, sources believed that the iPhone 8 will feature virtual fingerprint recognition, besting Samsung's Galaxy S8 and S8+.

However, as time progressed, this little tidbit died out. The latest talk from Apple's supply chain believes that we won't get virtual fingerprint recognition. Not only this, but Apple's haste to equip the iPhone 8 with a button free front has left no place for Touch ID. Yields for the feature in the iPhone 8's power button aren't satisfactory either.

So now, the brunt of biometric recognition on the iPhone 8 will fall on facial recognition. Even this far into the rumor cycle, we have doubts about this claim. Unless Apple's been working on the tech for years, it's very unlikely that it will have equally consistent results when compared against Touch ID.

That being said, today's display assembly leaks for the iPhone 8 shows the new sensors at the top. They're authentic as far as we can tell. China's black market is booming at this time of the year. In fact, such parts are rumored to go for as high as $5000.

Will Apple really remove Touch ID completely from the iPhone 8? It's the big question on everyone's mind as we head towards September. Facial recognition will require a lot of change across Cupertino's platform of apps and services. Thoughts? Let us now what you think in the comments section below and stay tuned. We'll keep you updated on the latest.

Source: iPhones.ru

Share Submit


Source: Legit iPhone 8 Display Assembly Leaks From Apple's China Supply Chain; Smartphone Parts Rumored To Cost $5000 On Black Market

Friday, August 25, 2017

China’s Big Businesses Risk Trump’s Punishment Over North Korea

Start your day with what's moving markets in Asia. Sign up here to receive our newsletter.

President Donald Trump's administration is looking for ways to pressure North Korea to stop developing a nuclear-weapons program, and some American analysts warn that the search may end on the doorsteps of China's biggest oil companies and banks.

China is North Korea's largest trading partner, playing a vital role in keeping Kim Jong Un's regime afloat. Two-way trade increased about 11 percent to $2.55 billion in the first half of 2017, compared with a year earlier.

The U.S. successfully lobbied for stricter UN sanctions against North Korea this month, and the Treasury Department on Aug. 22 sanctioned Chinese and Russian entities it accused of assisting Kim's development of nuclear weapons and ballistic missiles. U.S. prosecutors also want to recover $11 million from companies based in China and Singapore that they accused of conspiring with North Korea to evade sanctions.

Time's running out for the U.S. to stop North Korea from getting a nuclear-tipped intercontinental ballistic missile.

Source: Bloomberg

So far, the U.S. is seeking to punish relatively minor companies such as Dandong Chengtai Trading Ltd., which is accused of laundering money for North Korea. But there's reason for Chinese officials to worry that the America may go after major state-owned enterprises and banks, such as China National Petroleum Corp. and Bank of China.

"We have the ability to say, 'Any Chinese SOE that we consider relevant is fair game,"' said Derek Scissors, resident scholar at the conservative-leaning American Enterprise Institute in Washington. "We haven't even gotten close to the economic coercion we're capable of."

Bigger Game

Yet that coercion might unleash a trade war between the two biggest economies that would affect everything from soybeans to smartphones. China is the U.S.'s largest trading partner, with $578.6 billion in two-way trade last year, according to the Office of the U.S. Trade Representative.

"The Trump administration is saying to the Chinese, 'If you don't work with us in New York, we will do a lot more of these secondary sanctions and not just against small fry, but also big companies,"' said Gary Samore, former coordinator for arms control and weapons of mass destruction in the Obama White House.

Read more: Options for dealing with North Korea -- a QuickTake Q&A

While other former advisers in the administrations of Presidents George W. Bush and Barack Obama advocated additional sanctions at a Senate hearing in May, the U.S. is wary of escalating too far.

"If we were to impose penalties on really big Chinese financial institutions, it would have major economic consequences on the U.S.," said Samore, who is now executive director for research at Harvard University's Belfer Center for Science and International Affairs.

Confronting high-profile institutions like the Bank of China would be "a big damn deal,'' said Richard Nephew, senior research scholar at Columbia University's Center on Global Energy Policy and a former Obama sanctions official. "Those kinds of bigger sanctions are ones being avoided by this administration because they have bigger fish to fry."

The most dramatic step would be for the U.S. to punish companies for supplying oil to North Korea. China sends at least 1 million tons of crude to its reclusive neighbor every year, accounting for almost all its supply.

Economy's Fuel

Most of those exports are from state-owned China National Petroleum Corp., said Kim Kyung Sool, a senior research fellow at the Korea Energy Economics Institute. CNPC is the controlling shareholder of PetroChina Co., a Hong Kong-listed company with investors such as JPMorgan Chase & Co., Blackrock Inc. and Citigroup Inc.

"Suspending China's crude exports to North Korea will be the ultimate card we have," said Ahn Chan-il, a North Korean defector who is president of the World Institute for North Korea Studies in Seoul. "The nation would virtually come to a stop."

CNPC declined to comment Thursday.

Go Time

Similarly, the U.S. could sanction state-owned Chinese banks. In November, the Obama administration announced rules to prevent North Korean banks and front companies from having improper access to the U.S. financial system. In June, the Treasury Department followed up by blacklisting Bank of Dandong, a small Chinese institution it said was a venue for North Korean financial activity.

Now it's time to threaten bigger Chinese banks, said Anthony Ruggiero, a senior fellow at the Foundation for Defense of Democracies, a conservative think tank in Washington. That could pressure China's leadership to crack down on North Korean business within China, he said.

A wider net of U.S. sanctions could ensnare the Industrial and Commercial Bank of China, China Construction Bank and other big institutions that operate in the U.S., where they help smaller counterparts do dollar transactions, Ruggiero said. Chinese banks that conduct business benefiting North Korean state companies risk access to the U.S. financial system even if they do it unknowingly.

"Medium or large Chinese banks are now under an obligation, if they value their U.S. dollar relationships, to ensure that these transactions don't occur," Ruggiero said. "That's really where the next level can be."

ICBC and China Construction Bank declined to comment.

While the potential of sanctioning bigger Chinese entities is real, the practicality is uncertain. China's foreign ministry on Aug. 23 criticized the latest moves by U.S. prosecutors in Washington, calling them the "wrong methods," and saying China can use its own laws to punish violators.

"China is opposed to unilateral sanctions outside the UN Security Council's framework, especially countries' exercising long-arm jurisdiction, in line with their domestic law, on Chinese domestic entities or individuals," Hua Chunying, a ministry spokeswoman, said in Beijing.

China also must worry about U.S. allies imposing their own punitive measures. On Friday, the Foreign Ministry criticized Japan for penalizing companies and individuals from China and elsewhere, according to the official Xinhua News Agency.

"If Japan continues to act arbitrarily, it should pay the consequences," spokeswoman Hua said.

President Xi Jinping has several ways to retaliate against the U.S., creating the possibility of an all-out trade war between the two biggest economies. Apple Inc., Boeing Co., Starbucks Corp. and Westinghouse Electric Co. would be among the biggest U.S. companies at risk.

The U.S. Firms at Risk From China Trade War: QuickTake Scorecard

That also would come at the expense of U.S. efforts to address issues such as China's trade surplus or the state of intellectual property rights there. Trump has unveiled a 100-day action plan pledging to "use every tool" against alleged foreign trade abuses.

China supported the UN sanctions adopted Aug. 5 that ban North Korean exports of coal, iron ore, lead ore and seafood. Those were seen as a way to de-escalate tensions. Yet China's in no hurry to see the Kim regime fall, fearing an ensuing refugee crisis and the positioning of U.S. troops on its border.

"China is not a small country that you can just squeeze and it will do whatever," said Yuan Zheng, a senior fellow at the Institute of American Studies in the Chinese Academy of Social Sciences, a government think tank. "China won't accept it and will take measures in response. The whole atmosphere of U.S.-China relations will get worse."

— With assistance by Peter Martin, Jun Luo, and Aibing Guo


Source: China's Big Businesses Risk Trump's Punishment Over North Korea

Thursday, August 24, 2017

Meet China’s first AI unicorn

Cambricon Technologies, a Beijing-based artificial intelligence (AI) chip developer, has raised US$100 million from government-backed State Development and Investment, Lenovo Capital and Incubator Group (LCIG), and an investment unit owned by Alibaba Group. It's the nation's first unicorn (unlisted startup valued at over US$1 billion) in the AI chip industry, according to mainland media reports.

Established in 2016, the company was founded by Chen Yunji and Chen Tianshi, two young professors at the Institute of Computing Technology at the Chinese Academy Of Sciences. It has two R&D centres in Beijing and Shanghai and two major product lines — terminals and servers.

It received an angel round of funding worth 10 million yuan from the Chinese Academy of Sciences in April last year. Four months later, Oriza, Yonghua and iFlytek, China's leading information technology firms poured tens of millions yuan in the pre-A round.

Last year, the company launched a processor named Cambricon-1A, which it claims to be the world's first commercial chip for deep learning. The product can be used in different devices, such as smartphones, security, drones, wearable devices and autonomous driving.

The Cambricon-1A chip can handle 16 billion virtual neurons per second and has a peak capacity of two trillion synapses per second. The chip can enhance the computer's capability to recognize sounds and pictures.

Currently, the US has a strong hold on the AI industry. As of June this year, there were a total of 2,542 AI companies in the world. Of this, 1,078 companies or 42 percent are in the US. There are 592 Chinese companies in the sector, representing 23 percent of the world's total.

In terms of the proportion of funds raised that is spent on chip development, China's 7.55 percent lags that of the US at 31 percent.

Meanwhile, Hong Kong-based SenseTime Group, which makes artificial intelligence software that recognizes objects and faces, raised US$410 million in a B round financing in July. The company now has a valuation of over HK$10 billion, which makes it the first unicorn in Hong Kong's Science Park.

This article appeared in the Hong Kong Economic Journal on Aug 22

Translation by Julie Zhu

[Chinese version 中文版]

– Contact us at [email protected]

RT/RA


Source: Meet China's first AI unicorn

Wednesday, August 23, 2017

Philippine smartphone vendors lose out to China rivals

Smartphone shipments in the Philippines fell 10 per cent year-on-year in Q2 to 4 million units as domestic vendors scaled back their offerings in the face of tougher competition from Chinese rivals, according to IDC.

Philippines vendors' combined market share dropped to 41 per cent from 49 per cent during the same period of 2016. Global makers' share remained flat at 27 per cent, while Chinese vendors' share rose to 22 per cent from 15 per cent in Q2 2016.

Jerome Dominguez, IDC market analyst for Asia Pacific, said Oppo and Vivo disrupted the smartphone retail space through cash-rich marketing, aggressive sales incentives and high levels of retailer support.

"This challenged the traditional vendor-dealer relationship smartphone vendors have been accustomed to, and while leading vendors have been able to adapt, smaller players with less marketing and merchandising budget were unable to do so, thus suffering drops in market shares," Dominguez said.

Despite the increased competition from Chinese manufacturers, IDC noted Philippines vendors maintained a much larger share of the market than peers in Indonesia (19 per cent), Thailand (11 per cent), Vietnam (6 per cent) and Malaysia (1 per cent).

RankingCherry Mobile maintained its lead in the Philippines smartphone market, with sub-$50 smartphones driving volume highs, IDC said. Samsung was second followed by Oppo, Cloudfone and Vivo.

IDC expects the smartphone market in the Philippines to remain subdued in Q3 due to increases in component prices, the weaker Philippines peso and the expected exit of a number of smartphone vendors. Shipments are forecast to pick up in Q4 as the pre-Christmas buying season encourages healthier smartphone uptake.


Source: Philippine smartphone vendors lose out to China rivals

Tuesday, August 22, 2017

Smartphone sales grew 6.7% in Q2 riding on 4G demand in India, Indonesia: Gartner

Home > News > Smartphone sales grew 6.7% in Q2 riding on 4G demand in India, Indonesia: Gartner Chinese brands Huawei, Oppo and Vivo continue to record stunning growth.

Global smartphone sales grew 6.7 percent to 366 million units in the second quarter of 2017, reveals a new report by Gartner. While that is a decent year-on-year growth, sales have declined if compared to the first quarter of this year. In Q1, smartphones sales had increased by nine percent. While the overall market is expected to be flat this year, whatever quarterly growth has happened seems to be the result of strong demand for 4G handsets in emerging markets like India, Indonesia, and Southeast Asia. These regions accounted for nearly half the sales in Q2 2017.

A smartphone revolution is sweeping across these markets which boast a huge population that is hungry for affordable but well-equipped smartphones. "Although demand for utility smartphones remains strong, there is growing demand in emerging markets for 4G smartphones, with more storage, better processors and more advanced cameras. This is translating into higher demand for mid-priced [$150 to $200] smartphones," Anshul Gupta, research director at Gartner, said in a statement. ALSO READ: Worldwide device shipments to decline 0.3 percent this year: Gartner

Asia continues to be the biggest buyer of smartphones in the world, most of it coming from the Greater China (GC) region. Despite a five percent yearly decline in market share, GC accounted for nearly 28 percent of all smartphones sold in Q2 2017. Most of this growth was fueled by the stunning rise of China's domestic handset-makers such as Huawei, Oppo, Vivo, and others. Vivo and Oppo scored the highest in the second quarter, growing their year-on-year sales by 71 percent and 44 percent respectively. Both brands are owned by China's BBK Electronics (which also manufactures OnePlus).

Android continued to rule the smartphone universe accounting for 87.7 percent of devices sold, while iOS' share stood at 12.1 percent. Apple's sales were flat (down 0.2 percent) year-on-year but Samsung grew its sales by 7.5 percent riding on the success of the Galaxy S8 and S8+. Analysts expect Samsung to register further growth in the upcoming quarters. Apple too is likely to benefit from the roll out of iOS 11. "The new iOS 11, which will include augmented reality, machine learning, an improved Siri and a new display design, will likely fuel strong iPhone sales in the fourth quarter of 2017," Gupta added. ALSO READ: Oppo, Vivo and other Chinese smartphone brands are slowly taking over the world

However, Gartner sounds a word of caution. Sales could further slow down in China as upgrade cycles get lengthier. While large vendors like Huawei, Oppo and Vivo are gaining ground globally, smaller brands like Sony and HTC are nearly being obliterated. There's also concern over rising component costs, as well as their limited supply. A shortage of flash memory and OLED displays is likely to affect premium smartphone supply in Q3 and Q4 of 2017. "We've already seen Huawei's P10 suffer from a flash memory shortage," Gartner stated.

Published: August 22, 2017 5:50 PM IST | Updated: August 22, 2017 7:58 PM IST
Source: Smartphone sales grew 6.7% in Q2 riding on 4G demand in India, Indonesia: Gartner

Monday, August 21, 2017

Man on smartphone drives bike into newly-formed sinkhole

BEIHAI CITY, GUANGXI ZHUANG, CHINA (CCTV/CNN) - A man on his motorbike was distracted on his smartphone when he rolled straight into a newly-formed sinkhole after the road collapsed late last week.

The hole measured five meters (16.4 feet) across, eight meters (26 feet) long, and two meters (6.5 feet) deep.

Authorities blocked off the street and are investigating the cause of the collapse. 

Repair crews were repairing the sinkhole that slowed traffic on the busy street in south China.   

Copyright 2017 CCTV via CNN. All rights reserved. 


Source: Man on smartphone drives bike into newly-formed sinkhole

Sunday, August 20, 2017

Blackview BV4000 is a rugged smartphone but with great design

IP68 certified rugged smartphones are serving their purposes in a great way. All users who seek for something durable to accompany them in their difficult daily tasks at work, prefer a device like that for their resistance to water, dust, and shock. Having a difficult job, doesn't mean that you don't have taste though. Most rugged devices today, carry great features but greatly lack in design.

Blackview BV4000

Blackview BV4000 that appeared on the official site on the other hand, is a device with a simple design with symmetrical lines on the back and textured material that helps a lot with the grip. The phone is thin compared to other competitive devices and holding it should give a sense of satisfaction and sturdiness. It looks like we have found the most beautiful, IP68 cerified, rugged dual-camera smartphone.

The BV4000 will get a 4.7″HD display covered with Gorilla Glass 3, MT6580A processor clocked at 1.3GHz, 1GB RAM, and 8GB of internal storage. In addition, a dual camera 2MP/8MP setup will lie on the back. As for its battery, 3680mAh should be enough for full 2-day use. The rest of the specs include dual-SIM/dual-standby support, GPS, and Android 7 OS.

Blackview BV4000 may be released by the end of August, and while we don't know its price tag for now, we can guess it will be pretty affordable. In the meantime, you can check out the BV8000 Pro that is currently on offer at Aliexpress.

Always be the first to know. Follow us:
Source: Blackview BV4000 is a rugged smartphone but with great design

Saturday, August 19, 2017

More than 10 cities in China are now cashless & card-less on public transport

China cities are upping their technology game in the quest to become smart cities as new payment methods continue to roll out for consumers' convenience.

These cities in the world's largest economy have now moved up another level, as they do away with not just cash, but also cards from their daily commuting.

A smartphone app for public transport payments has been introduced in over 10 Chinese cities, such as Beijing, Shanghai, Shenzhen (Guangdong province), Lingnan (Guangdong province), Jilin province, and Wuhan (Hubei province).

Currently, the service is only available for Android phone users. Apple iPhone users are excluded because of Apple's policy of reserving contactless payment to its Apple Pay app, rather than granting access to third-party apps.

The "Virtual Smart Card"  Initiative

In the case of the capital Beijing, the "Virtual Smart Card" (手机一卡通) was rolled out at all underground train stations on Aug 14, after a pilot initiative earlier in the year.

Commuters can now pass the gantries at all train stations by just tapping their smartphones with an app, instead of using their transport cards.

The government-backed app after it has been downloaded, functions as the commuter's "virtual smartcard" using Near-Field Communication (NFC) technology.

To see how this is used in Beijing, this is the official promotional video from the Beijing Subway:

Going cardless on buses

Besides underground trains, China is also implementing the "cardless" idea on other modes of transport, such as buses.

In some Chinese cities, commuters can use NFC technology and Quick Response (QR) code to take buses.

It has already been implemented in many cities such as Beijing, Shenzhen, and Jinan (Shandong province).

Top image via [email protected]

Here are some equally interesting but totally unrelated stories:

10 investment terms to know so you can finally read annual reports in peace

5 so-called crazy things people could do if they were given $100,000 to save the environment

How to not ruin your holiday when signing up for tour packages

Who looks after our ailing seniors outside of general hospitals?

If you like what you read, follow us on Facebook and Twitter to get the latest updates.


Source: More than 10 cities in China are now cashless & card-less on public transport

Friday, August 18, 2017

China eclipses U.S. in Honda's world view

WUHAN, China — American customers and U.S. dealers long have been the tail that wags the dog at Honda Motor Co., despite Honda's roots as a Japanese company.

When Honda rushed out a major midcycle update of its previous-generation Civic, the brand's most iconic global nameplate, it was the negative feedback from American drivers, not those in Japan or Europe, that ultimately sway-ed the top brass into making improvements.

But America's pre-eminence in Honda's empire is fading.

China, the world's largest auto market, is on pace to replace the U.S. as Honda's biggest and possibly most profitable sales center. The sea change has far-reaching implications for Honda's U.S. and global lineups and the company's worldwide outlay of r&d and production resources.

Honda is hardly alone in embracing a shift that's influencing carmakers from Wolfsburg to Detroit as companies increasingly kowtow to the almighty Chinese buyer.

Customers browse at a store outside Guangzhou. Honda supports 972 dealers in China. Photo credit: HANS GREIMEL

The rapid expansion of Honda's footprint in China shows a reordering of priorities for a global manufacturer that long has prided itself on its tight bonds with America but now sees bigger growth opportunities elsewhere.

China's rise has complex ramifications. Chinese tastes and trends increasingly will flavor models sold worldwide. More vehicles will be developed for China first before being sold in the United States and other markets.

For Honda's Acura luxury line, meanwhile, the rise of China could be a saving grace, supporting the global build-out of a second-tier brand that largely has been confined to American shores.

China also could emerge as an export hub. Honda has a China factory dedicated to shipping its City compact sedan to Mexico. But exporting to the U.S. increasingly enters the realm of possibilities, as underscored by Ford Motor Co.'s plan to import a China-made Focus to the U.S. and moves by General Motors and Volvo to send models built in China stateside.

No one says Honda is lessening its commitment to the U.S., which is the world's No. 2 auto market. But China's rise is giving that country a bigger voice in corralling limited resources from Honda's headquarters in everything from r&d and product planning to factory investment and retailing build-out.

"China has a high priority, and I think we will likely put more emphasis on listening to Chinese customer voices going forward," said Kotaru Shimizu, general manager for sales at Dongfeng Honda Automobile Co., one of Honda's two joint ventures in China.

New cash cow?

In Honda's world, China is nipping at America's heels by almost every measure, including production, sales, dealership count and employee tally.

Most importantly, China is challenging North America's traditional position as Honda's cash cow. North America and Asia each notched comparable operating profits in the fiscal year that ended March 31. But Asia's regional operating profit margin was 9.6 percent, almost double North America's 4.9 percent.

In the U.S., Honda can churn out 1.27 million vehicles a year. That outstrips its China capacity of 1.16 million vehicles by 110,000 vehicles. Yet China has expanded much faster.

Honda has been building vehicles in the U.S. since 1982 and today has five plants there. Honda started assembling vehicles in China a full decade later and already has six. Moreover, it has broken ground here on a seventh plant to open in 2019 with initial capacity for 12,000 more vehicles annually.

The U.S. still beats China in raw sales volume. Last year, American Honda sold 1.64 million vehicles in the U.S., compared with Honda's 1.26 million sales in China. But growth in China has been astronomical.

In 2016, Honda's sales surged 24 percent in China. U.S. sales, by contrast, grew just 3.2 percent.

Honda forecasts China sales to jump to 1.34 million vehicles this year. But in the U.S., the carmaker is merely hoping to eke out the slightest gain. Its U.S. sales slid 0.2 percent through July in an overall market that's down 2.9 percent and widely believed to be past its peak.

Dongfeng Honda, one of Honda's joint ventures, makes and sells the Civic. Photo credit: HANS GREIMEL

In China, Honda supports 972 dealers, just shy of the 1,048 in the U.S. But it employs some 22,400 people in China vs. 16,100 in the United States.

"The rise of China does throw the conventional wisdom of global resource allocation to the wind," said James Chao, managing director for the Asia Pacific region at IHS Markit, "especially for global automakers who are only now experiencing the success of the China market and who have traditionally centered their strategic product decisions out of the U.S."

Courting China

Honda's newfound fixation with China starts at the top, with CEO Takahiro Hachigo and his top lieutenant, Executive Vice President Seiji Kuraishi.

Both did the obligatory stints in the United States, notching more than a decade there combined. But Hachigo and Kuraishi cut their teeth in China during its heady, go-go days just a few years back.

Hachigo was vice president of overall operations, leading purchasing, production and r&d. Kuraishi racked up several years​ with different stints and eventually was tapped as boss of all of Honda's business in China from 2013 to 2016.

The duo's exploits in China have assumed near-legendary proportions at Honda, from their marathon drinking sessions to their fondness for classical Chinese literature.

Such bonds count in Japan and China — nations that share deep cultural ties and a custom of personalized business relationships. When asked, Hachigo waxes nostalgic about his China days.

"It wasn't much of a surprise, but I surely did drink a lot," Hachigo recalled of the evening rituals with Chinese business partners. "I had drinks with them over and over again. Then I started getting along with them. ... They got drunk and hugged me."

Hachigo insists the U.S. still sits atop Honda's hierarchy. For starters, it is one of the few mature markets worldwide where an increasing population helps ensure rising demand.

"How long do I think it will take for China to overtake the U.S. market? It won't be so easy," Hachigo told reporters after a June tour of Honda's factories, r&d center, design studio and retail network in China. "It remains an important market to us. ... Just because China grows more doesn't necessarily mean that North American models will decline."

Guangqi Honda's assembly plant in Guangzhou is part of Honda's rapidly expanding production footprint in China. Photo credit: HANS GREIMEL

Civic showdown

Clearly, though, China has begun to throw its weight around.

It shows in Honda's development of China-only vehicles, such as the Acura CDX and Honda Avancier, two popular crossovers designed for and sold only in China. Engineering such vehicles saps resources that could have been channeled into building a better Accord or Pilot.

It matters because Chinese and Americans want different things in cars.

"American customers value practicality," said Dongfeng Honda's Shimizu, who spent several years working in the U.S. "They drive to work every day. So cars are an essential tool for American people."

Chinese consumers, on the other hand, still see cars as an important status symbol. They're drawn to vehicles such as the Avancier, with fake hood vents and wild fender creasing, whose designs might be considered overwrought and gaudy by American standards.

"Chinese customers are firstly trend-conscious," Shimizu said. "Automobiles are still seen as an asset, not as a tool. They'd like to show off something."

Hachigo likened Honda's strategy to serving up ramen noodles that have the same basic ingredients but using recipes tweaked to local tastes.

"We tell them to use this kind of noodle and let them decide the flavor," he said.

Yet as different as Chinese tastes are, Chinese appetites are getting a bigger voice in determining the flavor of global cars such as the Accord or Civic. In fact, Chinese and American viewpoints butted heads when Honda developed the current-generation Civic.

Market research showed that Chinese buyers wanted a traditional three-box, sedan-shaped Civic, Shimizu said. Americans, however, wanted a fastback, coupe-styled silhouette.

Product planners argued back and forth about which way to turn.

In the end, American tastes prevailed, as seen in the sleek profile that debuted in 2015. But as China's sales grow, its market will have the volume to make ever-stronger demands.

Bigger Chinese voice

Chinese are laser-focused on global trends and often demand better features and quality than Americans, says Atsushi Fujimoto, president of Dongfeng Honda.

"They assume that foreign carmakers sell lower-quality models in China than those sold in North America," Fujimoto says. "On the contrary, we tell them that we spend more money on making cars for China than those North American models."

Chinese, for example, demand better soundproofing and smartphone connectivity, he says.

But looking ahead, Chinese trends likely will have bigger knock-on effects.

China's swing to compact crossovers and its deep dive into electrified vehicles are two shifts affecting product-planning dynamics worldwide, including those in the U.S.

Consider the Acura CDX subcompact crossover or the Honda UR-V and Avancier, crossover siblings designed as successors to the Honda Crosstour.

Honda says it has no plans to bring these nameplates to the U.S., despite their popularity in China. But the entries overlap with hot spots in U.S. demand. And it is conceivable these offerings could make their way to America as imports.

Fujimoto points to the origins of the CR-V crossover as a potential model.

The CR-V was developed as a Japan-only vehicle first but soon gained a foothold in the United States. Today, it is mainly a U.S. and China vehicle that's not even sold in the home market anymore.

"We may be making a China-only model, but if this sells well in other regions, we should do so," Fujimoto said. "Our cars will spread globally instead of saying U.S.-only or China-only models."

Honda's r&d hub in Guangzhou oversees development for local market vehicles. Photo credit: HANS GREIMEL

China could even become a global center for compact crossover development, analysts say.

"Smaller SUVs, and perhaps even sedans, could be led by designers in China," IHS's Chao said. "If Honda feels that the small SUV segment has a lot more growth potential in China — it does, I think — then they will allocate more resources towards this effort."

China also is leading the charge toward electrification.

In fact, Honda is developing an electric vehicle for China that it will start selling next year.​ Executives say an aggressive Chinese EV mandate could influence global lineup decisions, pushing Honda to leverage the technology and spread costs through scale.

In June, Hachigo said his company would launch more EVs in other markets. It will unveil one car at an auto show this fall that possibly targets North America.

But again, the impetus came from China.

"I think electrification will likely get moving faster here than in the U.S.," said Mitsuru Horikoshi, head of Honda's China r&d center in Guangzhou, which oversees product development and design for both of Honda's local joint ventures. "We are working on it now."

Horikoshi's unit spearheaded development of the China-market EV due next year. That car will be made at an existing plant in China. But in a sign of Honda's expectation for surging EV demand, a new plant slated to open in 2019 will be capable of handling EVs from the start.

While Honda's r&d footprint in China is huge, it still trails its U.S. counterpart in terms of capability. The U.S. can handle some powertrain development, for instance, that China can't.

Honda is building its seventh assembly plant in China near Wuhan and plans to open it in 2019. Photo credit: HANS GREIMEL

Honda's U.S. r&d center dates to 1975, while China's is just 4 years old. And despite the U.S. head start, Horikoshi's expansion plans speak volumes about Honda's ambitions here.

"The U.S. r&d center already has a long history. They are several times bigger than us," he said, before casually adding: "It will take [us] five to six years to catch up."

Naoto Okamura contributed to this report.


Source: China eclipses U.S. in Honda's world view

Thursday, August 17, 2017

Chinese smartphone brand shipments grew 17% QoQ in Q2 2017: IDC

Home » Devices, Handsets, idc, IDC India, Mobile, Telecom

Chinese smartphone shipments accounted for more than half (54% ) of the overall Indian market during Q2 2017, with shipments growing 16.9% QoQ, research firm IDC said in its Quarterly Mobile Phone Tracker report. In the previous quarter, Chinese smartphone brands held 51.4% of the Indian market.

Chinese brands have been continuously gaining market share in the Indian smartphone market. The completion was felt on the domestic Indian brands: the share of smartphone shipments from domestic vendors decreased to 13.5% during last quarter from 40.5% in Q1 2016. However, in Q2 2017, domestic brands increased its market share to 15%, growing at 18% QoQ, according to IDC.

Overall, the Indian smartphone market shipped 29 million units during Q2 2017, up by 3.7% QoQ and up marginally by 1.6% on a YoY basis.

Also Read: 21 foreign & domestic smartphone makers asked to submit security data to Meity

Impact of GST improved in Q3 2017

The impact of GST was initially felt during Q2 2017 on the shipment side as vendors took time to upgrade to the new tax regime, but quickly recovered during the third quarter of 2017, IDC said. "Offline channels have already cleared the old stocks, eTailers are getting ready for online festivals, and vendors are set to launch new models in the Diwali festive period," the research firm added.

Indian vendors are focusing on launching new 4G portfolios while Chinese brands are focusing on the sub-US$150 segment for the upcoming festive season. "Indian vendors are putting all their efforts and second half of year will be crucial, either it will see a revival of Indian vendors or emergence of new dominance in the sub-$150 segment from China based vendors," IDC said in its report.

Shipment share of vendors in Q2 2017

  • Samsung shipments fell by 4% YoY but took the lead spot with a 24% market share as of Q2 2017. The company's shipments fell due to rising competition in the mid-tier segment mostly from cheaper Chinese brands.
  •  Xiaomi secured 2nd place (17% share) with shipments growing 25% QoQ. Xiaomi also led the online shipments segment with a 40.6% percent share.  Xiaomi's offline channel expansion with Mi Home helped the company "triple its offline shipments in the second quarter of the year," IDC said.
  • Vivo held 3rd place (13% share) in Q2 2017 with shipments growing 26% QoQ.
  • OPPO held the 4th position during the quarter with an 8% market share. The brand's shipments declined by 13% QoQ. It took over Lenovo which help the 4th position last quarter.
  • Lenovo (including Motorola) fell to 5th position (7% share) as its shipments declined 25 percent QoQ. However, its Motorola brand shipments were up by 33.7% QoQ.

  • Source: Chinese smartphone brand shipments grew 17% QoQ in Q2 2017: IDC

    Wednesday, August 16, 2017

    Nokia 8 launch: HMD Global unveils $702 flagship Android smartphone

    The Android smartphone market has become incredibly competitive not only from the likes of Samsung, but also Chinese players like Huawei and Oppo stepping up their game. HMD will be hoping to differentiate itself through some of its unique features, especially as it launches ahead of the Samsung Galaxy Note 8 and next generation iPhones.

    "It is very clear that HMD Global needs to position Nokia branded devices as an alternative option for consumers who don't want the expense of a top of the line iPhone or Samsung Galaxy device," Ben Wood, chief of research at CCS Insight, told CNBC by email.

    "Nokia remains a widely recognized mobile phone brand and HMD needs to capitalize on that as quickly as possible. The Nokia 8 is another important milestone as the company adds breadth to its portfolio of devices in an effort to broaden its appeal to consumers."

    The company said its initial smartphones are performing well. In India, the Nokia 6 device received over 1 million registrations on Amazon of people interested in the handset. Seiche said HMD is confident it can meet the demand for its phones, despite being a young company.

    "We have significantly ramped up our supply, however, we are still catching up with the demand but we feel that is a positive thing as it helps to sustain the momentum," Seiche told CNBC.


    Source: Nokia 8 launch: HMD Global unveils $702 flagship Android smartphone

    Tuesday, August 15, 2017

    Apple cracks down on black market iPhones in China

    Apple is making it harder for touts to profit from buying iPhones in Hong Kong only to sell them on the black market in China.

    From August 15, all products bought online from Apple in Hong Kong will be ineligible for return or exchange unless they are defective, the company said on its website. Apple's previous policy allowed 14 days for products to be returned in the city.

    Every year after the release of new iPhones, vendors pop up on street corners in Hong Kong to hawk the new devices to those unable to secure their own supply. The city's lower taxes and duties have long provided an incentive to buy there and re-sell to tourists or ship across the border to mainland customers unwilling to wait.

    Apple is expected to unveil new iPhone models later this year with a hotly anticipated 10th anniversary edition that is said to include an overhauled look, people familiar with the matter have said. The device is said to include a new type of screen using organic light-emitting diode, curved glass and stainless steel materials although supply constraints may mean it isn't available until one or two months after the typical fall introduction.

    Apple's sales in Greater China, which includes Hong Kong and Taiwan as well as the mainland, fell 9.5 percent from a year earlier to $8 billion in the most recent quarter. The biggest decline came in Hong Kong, the company said.

    When customers purchase in volume, such as buying four or more items of the same category, products must be returned within seven days of being received and go back to the store from which they were purchased. The company's earlier terms charged a 25 percent restocking fee per unit.

    Apple declined to comment beyond its policy statement. The change in terms was reported earlier by the South China Morning Post.

    Now read: Google paying Apple $3 billion to remain on iPhone – Report
    Source: Apple cracks down on black market iPhones in China

    Monday, August 14, 2017

    Beijing transit opens smartphone payments to all except Apple

    Everyone in Beijing can now get on to public transport with the tap of a smartphone — everyone except Apple iPhone users.

    Beijing's public transport payments company Yikatong has launched an app that allows most Android smartphone users to pay for journeys by tapping their smartphone rather than their transport card, starting on Monday.

    The upgrade fits well with the Chinese habit of using smartphones to pay for anything from utility bills to street food, and will serve as a template for transport systems across China. As such, the exclusion of iPhone is a blow for Apple.

    The event shows just how badly the technology group is being beaten in mobile payments in China, the world's largest with an estimated $8.8tn in transactions in 2016, according to iResearch.

    Apple was locked out of the Beijing public transit payment system because of its policy of reserving contactless payment — that is, the ability to pay for something by waving a phone in front of a terminal — to its Apple Pay app, rather than granting access to to third-party apps such as Yikatong's, or popular payment systems such as Tencent's WeChat Pay and Alibaba's Alipay.

    Android-based competitors such as Samsung, Huawei and Xiaomi do allow contactless payment that links to these apps.

    "[Apple's policy] is counterproductive," said Mark Natkins, managing director of Marbridge Consulting, a Beijing-based tech consultancy. "It potentially locks them out of a variety of initiatives, particularly the major push in China to introduce smart city initiatives."

    WeChat Pay and Alipay are integrated into social messaging and ecommerce apps offered by Tencent and Alibaba, and are therefore extremely popular.

    Moreover, Tencent and Alibaba's payment systems involve scanning a QR code with a phone camera, rather than tapping something to make a payment. Chinese consumers are just more used to this system of code scanning, rather than Apple's system of waving a phone in front of a cash register.

    The upshot is that Apple, one of the first to offer contactless transactions in China, has been relegated to less than 1 per cent of China's mobile payments market and is losing markets that embrace contactless payment.

    "It's very ironic that iPhones are excluded [from the Beijing public-transit upgrade] given that Apple Pay is one of the trailblazers for [contactless] payments in China," said Matthew Brennan, co-founder of digital marketing agency China Channel.

    Apple's offering, which was launched in China in early 2016, has not made it into the top 10 payment apps in the country.

    iPhone sales in Greater China fell during the past year while local competitors using the Android operating system stormed ahead.

    Apple's approach of guarding its contactless payment technology has not worked well in China, where Apple Pay occupies a small segment of the payments market and thus third-party app developers — such as Yikatong — can go ahead and develop alternative payment systems without co-operation from Apple.

    "The vast majority of subway travellers are going to be using Android phones. It totally makes sense to prioritise those users," added Mr Brennan.


    Source: Beijing transit opens smartphone payments to all except Apple

    Sunday, August 13, 2017

    China, India lead Asian advance of smartphone payment

    SHANGHAI/MUMBAI -- Mobile phone-based payment is spreading rapidly through emerging Asian economies, where low takeup of other methods has allowed the services to leapfrog older technologies.

    The Bingo Box, which opened in a Shanghai suburb in June, looks like any other convenience store -- it sells all the drinks and snacks you would expect at any of its competitors. The only thing missing is the staff.

    At the Bingo Box, your smartphone does everything from unlocking the doors to paying the bill, making full use of China's hugely popular smartphone-based payment systems -- Alibaba Group Holding's Alipay and Tencent Holdings' WeChat Pay.

    To shop at Bingo Box, customers who have registered on Alipay or another platform can enter the store, scan products to bring up the price on the screen, and then pay using their smartphones.

    The savings made on staffing costs can be passed on and prices are around 5% lower than at other convenience stores.

    The venture company which operates the store has set a target of opening 5,000 Bingo Boxes over the next year.

    Alipay has 400 million users in China, while WeChat Pay boasts 700 million. The colossal user base has provided fertile ground for the development of new businesses.

    One such company, Hema Xiansheng, will deliver fresh groceries within 30 minutes of an order.

    "Try it out," said a 24-year-old in Shanghai to her friend who had been unable to go shopping during a bout of illness. "You get fresh fruit and veg delivered immediately."

    When an order is placed, a member of staff at a Hema Xiansheng supermarket in the city will gather up the goods and have them delivered to the customer's door. There are 10 such supermarkets in the city.

    Since the service started in 2016, the number of users has skyrocketed in Shanghai, Beijing and other parts of the country and the operator plans to expand the service to more areas.

    No cash needed

    India is not far behind and new services making use of mobile payment systems are booming.

    In Mumbai, the number of people using their phones to make small purchases, such as fruit or a light meal, is growing by the day.

    System has been introduced at market stalls.

    The smallest of businesses, even one of the city's thousands of market stalls, can easily adopt One97 Communications' Paytm system. Customers can pay their bills simply by reading a QR code or typing in the stall owner's phone number.

    The number of Paytm users has surpassed 230 million since its launch in 2011.

    Once accustomed to paying for stuff on their phones, users flock to online stores, providing momentum to companies such as online retailer Flipkart. The number of users of its e-commerce website has grown to tens of millions within 10 years of the company's founding.

    (Nikkei)


    Source: China, India lead Asian advance of smartphone payment

    Friday, August 11, 2017

    India-China smartphone war: Micromax, Karbonn are losing against Xiaomi, Oppo

    Billboards and placards of Chinese mobile handset brands Oppo and Vivo are omnipresent at Nehru Place, a bustling electronic goods market in South Delhi, dwarfing the presence of rivals like Samsung, Micromax, Karbonn and Lava. "The awareness and demand for Oppo and Vivo mobile phones has risen very sharply," says Balwant Mehta, a distributor in Nehru Place. "These brands also offer better margins to dealers. So every time a customer buys a Vivo or Oppo phone instead of a Samsung or Micromax, the shop owner earns more as well." And it appears to be a similar story across India.

    Indeed, a marketing blitzkrieg has catapulted Oppo and Vivo to the top echelons - with a smartphone market share of 9.6 and 12.7 per cent in Q2, 2017 - in a matter of less than 12 months. The gamble of garnering high visibility through high octane advertising over the long term is paying off. Earlier this year, Oppo bagged the sponsorship rights of the Indian national men's cricket team with a bid of Rs1,079 crore for five years. This was more than five times the previous winning bid. Not to be outdone, Vivo retained the sponsorship rights of the Indian Premier League for the next five years with a bid of Rs2,199 crore, a 554 per cent jump in valuation over its own previous bid for the 2016 and 2017 seasons.

    The two companies, who share a common lineage -BBK Electronics of China - used to serve as vendors to some of the homegrown brands in India till some time back. The robust growth of these Indian brands between 2012 and 2015 prompted the two firms to enter the market directly. The potential of the market was an obvious attraction. In late 2015, India emerged as the second largest smartphone market in the world overtaking the US in the process.

    The rise of Xiaomi, another Chinese brand, in India over the last 12 months has been even more spectacular. The company does not play in the high volume feature phone segment nor does it have a traditional offline sales network. Unlike other Chinese brands, it does not market or advertise its products through conventional mediums. Yet, it has emerged as the second largest smartphone player in India with 15.5 per cent share in Q2 2017 as per Counterpoint Research. Only a year back, it accounted for just 4 per cent of the smartphone market and was not even in the top 5.

    "Two years back, the industry had written us off. A lot of experts had said we will not succeed because we were doing things differently. We were not selling offline and didn't adopt traditional marketing like TV and print ads," says Manu Jain, Managing Director, Xiaomi India. India is now its second biggest market after China.

    Indian companies have clearly come up short against Xiaomi's product innovation or Vivo and Oppo's aggressive marketing spends. "Our strategy has always been a 360-degree integrated marketing approach to connect with the youth, which is our prime focus, across all platforms. In India, cricket and Bollywood are two of the most popular platforms to touch our consumers, especially the youth," says Will Yang, Brand Director, Oppo India.

    In the second quarter of 2017, Chinese brands-Xiaomi, Vivo, Oppo, Lenovo, Gionee, etc-cornered over 50 per cent of India's 109 million unit annual smartphone market. Only a year ago, their combined might was less than 15 per cent. Indian companies like Micromax, Intex, Reliance LYF and Lava, accounted for nearly 40 per cent of the market. That share has now slid to less than 15 per cent. South Korean electronics giant Samsung though has retained its 24 per cent plus market share at the top of the pie.

    Since the Narendra Modi-led NDA government swept to power in mid-2014, there has been a surge of nationalism across the country best exemplified by the meteoric rise of yoga guru Baba Ramdev's Patanjali Industries in the domestic FMCG industry. The scenario in the domestic mobile handset industry is in stark contrast to what is happening elsewhere. Indians are buying mobile phones made by Chinese companies like never before.

    There are other reasons for the rather steep decline of Indian handset makers. Most of the companies suffered heavily in the post demonetisation period that saw a substantial decline in cash transactions and offline retail sales. The lack of innovation and R&D capabilities-many Indian firms still buy from Chinese vendors and merely re-badge and sell in India-has probably been an even bigger reason. As more Chinese firms look to enter the lucrative Indian market while existing ones begin to flex their muscles, will the domestic brands be able to quickly get their house in order and fight back? "It will be difficult for Indian vendors to compete directly with China based vendors on marketing budgets. Even at retailers' level to match the margins and spend on below-the-line activities," says Jaipal Singh, market analyst, client devices, IDC India. "Also, the China based vendors primarily cater to the Chinese market, which is four times bigger than the Indian market, thus providin g conomies of scale."

    MANU JAIN, Managing Director, Xiaomi India

    Feature phones : Not a dead horse

    One aspect that differentiates the Indian handset market from all others in the world is the big feature phone segment. The progression from basic entry level feature phones to smartphones has been relatively slow in India. Unlike the US and China, where the market is dominated by smartphones, 136.1 million units of feature phones were sold in India in 2016. The segment has been in in perpetual decline since 2013 when sales had peaked at 213 million units but still accounted for over 55 per cent of all mobile phones sold in India in 2016. As per IDC, in the first quarter of 2017, its share was 52 per cent. Smartphones have been gaining ground but the pace has slowed down in recent times. In 2016, smartphone sales grew by just 5.3 per cent, slowest in five years. Sale of feature phones has also slowed down. Last year, sales declined 9.6 per cent against 16.2 per cent in 2015 and 15.7 per cent in 2014.

    "There is a yawning gap in price between a smartphone and a feature phone. So, it will take some time before smartphones stifle feature phones," says Asim Warsi, Senior Vice President, Samsung India Electronics.

    NIDHI SARDANA MARKADAY, Business Head, Intex Technologies

    As China has already become a smartphone market, most Chinese vendors like Xiaomi do not wish to participate in the feature phone market. This opens up an opportunity for Indian handset makers. The quick migration to 4G technology, falling data charges and the need for affordable handsets may offer a scope for resurgence of feature phones and, with them, the Indian brands. "The shift to smartphones has slowed down as they are still priced high as compared to feature phones. Due to higher durability and battery life, feature phones continue to be relevant for most consumers," says Nidhi Sardana Markaday, Business Head, Intex Technologies. "The entry of Reliance Jio with 4G-Volte technology may usher in a new lease of life for them in the form of smart feature phones being created."

    Though smartphone prices have also come down, Chinese companies are yet to breach the sub-Rs5000 level, which is the mainstay for all feature phones in the country. Indian companies are trying to drive home the advantage. For instance, Micromax with its latest Bharat Series-a 4G Volte smartphone at Rs 3499. Another driving factor is the deeper penetration of feature phones and connectivity in tier III cities and rural areas. "While China based vendors are not focusing on feature phones, it provides an opportunity to Indian vendors to capture lost share in this segment," says Singh of IDC. "It will not be an easy task though, as prices of components is continuously increasing and bringing in a quality device will be a challenge."

    More disruption ahead

    The proliferation of Chinese players in the domestic market may be the biggest trend over the past one year but there are more disruptions in the offing and the market promises to remain highly dynamic. Experts believe there will continue to be widespread changes in size and shape of handsets, screen resolution, cameras and evolution of network, which would offer growth opportunities for both new players and old. A company-Indian, Chinese or other multinational-that identifies potential changes in the market early and innovates, will have a chance to grow fast. "I foresee three disruptions in the market till 2018 and we will play a role in each one of them," says Ashwin Bhandari, CEO, iVOOMi, another new Chinese brand that has entered India recently. "Currently, dual camera phones are a rage but they are all at Rs15,000 plus. The prices will settle below Rs10,000 and there would be phones with not just two but three-four cameras. The shape of the phones will change and there would be no slots in the handsets."

    The sense of an intense churn in the offing is universal. Market leader Samsung on June 7 announced a Rs4,915 crore expansion at its mobile handset manufacturing facility in Noida to double capacity to 10 million units every month, or 120 million units annually. Xiaomi also set up its second factory recently in India in collaboration with Foxconn in Andhra Pradesh. The Chinese firm has made no secret of its ambition to take on Samsung's vice-like grip in the domestic market and emerge as the largest player. "Its a large growing market which gives everybody scope to grow. Lets see how it further evolves. We keep track of competition but they do not decide what we do, consumers dictate that," says Warsi of Samsung.

    At the same time, Micromax that has suffered the most at the hands of the Chinese-its market share dropped from 16 to 5 per cent-is planning a revival while a clutch of home grown startups may also emerge as serious contenders. "A market which took three years for the consumers to migrate from 2G to 3G, leapfrogged to 4G in just six months. Hence, we are focused on devices that will enable the next phase of smartphone adoption in the country," says Shubhodip Pal, Chief Marketing and Commercial Officer, Micromax Informatics.

    The wave of nationalism that is absent in this segment, may manifest itself once any of the homegrown players begin to offer a credible alternative to the Chinese. "The Indian brands are basically trading companies who do not have any R&D and are not capable of countering this surge of products from China. The nationalism wave is real but it is not visible in this industry as there is no alternative," says Mahesh Lingareddy, who founded a two year old Indian IoT startup Smartron that sells smartphones and tablets. He wants to make Smartron the Apple or Amazon of India. "If an Indian product is at par with a Chinese product, the consumer will prefer Indian over Chinese. That is what will tilt the scales in our favour," he says.

    Whether a Micromax, Intex or Smartron be able to cash in on the nationalism surge and thwart the Chinese, is a million dollar question.

    @sumantbanerji


    Source: India-China smartphone war: Micromax, Karbonn are losing against Xiaomi, Oppo

    Thursday, August 10, 2017

    Review: Meizu Pro 7 Plus - dual-screen smartphone will change how you take selfies, and makes sure you don’t miss a thing

    Last year, phonemaker Meizu learnt that young adults in China tend to leave their phones face down on tables during dinner or meetings out of common courtesy. The consumer research suggested that this reluctant act of self-restraint often led to "anxiety" over missing notifications.

    Meizu isn't trying to fix this generation's screen addiction, of course, but it believes its 2017 flagship, the Pro 7 Plus, has a compromise solution: a small second screen on the device's back.

    Design and hardware

    The two-inch rectangular secondary display sits discreetly in the upper left corner of the Pro 7 Plus' metal back, under the dual 12-megapixel cameras.

    Review: smartphone with four cameras, the Gionee S10 takes well-lit photos and has excellent battery life, but is nothing special

    Currently, it can display the time, step count, weather, and notification alerts (future software updates should bring more functionality). More interesting, though, is the second screen that can also serve as a viewfinder for the back cameras – that means you can take selfies with the main dual cameras on the back of the device, instead of the front-facing camera.

    The Pro 7 Plus has a 5.7in AMOLED display in a standard 16:9 aspect ratio instead of the new LG/Samsung-pioneered 18:9 aspect ratio that is all but certain to become the industry norm by 2018. It is also surrounded by a normal-sized (meaning not slim) bezel, and sports the same oval home button/fingerprint reader that can be found on hundreds of other phones.

    Software and features

    The Pro 7 Plus runs Android 7.0 with Meizu's own Flyme software (version 6.1.2) on top. Flyme offers a different take on navigating within the phone because it replaces Android's traditional three-button set-up (back, home, recent apps) with a single button that uses physical press, tapping and swiping to distinguish between the three actions.

    I found Meizu's system intuitive and it makes the iPhone's one-trick home button seem outdated, but others may still prefer Android's native set-up instead.

    The Flyme software is clean overall with plenty of useful additions, such as the ability to launch an app by drawing an alphabet character on the device's screen when it's off. These are fully customisable so you can, for example, draw an O to launch the camera or Facebook or Gmail. This sounds gimmicky, but came in handy for me on a day when I needed to use Google Maps repeatedly.

    Tech review: Xiaomi Mi Max 2 – giant phablet too big for one hand, even if it is excellent for gaming and watching videos

    The Pro 7 Plus has a Cirrus Logic CS43130 DAC (digital-to-analogue audio converter) that, while not quite as sophisticated as the ESS DACs found on the LG V20 or Onkyo Granbeat, is a noticeable step up from most smartphones on the market. Use a nice set of headphones and play lossless audio files, and you will hear the difference.

    Performance and battery life

    The quad HD AMOLED display is excellent, with superb contrast, punchy colours and true blacks. It's impressive that Meizu, a relatively small company, is now in its second year of using AMOLED panels, compared to Apple and LG that will only make the jump to the superior screen tech later this year.

    Moving on to photography, Meizu's 12-megapixel Sony IMX386 sensors do a fine job, producing images that are clearly superior to the cameras found on Xiaomi and Oppo devices, but the device falls short of the best mobile shooters out there. Generally, shots in good lighting produce very good details, but colours tend to be on the warm side.

    The Pro 7 Plus is excellent for selfie lovers, partly because of the second screen, but also because Meizu's camera software has probably the best "beautifying modes". Whether it's face slimming, skin smoothing or adding digital make-up, the effects are eerily natural (see below).

    The 3,500 mAh battery provides sufficient endurance, generally lasting the entire day without problems. The Pro 7 Plus doesn't last as long as previous Meizu devices, perhaps because of the second screen and the superior display resolution.

    Conclusion

    Whether the second display is useful or a gimmick depends on your needs. Personally, I don't really have a use for it, but in an oversaturated smartphone market with hundreds of phones vying for attention, I admire Meizu for thinking outside the box and trying something different. At 3,599 yuan (HK$4,210, the retail price for Hong Kong isn't known yet), this is also Meizu's most expensive device to date.

    Dimensions: 157.3mm x 77.2mm x 7.3mm

    Weight: 170g

    Display: 5.7 inch, 1,440 X 2,560

    Battery: 3,500 mAh

    OS version reviewed: Android 7.0

    Processor: MediaTek Helio X30

    Cameras: Dual 12-megapixel f/2.0 rear, 16-megapixel f/2.0 front

    Memory: 64GB, 6GB RAM

    Colours: black, gold, silver

    Price: 3,599 yuan


    Source: Review: Meizu Pro 7 Plus - dual-screen smartphone will change how you take selfies, and makes sure you don't miss a thing

    Wednesday, August 9, 2017

    China Box Office Record

    Children use smartphones near monitors displaying a Chinese action movie "Wolf Warrior 2" at a cinema in Beijing, Thursday, Aug. 10, 2017. The A patriotic film reportedly inspired by evacuations of Chinese civilians in Libya and Yemen become China's biggest-ever grossing domestic movie. By Wednesday, action movie "Wolf Warrior 2" had raked in more than 3.4 billion yuan ($507 million) since its release on July 27, overtaking Hong Kong director Stephen Chow's 2016 fantasy comedy "The Mermaid" in the record books. (AP Photo/Andy Wong) You might also be interested in...
    Source: China Box Office Record

    Tuesday, August 8, 2017

    Sharp announces the full-screen Aquos S2 in Beijing

    As announced earlier, Sharp launched its latest bezel-less smartphone called Aquos S2 today in China.

    Like the Aquos Crystal, the specs are decidedly mid-range, however, it comes in two models: the "standard edition" and the "high edition".

    The smartphone features a 5.5-inch 4K display with nearly zero bezels on top and sides.

    Sharp has put two cameras on the rear of the S2 and have settled for a vertical design similar to the one seen in the iPhone 8 leaks. The handset's corners are not rounded but cut off which give it an unusual look. No reason was given for this design choice and it's possible that could bother some users. It also has 8 megapixels front camera with f/2.0 aperture.

    On the back, the S2 has a camera unit that looks an very bad lot like what everyone is expecting to see on the next iPhone. But for the midrange price, you'll get a strong processor, plenty of RAM and a dual camera. It's a weird look, and I'm really not sure why Sharp chose it.

    Sharp, which quit the Chinese market in 2013, now has the support of Foxconn's strong supply and production expertise, analysts said. The Aquos S2 will be available in two different variants powered by Qualcomm Snapdragon 630 and Snapdragon 660 processors. Further, the phone comes with a 3.6mm thick fingerprint sensor, placed at the bottom of the display, which makes it world's narrowest fingerprint module. The f/1.75 dual camera on the back consists of a 12-megapixel sensor plus an 8-megapixel sensor, both also feature efficient 1.4um pixels and together offer a seven-level bokeh effect. Up front is an 8MP shooter.

    Other features in the Aquos S2 include a decent 3,020mAh battery that will come with Quick Charge 3.0, powered by Android 7.1 Nougat with the SharpSmileUX over the OS.

    Sharp Aquos S2 features extremely thin bezels, which is why one of the main selling points of the phone is definitely its design. The company tied up with JD.com to distribute the new model which costs from 2,499 yuan (US$373). The better of the two (not ready for sale yet) comes with a Snapdragon 660, 6GB of RAM, 128GB of storage, and a "3D glass" backside costs 3,499 yuan (about $520) - we'll see if they come to the U.S. soon, but for now, they'll likely stick to China.


    Source: Sharp announces the full-screen Aquos S2 in Beijing