Dec. 26, 2013, 1:43 PM
- Just eight days after Amazon and IBM announced they're launching cloud infrastructure (IaaS) services meant for Chinese companies and subsidiaries, China Unicom (CHU -0.7%) is doing the same.
- The #2 Chinese mobile carrier has launched Wo Cloud, an IaaS solution that leverages the open-source OpenStack platform (strongly supported by Rackspace, Red Hat, and others), and which features cloud computing, storage, and app hosting services. Unicom says it will increase its cloud-related infrastructure investments to help support Wo Cloud.
- In addition to Amazon and IBM, Unicom will face IaaS competition from Alibaba, which has long been a major player in the Chinese IaaS market, and Microsoft's Windows Azure (expanded into China earlier this year).
Dec. 26, 2013, 7:06 AM
- China has approved a pilot scheme that will allow 11 private "virtual carriers" to sell mobile phone services using the infrastructure of the country's dominant operators, China Mobile (CHL), China Telecom (CHA) and China Unicom (CHU).
- "It's a milestone," says the Ministry of Industry & Information Technology. "It will draw private investment, and stimulate competition and innovation in the telecoms sector," giving "consumers greater choice and better service."
- The 11 companies to receive permits include Net.cn, a unit of online retail giant Alibaba.
- ETFs: CHIQ, CQQQ, QQQC, KWEB
Dec. 10, 2013, 9:54 AM
- China Mobile (CHL -1.5%) and China Unicom (CHU -1.4%) have been cut to Equal Weight by Barclays. BofA/Merrill tried to temper iPhone expectations for CHL earlier this morning.
- Zulilly (ZU -1.8%) has received four neutral ratings to go with just one bullish one (from William Blair) on underwriter coverage day.
- Top Image Systems (TISA +4.8%) has been started at Buy by Benchmark.
- Nova Measuring (NVMI +2.8%) has been started at Buy by Canaccord.
Dec. 4, 2013, 6:57 PM
- The Chinese government has finally issued 4G licenses (long anticipated) to China Mobile (CHL), China Unicom (CHU), and China Telecom (CHA), paving the way for commercial service launches to start.
- China Mobile, which has already built out a giant "trial" 4G network, is set to have a 4G partner conference in two weeks that will reportedly feature an iPhone announcement. China Telecom says it will launch 4G services in Q1.
- Notably, the licenses only cover 4G networks relying on the TD-LTE standard (allows for more capacity to be allocated to downlinks than uplinks, if carriers wish). China Unicom and Telecom both want to run networks using the FDD LTE standard, which is far more popular internationally, and say they still plan to request FDD LTE licenses in the future.
- In addition to Apple, Chinese 4G launches are likely to benefit Qualcomm (QCOM). Whereas Qualcomm faces tough competition in the Chinese 3G baseband chip market (particularly on the low-end) and has had royalty collection issues for sales of phones running on China Mobile's TD-SCDMA 3G network, it has a dominant share of the global 4G baseband market, and hasn't had any major 4G collection issues.
- Many think the Chinese government's anti-monopoly probe of Qualcomm is a bargaining tactic aimed at securing 4G royalty rate concessions.
Oct. 3, 2013, 9:15 AM
Sep. 27, 2013, 9:48 AM
Sep. 24, 2013, 11:11 AM
- In what could be a trial balloon, the Chinese government plans to lift its ban on "politically sensitive" foreign websites in Shanghai's new free-trade zone, according to government sources talking to Hong Kong's South China Morning Post. Facebook (FB +4.7%), Twitter, and the New York Times are among the sites that will reportedly be made accessible.
- In addition, the government plans to allow foreign carriers to bid for licenses to provide Internet services in the free-trade zone. State-owned carriers China Mobile (CHL -0.8%), China Telecom (CHA -1.8%), and China Unicom (CHU -2.8%) have all reportedly been informed foreign companies will be able to compete with them in the area.
- For now, the zone only covers 29 sq. km. But sources state it could eventually cover Shanghai's entire Pudong business district (1,210 sq. km), home to the Shanghai Stock Exchange and arguably China's most vital commercial hub.
- The report comes shortly after Facebook COO Sheryl Sandberg met with Chinese Web regulators. China already has a well-developed social networking scene, with Tencent (TCEHY.PK) and SINA claiming hundreds of millions of registered users for their respective platforms.
Sep. 16, 2013, 11:08 AM
- China Unicom (CHU +0.6%) says its iPhone 5S/5C (AAPL -2.6%) reservations have topped 100K since it began taking them last week. Last year, Unicom took 200K+ iPhone 5 reservations in the phone's first two days of availability.
- Meanwhile, China Telecom (CHA +2.5%) has cut its iPhone subsidies. A subscriber signing up for an RMB289/month ($47/month) plan will get an iPhone 5S subsidy of RMB2890, 15% less than the RMB3400 subsidy it provided for the iPhone 5. It's worth noting CHA's ARPU is below $10.
- The Chinese figures come amidst sharp criticism of the 5C's unsubsidized pricing, which starts at $735 in China. For reference, upstart Xiaomi's new Mi3 flagship Android phone (5" 1080p display, 13MP camera) starts at $327 in the Middle Kingdom.
- On the other hand, Japanese carriers are aggressively subsidizing the 5S in the wake of NTT DoCoMo's (DCM +0.7%) iPhone deal. DoCoMo, SoftBank (SFTBF.PK), and KDDI are each providing the 5S for free with 2-year contracts for certain plans.
- Kantar Japan recently estimated 2/3 of DoCoMo subs who have been leaving the carrier ended up buying an iPhone.
- Also: Bernstein thinks Apple could still come out with a cheaper iPhone in the form of a sub-$400 iPhone 4C that puts the iPhone 4's components inside a 5C body.
Sep. 11, 2013, 3:07 AM
- A long-awaited deal between Apple (AAPL) and China Mobile (CHL) appears to have moved closer after the U.S. company received a license for its phones to operate on China Mobile's 3G and 4G networks from the country's Telecom Equipment Certification Center.
- Apple's products also obtained licenses to run on the infrastructure of China Unicom (CHU) and China Telecom (CHA), both of which will sell the two iPhones that were unveiled yesterday.
- While a deal with China Mobile will open up a market of 700M subscribers, the "low-end" iPhone 5C looks rather pricey for the cost-conscious consumers that Apple was expected to target with the handset. The device will retail at 4,488 yuan ($730), just 800 yuan ($130) less than the top-of-the-line 5S.
Sep. 6, 2013, 10:58 AM
- Two months after U.S. district judge Denise Cote declared Apple (AAPL +0.2%) guilty of conspiring to fix e-book prices, and two weeks after the DOJ proposed e-book injunction terms, Cote has issued an injunction.
- As suggested by the DOJ, Apple is prohibited from striking restrictive e-book pricing deals with publishers for 5 years, and is required to stagger its talks with publishers to prevent collusion. Also, an external monitor has been assigned for two years.
- However, Apple won't be required to allow rivals to sell e-books through their iOS apps without giving Apple a 30% cut, as the DOJ had suggested. Amazon (AMZN +0.4%) has refused to sell e-books through its Kindle iOS apps out of an unwillingness to pay Apple 30% of its take.
- Meanwhile, Reuters nearly backs up yesterday's Sina Tech report by reporting China Unicom (CHU -0.3%) and Telecom (CHA -0.6%) will begin selling the iPhone 5S/5C shortly after it goes on sale in the U.S., a major change of pace from the delays accompanying past Chinese iPhone launches.
- Other news: Apple Insider reports Mac OS X 10.9 (Mavericks) will be released at the end of October, and Quantcast and Piper estimate iOS' share of U.S. mobile browsing traffic has grown to 65%.
- The latter is a negative for Google (GOOG +0.2%), due to the huge traffic acquisition payments it makes to Apple for Mobile Safari search ad clicks. However, Google doesn't have to pay Apple if iOS users rely on Chrome, as a growing portion of them are.
Sep. 5, 2013, 3:55 PM
- If the Chinese media report (comes from local site Sina Tech - translation) pans out, it means China Telecom (CHA +0.4%) and China Unicom (CHU -0.3%) will start selling Apple's (AAPL -0.8%) newest iPhones the same day they're expected to launch in the U.S. and several other big international markets.
- Last year, Telecom and Unicom didn't begin selling the iPhone 5 until Dec. 14, more than 2 months after the device went on sale in dozens of other markets.
- Sina Tech also reports China Mobile (CHL +0.7%) won't be able to sell the 5S until November (assuming a deal is announced), due to the need for regulatory approval of an iPhone supporting CHL's TD-LTE 4G network.
- The 5S is said to come in 4 colors, and the plastic-shell 5C in 5 colors. Other reports suggest the 5S' colors will be white, black, gold, and graphite, and the 5C's colors white, red, green, blue, and yellow.
- An iPhone event will take place in Beijing shortly after Apple's main Sep. 10 event.
- Earlier: DoCoMo to reportedly offer iPhone soon
Aug. 15, 2013, 4:27 AM
- China's suddenly vigorous enthusiasm for investigations into corporate behavior could strengthen further, with the National Development & Reform Commission (NDRC) reported to be considering probes into the petroleum, telecommunications and banking sectors.
- The idea is to scrutinize industries that affect the lives of ordinary Chinese. However, the sectors mentioned are dominated by state-run companies, such as China Unicom (CHU), China Mobile (CHL) and China Telecom (CHA) in the communications industry, while it's the government that sets the price of oil.
- The healthcare sector is already under well-publicized scrutiny, while the NDRC has also asked for information about the prices of foreign cars.
Aug. 8, 2013, 2:58 PM
- China Unicom (CHU +6.5%), China's second-largest mobile carrier, is trading up after releasing H1 results.
- The carrier's H1 numbers impressed, with revenue of 144.31B yuan up 19% Y/Y and earnings of 5.32B yuan (3.43B yuan a year ago) surpassing a consensus of 4.89B yuan.
- Profitability continues to rise as the first carrier to adopt the iPhone in China reaps the rewards of out-sized subscription and data revenue growth.
- 3G ARPU fell to 77.6 yuan (from 91.8 yuan a year ago), as CHU reeled in less wealthy 3G subs via low-cost smartphones.
- Shares were temporarily halted in afternoon Hong Kong trading after results were accidentally pre-released on a government website.
- Rivals China Mobile (CHL +1.5%) and China Telecom (CHA +2.1%) are up in sympathy.
Jul. 15, 2013, 2:34 PM
Chinese Internet stocks are turning in a good day after the government unveils a new telecom plan promising to increase fiber-to-the-home deployments, improving 3G connectivity, and issue 4G licenses by year's end. YOKU +6.2%. BIDU +4.7%. QIHU +4.8%. DANG +4.9%. YY +9.2%. CYOU +5.2%. China's telecom giants aren't moving much: CHL +0.3%. CHA -0.4%. CHU +1%. (more on China/4G)| Jul. 15, 2013, 2:34 PM
Jul. 8, 2013, 9:33 AMA roundup of tech analyst ratings changes: 1) Evercore has downgraded Intel (INTC -1.5%) to Underweight. Also, Citi has cut its estimates for Intel. 2) Citi has removed Qualcomm (QCOM -0.5%) from its Top Picks Live list. 3) Needham has downgraded contract manufacturers Flextronics (FLEX -0.9%), Plexus (PLXS -1%), and Benchmark Electronics (BHE -1%) to Hold. 4) HSBC has upgraded China Unicom (CHU +0.7%) to Neutral. 5) Jefferies has started Nintendo (NTDOY.PK) at Buy. 6) Evercore has downgraded ON Semi (ONNN -2.7%) to Equal Weight. 7) Barclays has downgraded VeriFone (PAY -1.2%) to Equal Weight. | Jul. 8, 2013, 9:33 AM
May 20, 2013, 2:03 PM
Apple (AAPL +1.9%) roundup: 1) Brian White cites Chinese 3G growth as a reason for his $888 PT: he points out China's 3G sub base rose 83% Y/Y in April to 293.1M, and is expected to hit 375M-400M by year's end. China Mobile (CHL - previous) had 120M 3G subs; China Unicom (CHU) had 92M, and China Telecom (CHA) 81M. 2) Taiwan's Economic Times reports Apple is testing 1.5" OLED displays for an iWatch, and that "market rumors" indicate Foxconn has received iWatch trial production orders. 3) Digitimes reports MacBook orders are expected to grow 20% Q/Q in Q2, as Apple launches new systems sporting Intel Haswell CPUs at June's WWDC conference.| May 20, 2013, 2:03 PM | 17 Comments