Tag: Google

  • Google to send Pixel 3 smartphone into Asia

    Google to send Pixel 3 smartphone into Asia

    Google is taking a more global approach to the Pixel 3 and Pixel 3 XL launch, announcing that it will now offer its new phones in 13 countries, including Japan, Ireland, Taiwan, and France. This builds on the rather small list of countries where Google’s Pixel 2 saw official release, which comprised of US, UK, Australia, Canada, Germany, Italy, Spain, India, and Singapore.

    Now in its third generation, Google has been quite slow to bring its flagship smartphones to a wider audience, especially considering how easy it is to find a competing devices practically anywhere you live. For example, the iPhone XS and iPhone XS Max launched in more than 25 countries. Still, Google’s spread to more countries will give Android users more choice than before.

  • Google, Facebook executives meet Vietnam PM, offer to help digitize economy

    Google, Facebook executives meet Vietnam PM, offer to help digitize economy

    Google and Facebook have been among the tech giants discussing cooperation with Vietnam on the sidelines of the WEF on ASEAN 2018 in Hanoi.

    At a meeting Wednesday with Google’s Asia-Pacific president Karim Temsamani, Prime Minister Nguyen Xuan Phuc stressed that Vietnam, with a population of nearly 100 million, has great potential in information technology, which is also spearheading the country’s industrialization and modernization.

    He urged Google, which has a very large user base in Vietnam, to pay more attention to helping maintain and promote Vietnam’s cultural identity.

    The PM expressed hope that the tech giant would collaborate with his country to foster the development of start-ups, train human resources and invest in research and development for growing its technology ecosystem.

    Temsamani emphasized the importance of digitizing the economy, a key global trend, saying Google is willing to help Vietnam achieve it.

    Through its Vietnam Digital 4.0 program, Google aims to provide free training in digital skills to 500,000 owners of small and medium businesses in the country by 2020 to help them improve their competitiveness, he said.

    Temsamani also promised it would help Vietnam build a technology ecosystem and come up with initiatives to help farmers digitize agriculture and promote their products more effectively through YouTube.

    Facebook’s vice-president of public policy for the Asia-Pacific, Simon Milner, also met with Phuc Wednesday. He said his company is committed to maintaining a long-term presence in Vietnam and expressed interest in joining the government’s effort to create a digital nation.

    It would take part in the programs of digital citizen, digital economy, digital government and digital connectivity, and assist and collaborate with small and medium businesses and start-ups, he said.

    Phuc also received Cees’t Hart, CEO of beer company Carlsberg Group, and Alex Dimitrief, president and CEO of General Electric Company’s (GE) Global Growth Organization.

    He told them Vietnam is speeding up equitization and divestment of the government’s stakes in enterprises based on the principles of transparency and openness, which offers opportunities to foreign investors like Carlsberg.

    Speaking about plans to divest stakes in Hanoi Beer, Alcohol and Beverage JSC (Habeco), he said Carlsberg and Habeco should soon resolve any remaining issues so that they can go ahead with purchase of stakes and strategic cooperation.

    Hart said Carlsberg, which has been Habeco’s strategic investor since 2008, is looking to buy a bigger stake in the Vietnamese brewer and has been working with the Ministry of Industry and Trade and other agencies to speed up the process.

    Dimitrief of GE said his firm plans to expand its investment in the power sector in Vietnam.

    Phuc told him his government attaches great importance to investors and is working to improve the business environment so that investors can do business effectively.

  • Google planned first flagship store for Chicago

    Google planned first flagship store for Chicago

    Google is reportedly planning to open its first permanent retail store, in a trendy Chicago neighbourhood.

    According to a report in the Chicago Tribune, a two-storey Google flagship store will open in the Fulton Market area, known locally as the meatpacking district.

    Google declined to confirm the report. “We don’t comment on rumor or speculation,” spokeswoman Kayla Conti said.

    But citing reliable sources, the Chicago Tribune said the lease is close to being finalised. The store will take up 14,000sqft and will be used to showcase the online company’s growing array of gadgets, including its smartphones, tablets, home security systems and Google Home, which is its answer to Amazon’s Echo.

    The store will be located in historic low-rise brick buildings on W. Randolph Street.

    Until now, Google’s brick-and-mortar foray has been limited to pop-up stores and concessions.

  • JD quarterly report leaves some concern

    JD quarterly report leaves some concern

    Chinese e-commerce company JD boosted second-quarter revenue by 31.2 per cent, but losses ballooned nine-fold.

    JD quarterly sales reached RMB122.3 billion (US$218.5 billion) for the three months to June 30, with net service revenues of RMB11.8 billion (US$1.8 billion), up 51 per cent year on year.

    On a rolling 12 month basis, annual active customer accounts increased by 21.5 per cent to 313.8 million in the year to June 30.

    The operating margin of JD Mall was just 1.1 per cent, although that was an improvement on the 0.8 per cent of the same period a year earlier.

    JD chairman and CEO Richard Liu said the e-commerce business was continuing to win over new personal customers. “We are also seeing more corporate clients, both Chinese and international, leveraging JD’s superior technology and retail infrastructure to help take their businesses to the next level. We will continue to prioritise technology innovation to empower our partners with enhanced capabilities and improved efficiency, helping us to realise our ‘Retail as a Service’ strategy, and driving our next phase of growth.”

    The net loss from continuing operations attributable to shareholders was RMB2.213 billion (US$334.4 million), compared to RMB287 million for the same period last year.

    Despite continuing losses in what is  along-game business, JD is attracting investment. In June, Google invested $500 million as part of a new strategic partnership.

    “We are pleased to see continued healthy performance in the second quarter, with solid revenue growth and improved margins in our core JD Mall business,” said Sidney Huang, CFO, in a statement “Our new business initiatives continue to gain impressive traction across the industry. We will maintain a balanced, long-term approach to investing in the technologies that will define the future of retail.”

    During the second quarter, JD expanded its leadership position in fulfillment capabilities among China’s e-commerce companies. As of June 30, JD operated 521 warehouses covering an aggregate gross floor area of 11.6 million sqm in China.

    The company had more than 170,000 merchants on its online marketplace, and 173,904 full-time employees at the end of the quarter.

  • Google tracks locations even when told not to

    Google tracks locations even when told not to

    Google wants to know where you go so badly that it records your movements even when you explicitly tell it not to.

    An Associated Press (AP) investigation found that many Google services on Android devices and iPhones store your location data, even if you’ve used privacy settings that say they will prevent it from doing so.

    Computer-science researchers at Princeton confirmed these findings at the AP’s request.

    For the most part, Google is upfront about asking permission to use your location information. An app like Google Maps will remind you to allow access to location if you use it for navigating. If you agree to let it record your location over time, Google Maps will display that history for you in a “timeline” that maps out your daily movements.

    Storing your minute-by-minute travels carries privacy risks and has been used by police to determine the location of suspects – such as a warrant that police in Raleigh, North Carolina, served on Google last year to find devices near a murder scene. So the company will let you “pause” a setting called Location History.

    Google says that will prevent the company from remembering where you’ve been. Google’s support page on the subject states: “You can turn off Location History at any time. With Location History off, the places you go are no longer stored.”

    That isn’t true. Even with Location History paused, some Google apps automatically store time-stamped location data without asking.

    For example, Google stores a snapshot of where you are when you merely open its Maps app. Automatic daily weather updates on Android phones pinpoint roughly where you are. And some searches that have nothing to do with location, like “chocolate chip cookies,” or “kids science kits,” pinpoint your precise latitude and longitude – accurate to the square foot – and save it to your Google account.

    The privacy issue affects some two billion users of devices that run Google’s Android operating software and hundreds of millions of worldwide iPhone users who rely on Google for maps or search.

    Storing location data in violation of a user’s preferences is wrong, said Jonathan Mayer, a Princeton computer scientist and former chief technologist for the Federal Communications Commission’s enforcement bureau. A researcher from Mayer’s lab confirmed the AP’s findings on multiple Android devices; the AP conducted its own tests on several iPhones that found the same behavior.’

    “If you’re going to allow users to turn off something called ‘Location History,’ then all the places where you maintain location history should be turned off,” Mayer said. “That seems like a pretty straightforward position to have.”

    Google says it is being perfectly clear.

    “There are a number of different ways that Google may use location to improve people’s experience, including: Location History, Web and App Activity, and through device-level Location Services,” a Google spokesperson said in a statement to the AP. “We provide clear descriptions of these tools, and robust controls so people can turn them on or off, and delete their histories at any time.”

    To stop Google from saving these location markers, the company says, users can turn off another setting, one that does not specifically reference location information. Called “Web and App Activity” and enabled by default, that setting stores a variety of information from Google apps and websites to your Google account.

    When paused, it will prevent activity on any device from being saved to your account. But leaving “Web & App Activity” on and turning “Location History” off only prevents Google from adding your movements to the “timeline,” its visualization of your daily travels. It does not stop Google’s collection of other location markers.

    You can delete these location markers by hand, but it’s a painstaking process since you have to select them individually, unless you want to delete all of your stored activity.

    You can see the stored location markers on a page in your Google account at myactivity.google.com, although they’re typically scattered under several different headers, many of which are unrelated to location.

    To demonstrate how powerful these other markers can be, the AP created a visual map of the movements of Princeton postdoctoral researcher Gunes Acar, who carried an Android phone with Location history off, and shared a record of his Google account.

    The map includes Acar’s train commute on two trips to New York and visits to The High Line park, Chelsea Market, Hell’s Kitchen, Central Park and Harlem.

    To protect his privacy, The AP didn’t plot the most telling and frequent marker – his home address.

    Huge tech companies are under increasing scrutiny over their data practices, following a series of privacy scandals at Facebook and new data-privacy rules recently adopted by the European Union.

    Last year, the business news site Quartz found that Google was tracking Android users by collecting the addresses of nearby cell phone towers even if all location services were off.

  • Is Google going to make it into China?

    Is Google going to make it into China?

    Google wants to get back into China, and is laying the groundwork for a key part of the initiative: bringing its cloud business to the world’s second-largest economy.

    The internet giant is in talks with Tencent Holdings Ltd., Inspur Group and other Chinese companies to offer Google cloud services in the mainland, according to people familiar with the discussions. They asked not to be identified discussing private matters.

    The talks began in early 2018 and Google narrowed partnership candidates to three firms in late March, according to one of the people. Trade tensions between China and the US now loom over the effort. It’s unclear if the plans will proceed, this person said.

    The goal is to run Google internet-based services – such as Drive and Docs – via the domestic data centers and servers of Chinese providers, similar to the way other US cloud companies access that market. In most of the rest of the world, Google Cloud rents computing power and storage over the internet, and sells a collection of workplace productivity apps called G Suite that are run on its own data centers. China requires digital information to be stored in the country and Google has no data centers in the mainland, so it needs partnerships with local players.

    Google Cloud chief Diane Greene said last week that she wants the business to “be a global cloud,” but declined to comment specifically about China. Still, the company is seeking a Shanghai-based business development manager for its cloud business. The job posting lists “experience in, and knowledge of, the Chinese market” as a preferred qualification.

    A Google Cloud spokesman declined to comment. Inspur and Jane Yip, a Tencent spokeswoman, didn’t immediately respond to requests for comment on Friday.

    A tie-up with large Chinese tech firms, like Tencent and Inspur, a major cloud and server provider, would also give Google powerful allies as it attempts a broader return to mainland China, where it pulled its search engine in 2010 over censorship concerns.

    After years of slowly rebuilding a presence in China, Google has pressed the accelerator recently. It’s building a cloud data centre region in Hong Kong this year and opened an artificial intelligence research centre in Beijing in January. Along with other Alphabet Inc. units, it has begun investing more in Chinese companies. Plans for a censored search app in China surfaced earlier this week, sparking a furious debate about whether Google is putting profit over its mission to “organize the world’s information and make it universally available.”

    A cloud partnership for Google in China would help the company compete more with larger rivals Amazon.com Inc. and Microsoft Corp. In late 2017, Amazon agreed to sell its Chinese servers and some other cloud assets to local partner Beijing Sinnet Technology Co. The move complied with laws introduced that year mandating the storage of data within the country and bolstering government control over the movement of information. The move mirrored a similar set-up between Microsoft and its local partner 21Vianet Group Inc.

    With Tencent, Google would have an even more high-profile ally – but would also go up against local competitors including Alibaba Group Holding Ltd., which operates a major cloud business in China.

    China is the second-largest cloud market, but local companies dominate, making it difficult for outsiders like Google, according to Synergy Research Group. “You can never say never, but that is an incredibly tough proposition,” Synergy analyst John Dinsdale said. A June report from Synergy ranked Google fourth in the Asian cloud market, behind Amazon, Alibaba and Microsoft.

    In January, Google struck a patent-sharing deal with Tencent. The agreement came with an understanding that the two companies would team up on developing future technologies.

    Tencent operates its own cloud service and is building an ecosystem of partners that includes Cisco Systems Inc., Nvidia Corp. and Deloitte, according to Tencent’s website. It already offers a cloud service called the Tencent Kubernetes Engine that’s based on a popular Google technology by the same name. Google could host services, such as Gmail, Drive and Docs, on Tencent’s data centers, and the Chinese company may suggest existing cloud customers try Google offerings.

    Tencent founder Pony Ma is a representative of China’s National People’s Congress, and Inspur, formerly the state-owned Shandong Electronics Devices Plant, could provide political cover for Google as it seeks to gain approval from authorities to operate more of its largest businesses in country.

    Google has touted the security and AI strengths of its cloud division. Tensorflow, a coding library for AI applications created by Google, is growing in popularity with researchers and software developers in China. While the feature is compatible with other cloud services, it’s designed to work most efficiently with Google’s cloud.

  • Uniqlo to use Google voice recognition technology in its mobile assistant

    Uniqlo to use Google voice recognition technology in its mobile assistant

    Japanese retailer Uniqlo has launched a mobile assistant using Google voice recognition technology to personalise recommendations for customers.

    The Uniqlo mobile assistant has already undergone significant testing with development partners in Japan, and is already live there. It is intended to streamline internet garment shopping to make the experience fresher and more inspiring.

    Shoppers throughout Japan can now access the tool via Line, Google Assistant, or the proprietary Uniqlo app. It features product rankings updated hourly, search by occasion type, finding items featured in magazines, and even garment matching according to astrological findings. Shoppers can purchase their selections online or at the nearest physical store if they prefer.

    Cofounder of development partner Inamoto & Co Rei Inamoto said, “As retail moves deeper into the digital realm, shopping needs to be not just portable and perpetual but personal as well. There has been a lot of talk about AI in the last few years but most use cases have been toys, not tools.

    “Available through chat, search and even voice activation, this iteration of Uniqlo IQ is the foundation of how Uniqlo will provide customer service on a personal level not just reactively but also proactively.”

    A spokesperson for Uniqlo said the assistant tool is the first instance of Google working so closely on a partnering brand-specific solution.

  • Half of smartphones sold in 2018 will have AI assistant

    Half of smartphones sold in 2018 will have AI assistant

    Half of smartphones sold globally this year will have an artificial intelligence (AI) assistant, a report by an industry consulting firm showed Sunday.

    According to Strategy Analytics (SA), 47.7 percent of smartphones sold on the global market in 2018 will be equipped with some kind of on-device AI assistant, up from 36.6 percent last year.

    The report further finds that on-device AI is growing fast among smartphone vendors and by 2023, 89.9 percent of smartphones will have a built-in AI assistant.

    In 2017, Google Assistant rose to be the top AI assistant with a 46.7 percent market share, followed by Apple’s Siri with 40.1 percent, it said.

    The report said the market share of Google’s AI assistant is expected to climb to 51.3 percent this year and 60.6 percent by 2023.

  • How JD could help fight a proxy war for its strategic investors

    How JD could help fight a proxy war for its strategic investors

    A proxy war is a strategy that refers to a conflict instigated by opposing powers who do not fight against each other directly.

    By using third parties to do the fighting, it is still possible to bring strategic benefits while minimizing the risks.

    Google has announced that it will invest US$550 million in JD.com for 1 percent stake, joining Tencent and Walmart to become the Chinese online retailer’s third strategic investor.

    In fact, the three may all be seeing JD as a proxy to help them compete with their respective rivals.

    Listed on Nasdaq in 2014, JD has a market capitalization of around US$60 billion.

    It’s China’s second-largest e-commerce company, but its market value is only a fraction of Alibaba’s US$500 billion plus.

    Alibaba’s Taobao and Tmall have snapped up about 70 percent of China’s online shopping market, while JD’s market share is around 22 to 25 percent.

    To Google, JD could serve as a proxy in competing with Amazon.

    Google and JD plan to “collaborate on a range of strategic initiatives, including joint development of retail solutions in a range of regions around the world”, they said.

    In the short term, JD would select a range of high-quality products and offer them worldwide through Google Shopping.

    The two companies would also explore new retail opportunities in Southeast Asia, the United States and Europe. The alliance would combine JD’s strengths in supply chain and logistics with Google’s tech capability to develop a new retail infrastructure.

    We could say that Google and Amazon have a sort of love-hate relationship. Amazon is now Google’s largest advertising client, spending billions of dollars each year. But Amazon is actively exploring direct distribution channels and even starting its own advertising business.

    Google, meanwhile, has launched its Google Shopping unit and JD would add more Chinese offerings to this platform.

    JD will also serve as Walmart’s proxy in its war against Amazon.

    In 2016, Walmart, the world’s largest brick-and-mortar retailer, sold its China e-commerce platform to JD as it pulled out of the market.

    In return, Walmart obtained a 5 percent stake in JD, and became its strategic shareholder. The US retailer has since then steadily increased its stake to 12 percent.

    Walmart is also looking to transform its business into an offline-to-online retail model. But it has achieved limited progress so far. JD serves as a good partner in this pursuit.

    To Tencent, JD would be a proxy in competing with Alibaba.

    Chinese internet giant Tencent spent US$215 million for a stake in JD in 2014. Following a number of additional purchases, Tencent now holds a 21 percent stake and is JD’s largest shareholder.

    If JD is able to put some pressure on Alibaba, the latter would have less time and energy to try encroaching on Tencent’s turf – social networking and online games.

  • Facebook, Google okay with Vietnam’s cybersecurity law

    Facebook, Google okay with Vietnam’s cybersecurity law

    Representatives of tech giants raised no objections and said they would modify their strategies according to the new law, claims senior official.

    Facebook and Google found Vietnam’s cybersecurity law “appropriate” and did not object to it, a senior Public Security Ministry official said Friday.

    Vietnam’s cybersecurity law, which was approved by a majority vote in the National Assembly on Tuesday, requires foreign businesses like Facebook and Google to store Vietnamese users’ data within the nation’s territory and provide it authorities upon receipt of written requests.

    As the law was being drafted, lawmakers had reached out to Google and Facebook to discuss its provisions, said Lieutenant-general Hoang Phuoc Thuan, director of the ministry’s Cybersecurity Department.

    “They said that this law was appropriate and that they will research to modify their companies’ strategies accordingly,” Thuan told.

    Authorities will only ask businesses to provide users’ data when there are signs of violations of the law, Thuan said.

    “Providing customers’ data to security authorities is not a violation of privacy,” he added.

    Facebook Vietnam and Google were not immediately available for comment.

    The cybersecurity law, which has been discussed by Vietnamese legislators since October last year, had raised concerns of MPs and experts that the country would end up violating its international commitments.

    Thuan dismissed these concerns. “I have met with and listened to diplomats and they all affirmed that there are exceptions in every country.”

    He affirmed that the law doesn’t affect freedom of speech; it actually protects the rightful benefits of individuals and organizations on networks.

    The new cybersecurity law, which will take effect in 2019, bans internet users from organizing, encouraging or training other people for anti-state purposes.

    They are not allowed to distort history, negate the nation’s revolutionary achievements, undermine national solidarity, offend religions and discriminate on the basis of gender and race.

    The law also prohibits the spreading of incorrect information which causes confusion among people, hurts socio-economic activity, creates difficulties for authorities and those performing their duty, and violates the legal rights and benefits of other organizations and individuals.

  • Carrefour and Google to partner in online shopping initiative

    Carrefour and Google to partner in online shopping initiative

    Carrefour and Google have formed a strategic partnership to develop innovative online shopping solutions.

    The two companies say Google will contribute its technology and skills in AI, cloud computing and new consumer shopping interfaces like the Google Assistant, while Carrefour will bring its product expertise and know-how in logistics and sales.

    The partnership will focus on three initiatives: the availability of Carrefour on a new Google shopping website and Google Assistant in France, the creation of a Carrefour-Google innovation lab and the acceleration of Carrefour Group’s digitalisation.

    “The common objective of this partnership is to bring together the expertise of both companies to offer consumers new and innovative commerce experiences in France, whether that’s in a store, online, on smartphones, or with voice,” the two companies said in a statement.

    New buying experience

    The cooperation will see “a new buying experience from Carrefour across Google platforms” including Google Assistant, Google Home and a new Google Shopping website in France, expanding Carrefour’s footprint in the digital realm.

    “The common goal of both companies is to provide users with simplified and intuitive buying experiences. By early next year, users in France will be able to shop for groceries through a variety of channels including on Google Home, via the Google Assistant on their mobile phone, or on the web through the new Google shopping destination in France. Items can be delivered to their homes or made available for pick up in-store.”

    At the new innovation lab in Paris, Carrefour engineers will work side-by-side with Google Cloud AI experts to co-create new consumer experiences.

    Meanwhile, Carrefour will deploy Google Cloud’s G Suite productivity and collaboration solutions (including Gmail, calendar, drive, Hangouts, Docs) to more than 160,000 Carrefour employees.

    “This alliance makes Carrefour the first partner of Google on grocery e-commerce in Europe, creating a strong bond between the two companies,” said Alexandre Bompard, CEO of Carrefour.

    “It also marks an important step in the new story written by Carrefour since the announcement of the Carrefour 2022 plan. It allows us to accelerate our digital evolution and get a head start in deploying the omni-channel approach we want to offer our customers.”

    Sébastien Missoffe, VP and MD of Google France, said shoppers today are saddled with disconnected experiences through the online shopping journey, which often lead to abandoned shopping carts and low customer satisfaction and loyalty.

    “Customers want assistive, simple and personalised experiences that help them make decisions on what to buy, assist with easily building baskets across surfaces, and provide a seamless checkout. With Alexandre Bompard and his team, we wanted to explore new distribution models and e-commerce technologies to deliver simple, frictionless and deeply relevant experiences for shoppers in France.”

    Carrefour has a network of 12,300 stores across more than 30 countries.

  • These Chinese giants make Facebook and Google look tame

    These Chinese giants make Facebook and Google look tame

    The technology world’s most bruising battle for supremacy is taking place in China. And it could point to Big Tech’s future everywhere else, too.

    Tencent Holdings and the Alibaba Group are ratcheting up their no-holds-barred contest to dominate the ways 770 million internet users communicate, shop, get around, entertain themselves and even invest their savings and visit the doctor.

    The two titans long ago branched out from their core businesses — games and social media for Tencent, e-commerce for Alibaba — to duke it out in ever more realms of Chinese life. They have competed in messaging, microblogging and delivering takeaway food. They go head-to-head in video streaming and cloud computing.

    Today, their fiercest fight is over digital money kept on smartphones. Mobile payments have transformed the Chinese economy. Both giants, plus Ant Financial, an Alibaba sister firm, are spending big to gobble up pieces of the action.

    China’s internet powerhouses stand at the forefront of the nation’s galloping high-tech progress — a surge that has been brought into sharp focus by the Trump administration’s efforts to counter it. On one hand, the standoff over the Chinese telecom equipment-maker ZTE has exposed, to many in China, the degree to which the country still lags in core technologies such as microchips.

    But in the internet realm, China still offers a spooky potential vision of the future, one in which online behemoths like Tencent and Alibaba become the gatekeepers to the entire economy, wielding immense power over traditional industries and becoming very, very rich in the process.

    At a conference in December in the Chinese city of Guangzhou, Tencent’s chief executive Pony Ma said he felt the two companies were competing in “too many” areas.

    “Sometimes I think, ‘Ah, we’re competing in this now, too? All right then,’” Ma said, chuckling. “It’s a little frustrating.”

    A duopoly this broad could not be easily replicated in other countries,  for example the United States. Entrenched competitors and the threat of government intervention generally keep the likes of Apple, Amazon, Google and Facebook from expanding pell-mell into adjacent businesses. All of them have sprawled and overlapped mightily, but Amazon, with its forays into groceries, pharmacies, health care and more, might be the furthest along towards creating an inescapable commercial universe.

    Still, with the European Union enacting tough new privacy laws, and some in the United States eager to follow, Google and Facebook could soon be forced to find ways to make money beyond selling users’ personal information to advertisers, said Raj Rajgopal, president of digital business strategy at Virtusa Corp, a consulting firm.

    “As profitability reduces, they’ll say, ‘Now I need to monetise my customer base,’” Rajgopal said. “The innovation we’re seeing in China could be seen in the US in the next three to five years,” he added. “Customers are demanding that.”

    China’s internet titans have a powerful ally found nowhere else, though: the Chinese government. Tencent and Alibaba have avoided anti-monopoly clampdowns by staying in Beijing’s good graces, said Hu Wenyou, a partner at the Beijing law firm Yingke. Their sheer size also makes them easier for authorities to control. They simply have too much to lose.

    “If you can become so big, and so successful in so many areas, this in itself shows that you must have maintained very good, very friendly relations with the government,” Hu said.

    Neither giant is done getting bigger.

    Each has a market capitalisation of close to $US500 billion ($663 billion), making them among the most highly valued technology firms on the planet. Google and Facebook still claim more users, but the Chinese heavyweights arguably do more — and more, and more — for theirs.

    The latest battleground? Brick-and-mortar stores. Alibaba has spent great sums — $US2.9 billion on a supermarket chain, $US2.6 billion on a department store and mall operator — to conquer the real world. Tencent has followed suit with its own retail partnerships and investments.

    Once the companies have locked people into their payment systems, they can become the enablers of commerce and financial services of even more kinds. In a sign of investors’ excitement about the possibilities, Ant Financial is making plans to go public, in a blockbuster stock offering that could give the company a market value larger than Goldman Sachs.

    China has become a model for tech’s world-swallowing tendencies partly out of circumstance.

    With the country’s high-speed churn of well-funded startups, planting flags on new turf is often the only way for large players not to be constantly losing ground.

    Also, both Alibaba and Tencent have struggled to make much money outside their home market. That means their surest way to keep growing is to get more deeply involved in more areas of their Chinese users’ lives.

    Those lives are riper for tech disruption than lives in the West. In China, small stores dominate retail. Hospitals are crowded and doctors overworked. Most people do not have credit cards. These are easier business opportunities for Alibaba and Tencent than they would be for Amazon or Facebook.

    In a report this week, Morgan Stanley predicted that by 2027, the total market in China in which Alibaba could be making money will be worth $US19 trillion — more than Amazon’s potential market worldwide.

  • Smartphone Sales Will Drop for Second Straight Year, IDC Predicts

    Smartphone Sales Will Drop for Second Straight Year, IDC Predicts

    Global smartphone sales are expected to fall for the second year running this year, before  returning to growth next year, according to analysis by the International Data Corporation (IDC).

    In the research house’s Worldwide Quarterly Mobile Phone Tracker, smartphone shipments are forecast to drop 0.2 per cent this year to 1.462 billion units, after a 0.3 per cent decline last year. Looking further out, IDC expects the market is to grow roughly 3 per cent annually from next year onwards, with worldwide shipments reaching 1.654 billion in 2022 and a five-year compound annual growth rate (CAGR) of 2.5 per cent.

    The biggest driver of last year’s decline was China, where smartphone sales declined 4.9 per cent year-on-year. And the IDC expects sales in China to decline a further 7.1 per cent this year before flattening out next year.

    The biggest growth market in Asia Pacific continues to be India, with volumes expected to grow 14 per cent and 16 per cent this year and next.

    “Chinese OEMs will continue their strategy of selling large volumes of low-end devices by shifting their focus from China to India,” says IDC. “So far, most have been able to get around the recently introduced Indian import tariffs by doing final device assembly at local India manufacturing plants. As for components, almost everything is still being sourced from China.”

    “With 2017 now behind us a lot of interesting market dynamics are unfolding,” says Ryan Reith, program VP with IDC’s Worldwide Quarterly Mobile Device Trackers. “Even though it declined 5 per cent last year, China remains the focal point for many given that it consumes roughly 30 per cent of the world’s smartphones.

    “But plenty of pockets of growth can be found beyond China. India is now grabbing headlines and the market itself is going through some rapid transformation. Local Indian manufacturing continues to ramp up, despite still having a heavy dependence on China for components. The boom in India is likely to continue in the years to come, but the move toward building up local production has certainly caught the eye of many in the industry.”

    Outside of Asia Pacific, the biggest regions for growth will be the Middle East, Africa, and Latin America. All three regions have relatively low penetration rates and plenty of upsides, says IDC. Economic challenges have been the main inhibitor over the past two years, but IDC expects consumer spending to rise throughout the forecast and smartphones to be a big benefactor.

    5G opportunity

    The other catalyst to watch will be the introduction of 5G smartphones. IDC predicts the first commercially ready 5G smartphones will appear in the second half of next year with a ramp up across most regions happening in 2020. IDC projects 5G smartphone volumes to account for roughly 7 per cent of all global smartphone sales in 2020 or 212 million in total. The share of 5G devices should grow to 18 per cent of total volumes by 2022.

    “Although overall smartphone shipments will decline slightly this year, the average selling price (ASP) of a smartphone will reach US$345, up 10.3 per cent from the $313 of last year,” said Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker.

    “This year will continue to focus on the ultra-high-end segment of the market as we expect a surge of premium flagship devices to launch in developed markets. Devices featuring large Amoled bezel-less displays, advanced camera functions, and an overall increase in speed and performance will be the driving factor in the increase of ASPs. Moving forward, we can expect this trend to continue as the ASP for a smartphone will continue to grow throughout the forecast period. In 2022, the final year of our forecast period, the average selling price for a smartphone will be $362, resulting in a five-year CAGR of 2.9 per cent.”

    Android vs Apple

    Android’s share of t sales is expected to remain relatively stable at 85 per cent of total global smartphone sales. Volumes are expected to grow at a five-year CAGR of 2.5 per cent, with shipments totaling 1.41 billion by 2022.

    “There is no question that Android is the OS of choice for the mass market and nothing leads us to believe this will change,” says IDC. “Given the large number of Chinese OEMs dependent on Google’s OS, as well as components from other US companies like Qualcomm, it will be interesting to see how things develop with all the discussion about a US-China trade war. Android OEMs continue to drive down the cost of new technology features at a rapid pace. IDC estimates that 98 per cent of Android phones will ship with screens larger than five inches by 2022, with 36 per cent being six inches or larger. While some of these will remain premium flagship models, the aggregate ASP of Android phones with a six-inch screen or greater by 2022 is projected to be $414.

    Meanwhile, iPhone volumes are expected to grow 2.6 per cent this year to 221 million. IDC is forecasting iPhones to grow at a five-year CAGR of 2.4 per cent, reaching volumes of 242 million by 2022. With rumors of some upcoming larger screen iOS smartphones, IDC has changed its screen size forecast for Apple by introducing volumes greater than six inches. Products are likely to begin shipping in the fourth quarter of 2018, with volumes ramping up and accounting for 36 per cent of all iPhones shipped by 2022.

  • Google explains Hong Kong’s E-commerce Challenges

    Google explains Hong Kong’s E-commerce Challenges

    Mindset and talent are the two factors holding back the Hong Kong e-commerce sector, according to a senior Google executive.

    Speaking at the sell-out HKRMA 2018 Hong Kong Retail Summit this morning, Leonie Valentine, MD sales and operations at Google Hong Kong, said that compared with other major cities around the world, Hong Kong remains in the early stages of digital transformation.

    Here, where retail is a key driver of the economy, e-commerce accounts for just 4.68 per cent of sales.

    Yet across Asia-Pacific, 17.6 per cent of retail sales will be online this year.

    Of the small percentage of retail sales conducted online in Hong Kong, just 37 per cent is on mobile (m-commerce). In the mainland, that figure is 66 per cent and China now accounts for two-thirds of global m-commerce sales, driven by its mobile-first audience. Sales by m-commerce in China are expected to triple by 2021.

    Valentine dismissed the ubiquitous argument that the city’s dense urban layout is the reason Hong Kong e-commerce penetration is so low.

    “It’s the same argument I heard in 2011 when I arrived in Hong Kong, when I questioned why I couldn’t buy a mobile phone or groceries online here. ‘Oh, there’s no need,’ was the reply. ‘There’s a shop on every corner in Hong Kong. No one shops online.’

    “Should I tell that to the millennials in my team? They were  already buying dresses from Korea, shoes from Taobao and books from Amazon in 2011. Yet we really didn’t have as much of a digital industry here then,” said Valentine.

    “So while digital investments by some retailers have lagged behind, most consumers have actually embraced online shopping.”

    Last year, 58 per cent of non grocery sales were influenced by a digital touchpoint, compared with just 13 per cent in 2004.

    “Today’s consumer wants to compare products, features, price, benefits, etc, before they start their purchase process. Eighty-one per cent of the population is connected to the internet. Ninety-eight per cent of smartphone users go online at least once a day. So Hong Kong should rank really highly in digital integration.”

    But it doesn’t.

    “There are two things that hold back Hong Kong. Mindset – in terms of the willingness to embrace new things – and talent. One of the things we really need in Hong Kong is to have a mindset that change is good, that embracing digital is not about distrusting what you have today; it is about complementing that for the benefit of your customers.”

    Those customers are already online, said Valentine. “Everybody here is online: 98 per cent of smart phone users – and that’s everybody – are online at least once a day, from an eight-year old to an 80-year old. And yet where are we? Where are our government services today… on mobile? Where is the ability for you to be able to easily find what you are looking for online?

    “I want to buy a new couch. I can’t find one. I’m searching and I have money to spend and I cannot find a retailer in Hong Kong easily on mobile or on my desktop that has the product that I want. I find that really interesting in a city that is as modern and connected as Hong Kong.”

    Those are her two reasons for Hong Kong e-commerce lagging the rest of the region, she said. “It is very much about the mindset and it’s about having the right talent to drive a lot of the adoption of these ideas.”

    “Take a risk”

    Another speaker, Yann Bozec, president and CEO of Coach China, echoed Valentine’s comments on the mindset.

    “I love to be surrounded by millennials and listen to what they do and how they do it. Even further I am learning a lot from my eight year old daughter about digital [technology]. I think it is about listening and looking at how people, especially younger people, are engaging digitally.

    “[It’s about] being inspired by them and not being shy to take risks and try new things, including new applications.”

    Bozec said besides established giants like Google, a lot of smaller, upcoming applications are making their way onto the market.

    “Businesses who are early adopters and taking some risks can really take a lot of benefits.”

    Retail “a pillar” of Hong Kong

    The 2018 Hong Kong Retail Summit was opened by the SAR’s chief executive Carrie Lam, who congratulated the HKRMA on its 35th anniversary.

    “The retail industry is an important pillar of the Hong Kong economy, contributing about 4 per cent of our GDP and employing some 270,000 people. I am pleased to note that retail sales last year enjoyed moderate growth in both value and volume… with the forecast of a sales increase this year in the 3 to 4 per cent range.”

  • Google Singapore goes online

    Google Singapore goes online

    After launching its online store, Google Singapore has introduced its smart speaker Google Home.

    It has taken the technology 16 months to reach SouthEast Asia, and alongside the Google Home Mini the speaker will be sold through retail stores such as Challenger, Courts and StarHub, as well as online from tomorrow.

    There is no word on when the newer Google Home Max will be made available, reports CNet, nor if Google Home will be rolled out elsewhere in Southeast Asia. However, it was launched in India last week and in Japan late last year.

    Singapore’s version of the speaker will support Singlish, and have access to local services such as public transportation chatbot Bus Uncle.

    Google has also enabled multi-user support for Singapore, and will be able to deliver personalised schedules or music based on who is asking.

    “We’re seeing a transition from a mobile-first world to an AI-first world,” says Google VP of product management Rishi Chandra. “We’re looking to reinvent all of our products to make it more natural to use them, and we think voice is going to be a big part of that. Voice can fundamentally change how you interact with computers.”

    He says Home has been designed around Google’s privacy framework. “We want to be transparent and give user control.”

    User data across all Google platforms, including Search and Home, can be managed on a single backend, enabling users to easily view and delete their information.