business growth Archives - Gizmochina

Mobile phone shipments in China have seen 60% increase year-on-year in September

Debasish — Wed, 06 Dec 2023 14:31:39 +0000

A recent report by the China Academy of Information and Communications Technology shows that the mobile phone market in China is experiencing a notable increase, with shipments witnessing a staggering year-on-year increase of nearly 60% in September 2023. This surge is attributed to a fresh wave of the “replacement tide,” fueled by the release of flagship models by several market brands, including the highly successful Huawei Mate60 series.

Out of the 33.2 million shipments 28.7 million devices were 5G-enabled

During September 2023, the domestic market saw the shipment of 33.277 million mobile phones, marking a 59.0% increase compared to the same period last year. Of these, 28.717 million were 5G-enabled devices, exhibiting an even more remarkable year-on-year increase of 90.1%. Notably, 5G phones accounted for 86.3% of total mobile phone shipments in the same period, signifying the growing dominance of 5G technology in the market.

The growth is not confined to the statistical realm alone; market consultation reports corroborate the upward trend. It signifies the revival of the mobile phone market in China after a period of stagnation. The improvement of the foldable smartphones is also capturing consumer interest and driving the desire to upgrade.

Market research firm Counterpoint supports this observation, reporting that China’s smartphone market is in recovery mode. It showcases an average sales increase of 11% in the first four weeks of October 2023. Analysts at Counterpoint anticipate a new “replacement wave” after more than three years, spurred by the recent releases of the iPhone 15 series and Huawei Mate60 series in September.

Apple faces a downgrade by UBS over growth concerns

Sean — Wed, 14 Jun 2023 11:56:58 +0000

Earlier this week, the Apple stock closed at an all time peak, but it appears that not everyone has such a positive outlook. An UBS analyst have downgraded its stock over concerns of its growth.

Apple stock downgraded by UBS since its growth faces pressure

UBS analyst David Vogt recently downgraded the Cupertino based giant’s stock from Buy to Neutral. Although, he also raised the price target from 180 US Dollars to 190 US Dollars. According to the analyst, the company was downgraded due to its “given persistent softness in developed markets and data that indicates growth is likely to remain under pressure.” The news also arrives as the iPhone maker gets closer to a whopping 3 trillion US Dollar market cap.

Furthermore, the move from UBS is partly due to Apple’s valuation. The company as well as other tech giants have raised their market caps by billions and have had their stocks prices rise to new highs. Vogt added that “While a premium is justified, expansion is unlikely given growth headwinds”. The announcement of the new Vision Pro also drove the stock higher last month, but this product isn’t arriving till next year.

So, the focus once again shifts to the brand’s most important product line, the iPhone. BUt UBS has raised concerns over long term growth for the iPhone as well. Vogt believes that the iPhone sold in some of the biggest markets like the US, China, and Europe have declined by over 7.5 percent year on year. However, there are others analysts that believe that the company is arriving at a massive sales cycle for the iPhone, with the upcoming iPhone 15 lineup.

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OPPO to exit Germany, France, Netherlands, UK markets

Soumyakanti — Mon, 27 Mar 2023 08:49:55 +0000

OPPO, one of China’s leading smartphone manufacturers, plans to withdraw from its business operations in Germany, France, Netherlands, and the UK. The company will only retain a few employees to handle basic operations, and the plan is expected to be implemented in mid-2023. The move comes amid tough market conditions in Europe, where high sales costs and declining consumer purchasing power have made it increasingly difficult for companies to operate profitably.

OPPO’s decision to scale back its operations in Europe reflects the challenging environment faced by smartphone manufacturers in the region. According to Counterpoint Research, smartphone shipments in Europe declined by 17% in 2022, marking the worst year for the industry since 2012. This trend was particularly pronounced in the fourth quarter of the year when OPPO’s shipment volume fell by 39% year-on-year.

The decline in smartphone sales in Europe has been driven by a number of factors, including the ongoing Russian-Ukrainian conflict and inflation, which have caused a decline in consumer purchasing power. Additionally, the high operating costs associated with doing business in the region have made it difficult for companies to achieve profitability.

Despite these challenges, OPPO remains committed to the European market and plans to invest accurately and efficiently in key markets in the future. The company recently launched the global version of its OPPO Find N2 Flip in London, UK, and showcased multiple products and technologies at the World Mobile Congress in Barcelona, Spain.

However, OPPO is also facing a difficult patent litigation issue in Europe. Nokia has sued OPPO for patent infringement in Finland, Germany, Sweden, the UK, the Netherlands, and other countries after the company entered the European market.

In response to the challenging market conditions, industry experts suggest that smartphone manufacturers will need to focus on innovation and differentiation to stand out in the crowded market. Companies will also need to work closely with carriers and retailers to effectively market and distribute their products in the region.

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Xiaomi spends 2 Billion Yuan to establish new corporate management firm in China

Sean — Tue, 30 Nov 2021 10:34:44 +0000

Earlier this week, the Wuhan Yibayiling Corporate Management Co., Ltd. was established in China with a registered capital of 2 billion Yuan (roughly 313 million US Dollars). This firm is fully owned by the Xiaomi Corporation.

According to a pandaily report, the news arrives from a business registration information, which also revealed that the newly establishes is legally represented by Alain Lam. The information states that the business scope includes enterprise management, enterprise management consulting, and information consulting services. As per the Chinese tech giant, the sizeable investment to establish the firm will help in driving its business development forward as well.

Notably, the investment also arrives as the company recently shared its financial report for the third quarter of this year. This report showcased that Xiaomi invested in more than 360 companies by the end of the third quarter, with its total investment reaching around 59.1 billion Yuan (roughly 9.2 billion US Dollars). Apart from investments into other firms, the company has recently even registered its second automobile unit, as it seeks to expand its prospects in the booming electric vehicle market. It is even planning on building a new car production plant in Beijing, which will have an annual production capacity of 300,000 units.