China Goings On - China Business Blog

Sunday, January 26, 2014

Apple, China Mobile and…..subsidies?

As some of you know, telecommunications in China is one of our specialty areas. For almost 14 years we have been working with the 3 major telecommunications carriers on the behalf of our western technology clients. That’s why it was sort of fun to sit on the sidelines and read all the speculation on what this means to Apple. I read articles from the likes of CNN, Reuters and others that China Mobile has 760M possible customers (false) to the arrangement between the two companies would lead to a subsidy war (also false). So, I thought I would provide some clarification that while interesting and will certainly lead to Apple enjoying increased sales of their iPhone, it’s not going to be the increase that most everyone is speculating.

Why is this the case? Well, first of all, let’s establish some metrics. China Mobile has approximately 760M subscribers, China Unicom has 112M and China Telecom has 100M. As a comparison, Verizon, the largest carrier in the U.S., has approximately 120M subscribers. China Unicom and China Telecom have carried the IPhone 5s since Apple’s global release date.

Here are the facts:

    Tuesday, January 21, 2014

    Lenovo Said to Be in Discussions to Buy IBM Server Business

    Interesting article in Forbes today. This isn't the first time that Lenovo has been reputed to enter into negotiations with IBM to buy their small server business. Aside from the information contained in the article, Lenovo wants badly to favorably compete with HP and Dell in the China SME market which they cannot effectively do today. Lenovo already has a strong presence in these accounts on the desk-top and they don't want to be left out "in the cold" when it comes time for these companies to expand their data center. It will be interesting to see how this comes out. You can read the article here.

    Thursday, January 17, 2013

    Developer allegedly outsources his whole job to China, fired

    This is truly funny. One of those things you can honestly say "I wish I would have thought of that." You can see the complete article from CNET here. Keeping the honest people honest has become a full time job.

    Commence Technology Partners-USA Announces New Service for Technology Companies Wanting to Enter China

    We talk to many technology companies that understand the business opportunities in China but are reluctant to enter the China market. There are many reasons for this considering the effort and expense associated with entering a new geographic market and identifying short-term revenue opportunities. Today, Commence Technology Partners-USA announced our new, Turn-Key Office Staffing Solution mitigates these issues by providing the following components:

    • We provide complete "plug-in" sales office staffing typically consisting of a General Manager/Country Manager, (2) senior-level Sales Executives, (2) senior-level Sales Engineers, Marketing Manager and Office Administrator, all knowledgeable in the client's market segment
    • We utilize our relationships and contacts in identifying and securing short-term revenue opportunities. These include:
      • All Telecommunications providers
      • All Tier 1 and Tier 2 channel partners (e.g. distribution, System Integrators, Resellers, etc.)
      • All Military Departments
      • Major Government Ministries
      • Tier 1 Banks and financial institutions
    In most cases, we will have already identified short-term buy opportunities prior to engagement. Best of all there are no recruitment fees.

    Our solution has substantial advantages over more traditional approaches. Specifically;
    • No recruitment fees. We insert-our complete team into your existing operation. This provides substantial cost savings (often over $100,000 at China typical recruitment rates)  over a more "traditional" approach to staffing.
    • Typically it takes 4-8 months to staff an operational office in China. We provide a complete team in 30-45 days that have substantial experience in the client's market segment. This minimizes the client's time to market and allows our client to take advantage of existing IT initiatives supported by the Central Government.
    • We eliminate the requirement of expending executive time in identifying one or more recruitment firms, vetting, selecting employment candidates one at a time and making individual hiring decisions.
    • We use our existing contacts and relationships to monitor what products they are currently considering buying. We can usually bring immediate business opportunities to our client. This results in a substantially increased probability inn securing short-term revenue that leads to organic growth.
    Initially, we will offer the Turn-Key Office Staffing Service for the storage and enterprise software market segments. Future market segments will include Telecommunications, Mobile devices, consumer electronics and electronic components. You can read our press release here for more information.

    Friday, October 12, 2012

    Business as Usual with Huawei and ZTE? Not! (Part 2)


    I don't know if you caught Sunday's 60 Minutes television program in which the chairman of the U.S. House Intelligence Committee, Mike Rogers (R-MI), was interviewed regarding the committee's report on Huawei and ZTE. I caught it on YouTube and I thought I was in Cuba or someplace. I honestly don't think I've seen a U.S. political speaker so biased against these companies and by extension, China. If people don't think this entire escapade regarding Huawei and ZTE was politically motivated, think again.

    Stan Abrams at Chinahearsy.com wrote an excellent analysis on this interview. So, rather than rant and rave, we'll let Stan rant and rave for us as our thought are identical.

    You can read Stan's post here.

    I certainly agree with what Kevin said in our previous post; existing business relationships between Huawei and ZTE and  American IT companies could be at risk.