How do you end up with millions of new sales overnight with low development and implementation costs? In the case of Chinese electronics companies Rock Chips and Box Chips the answer has been simple – hitch a ride on Android.
China’s economy is booming thanks to low cost assembly, the country’s key advantage when competing on the global playing field. Manufacturers deliver low cost laborers who are able to follow processes and procedures to a reasonable degree of accuracy at very reasonable rates, and thus gain an edge over Western manufacturers.
→ Read More
Apple has an undeniably huge opportunity in China, but it is still facing some big challenges. As the iPhone maker claimed the top spot as the world’s biggest smartphone vendor in the last quarter (October-December), it actually slipped in the rankings in China and is now in fifth position after ZTE.
But with Apple only kicking off sales of the iPhone 4S in China this January, it’s arguable whether we will see a delayed reaction from the launch of the new device, or whether longer term this is simply a market that will ultimately gravitate to local brands and cheaper devices in the longer term. → Read More
Whenever you see those photos and stories of the crazy crowds at Apple stores in China, they seem to always be about the launch of a new iPhone. But if Apple has its way, soon those masses will be clamoring for something else as well: Mac computers.
Apple CEO Tim Cook, speaking earlier this week at the Goldman Sachs conference, noted that China accounted for $13 billion in sales last year for his company, and in that time, sales of Mac computers in China went up by 100 percent.
→ Read More
Google has overcome two big regulatory hurdles in getting its $12.5-billion acquisition of Motorola Mobility approved by both U.S. and European regulators. China now has until March 20 to decide whether or not it will wave through the deal, too.
Now, China’s Anti-Monopoly Bureau is now reviewing the deal — a routine part of the procedure for companies that make more than 400 million yuan ($63 million) in China and 10 billion yuan ($1.6 billion) globally. (Google reported revenues of nearly $38 million for 2011.) And some think that China might use the opportunity to get Google to bring back its search business to the Mainland from Hong Kong. → Read More
To paraphrase Otto von Bismarck, “iPads are like sausages, it is better not to see them being made.” It’s an ugly story. Over a hundred employees “injured by n-hexane, a toxic chemical that can cause nerve damage and paralysis” because its use “meant workers could clean more screens each minute.” Other workers killed or injured by explosions. All so that iPads can be built as cheaply as possible, so that Apple can maintain its 44.7% gross margins. Isn’t that awful?
Yes, of course — but let’s try to maintain a nuanced perspective here. This is hardly a new story, and it’s hardly unique to the tech industry. Think of the exploitation of child labor to harvest Egyptian cotton and Cote d’Ivoire cocoa. Plus ça change; a decade ago it was Indonesian sweatshops and Indian fireworks exciting outrage. Think of the exploitation of Congolese workers to mine coltan, used in electronics everywhere. Show me a country with a large population of desperately poor people, and I’ll show you horrific exploitation of impoverished workers.
Please note, though, that the latter is an inevitable symptom of the former; and again, let’s please try to maintain a sense of perspective. It’s awful that a dozen Chinese workers were killed and hundreds injured building iPads–but at the same time, coal mining kills more than two thousand Chinese workers a year (down from almost 7000 ten years ago) and nobody’s suddenly outraged about them. We in the West don’t really seem to care that Chinese employees work under awful conditions and die in appalling numbers — unless they make shiny things that we use. We claim we don’t want people to suffer, but in fact we just don’t want our iProducts tainted by that suffering. Isn’t that more than a little hypocritical?
→ Read More
Here’s Hongyi Zhou’s advice to Chinese entrepreneurs: “Don’t try to be cool.” Zhou is CEO of Qihoo 360 (NYSE: QIHU), whose company’s core is the definition of uncool: anti-virus software. Yet Qihoo has 370 million monthly active users and a very cool $1.9 billion dollar valuation.
If you want to build a big company in China, don’t build for your iPhone-toting friends, the Chinese tech blogs, or copy the latest fad on TechCrunch. Chinese entrepreneurs must appreciate the vast chasm between white-collar elites and the rest of the country. The Silicon Valley has an echo chamber of its own, but China’s is an order of magnitude louder. → Read More
Twenty years ago, Zhongguancun was but farming fields and small houses, far from the city center of Beijing. The ‘cun’ at the end of Zhongguancun literally means ‘village’. As with much else in China, the change has come lightening fast.
Today, Zhongguancun is China’s closest equivalent to Silicon Valley. It’s host to electronics super malls, research centers, publicly-listed tech giants, and hundreds of startups. During my walk to work between twenty-story office towers, it’s hard to imagine this land was farmed but one short generation ago.
Here are three reasons why Zhongguancun (or the larger Haidian district) has grown into China’s top tech hub: → Read More
In the West, the battle for the social graph is over for now. Facebook is the undisputed champion. All my Western friends use Facebook, and many are addicted.
“If Facebook is the world’s social graph, then QQ (Tencent’s instant messenger) is China’s social graph,” says Hong Bo (a.k.a Keso), China’s most famous tech blogger. In China, Tencent is the longstanding champ, but its title is being disputed by Sina, one of China’s earliest portal sites.
Sina Weibo is the biggest story in the Chinese Internet over the past year, reaching 250 million registered users, and about 25 million daily active users as of Q3 2011. The coverage of China’s state-directed media leaves a lot to be desired, so Sina Weibo had become a prime source for breaking news events and commentary. It’s also a prime source of celebrity sightings and cultural memes—actress Yao Chen has more than 15 million followers. And instead of exchanging name cards at dinner, it’s now common practice to instead ex → Read More
You could be forgiven for overlooking the Ainovo Novo7, a 7-inch Chinese Android tablet, as likely just another me-too device to be sold in electronics districts next to fake iPhones and bulk cables. And in a way, that’s what it is: at $100, it can’t possibly be as well-built as the iPad or newer Galaxy Tabs, and the size and design aren’t going to impress anyone. But it’s got two things going for it: Ice Cream Sandwich and MIPS.
Naturally to many people neither of those terms signify much of anything. Most people only care whether it runs Netflix and Angry Birds. But both these features point at an interesting breakage between the China and US markets, one that will only widen with time. → Read More
While smartphone adoption continues to pick up steam here in the U.S., new research from Strategy Analytics shows that China is hungrier for smartphones than we are. For the first time ever, China has pulled ahead of the United States in terms of the number of smartphones shipped. → Read More
Baidu is one of the most known of the Chinese Internet giants. Some of the buzz is admiration for Robin Li, one of the pioneers of the Chinese Web scene who built a global giant that succeeded in a political environment where Google cried “uncle.” Others have painted Baidu as the mirror image of Google’s lofty “do no evil” credo.
So on our recent trip to Beijing, we decided to take our cameras to the search giant’s massive headquarters– which spans more than one million square feet– to see if we could find any torture chambers. Big thanks to our gracious host and good sport, Baidu spokesperson Kaiser Kuo. → Read More
The biggest barrier to starting a company isn’t ideas, funding or experience. It’s excuses. And you can understand why: Starting a company is scary. It’s little wonder that even the best entrepreneurs go through a period of doubt and excuses not to take the plunge.
So when I hear complaints from entrepreneurs in other areas of the US or in other countries about how they can’t start companies because there is no angel money, no mentors, no employees that will work for a startup, I always wonder how much of these gripes are truly insurmountable odds to new company formation and how much are the grousing of someone looking for someone else to blame.
In China, the complaint du jour is that the entrepreneurs are trying to push beyond just founding companies that are clones of Western Web brands, and it’s the VCs that won’t take the risk on truly new ideas. Over two days of backstage deliberation at Disrupt Beijing, I got to see first-hand how the mind of the Chinese VC works. And I have to say, Chinese entrepreneurs have a valid point. → Read More
China has the most cell phone users in the world, and according to mobile app analytics firm Flurry, they’re using apps more than they ever have before.
For their latest report, Flurry tracked mobile app sessions (essentially, instances of use) across 120,000 apps from January to October 2011. Among other things, they were able to single out the ten countries where apps sessions have increased the most. → Read More
At the end of this month, China’s capital city will begin rolling out free WiFi service in various hotspots across the city. The “My Beijing” wireless network, as it is to be called, is backed by three of the country’s largest telecom companies, China Mobile, China Unicom and China Telecom, and will provide 2Mbps broadband WiFi to approximately 60 percent of Beijing through some 90,000 access points that the municipal government plans implement over the rest of the year, according to China.org. → Read More
Ecommerce in China is ready to take off and, more important, it’s ready to reach great heights on its own terms. Lu Dong of La Mui, Haifeng Ye of Mbaobao, and Fangfang Wu of Greenbox are three ecommerce pioneers who are, as we speak, redefining online sales in China.
“China is ready for ecommerce,” said Lu Dong. “People are moving to buying almost anything online.”
→ Read More
I’ve been able to finalize the TechCrunch Shenzhen and Hong Kong meet-ups and thought I’d post here for folks who RSVPed and didn’t get an email response.
The Hong Kong Event (Facebook Link) will be held at 7pm on November 2 at Pier 7 Cafe in Central Hong Kong. I may be slightly late – I’m landing at 6:30 and will take the train straight there, but I look forward to seeing you all. → Read More
As you probably know, Disrupt Beijing is happening next week and I’ll be heading south from Beijing after the event. I would love to hang out with folks in Shenzhen and Hong Kong. As it stands, I think we can put together a meet-up in Hong Kong on Wednesday Night (November 2nd) and another meet-up in Shenzhen on Friday night (November 4). I welcome recommendations for spots and I’d love to talk to start-ups and gadget folks in those cities.
→ Read More
Despite predictions to the contrary, Apple did not announce a cheaper, mass market version of the iPhone today. Instead, it announced an upgraded iPhone 4 called the iPhone 4S. It’s the same on the outside, but with all new insides.
However, there are more affordable iPhones now on the market: the old ones. Apple says it’s keeping the iPhone 3GS and iPhone 4 around. Not only that, it’s dropping their prices. Why would Apple keep these aging devices alive? Simple. To battle Android, Symbian, RIM and Windows Phone – especially in emerging markets. → Read More
It’s happened again: a Foxconn plant explosion has caused a large fire in Yantai. According to MICGadget the fire stemmed from “improper operation of workmanship on color spraying” which suggests a aerosol paint may be involved.
The last fire happened in May in Chengdu. This fire was at a plant that made PCs, laptops, and printers. It employs and, in some cases, houses 80,000 workers, many of whom were evacuated. The blaze lasted 30 minutes and there are no reports of casualties. → Read More
Apple will be opening a new store in International Finance Center Mall in Hong Kong this quarter. Ming Pao Daily, a local paper, noted that the store should open on September 24.
The store is the first in Hong Kong and should ameliorate some of the crossbow-related smuggling associated with the region.
→ Read More
San Francisco, CA
