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Tag: Huawei

  • Huawei to launch NB-IoT solution in early 2017

    Huawei to launch NB-IoT solution in early 2017

    Huawei has revealed plans to commercialize its end-to-end narrowband IoT solution early next year, to help operators expand their IoT services into new markets.

    The vendor plans to release the world’s first 3GPP standards-based NB-IoT commercial system-on-a-chip, Boudica, that can be deployed with the Huawei LightOS operating system.

    Huawei has meanwhile unveiled SoftRadio, a software suite to help developers access NB-IoT open labs via the internet.

    The solution will also involve eNodeB base stations, an IoT packet core supporting flexible deployment of Core in a Box and NFV, as well as a cloud-based IoT connection management platform with big data capabilities.

    The converged NB-IoT offering will be tested in a large commercial trial this quarter before being released to the market in early 2017.

    “NB-IoT has unique advantages in supporting IoT applications. Huawei will help carriers accelerate the commercial adoption of NB-IoT and the maturing of the industry chain,” Huawei VP of marketing and solutions Jiang Wangcheng said.

    “The IoT project and the success achieved so far fully demonstrate this commitment of ours.”

    Huawei’s launch plans were announced at the Huawei eco-CONNECT Europe 2016 conference held in Paris last week.

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  • Huawei applies machine learning to network control

    Huawei applies machine learning to network control

    Huawei has developed a prototype technology involving using machine learning to achieve intelligent, automated network traffic control.

    The vendor’s Noah’s Ark Laboratory has announced results of tests into Network Mind, a prototype technology designed to enable automatic detection and accurate prediction of traffic changes on a network, applying optimizations based on service changes.

    Huawei said Network Mind can facilitate the management of millions of network elements with millisecond response time.

    It uses cutting edge machine learning technologies such as online deep reinforcement learning and real-time big data mining

    The technology is being designed for operators and enterprises maintaining ultra-large networks. The prototype was first developed in December last year, and is being tested in collaboration with operators.

    Tests indicate that Network Mind is is up to 500% more efficient in realizing KPIs such as task completion or policy generation compared to existing template or heuristic algorithm-based optimization methods.

    Network Mind is also over 50 times more efficient when analyzing paths of large optical networks, which has the potential to reduce the time it takes to analyze use cases such as optical network failure prevention from 5 hours to as little as 6 minutes.

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  • Why Apple China is struggling

    Why Apple China is struggling

    Apple’s sales decline is slowing – but there are several reasons why it is doing so badly in China…

    While the iPhone 7 has not been out long enough to have had a full impact on this quarter’s numbers, it has helped Apple to moderate the pace of revenue decline.

    Even so, global revenues are still down by 9 per cent over last year indicating that Apple is a long way off the steep growth trajectory it once enjoyed. With more investment going into stores, and with those store selling fewer products than they once did, it is not surprising that net income is on the slide. Indeed, Apple will be particularly disappointed with its rare full-year profit decline.

    China is an interesting, and worrying, example of some of these points. Across this quarter Apple saw revenues fall by 30 per cent in Greater China. In part this is down to the fact the market is more mature and ownership of iPhones is higher than it once was. But it is not the whole story: domestic brands like Huawei and Vivo have gained share thanks to the fact that they have, in design and technical terms, caught up with Apple and are now seen more favorably by consumers. In essence, in China and elsewhere, while Apple’s products are still seen favorably, the distance between Apple and its competitors is nowhere near as great as it once was.

    “No longer firing on all cylinders”

    Globally, the change in Apple’s fortunes is partly down to the fact that it is no longer firing on all cylinders. Previously, Apple was able to rely on strong sales of phones, tablets and computers to drive up revenue and profit across all geographies. This is no longer the case. Tablet sales are in decline. Growth from computers, which are long overdue a refresh, is weak. And consumers in some markets are saturated with product which makes growth much more difficult to attain. The latter is exacerbated by the fact that new releases, such as the iPhone 7, have been iterative rather than innovative.

    Unfortunately, Apple’s attempts to add new strings to its fiddle have not counteracted some of the strings that are now playing out of tune. In particular the Apple Watch, while a triumph of engineering, has simply not become a mass market product in the way that the iPhone, iPad, or iPod did. The one bright spot comes from service revenue, which includes streams of sales from Apple Pay, Apple Music and other services, and is up 24 per cent year-on-year. Over the longer term, this is a very lucrative part of Apple’s business and growth story, but it is not yet at the point where it is offsetting revenue declines in other areas.

    Despite this relatively gloomy view, it is important to note that Apple is being judged by its own incredibly high standards. Even with the dips in growth it remains a phenomenally successful business that is far from running out of steam.

    Complexity over simplicity

    That said, there is a complexity creeping into the firm that runs counter to Apple’s underlying philosophy of simplicity. The recent launch of the iPhone 7 in the US is a case in point: the buying process has been dreadful. The cumbersome system of placing orders via the website, where users have had to enter carrier information, has frustrated many customers. Meanwhile the vast array of different models, color options and payment and upgrade methods has contributed to a shortage of the right stock in the right place and has inevitably slowed sales.

    For a brand like Apple these things matter. As the company has always maintained, the experience of purchasing is almost as important as the product itself. While there is no doubt Apple continues to be committed to this mantra – especially with the store upgrades it is now rolling out – it needs to look more carefully at issues of stock availability and to make the purchase process simpler and easier.

    Looking ahead, Apple’s prospects give cause for optimism. In the next fiscal year the company will come up against softer comparatives which will flatter performance. However, the unveiling, later this week, of new computers will help to ease up Mac sales. And as the iPhone 7 becomes more widely available, Apple will receive a nice growth spurt over the holiday quarter.

    Longer term, the company will be helped by the natural replacement cycle of older iPhones as these break, are damaged, or become less attractive to their users. Furthermore, Apple will, at some point, come up with a new phone – or maybe another device – that represents a significant leap forward and puts it on a better growth footing.

    As such, this current period is a hiatus rather than representing a material change in Apple’s long term prospects.

     

    -Neil Saunders

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  • Huawei Marine to build backbone network for PNG

    Huawei Marine to build backbone network for PNG

    Huawei Marine has secured a contract to build a national subsea cable backbone network for the Papua New Guinea government.

    The company will work with PNG DataCo, an operator established by the Papua New Guinea government, to construct a national backbone network linking major coastal centers and islands in the nation.

    The 5,457km cable network will provide domestic connectivity across the nation’s 14 largest cities, as well as international connectivity via a link to Jayapura in Indonesia.

    With a design capacity of 8Tbps, the cable will be designed provide more than 70% of Papua New Guinea’s domestic bandwidth requirements. Currently domestic telecoms capacity largely relies on satellite and microwave communications due to the country’s unique geography.

    “This new system is very important to Papua New Guinea as it not only includes a new submarine cable network but also provides internet gateways and data centers,” DataCo managing director Paul Komboi said.

    “This will improve the whole ICT infrastructure in the country and greatly increase network coverage, capacity and the availability of Internet and broadband services to end users.”

    He said Huawei Marine was selected for the project through a competitive tender process.

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  • Huawei achieves 27Gbps 5G speeds with Polar Code

    Huawei achieves 27Gbps 5G speeds with Polar Code

    Huawei announced it has achieved downlink speeds of 27Gbps using Polar Code, a new innovation in 5G channel coding technology.

    During a field trial in both static and mobile environments, Huawei was able to demonstrate that polar code technology can simultaneously meet the typical use cases of the ITU’s 5G definition, which involves speeds in the tens of gigabits, 1ms latency and billions of connections.

    The company said polar code demonstrated three times the spectrum efficiency compared to current RAN networks.

    Polar code is designed to allow significantly higher spectrum efficiency than current cellular access technologies and to enable decoding with linear complexity.

    On the encoding side, polar code can optimize channel capacity close to the Shannon Limit, the theoretical highest capacity of a communications channel before noise introduces faults.

    The field trial also took into account the use of millimeter-wave and multiple parallel sessions based on short and large packet sizes.

    Last week Huawei and Canada’s Telus also announced the results of 5G lab trialsachieving peak speeds of 29.3Gbps, close to 200 times faster than the current LTE standard. The trials at the Telus and Huawei 5G Living Lab in Vancouver were designed to simulate real-world conditions.

  • Huawei launches microwave solution for FTTx

    Huawei launches microwave solution for FTTx

    Huawei has announced the launch of the first Microwave solution for FTTx, to allow operators to deploy gigabit-capable broadband services over different access media.

    Operators will be able to use microwave links and existing fiber, copper and coaxial cables to expand Gigabit network coverage.

    The system combines a range of microwave technologies including large capacity E-band and super dual band (SDB) to offer a transmission capacity ranging from 1Gbps to 10Gpbs.

    Huawei said the system has already been commercially deployed in multiple markets including China and Greece.

    The technology is designed to address the problems of operators facing difficulty improving line speeds because of the poor quality of existing copper, as well as the difficulty of obtaining the required fiber resources.

    The product launch forms part of Huawei’s Gigaband strategy, which aims to achieve record levels of bandwidth and coverage.

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  • Huawei Marine sets unrepeatered distance record

    Huawei Marine sets unrepeatered distance record

    Huawei Marine Networks has announced it has achieved another distance record over unrepeatered systems, achieving a transmission distance of 648.5km during a laboratory trial.

    During the trial in Beijing, Huawei used its self-developed enhanced raman amplifier (ERPC) and remote optical pump amplifier (ROPA) technology on a 100G channel over an ultra-low loss optical fiber, to improve pump optical power and performance.

    Huawei Marine used the same technology to set an unrepeatered distance record of 627km in April, but has now pushed this further using coding gain optimizations.

    The operator’s 100G transmission technology combines new technologies including polarization mode dispersion combined with single-carrier binary phase shift keying (PDM-BPSK) and third-generation soft decision technology.

    “Huawei Marine has achieved another breakthrough in unrepeatered system design which demonstrates our continuous commitment to investing in high-performance technology,” Huawei Marine VP of technology Zhang Shigui said.

    “When used commercially, this technology will broaden the range of unrepeatered system applications and create value for our customers.”

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  • Huawei unveils newest security solution for SDN

    Huawei unveils newest security solution for SDN

    Huawei has unveiled its latest SDN security solution which promises to “guarantees the security of enterprise tenants’ applications hosted on the cloud”.

    Based on the core component Agile Controller, the solution virtualizes hardware security devices and offers a variety of services for online subscription.

    The automated security deployment capability also greatly improves cloud service protection efficiency.

    While more and more enterprises are using cloud services to reduce costs and improve flexibility, enterprises seldom consider security before this change. As storage, computing, and network resources all become virtualized, manual configuration and adjustment of security resources can no longer adapt to quick service development in a flexible and cost effective way.

    Moreover, cloud-based service deployment eliminates network security boundaries. Virtual networks, especially the virtual machine (VM) layer, urgently need effective security protection.

    As common threats have evolved to advanced persistent threats (APTs) that can hide for a longer period of time and are more difficult to detect, traditional APT defense methods also need to adapt to software-defined network (SDN)environments.

    “As more services are migrating to the cloud, the boundary of security threats becomes blurred,” said Liu Lizhu, GM of Huawei Enterprise Network Product Line’s Security Gateway Domain.

    “Data center services are facing more severe security risks after SDN technology is used, as such no companies, regions, or organizations are free from such risks. Huawei Software-defined Security Solution will guarantee innovative, scalable, and efficient cloud services for tenants and help enterprises accelerate business transformation and upgrade.”

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  • Huawei, ZTE launch pre-5G network components

    Huawei, ZTE launch pre-5G network components

    Huawei and ZTE have both announced the launch of pre-5G products to help operators prepare for the new technology.

    ZTE released its new Pre5G MIMO 2.0 product at the China International Information and Communication Exhibition in Beijing yesterday.

    The new product is aimed at the high-end market to help operators in developed countries meet the challenges of surging traffic demand and limited spectrum resources, by improving single-station spectral efficiency.

    ZTE announced it has started pre-5G network deployment for more than 20 operators in China and other counties.

    Huawei meanwhile unveiled what it said is the industry’s first 5G-oriented mobile edge computing (MEC) offering, MEC@CloudEdge.

    The vendor said the technology is designed to equip today’s mobile networks to meet the requirements of extremely low latency, content localization and ultra-high bandwidth that will need to be met in the 5G era.

    It relies on a cloud-based network architecture to optimize the user experience during activities such as augmented and virtual reality and ultra-HD video streaming

    “MEC@CloudEdge is the first 5G-oriented MEC solution emanating from our R&D labs. It uses new technologies that will enable operators to deploy 5G-oriented networks for sustainable development and to achieve best user experience and faster service innovation,” Huawei president of cloud packet product line Dai Jisheng said.

  • Huawei, Intel chiefs talk the future of ICT

    Huawei, Intel chiefs talk the future of ICT

    In today’s digitally intelligent world, the age of enterprises shoring up their singular competitive advantages is over. With industries converging and consumer requirements constantly evolving, today’s businesses need to be more open, flexible, and build on their “ecological advantages” as well.

    This was the key message delivered by Huawei CEO Guo Ping during his keynote speech at Huawei Connect 2016.

    “Today we are in the cloud era, and while we do not yet know what things will be like in the future, one thing is sure—every modern industry system will become interconnected and complicated,” Guo said.

    “As data, IoT, mobility and cloud entities develop, businesses that are not even connected with one another will have more interactions. Hence, advantages will not only come from within the organization as has traditionally been the case, but also by the effective use of its external resources.”

    Guo predicted that in the many complicated scenarios that industries such as transportation, healthcare, and education will face, companies in these sectors will eventually develop and evolve toward an open ecosystem.

    The same can be said for the ICT industry, whereby in the cloud era the sector has already transformed from a single vertical industry and into an enabler of digital transformation. A report from the World Economic Forum revealed that in 10 years, the opportunities brought upon by the digital transformation of industries will reach $100 trillion, with the world seeing the rise of even more new applications.

    “Vertical integration of the value chain is a thing of the past,” stated Guo. As the ICT industry cultivates a new ecosystem, the Huawei CEO believes it will have three key features—open, dynamic, and symbiotic—wherein enterprises, big or small, “can take part in this interdependent, symbiotic, and regenerative community of common interests, as long as it has its own unique value and makes its own unique contribution.”

    As for Huawei’s role in this cloud-driven ecosystem, Guo stressed his company’s primary principle is to prioritize “creating a bigger pie (market) over fighting for a larger piece of a shaky pie.”

    “It’s the path we must take to build our future ecological advantages,” stated the CEO. “Our responsibility as an industry leader is to leverage our core competency, and use insights gleaned from our customers as basis of development to increase the size of the market. We don’t emphasize on whether the resources will be owned by us, but instead we emphasize on would be what can we leverage and effectively connect with external resources to bring the future together.”

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  • Huawei, Indonesian partners build cloud platform

    Huawei, Indonesian partners build cloud platform

    PT Huawei Tech Investment (Huawei Indonesia) has worked with Accenture, Cloudera, Anabatic, IDPRO, Infosys and Telkomsigma to build a new cloud ecosystem.

    The new solution, FusionSphere 6.0, was launched during the recent Huawei Cloud Conference Indonesia.

    FusionSphere 6.0 is an enterprise-class cloud operating system that helps customers deploy virtual servers, private clouds, public clouds, hybrid clouds, cloud desktops and NFVI.

    The ecosystem brings the concept of open source which used in components, architecture, and ecosystem enabling customers to have more choices in software. Huawei FusionSphere 6.0 keeps pace with the open-source OpenStack community, complies with the native OpenStack standards, and supports OpenStack APIs.

    Third-party applications developed based on native OpenStack can run on Huawei FusionSphere 6.0 without having to make changes.

    The platform is designed to help enterprises overcome the challenges faced during different stages of IT transformation, making enterprise business and workflow more effective and efficient in the deal with changes in the market, lowering investments on IT assets and human resources.

    “Huawei enthusiastically built a win-win cloud ecosystem with partners,” Huawei Indonesia CEO Liu Haosheng said.

    “We would like to share our successful practices in the global ICT sector, and to use the most innovative and competitive ICT technologies, products, and solutions to support our strategic business partners in Indonesia , creating values and benefits for their users in the cloud era.”

    At the conference, Huawei Indonesia also shared its successful practices in cloud transformation in cooperation with Accenture, as partners, for Telkomsigma.

    This successful practice in cloud transformation embodies Huawei Indonesia’s commitment to do innovation together with partners in an effort to build an open cloud ecosystem to help customers accelerate the transformation toward cloud solutions.

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  • Huawei tests Samsung-Shinsegae ties

    Huawei tests Samsung-Shinsegae ties

    Huawei, China’s top-tier handset and networking infrastructure business operator, is basking in the limelight for its partnership with Shinsegae, a former Samsung Group affiliate and the nation’s second-largest retailer.

    The partnership is also eye-catching as Huawei has icy relations with its rival Samsung Electronics following a series of lawsuits between the two.

    Shinsegae, which separated from Samsung Group in 1991, had been a decades-long retail services operator of Samsung. Shinsegae Group Chairman Lee Myung-hee is the younger sister of Samsung Group Chairman Lee Kun-hee.

    The partnership was announced last week when Huawei officially named Shinsegae I&C, the IT-based platform service affiliated with the retail giant, as its sole distributor in Korea, to speed up penetration into the market here.

    Given that Samsung and Huawei are engaging in legal battles, critics said the partnership is quite “unexpected.”

    In May, Huawei filed a patent lawsuit against Samsung Electronics in the U.S. District Court for the Northern District of California, claiming that the Korean electronics firm infringed on Huawei’s wireless patents without licensing.

    In response, Samsung Electronics countersued Huawei and a department store in Beijing last month, claiming some $24.14 million in damages.

    Amid the chilly relationship, Huawei held a press conference last week to launch the sales of its two-in-one portable PC, MateBook, in Korea. The company also announced its partnership with Shinsegae I&C whose retail clients include renowned global information and communication technology (ICT) companies such as Google, Hewlett-Packard and JBL.

    “Huawei joined hands with Shinsegae I&C, as the Chinese company appreciates our capability in managing global ICT firms,” said a Shinsegae manager. “We have nothing to comment on why Huawei chose the former Samsung affiliate despite its current estranged relationship with Samsung Electronics.”

    He said the partnership came as Shinsegae has a nationwide foothold to distribute devices by using its e-mart discount chains.

    Huawei established its Korean branch in 2007, but has so far failed to attract huge attention with its consumer electronics products — including smartphones and laptops. Expectations are that the Chinese handset giant aimed to stop the decade-long weak profile here by signing a partnership with the strong retail giant, regardless of its relationship with Samsung.

    There are only a few “hit” Huawei products here — including its budget handset Y6 introduced earlier this year. But the phone failed to gain wider interest, as the country’s smallest mobile carrier LG Uplus was the exclusive distributor for the smartphone.

    Huawei Korea officials were unavailable for comment over the specific reasons for the partnership.

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  • Is Apple Inc Losing Ground in China?

    Is Apple Inc Losing Ground in China?

    Apple Inc reported its third quarter of fiscal year 2016 (2QFY16) results after the closing bell on Wednesday. The company managed to beat both earning per share (EPS) and revenue consensus estimates. However, things aren’t as bright as it may seem since the tech giant witnessed declining iPhone sales for the second consecutive quarter.

    The company reported revenue of $42.4 billion, down 14.5% on a year-over-year (YoY) basis. Moreover, EPS came in at $1.42, surpassing the consensus estimate of $1.38.

    However, Tim Cook, Apple’s CEO seemed quite pleased with the results and said: “We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter.” Mr. Cook also added that the company was able to reduce its channel inventory by almost $3.6 billion, well above its own guidance of $2 billion inventory reduction.

    Net income for the quarter came in at $7.8 billion, down 27% compared to the same quarter last year. In 2015, Apple’s net income stood at $10.7 billion.

    Mr. Cook highlighted that sales of iPhone accounted for a major portion of channel inventory reduction. Similarly, he also stated that iPhone SE, Apple’s newly launched smartphone, also performed better-than-expected.TheSE contributed for almost 23% of the total iPhone sales made in the quarter.

    During the earnings conference call, the CEO commented: “At its launch, we said that the addition of the iPhone SE to the iPhone lineup placed us in a better position to meet the needs of customers who love a four-inch phone and to attract even more customers into our ecosystem.”

    Overall, the company’s top management seemed satisfied with the earnings results. It generated about 63% of its total sales from international markets. However, the result from its Asia Pacific region, especially from greater China, paints a completely different picture.

    Apple Greater China Performance

    Greater China sales for the quarter stood at $8.8 billion, down 33% YoY. In the same period last year, the company generated about $13.23 billion in sales from the greater China market. Similarly, on a sequential basis, sales in the region dropped by about 29%. Greater China, which was considered the company’s second largest market after the US, has been becoming a major concern amid stiff competition from domestic smartphones makers and a consistent economic slowdown. Moreover, Apple’s sales dropped more than 20% to $2.37 billion from $2.95 billion reported in 3QFY15 in other Asian countries.

    The company has faced quite a lot of problems in one of its strongest market in the past few years, ranging from regulatory issues and domestic competition to an economic slump. Apple, which used to generate more than 50% of its revenue from the mainland territory, has now lost a significant portion of its market share to home grown smartphone makers including Huawei Technologies and Xiaomi Technologies.

    Earlier this week, Huawei released its financial results for the first six months of 2016. The Chinese smartphone giant reported $36.67 billion (245.5 billion yuan) in revenue, well above the consensus estimate. In 2015, it reported about 175.9 billion yuan in revenue for the first six months. In addition, the company also said that it aiming to achieve the target of 140 million smartphones shipments by the year-end and looks set to achieve that milestone based on the first half results. In the first half, Huawei sold about 60 million smartphones, representing a 25% increase compared to first-half results of 2015.

    However, Mr. Cook seemed quite pleased with company’s progress in the emerging markets, especially in China. During the earnings conference he said: “We remain very optimistic about the long-term opportunities in Greater China and we continue to invest there. We opened our 41st Greater China retail store during the quarter, and we also made a $1 billion investment in Didi Chuxing.” Didi Chuxing is China’s largest ride hailing start-up backed by the Chinese e-commerce giant Alibaba Group Holding Ltd and Tencent Holding Ltd.

    He also highlighted that company’s installed base of iPhones in the Greater China region has surged 34% YoY. In addition, according to the data released by China Mobile, iPhone users on its network ranked the highest both in terms of data usage and loyalty.

    In addition, Luca Maestri, Apple CFO and Senior Vice President also highlighted that the company’s performance in the quarter was affected by some serious challenges in the Greater China region, including an economic slowdown and regulatory concerns.

    Apple China Challenges

    China has always been a key strategic hub for the iPhone maker, however, recent performances clearly indicates that the tech giant is losing ground in its second largest market in terms of revenue. Even in the second quarter, the company’s revenue from greater China fell 26% year-over-year (YoY).

    Beside a decline in iPhone sales, the regulatory issues are also haunting the Silicon Valley based smartphone maker. Earlier this year, Apple’s iTunes Movies and iBooks Store services were banned by the Chinese regulatory authorities, after only being available in the country for six months.

    Recently, Shenzhen Baili, a little known Chinese startup, won a surprise lawsuit against Apple. Shenzhen Baili accused the tech giant of violating a design patent. The Chinese court granted Baili a sales sanction against the tech giant. Apple was prohibited from selling its flagship iPhone 6 and 6 Plus in some Chinese cities where Baili operated. However, the sales sanction was lifted.

    In addition, Apple ranked third in terms of market share in China last year with about 13.4% of the market, according to the data released by International Data Corporation (IDC). Xiaomi ruled the Chinese market with about 15% share, closely followed by Huawei Technologies with 14.5% market share.Huawei is expected to surpass both Apple and Xiaomi this year to lead the smartphone market both locally and internationally.

    Tim Cook’s Optimism about China:

    Though the company’s overall financial results didn’t live up to its reputation, however, the company’s CEO is still optimistic about its long term growth prospects both locally and in the Greater China territory.

    With respect to the ban on Apple’s i iTunes Movies and iBooks Store, Mr. Cook indicated that those stores weren’t even making $1 million so the band is not a major problem. However, he also added: “we’re working very closely with the appropriate government agencies, and we hope to make books and movies available again to our customers there. And so we’ll see how that goes, but we’re optimistic there.” The company’s CEO says that China is a long-term investment and Apple is doing its best to give the Chinese customers the best product.

    Apple’s Alliance with Native To Fight Back in China:

    Back in May, Apple announced a strategic partnership with China’s biggest ride-hailing app, Didi Chuxing, as it invested $1 billion in the company. Analysts believe that the venture could boost Apple Pay in China by offering payment services to Didi’s 14 million drivers. In addition, the iPhone maker could also use Didi’s vast road data for its upcoming autonomous car project. Mr. Cook said about the partnership: “We are extremely impressed by the business they’ve built and their excellent leadership team, and we look forward to supporting them as they grow.”

    The partnership could assist Apple in growing its other services in the mainland territory; however, declining iPhone sales in the country is still a cause of concern.

    Future Outlook:

    Apple expects its fourth quarter revenue to come in between $45.5 billion and $47.5 billion. The increase in revenue guidance reflects the company’s aim to grow and give its investors solid returns. In 3QFY16, Mr. Maestri said: “We returned over $13 billion to investors through share repurchases and dividends.”

    We believe Mr. Cook’s optimism coupled with the company’s long term plans to expand in the Greater China region is yet to face a complete discontentment. However, if things move forward in the same trend, Apple’s long term hold over the Chinese market will come to a complete end. It is vital for the company to implement new strategies, build healthy relations with the regulatory authorities and give the Chinese customers something new and innovative.

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  • China smartphone demand grows 17pc

    China smartphone demand grows 17pc

    China smartphone demand grew 17 per cent last month, according to technology research company Counterpoint’s monthly Market Pulse.

    It was the best-ever June in terms of sell-through for smartphones, despite the overall market having modest growth for the second quarter ending June 31.

    “The competitive environment in the world’s leading smartphone market has taken an interesting turn as domestic brands have significantly ramped up their positions in the smartphone market,” says research director James Yan.

    Oppo became the top-selling brand in China for the first time ever in June, surpassing Huawei, Apple and Xiaomi with a 23 per cent market share and sales volumes leapfrogging 337 per cent.

    Also owned by the BBK group, Vivo also had a strong performance with the launch of a new model. Together, the sister brands captured a third of the Chinese smartphone market, up from a combined 13 per cent in the same month last year.
    Meanwhile, Apple’s market share slipped to 2014 levels.

    Counterpoint research director Neil Shah says Oppo adopted a simple but effective strategy – going after the offline market, which still contributes more than 70 per cent of total sales in China.

    “Aggressive marketing, promotions and sponsorships, greater offline retail penetration beyond tier-two and tier-three cities, better retail margins, dealer support and, above all, innovative smartphone designs have helped Oppo drive its sales in the past 18 months.”

    The brand had also focussed on design and key features such as camera, battery technology and materials.

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  • Huawei grows 1H16 revenue by 40%

    Huawei grows 1H16 revenue by 40%

    Huawei grew its sales revenues for the first half of the year by 40% to 245.5 billion yuan ($36.6 billion), despite a decline in its operating margin.

    The vendor reported an operating margin of 12%, down from 18% in the same period last year, partly as a result of increased investment in the company’s smartphone business as part of an aggressive push to become the market leader in 4-5 years.

    “We achieved steady growth across all three of our business groups, thanks to a well-balanced global presence and an unwavering focus on our pipe strategy,” Huawei’s CFO Sabrina Meng commented.

    “We are confident that Huawei will maintain its current momentum, and round out the full year in a positive financial position backed by sound ongoing operations.”

    Huawei has not yet disclosed its profit for the half-year period. Looking ahead, the company said it plans to continue to adhere to its pipe strategy, and invest heavily in R&D in areas including 5G and the IoT.

    In the carrier business, Huawei said it is focusing its attention on supporting operators’ digital transformation in four core areas – business, operations, architecture, and networks.