TOKYO — Sony expects its annual loss to swell to US$2 billion and has canceled dividends for the first time in more than half a century after writing down the value of its troubled smartphone business. Citing intense competition, especially from Chinese rivals, Sony said Wednesday it anticipates a net loss of 230 billion yen (US$2.15 billion) for the fiscal year that ends March 31, 2015. Its previous forecast was for a 50 billion yen (US$466 million) net loss.
Mainly because Qualcomm has offered an inexpensive 4G chip solution to compete with Taiwan-based MediaTek and market competition for 4G smartphones among China-based vendors has been heating up, prices for a 4G smartphone have dropped to below US$200 and are expected to further slip to below US$100 in the first half of 2015, according to Taiwan-based supply chain makers.
GfK, one of the world’s largest research company, revealed in a report last week, adding that the top three growth markets for smartphones according to sales volume in the first quarter were Indonesia, Vietnam and Thailand, which recorded 68%, 59% and 45% increased sales, respectively. Indonesia is also the largest market, with consumers purchasing over 7.3 million units or two-fifth of the region’s smartphones. Meanwhile, the percentage of smartphone sold in Vietnam in the first quarter had surpassed featured phones, reaching 55%, the Germany-based market researcher reported.
Inventec has released its financial report for the second quarter of 2014, recording consolidated revenues of NT$104.9 (US$3.5 billion), gross margin of 5.3%, net operating profit of NT$1.68 billion, net profit of NT$1.48 billion and net EPS of NT$0.41. Commenting on the reduced profits in the second quarter compared to the first, Inventec pointed out that the drop mainly resulted from exchange losses, but the company’s gross margin in the second quarter was better than the first and is expected to stay at around the same level in the second half.
On a trip to Beijing a decade ago, Bill Gates was asked by a senior government official how much money Microsoft Corp made in China. The official asked the interpreter to double check Gates’ reply as he couldn’t believe the figure was so low. It’s a problem that hasn’t gone away. Indeed, Microsoft’s current issues in China conceal a deeper problem for the U.S. software giant – despite the popularity of its Windows operating system and Office suite, few people in emerging markets are willing to pay for legitimate copies.
Cloud computing is the future of business in Asia, and companies around the region are beginning to jump on board the train, although infrastructural and regulatory challenges remain, according to the Economist Corporate Network’s recent report. Given the immense cost-saving, convenience and efficiency benefits brought about by cloud-based services, Asian firms have been eager to invest in internet technology for their business. Almost a fifth of Asian-based enterprises are actively converting most of their IT capabilities into cloud, “on-demand” or other utility models, indicative of a technologically forward-looking culture, according to the study.
Aug 05, 2014 (LBT) – Huawei, a leading global information and communications technology (ICT) solutions provider, today announced the business performance of its Consumer Business Group (BG) for the first half of 2014. During this period, Huawei shipped a total of 64.21 million devices. Smartphones accounted for 34.27 million units, showing an impressive year-on-year increase of 62%. This growth also reflected the success of the launch of several flagship premium smartphones such as the Huawei Mate 2 4G and Ascend P7 which are gaining popularity amongst consumers worldwide.
Embraced by international organizations as well as public and private sector leaders in India, the Confederation of Indian Industry (CII) and the Global Coalition for Efficient Logistics (GCEL) officially released of the India Trade Efficiency Assessment, conducted by GCEL’s research team in cooperation with the India Ministry of Shipping, Indian Institute of Management Udaipur (IIMU) and CII. The assessment diagnosed India’s trade practices against what technology makes possible today and recommends how India can capitalize on its technology and human capital strengths to reduce its annual trade costs by USD 40.5 billion, increase trade by USD 161 billion, access a new USD 6 trillion services market opportunity and creating a USD 1 trillion SME fund thus generating millions of jobs.
TAIPEI: Taiwan’s Acer Inc saw quarter-on-quarter shipments growth that exceeded the PC industry average in the April-June period, the company’s chief executive said. The beleaguered computer maker, which eked out a net profit in the first quarter after three straight quarters of losses, has turned a corner and will remain “on track” in the third quarter, chief executive Jason Chen told reporters. The comments were reported by Taiwanese media on Friday and confirmed to Reuters by a company representative.
If Tomoko Namba had followed conventional wisdom, DeNA (TYO:2432) would never have existed. She had made partner – only the third Japanese woman ever- at prestigious consulting firm McKinsey and Company after only ten years. Only three short years later, she left that left behind to found her own company. Initially conceived as an online auction service, DeNA struggled to attract users and profits. But in 2009, DeNA started to explore the gaming industry. One year later, titles like Kaito Royale caught fire and its valuation skyrocketed, giving a Namba net worth of nearly a US$1 billion and propelling her to the upper echelons of Japanese society.
NEW DELHI: India is among the top three fastest growing Internet markets in the world, a study by industry body Assocham and ComScore has said. “Among the Bric nations, India has been the fastest growing market adding over 18 million Internet users and growing at an annual rate of 41 per cent,” the study said. The Internet user base in the country is approximately 125 million, the study added.
Chinese home appliances group Midea is expecting a huge jump in its 2014 earnings. The company published its semi-annual performance prediction for 2014, stating that during the first six months of 2014, the company’s net profit is expected to increase by between 45% and 60% over the same period of last year; its earnings will reach between CNY6.059 billion and CNY6.686 billion; and its earnings per share will be about CNY1.44 to CNY1.59.
Apple (NASDAQ:AAPL) is set to open its 11th store in mainland China later this month. The upcoming Chongqing Apple Store will open on July 26, according to the company’s own website (hat-tip to 9to5Mac for spotting this). Chongqing is a municipality in central China with over 30 million people. This isn’t Apple’s first foray into central China – far from the usual hubs around Shanghai or Beijing – as the firm opened a store in neighboring Sichuan province (in Chengdu) in late 2012.
TAIPEI–A trade delegation from New Zealand is visiting Taiwan to seek more opportunities for bilateral trade cooperation, according to the New Zealand Trade and Enterprise, the country’s international business development agency. The arrival of the 30-member delegation marks the first such mission to Taiwan since the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC) took effect last December, New Zealand Trade and Enterprise said Monday.
The draft information technology (IT) development strategy by 2020 compiled by the Ministry of Information and Communication (MIC) says Vietnam would develop Vietnamese hardware and & electronic products to replace imports. Analysts commented that MIC’s plans are a bit impractical, saying that there is no way for Vietnamese hardware and electronics manufacturers to develop. They said Vietnam should not waste time on developing Vietnamese brand computers and smartphones because the products with Vietnamese brands would not sell.
Vietnam has reaped many successes in developing the software industry, but to expand the market of software products, it must pay more attention to human resources and product development, and appropriate support policies must also be put in place to support software businesses, a local paper said. Failing to compete with large groups of the US, Japan, the Republic of Korea and Germany such as Fujitsu, Hitachi and Samsung, which are governing the development of the global hardware industry, Vietnamese businesses have chosen to concentrate on software development, the Ministry of Industry and Trade’s Vietnam Economic News reported.
TAIPEI, Taiwan — Mainland China and Hong Kong accounted for 21.6 percent of Taiwan’s total foreign trade in the first five months of the year, showing no significant change in their share of Taiwan’s total export value. The Ministry of Economic Affairs (MOEA) recently said that the government’s efforts to diversify the country’s export markets are paying dividends given that this number has hovered around the same level since 2010 and increased 1.8 percentage points since President Ma Ying-jeou took office in May 2008.
Xiaomi founder Lei Jun said this morning that the Chinese phone-maker has sold 26.1 million smartphones in the first half of 2014. He pointed out that it’s a leap of 271 percent from its sales last year, according to Xiaomi’s own blog (via The Next Web). Xiaomi sold 18.7 million smartphones in 2013, which was more than double its tally in 2012. The new 26 million figure means that Xiaomi is still on course to hit its target of 60 million phone sales for the whole of 2014.
Trading activities between Japan and the Association of Southeast Asian Nations (ASEAN) are growing rapidly with the two sides’ import and export values both exceeding US$100 billion each year for the past five years. In 2013, the combined amount of import and export values between the two reached US$230.31 billion with ASEAN contributing 15.5% of Japan’s overall export value. The values are continuing to grow, according to Digitimes Research’s findings.
Early last month popular Japanese messaging app Line officially opened up its Creators Market in Japan, Taiwan, Thailand, and Indonesia, letting graphic designers sell their own graphics to users while splitting the fees 50-50 with the company. The market not only produced some extremely cool stickers, but brought in some respectable revenues for Line as well. In its first month of operations, the company brought in JPY 150 million (about US$1.47 million) in sales and doled out 1.7 million sticker sets.