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Motorola helps Lenovo ship record number of smartphones, but it also inherits Moto’s falling profits

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Lenovo’s first full quarter since it completed the acquisition of Motorola from Google brought good news and bad: smartphone shipments and revenue up, but profits down.

TechCrunch reports that Lenovo shipped a record 18.7M smartphones in the final quarter of 2014, reported now, with year-on-year revenues up 21% – but profits fell 37% … 
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China approaches smartphone saturation point, shipments fall as penetration hits 90% – IDC

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China – long viewed as one of the key growth markets for smartphones – is now approaching saturation point, according to data being released today by IDC. The WSJ reports that smartphone shipments fell for the first time in six years, 4.3% down year-on-year in the previous quarter. Other sources say sales are still growing, but at a much-reduced rate.

Experts say the slowdown is largely driven by the disappearance of China’s first-time buyers. Smartphones now have a more than 90% penetration rate in China, said Tom Kang, research director with market-research firm Counterpoint, meaning just about everybody in China who wants a smartphone already has one. “China is now a replacement market,” Mr. Kang said.

Even local brands like Xiaomi are finding it tougher to compete, say analysts, while Samsung fell from the best-selling brand in China a year ago to fourth place today. Samsung was, however, upbeat about its prospects in the country.

“While there are signs that the explosive growth of smartphones in China will slow this year, the vast majority of China’s 885 million mobile users are using low-end and mid-range smartphones,” Samsung said in a statement. “This leaves plenty of room for upgrades to high-end phones as China’s market matures.”

Android manufacturers are also facing increased competition in China from Apple, which recently hit 26% market share.

Photo: Darley Shen/Reuters

Next version of Chrome will stop trusting many Chinese websites as Google responds to security breach

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Users trying to connect to many websites in China through Chrome will soon see a message that the website’s security certificate is not trusted, advising against proceeding.

In a far-reaching response to a recently security breach, Google plans to cease recognizing all web security certificates issued by the China Internet Network Information Center (CNNIC) – which includes many government, banking and ecommerce sites in the country … 
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Invites for April 8 HTC event go out to Chinese media, probably for ‘HTC One M9+’ announcement

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Invites for an HTC event taking place in Beijing on April 8th, 2015 have reportedly been sent out to the Chinese media (via Nowwhereelse.fr). As you can see, the device shown on the image above is a bit different than the HTC One M9—it has a dual-camera set up and a circular main camera, rather than the single, rectangular shooter on the back of the new flagship. The render does look similar to the regular One M9 in some ways though, showing what looks to be the same dual-tone finish. In all likelihood, this is the rumored HTC One M9+.


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HTC One E9 leaks, sports a flatter and thinner body w/ a 5.5-inch screen

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It looks like another HTC smartphone, this time the One E9 (rather than the M9), is on the way to market sometime soon. The images have shown up thanks to Chinese regulators (via Engadget), and as you can see above, they actually don’t look that similar to last year’s HTC One E8 (which came to Sprint in August). This device has a much larger camera on its rear, and sports a larger 5.5-inch screen (which is a half-an-inch bigger than that of its M9 relative)…
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Sketchy renders purportedly show an upcoming Android Wear smartwatch from Oppo

Many Android smartphone manufacturers have already entered the Android Wear race, with the latest entry—the aptly-named Huawei Watch—coming from Chinese company Huawei at Mobile World Congress last week. Today, it looks like the first evidence of an Android Wear device coming from another Chinese OEM, Oppo, have surfaced on the web via a couple of different sketchy Chinese sources.

The above smartwatch, sporting a fairly traditional design, might just be Oppo’s upcoming entrant…
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Google debuts Chinese version of its developer YouTube channel

[youtube https://www.youtube.com/watch?v=ObvaD7EcDGM]

Google today launched a new version of its developer-focused YouTube channel, continuing the company’s expansion into the Chinese market. Ironically, YouTube is still blocked by China’s nationwide firewall, so users interested in taking advantage of the channel will need to find other ways to access its content.

The English-language version of the channel contains resources for developers creating Android apps, web content, and other software projects. The Chinese channel currently only features two introductory channels, but will likely contain localized versions of new videos from the English channel.

Bloomberg supports suggestion of Note Edge style wraparound display on Samsung Galaxy S6

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Bloomberg is reporting that the Samsung Galaxy S6 will be released in two versions, one of them with a wraparound screen similar to the Note Edge but curving around both left and right sides of the display.

Samsung Electronics Co. plans to release two new versions of its top-tier Galaxy smartphone next month, including a model with a display covering three sides, according to people with direct knowledge of the matter […] The second model to be unveiled at the Mobile World Congress in Spain will only have a front-facing display.

Earlier claimed renders had also suggested a curved screen, though with some confusion about whether the wraparound would be on only one side, like the Edge, or both sides as now claimed by Bloomberg … 
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Comms chip company Qualcomm fined almost $1B in Chinese anti-trust case

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Qualcomm, which licenses 3G and 4G communications patents to smartphone manufacturers, has been fined almost a billion dollars by the Chinese government in an anti-trust case. The company was found to have abused its dominant position in wireless chip technology by charging “unfairly high” licensing fees to manufacturers of smartphones and tablets.

The 6B Yuan ($960M) fine is the largest fine ever imposed on a foreign company, reports the GuardianChina’s National Development and Reform Commission (NDRC) said that the fine was calculated as 8% of Qualcomm’s 2013 revenue in China. China is responsible for around half of Qualcomm’s total revenue.

Chinese regulators said that Qualcomm bundled together patent licenses, forcing Chinese companies to buy unwanted licenses in order to get the core 3G and 4G ones they needed. Qualcomm said that it was disappointed by the ruling, but has agreed to separate out its licenses to allow companies to purchase only the ones they need.

The ruling should reduce costs for Chinese smartphone makers, but it isn’t known how significant the saving may be, and it’s unlikely to show up as a price-reduction for consumers.

Photo: Mike Blake/Reuters

Xiaomi to hold a press conference on February 12th in San Francisco

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Xiaomi is known as being the rising star in the smartphone arena, making its way past LG last year to become the third-largest manufacturer of smartphones in the world. The success of the company is to be blamed largely on its Chinese reception, as it hasn’t launched a single device on this side of the Pacific.

That said, Xiaomi is going to hold a press conference in San Francisco, California later this month (via Android Police), but don’t get too excited if you’re hoping to hear about a North American launch, as the company has already confirmed that that’s not happening…


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China accused of protectionism through new cybersecurity rules aimed at western tech companies

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The NY Times reports that the Chinese government has adopted a set of supposed cybersecurity regulations on western companies selling technology to banks. These requirements are so absurd that it would be impossible for companies like smartphone manufacturers to comply.

The Chinese government has adopted new regulations requiring companies that sell computer equipment to Chinese banks to turn over secret source code, submit to invasive audits and build so-called back doors into hardware and software, according to a copy of the rules obtained by foreign technology companies that do billions of dollars’ worth of business in China.

The paper reports that while the regulations are so far limited to sales to Chinese banks, they are merely the first in a series of new cybersecurity policies expected to be introduced in the coming months, and businesses fear that they are designed to protect local manufacturers from foreign companies.

One theory raised in the NY Times piece is that the moves may be retaliation for an effective US ban on Huawei servers and networking products following concerns that they contained backdoor access for use by the Chinese government.

Huawei has record-breaking year: 75M phones, over $12B revenue

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Chinese manufacturer Huawei has announced record-breaking results for 2014, with smartphone sales up 45% to 75 million and revenue up 30% to $12.2B. The numbers aren’t too great a surprise, as Reuters came pretty close to calling them in a piece posted on New Year’s Eve.

The dramatic growth in sales could see Huawei threatening the rankings of both LG and Xiaomi in the next round of market share estimates after recently being knocked down into fifth place …


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Oppo launches sapphire glass backed, ultra-thin smartphone

Oppo R1C ChinaChinese handset maker Oppo on Wednesday officially launched its R1C smartphone in China for ¥2499 (around $400). The handset has an ultra-thin 6.85mm design backed by sapphire glass, making it one of the thinnest smartphones with 4X optical zoom ever. The R1C will be available for purchase through the Oppo website beginning January 20 at 10:00 AM local time in China.

Oppo’s hardware specifications include a 5-inch 720p display, Qualcomm 1.5GHz Snapdragon 615 64-bit octa-core processor, 2GB of RAM, 16GB internal storage with up to 128GB of expandable storage, 2,420 mAh battery, 4G LTE connectivity with dual SIM card slots, and 13-megapixel rear-facing camera with Sony’s Exmor RS IMX214 sensor. The device runs Android 4.4 KitKat out of the box.

The Oppo R1C joins the company’s existing devices, including the N1, N3, R5, Find 5 and Find 7.

Huawei smartphone sales up 40%, revenues up almost a third, says Reuters

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Reuters has pre-empted Huawei’s financial results, due to be released next month, citing an internal memo showing a 40% year-on-year increase in smartphone sales, with divisional revenue up almost a third to $11.8B.

The division shipped about 75 million smartphones in 2014, according to the year-end memo to employees sent by Richard Yu, the head of Huawei’s consumer business. Although that represented a more than 40 percent year-on-year increase, the figure lagged behind Huawei’s previously stated sales target of 80 million units.

While the company started life making low-end handsets, it later branched out into high-end smartphones, including the recently-announced Honor 6 Plus, closely modelled on Apple’s iPhone 6 Plus … 
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Xiaomi valued at $45bn following $1.1bn funding round, new flagship coming in January

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Xiaomi CEO Lei Jun announced this morning (via Weibo) that the company has completed its latest round of funding, securing another $1.1 billion for the startup to now be valued at $45 billion total. And in light of this news, the Chinese company has mentioned that it plans to announce its next flagship device at some point next month.


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China tightens blockade on Google, blocking email app access to Gmail [Update: restored for now]

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Update: The FT reports that access has been restored for now at least, with a slight pickup in Google’s stats appearing to confirm.

China has tightened its firewall blockade of Google services, reports Re/code and the WSJ, with email apps no longer able to access Gmail via IMAP, POP3 or SMTP. While web access to Gmail has been blocked since June – believed related to the 25th anniversary of the Tiananmen Square massacre – users had remained able to access mail using email apps like Apple Mail and Outlook until Friday … 
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Report: Chinese smartphone maker Coolpad hides malicious backdoor on millions of Android devices

Coolpad

While most malware is the result of third-party attackers trying to gain access to your device or information, security research firm Palo Alto Networks has discovered that Chinese handset maker Coolpad has deliberately installed a backdoor on two dozen of its Android handset models. The so-called “CoolReaper” backdoor presents several security risks and is believed to impact over 10 million users.
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Huawei launches 5.5″ Honor 6 Plus w/ dual rear-facing cameras for shooting in the dark

Huawei 6 Plus

Chinese handset maker Huawei took the stage in Beijing today to introduce its next-generation flagship smartphone, the familiar sounding Honor 6 Plus. The all-new device, which has an unforgivably similar name to the iPhone 6 Plus, has a sleek, metallic design and takes on HTC with dual 8-megapixel rear-facing cameras and another 8-megapixel front-facing camera for added measure.
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Xiaomi earned $56 million profit in 2013 despite razor-thin margins

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Chinese handset maker Xiaomi has seen explosive growth since entering the market in 2010, emerging to become the world’s third-largest smartphone maker after just four years. According to a recent regulatory filing, the company is also profitable too, bringing in $56 million profit in 2013 despite having razor-thin margins on its smartphones and tablets.
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Patent dispute halts some (all?) Xiaomi smartphone sales in India (Update: confirmed)

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The Times of India reports that the Delhi high court has banned Xiaomi from both importing and selling smartphones in India following a patent infringement claim by Ericsson.

Hearing a case filed by Ericsson India against Xiaomi, the court on Monday passed an ex parte order forbidding the popular Chinese manufacturer from importing and selling its smartphones in India […]

It is not clear if the order will impact all Xiaomi devices sold in India or specific devices that violate the patents.

However, as the patents concerned are Standard Essential Patents – patents which are so fundamental to a particular product category that the patent owner is obliged by law to license them on reasonable terms – it appears likely that the ruling applies to all Xiaomi handsets … 
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There’s a new title-holder in the world’s slimmest smartphone race – and it’s just 4.75mm thick

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Just when you wondered how much slimmer smartphones could get, Chinese brand Vivo has set a new record with the X5Max at just 4.75mm thick, beating the 5mm thin iPhone 6 clone Gionee Slim 5.5. Astonishingly, it has achieved this while still managing – just – to fit in a standard 3.5mm headphone socket. It does, though, the now-standard cheat of allowing the camera to protrude by 2mm.

headphoneIt’s also no slouch in the specs department, with a 64-bit octacore Snapdragon 615 processor, 5.5-inch 1080p display, 13MP main camera, 5MP front camera, 2GB RAM and 16GB internal storage – with a clever dual-SIM tray that allows you to substitute a microSD card of up to 128GB for one of the SIMs … 
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Xiaomi thinks it can top Samsung and Apple as world’s largest smartphone maker within a decade

Xiaomi Mi2

Just weeks after Xiaomi overtook Huawei and LG to become the world’s third-largest smartphone maker, The Guardian reports that the Chinese handset maker’s chief executive and founder Lei Jun is out with a bold prediction that his company could move past Samsung and Apple to become the world’s largest smartphone maker within the next five to ten years.
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