Tag Archives: Business

Huawei braces for up to 60% drop in international smartphone sales

Huawei is preparing for a 40% to 60% drop in international smartphone shipments and exploring options including pulling the latest model of its marquee overseas label, the Honor 20, according to Bloomberg.

The device begins selling in parts of Europe on Friday, including France and the U.K., but executives are monitoring the launch and may cut off shipments if it sells poorly as expected, said the news agency.

Huawei sales and marketing managers are internally charting a drop in volumes of anywhere between 40 million to 60 million smartphones this year, the people said. That’s a big chunk of an international business that in 2018 accounted for almost half of the 206 million phones it moved. 

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Samsung cuts jobs at its last smartphone plant in China

The world’s largest smartphone maker, Samsung, is cutting jobs at its last phone manufacturing facility in Huizhou, reports Caixin Global.

The layoffs at the plant, which opened in 1992, are being carried out on a voluntary basis. Employees agreeing to leave with compensation will need to sign up by June 14. It is unclear how many people will be affected by the job cuts.

It has been a sharp turnaround. In 2017, the factory hired more than 6,000 workers to produce 63 million smartphones, about 17% of Samsung’s global production that year. The closure follows the shuttering of its smartphone plant in Tianjin in December, and the one in Shenzhen, which closed in April last year.

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JD.com buys industrial land in Dongguan

Ecommerce giant JD.com has won a bid for a parcel of industrial land in Dongguan for RMB1.064 billion. But it won’t be putting what most investors might expect it to put there. Rather than a smart factory, JD said it will name the development JD Smart Valley, because it is where a “technological innovation center” will be built in accordance with local real-estate development policies.

This so-called “new usage of industrial land” policy requires a certain proportion of land be used for commercial as well as residential development. For the part of the land that can be sold and/or subdivided, the leasing period is 40 years; for the remainder it is 50 years. The residential portion can go for 70 years.

Read more (in Chinese).

BYD to build 7th battery plant in Guangzhou

Shenzhen-based new energy car maker BYD will build its seventh battery plant in Guangzhou, according to the Xinhua News Agency. The RMB4 billion (USD579 million) facility will focus on research and development, production and manufacturing of lithium polymer batteries for electric devices such as mobile phones, laptops and computers.

It is aiming for an annual output of RMB13 billion once it launches in 2020. Construction will start in late June. 

BYD’s battery division has become independent of the car-making parent and works closely with other original equipment manufacturers to cope with increasing pressure from rivals like CATL. BYD plans to list its battery business by 2020, Wang Chuanfu, the firm’s founder, said previously.

Huawei to sell undersea cable business

Huawei plans to sell its undersea telecom cable business in its first major asset sale since the US blacklist action, reports Reuters. Control of Huawei Marine will go to another Chinese firm, Hengtong Optic-Electric, based in Jiangsu province, in a deal done in cash and shares.

Undersea cables are the backbone of global internet traffic. Huawei has been gaining share in the market dominated by U.S. firm SubCom, Japan’s NEC Corp and Europe’s Alcatel-Lucent, since Huawei Marine was established in 2008 as a joint venture with Britain’s Global Marine.

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Shenzhen Bay Super HQ takes shape

The Shenzhen Bay Super Headquarter Base, a zone along the city’s northern coast that is being masterplanned way, way, way into the future, has unveiled its initial designs. According to the Southern Metropolis Daily, the area will be landmarked by three iconic towers, which will serve to pull in all of the city’s leading companies.

Imagine that: three buildings where every major company in the city will have their headquarters.

The project covers an area of 117 hectares. Since its announcement in 2014, companies that have invested in land purchases there include CITIC Securities, China Merchants Bank, ZTE, Digital China, Evergrande, and Vanke.

The design plan integrated the three winning bids during an international consultation process last year which attracted architects from 76 domestic and overseas design agencies. In addition to the office space, the project will also provide conference facilities and cultural venues. Designers explains that the project will integrate the atmosphere of Shenzhen Bay with an active urban environment, like Sydney, Singapore, or Copenhagen.

Read more (in Chinese).

Gree expands with Geely, FAW-Volkswagen

Zhuhai-based home appliance giant Gree Electric is expanding its presence in the automotive industry, supplying air conditioner systems for Geely Auto and FAW-Volkswagen, according to Securities Daily.

Geely is using Gree’s air conditioning system in all of its planned plants, employee dormitories, and other areas that require air conditioning. Besides Geely, Gree is cooperating with many Chinese auto firms like FAW-Volkswagen and Dongfeng Honda. The company is expanding quickly into the field with electrical and appliance manufacturing. Given the stated ambitions of its high-profile chairperson, Dong Mingzhu, no one should be surprised to see Gree launching its own electric cars in the future. She has tried to buy her way in, but could not acquire Zhuhai’s leading new energy vehicle company, Yinlong, three years ago.

Read more (in Chinese).

ZTE bonds with Tencent

Shenzhen-based ZTE is partnering with Shenzhen-based Tencent in developing 5G applications amid a “changing and potentially hostile global environment”, reports Caixin Global. The telecommunications equipment and systems company said it is teaming up with Tencent to push forward open-source projects to improve edge computing, an advanced aspect of cloud computing, to reduce risks from external partners cutting off access to technology and intellectual property.

Earlier this year, Tencent expressed its growing interest in 5G during an industrial conference, but the company declined to comment on whether the partnership with ZTE was due to the worsening global environment, according to Caixin Global.

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Huawei gains share while iPhones slump

Shenzhen-based tech giant Huawei was kicking the proverbial butt of its chief American competitor in smartphones before the US decided to place it on a blacklist, latest data from tech research firm Gartner shows.

In Q1, Huawei smartphones took 15.7% of the global market, narrowing the lead of #1 maker Samsung (19.2%) and ahead of Apple, whose iPhone slipped further behind in third place (11.9%). Huawei shipped 58.4 million units, up from 40.4 million in Q12017, thanks to growth in Europe (+69%) and Greater China (33%). Apple’s fell by 9.5 million units in the same YoY comparison.

The other two Chinese smartphone manufacturers, Dongguan-based OPPO and Vivo, ranked fourth and fifth, slightly increasing their market share.

Read more (in Chinese).

LKF coming to Shekou

One entrepreneur who is clearly thinking about where the region’s youth will be basing themselves is Allan Zeman. According to Chinese media, Lan Kwai Fong is coming to Shekou, in a new large-scale project being built by China Merchants Group.

The project is a joint venture between Lan Kwai Fong Group, China Merchants Shekou Industrial Zone Holdings, and Shenzhen Yatong Holding Group. It is apparently an important part of the whole Shenzhen Merchants Shekou Taizi Bay development, a massive redevelopment project centered on the old port area.

Zeman was quoted as saying that the “LKF852 Prince Bay” project will “deepen the integration of Greater Bay Area resources, build a new ecology of business, culture, entertainment and leisure, and create a new urban landmark for Shenzhen”.

Taizi Bay is the flagship real-estate development of China Merchants Group, which signed an agreement for its scope with the provincial government in 2016. Covering 1.7 million sqm, it includes the largest domestic cruise port in southern China, as well as commercial and office space, residential, hotels, culture and art facilities, warehouses, international schools, international hospitals, public transport hubs and “others”.

Read more here (in Chinese).