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 PMChinese 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 | Comment!
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 | Comment!
May 20, 2013, 2:03 PMApple (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
May 8, 2013, 12:40 PMThe Chinese government is expected to issue 4G TD-LTE licenses by year's end, writes Morgan Stanley's Katy Huberty in a bullish note on Apple (AAPL +1.2%). The licenses could pave the way for China Mobile (CHL), which has 700M+ subs and is spending $6.75B this year on its TD-LTE network (still in trial mode), to begin selling the iPhone. One potential roadblock: China Unicom (CHU) and China Telecom (CHA) want the government to take its time in issuing TD-LTE licenses. CHA wants to delay its 4G capex, and both carriers are supporting the FDD-LTE standard (far more popular outside of China). (AAPL/CHL agreement) | May 8, 2013, 12:40 PM | 6 Comments
May 7, 2013, 1:37 PMSina (SINA -2.5%) gives back yesterday's gains after Tencent (TCEHY.PK) says it has reached "preliminary solutions" with Chinese mobile carriers (CHL, CHU, CHA) regarding its very popular WeChat mobile IM platform, which both generates heavy traffic and eats into text-messaging revenue (China Mobile's text revenue fell 4.8% last year). That's likely raising fears Sina might have to pay carriers for the traffic produced by Weibo, arguably WeChat's top rival. Tencent has said it's unlikely to charge WeChat users. | May 7, 2013, 1:37 PM | Comment!
Apr. 25, 2013, 5:57 AM
Apr. 16, 2013, 6:28 PMGet used to slowing China growth, J.P. Morgan says in noting disappointing GDP data "underscore the challenge facing an economy burdened with overcapacity.” While Chinese stocks are cheap at 9.7x 2013 earnings, the weak data suggests earnings estimates might be too high. The firm thinks investors in China should stick with defensive stocks such as Sinopec (SNP) and China Unicom (CHU). | Apr. 16, 2013, 6:28 PM | Comment!
Apr. 8, 2013, 12:33 PMAfter a Chinese government official suggested Tencent (TCEHY.PK) will "have to pay fees" to mobile carriers (CHA, CHL, CHU) for the use of its extremely popular WeChat mobile IM/social networking platform, Tencent tells its users it's unlikely to charge for WeChat. Much like their European peers, Chinese carriers have seen their text messaging revenue pressured by the adoption on Web-based services such as WeChat. Sina (SINA) recently admitted WeChat, which now has 300M+ registered accounts, has been affecting Weibo usage. | Apr. 8, 2013, 12:33 PM | Comment!
Mar. 22, 2013, 3:00 AMChina Unicom Hong Kong (CHU): Q4 net profit jumps to 1.64B yuan ($264M) from 14M yuan a year earlier and beats consensus of 1.41B yuan. Revenue +20% to 63.7B yuan vs estimates of 65.5B yuan. Had 76.5M 3G subscribers at the end of December and total mobile customers of 239.3M. Shares +4.6% in Hong Kong. (PR) | Mar. 22, 2013, 3:00 AM | Comment!
Mar. 6, 2013, 6:31 PMAfter expanding the reach of its fiber-to-the-home (FTTH) network by 33M households in 2012, China Telecom (CHA) wants to expand it by another 25M in 2013. Rival China Unicom (CHU) is also aggressive: it brought its FTTH network to 15.2M new households last year, and wants to add 10M this year. CHA and CHU respectively added 15.7M and 8.2M broadband subs in 2012, and hope to add 15M and 9M in 2013. With China now sporting over 1.1B mobile subs, CHA and CHU are increasingly counting on broadband and 3G data services to drive growth. | Mar. 6, 2013, 6:31 PM | Comment!
Mar. 6, 2013, 4:56 AMChina plans to issue 4G network licenses by the end of 2013, Industry & Information Technology Minister Miao Wei has said. "China has made breakthroughs in R&D of 4G technologies, but is still facing restrictions in commercial use," Miao said. China Mobile (CHL) has already begun 4G trials in several Chinese cities. | Mar. 6, 2013, 4:56 AM | 3 Comments
Jan. 9, 2013, 1:39 PMThe Chinese government is thinking of opening the country's mobile market up to virtual carriers (MVNOs) who would offer services based on capacity leased from incumbents China Mobile (CHL), China Unicom (CHU), and China Telecom (CHA). Such a policy change could open up a lucrative new revenue stream for the incumbents and perhaps (thanks to new pricing models) stoke 3G/data services adoption, but also carries the risk of increasing price competition. | Jan. 9, 2013, 1:39 PM | 2 Comments
CHU vs. ETF Alternatives
China Unicom (Hong Kong) Ltd though its subsidiaries, provides cellular and fixed-line voice and related value-added services, broadband and other Internet-related services, ICT services, and business and data communications services in the PRC.
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