Foxconn Gets Green Light From China’s Antitrust Regulator for Sharp Deal

Foxconn Gets Green Light From China's Antitrust Regulator for Sharp Deal

Taiwanese tech giant Hon Hai said antitrust authorities in China had approved its takeover of ailing Japanese electronics maker Sharp, clearing the last obstacle to the drawn-out deal.

The purchase, which was supposed to close last month, has reportedly been held up by China – one of the countries that was reviewing the deal over concerns that it could lead to a monopoly on LCD screens.

Hon Hai gains Sharp’s cutting-edge LCD panel technologywith the $3.5-billion buyout, giving it a 66 percent controlling stake.

“Our application for antitrust review in various regions is completed,” the company said in a statement to the Taiwan stock exchange late Thursday.

“Both sides will carry out the handover procedures as soon as possible according to the contract,” it said.

The announcement fulfills an ambition of Hon Hai founder Terry Gou, whose firm first pursued Sharpfour years ago.

Gou’s company – also known as Foxconn – is the world’s biggest electronics supplier, with Apple a key customer for smartphone components.

But the smartphone giant is squeezing its suppliers as sales of its iPhones slow, dropping 15 percent last quarter year-on-year.

Hon Hai shares slumped in Taipei Friday on weaker-than-expected quarterly earnings.

“From the results, we can see that Apple is pressuring its supply chain on prices,” Fubon analysts led by Arthur Liao said in a note.

Hon Hai said Thursday that its net profit dropped 31 percent to TWD 17.7 billion ($565 million) in the April-June period, the third straight quarterly decline.

It missed the TWD 24.6 billion estimate by analysts polled by Bloomberg News.

Shares slumped 3.69 percent Friday. underperforming the benchmark index.

Analysts are expecting better performance in the third quarter, when Apple’s new iPhone 7 series is rumoured to be launched.

Tags: Apple, Foxconn, Home Entertainment, Hon Hai, Laptops, Mobiles, PC, Sharp, Tablets, iPhones

 

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China’s $100 Billion Chip Supremacy Bid Deemed Unrealistic

China's $100 Billion Chip Supremacy Bid Deemed Unrealistic

HIGHLIGHTS

  • China wants to become premier supplier of semiconductors to the planet
  • Part of a broader effort to wean itself off foreign technology
  • China currently makes just 15 percent of the semiconductors it consumes

China faces an uphill battle in its push to become the global leader in computer chips because of a lack of technological know-how and talent, according to an analysis by Bain & Co.

China is one of the world’s largest consumers of semiconductor devices thanks to its manufacturing might, and is planning to spend more than $100 billion (roughly Rs. 6,70,854 crores) to become also a premier supplier to the planet. The global consultancy estimates that by 2020, almost 55 percent of the world’s memory, logic and analog chips will flow to or through the country. But the vast majority of the microchips that act as the brains of products like Apple’s iPhone are largely imported from companies like Intel and Samsung.

The government in 2014 moved to change this with plans to invest more than $100 billion and become a leading global player. It’s also driven consolidation among domestic suppliers to maximize its investments, including the $2.8 billion merger of Tsinghua Unigroup and Wuhan Xinxin Semiconductor Manufacturing announced last month.

China’s effort to build a world-leading semiconductor industry is part of a broader effort to wean itself off foreign technology. But financial investment will not be enough to buy leadership of the semiconductor sector, which is worth around $1 trillion (roughly Rs. 67,08,244 crores) according to Singapore-based Bain partner Kevin Meehan.

The country currently makes just 15 percent of the semiconductors it consumes, Bain said in a report. And by 2020, the consultancy expects Chinese-based plants to produce just 7 percent of the world’s microchips, barely up from current levels.

“China is coming at it in a pretty smart and intelligent way,” he said. “But I don’t see a path for them to own leading-edge processor technology and that is the foundation of Intel, the foundation of Samsung’s success.”

Efforts by Chinese companies to buy rivals with intellectual property in the processor and memory markets have run afoul of regulators around the world. Plans for a $3.8 billion (roughly Rs. 25,486 crores) investment in Western Digital Corp. were scrapped amid a US security review and investments in Taiwanese chip companies face regulatory obstacles and have stoked political tension.

“Assuming they can spend it all, the biggest risk is that they end up with a whole bunch of fragmented and weak follower positions,” Meehan said. “There’s ways for them to have influence over greater than 10 percent if they’re partnering well, but otherwise I think you’re essentially capped there.”

Meehan said China’s semiconductor makers could eventually learn from partnerships with global giants and become one of the larger suppliers of key components like computer memory. Both Intel andQualcomm have agreed to build semiconductor fabrication plants there in partnership with local providers.

“If you take a long view — not five years but decades — then certainly you’d have to believe there’s some absorption,” he said. “But people are careful not to put their leading edge IP in China.”

“I don’t see a way to get there without licensing or buying.”

Tags: Mobile, Tablet, Internet, Science

[“Source-Gadgets”]

China’s $100 Billion Chip Supremacy Bid Deemed Unrealistic

China's $100 Billion Chip Supremacy Bid Deemed Unrealistic

HIGHLIGHTS

  • China wants to become premier supplier of semiconductors to the planet
  • Part of a broader effort to wean itself off foreign technology
  • China currently makes just 15 percent of the semiconductors it consumes

China faces an uphill battle in its push to become the global leader in computer chips because of a lack of technological know-how and talent, according to an analysis by Bain & Co.

China is one of the world’s largest consumers of semiconductor devices thanks to its manufacturing might, and is planning to spend more than $100 billion (roughly Rs. 6,70,854 crores) to become also a premier supplier to the planet. The global consultancy estimates that by 2020, almost 55 percent of the world’s memory, logic and analog chips will flow to or through the country. But the vast majority of the microchips that act as the brains of products like Apple’s iPhone are largely imported from companies like Intel and Samsung.

The government in 2014 moved to change this with plans to invest more than $100 billion and become a leading global player. It’s also driven consolidation among domestic suppliers to maximize its investments, including the $2.8 billion merger of Tsinghua Unigroup and Wuhan Xinxin Semiconductor Manufacturing announced last month.

China’s effort to build a world-leading semiconductor industry is part of a broader effort to wean itself off foreign technology. But financial investment will not be enough to buy leadership of the semiconductor sector, which is worth around $1 trillion (roughly Rs. 67,08,244 crores) according to Singapore-based Bain partner Kevin Meehan.

x

The country currently makes just 15 percent of the semiconductors it consumes, Bain said in a report. And by 2020, the consultancy expects Chinese-based plants to produce just 7 percent of the world’s microchips, barely up from current levels.

“China is coming at it in a pretty smart and intelligent way,” he said. “But I don’t see a path for them to own leading-edge processor technology and that is the foundation of Intel, the foundation of Samsung’s success.”

Efforts by Chinese companies to buy rivals with intellectual property in the processor and memory markets have run afoul of regulators around the world. Plans for a $3.8 billion (roughly Rs. 25,486 crores) investment in Western Digital Corp. were scrapped amid a US security review and investments in Taiwanese chip companies face regulatory obstacles and have stoked political tension.

“Assuming they can spend it all, the biggest risk is that they end up with a whole bunch of fragmented and weak follower positions,” Meehan said. “There’s ways for them to have influence over greater than 10 percent if they’re partnering well, but otherwise I think you’re essentially capped there.”

Meehan said China’s semiconductor makers could eventually learn from partnerships with global giants and become one of the larger suppliers of key components like computer memory. Both Intel andQualcomm have agreed to build semiconductor fabrication plants there in partnership with local providers.

“If you take a long view — not five years but decades — then certainly you’d have to believe there’s some absorption,” he said. “But people are careful not to put their leading edge IP in China.”

“I don’t see a way to get there without licensing or buying.”

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Tags: Mobile, Tablet, Internet, Science

 

[“Source-Gadgets”]

China’s Huawei Looks to Construct International Telephone Brand

 

China's Huawei Looks to Build Global Smartphone Brand

Chinese tech large Huawei desires Individuals to start contemplating it as a fashionable PhoneEmblem.

Huawei Technologies Ltd., which pulled out of the usa market for network switching tools four years agodue to protection fears, have become the No. 3 Worldwide Telephone seller remaining 12 months andpassed Apple in China. This year, it released a new flagship Smartphone, the P9, and is positioning it to compete with Apple and Samsung.

“China has but to create a excessivegive up customer Emblem. We want to take that goal onto our shoulders,” Eric Xu, one among Huawei’s three rotating co-CEOs, informed industry analysts at a meetingin April.

To do this, Huawei should succeed inside the U.S. the secondbiggest marketplace for handsets after China, accounting for one-sixth of world income, according to enterprise analysts. There, it starts withnearly no marketplace share and a call that customers, in the event that they are aware of it at all, mayaccomplice with anxiety approximately feasible Chinese spying instead of era and fashion.

It’s miles more tough than some other market they have ever entered,” said Nicole Peng of studies firmCanalys. “I do not think they have got concrete plans yet.”

Outside the united states, the organisation is cranking up a International marketing marketing campaign for the P9 proposing Hollywood stars Henry Cavill and Scarlett Johansson. For markets from Bangladesh to Mexico, it has recruited pop singers and football teams. It partnered with Germanphotography powerhouse Leica to broaden the digicam on the P9.

The employer has yet to mention while it would sell the Android-based totally P9 to People or preciselyhow it’s going to rebuild its US presence.

We’re certainly very affected person with america marketplace,” stated Pleasure Tan, Huawei’s president for communications, when requested how it deliberate to connect to consumers. “We are hoping thosetelephones may be widespread through American customers.”

To satisfy its bold sales growth target of 30 percent a 12 months, Huawei should boom its USmarketplace percentage to double digits from underneath 2 percent now, said Peng of Canalys.

Huawei, said “HWAH’-way,” has big sources to returned up its aspirations.

It made a CNY 36.9 billion ($5.7 billion) earnings last yr on sales of CNY 395 billion ($60.eight billion). Thatbecame same to just one-area of Apple Inc.’s income, however Huawei spent $9 billion on studies anddevelopment to Apple’s $8.1 billion.

Huawei shipped 108 million handsets remaining yr, the primary Chinese language company to bypass the100 million mark. That could be a distant third in the back of Samsung Electronics Ltd.’s 325 million handsets and Apple’s 231.five million.

The organization headquartered on a leafy campus on this southern Chinese tech hub adjoining to Hong Kong beat Apple and Samsung to market with a digicam ready with facetby way ofaspect lenses, one in black and white and one in color, that it says produces clearer pictures. The handset is slimmer than the iPhone 6s or Samsung’s Galaxy 7 but its screen is larger than the Apple’s.

Huawei’s phones now are sold within the US simplest thru its website. however it has a capacityestablishing with phone companies which are the principle income channel and need greater products,according to Gartner analyst Tuong H. Nguyen.

Its “deep knowledge” of mobile generationmight be leveraged for brief product launches of good qualityproducts,” Nguyen stated in an email.

That relies upon on overcoming any lingering security fears.

the us marketplace for Huawei’s community equipment evaporated in 2012 after a congressional panel deemed Huawei and Chinese language rival ZTE Corp. ability security threats and encouraged Peoplekeep away from doing business with them. The preceding 12 months, a central authority panelpressured Huawei to rescind its buy of a small California computer organization.

“This makes it hard for Huawei and different Chinese language carriers to penetrate this market,” statedNguyen.

Huawei rejects accusations it might facilitate Chinese spying and says American critics have did not giftproof to again them up. The business enterprise is privately held however has begun liberatingmonetary effects in hopes accelerated transparency will ease Western security concerns.

For its part, ZTE has been making a quiet US comeback in smartphones. Its market proportion grew to 4percentage ultimate year, according to Canalys. It’s miles competing with decrease charges, not going after the Logoconscious top class tier wherein Huawei will face bold opposition from Apple and Samsung of their biggest marketplace.

Founded in 1987 by using a former army engineer, Huawei became the first Chinese provider to interrupt into the top ranks of a era industry, where it competes with Nokia Corp. And Sweden’s LM Ericsson in network gear and wi-fi base stations. Employees joked that, working behind the scenes for its first decades, it turned into the most important organisation no one ever heard of.

Huawei’s priority this yr is a advertising and marketing campaign to “cope with the No. 1 problem that many people don’t know the employerin particular in Western nations,” said Glory Cheung, president ofadvertising for its client business Group.

Huawei is cultivating a high-priced photograph for its smartphones that contrasts with Apple’s minimalism. It partnered with luxury Emblem Swarovski to layout a ladies‘s smartwatch.

not described the Apple way,” said a slide Cheung confirmed at some point of the April analystoccasion. It referred to as that styleclever and smooth however useless, soulless and reduce off.”

Huawei’s venture into customer devices follows the path blazed by means of Nokia Corp. inside the1980s when the Finnish switching system maker commenced selling mobile phones.

For two decades, Nokia ruled that market, earlier than fading with the switch to smartphones. Nokiabought its cellular cellphone unit to Microsoft Corp. In 2014 to awareness on network gear.

Nokia’s disappearance shows the marketplace “can change massively” if a leader makes a mistake,although overtaking Apple or Samsung might be a “highly aggressive target,” Peng said.

It’s exceptionally easy for them to live at No. three,” she said. “but the way to circulate as much asanother stage? It’s so a great deal extra tough.”

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Tags: Huawei, Mobiles

Why China’s Fake Apple Stores are Shutting Down

Why China's Fake Apple Stores are Shutting Down

At 22, Cheung is already a veteran of China’s imitation game. A month ago, she was peddling the latest iPhones and accessories in one of several copycat Apple Inc stores along a street of gadget outlets in the southern city of Shenzhen.

She still works at the same store but the counterfeit Apple uniform has gone, and the handsets she now touts are made by local Chinese firm Huawei.

The number of fake Apple stores along the busy street has dwindled by about a third from more than 30 as recently as September when Reuters reporters last visited the area, some replaced by unauthorised stores selling locally-branded phones from Huawei, Xiaomi, Meizu and Oppo.

While China remains a crucial growth driver for Apple, the anecdotal evidence from Shenzhen illustrates the economic headwinds the US firm faces in a market that CEO Tim Cook has said will one day be its biggest.

Apple’s China sales grew 84 percent in the year through September. But, with China’s economy growing at its slowest pace in a quarter of a century last year, there are concerns that consumers are tightening their purse strings.

To be sure, copycat outlets represent just a small fraction of Apple’s sales in China, where it also sells handsets through mobile carriers and its own official stores. But they can be a useful gauge of demand. And the frequency at which these tech shops switch brand loyalty also reflects how fickle Chinese buyers can be, and underscores how fierce competition is in the world’s largest smartphone market.

Apple is expected to report later on Tuesday that its global iPhone sales rose by just above 1 percent in October-December, its slowest growth and far from the double-digit growth investors have come to expect.

“It’s not as cool as before to have an iPhone,” said Cai, a 23-year-old assistant at one of the remaining copycat Apple stores.

She said sales had about halved from October levels – when the iPhone 6s (Review) and iPhone 6s Plusdebuted in China – adding the iPhone had become a “street cellphone”, using a Chinese term to describe something that’s widely available and popular, but lacking in novelty value. “Using an iPhone is hardly something you can show off to people now,” she said.

It was unclear if the decline in the number of fake stores might be the result of any pressure by Apple to clamp down on counterfeiting of its brand. Apple China did not immediately respond to requests for comment.

National pride
While some Shenzhen shoppers praised the user-friendly iPhone for its security and design features, others said they preferred cheaper devices that use Google’s Android software.

“I don’t care about the brand, but it must be on the Android system,” said designer Wang Li, 26. “My last mobile was an iPhone. The system is stable, but I don’t like it that all the apps have to be downloaded from the App Store.”

Yang Qingbao, a 31-year-old investment bank manager, said “I think the iPhone has a higher brand value, but it’s hard to say its performance is better than Huawei.”

For others, national pride is a factor.

“I support Chinese brands,” said Li Hongxuan, a 33-year-old translator. “Huawei is cost-effective, though it may not be as good as the iPhone. Its functions are enough for me.”

CK Lu, a Taiwan-based principal analyst for industry research firm Gartner, said Apple retains its premium image in China, though competition is intense.

“The threat, or the risk, is first if Samsung can regain its premium image in China with the S7 coming out this year, and secondly, if Chinese brands can improve their brand image to challenge Apple,” Lu said.

© Thomson Reuters 2016

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Tags: Apple, Huawei, iPhone, Laptops, Mobiles, PC, Smartphones, Tablets, Wearables
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