Huawei and Dongfeng Motor, a Chinese manufacturing partner of Stellantis, are in an ongoing collaboration to develop smart electric vehicles, the companies have announced. This adds to a string of such deals by technology giant Huawei as it accelerates its entry into the auto market. 

The partnership could help Voyah, a subsidiary of state-owned automaker Dongfeng, increase sales and expand its presence in the red-hot EV market where a wave of consolidation and reshuffling is underway, according to David Zhang, a visiting professor at Huanghe Science and Technology University. 

Why it matters: The alliance is the latest example of Huawei’s multifold endeavor to expand into EVs. It has pushed two initiatives to enhance cooperation with carmakers in particular. 

• One is the so-called “Huawei Inside (HI)” business model, signifying that cars will feature Huawei’s full-stack technologies such as automated driving software and infotainment systems. Changan Automobile and Mercedes’ Chinese partner BAIC are among its partners. 
• The other is “Smart Selection,” in which Huawei not only provides technologies but also sales channels while gaining control over vehicle development. Aito has been the biggest success story under this approach, followed by the recent launch of Luxeed between Huawei and Chery. 

Details: According to Zhang, Huawei will adopt the HI approach with Dongfeng, mainly selling the carmaker components and software, and will probably not go into as much depth as it did with Seres. 

• This would allow Dongfeng, controlled by the State-owned Assets Supervision and Administration Commission, China’s state asset regulator, to maintain control of its premium EV brand, Zhang said. 
• As more EVs embrace cutting-edge technologies, an automated driving system powered by Huawei could be a big selling point for Voyah, elevating it above other brands. The tie-up could see the companies share development and marketing costs, Zhang added. 
• In a Monday announcement (in Chinese), Huawei and Dongfeng said they will move forward with the large-scale adoption of intelligent technologies with the joint development of new cars, without giving further details. 

Context: Huawei has been working on the spin-off of its automotive business unit for several months. The company in November announced plans to establish a joint venture with Changan, stating that other existing partners such as Seres have been invited to invest in the new entity. 

• Voyah posted significant growth in sales last year with deliveries of 50,552 vehicles, compared to less than 20,000 units sold a year earlier. The automaker in August launched a revamped version of its Free mainstream luxury crossover with a starting price of RMB 266,900 ($36,532) featuring Baidu’s automated driving assistance system.

Xiaomi held its most significant media event of the year in Beijing on Thursday: the debut of its first electric car. With a size comparable to the BMW 5 Series and a shape similar to the Porsche Taycan, the four-door sedan boasts some of the Chinese car market’s highest specifications, as cut-throat competition from maturing rivals rises.

The sleek, gadget-full all-electric sedan is aiming to become a top choice for China’s increasingly tech-savvy consumers, and certainly aroused widespread curiosity judging by the more than 46 million people who logged on for the three-hour-long unveiling on the country’s Twitter-like site Weibo. Yet from journalists and insiders alike, the reaction was mixed. 

From the event, TechNode has selected some of the car’s highlights. 

Main specs

The high-performance SU7 can sprint from 0 to 100 km/h (62 mph) in 2.78 seconds, as it climbs to a top speed of 265 km/h. It is claimed to be the world’s most aerodynamic production car with a drag coefficient (Cd) of 0.195. By comparison, the Taycan Turo can hit 260 km/h and Tesla’s Model S has a Cd of 0.208. It also comes just a month after rival Huawei launched the Luxeed S7 sedan at 0.203Cd. 

Xiaomi said it uses two 9,100-ton mega casting press machines to produce the front and rear underbody pieces, giving the car a torsional stiffness of 51,000 Nm/degree, nearly twice the number of the Ford F-150 Raptor and higher than any other car on the road. The technology, first adopted by Tesla, has since been embraced by Chinese EV makers from Geely-affiliated Zeekr to Huawei-backed Aito.

Vehicle autonomy

Xiaomi’s chief executive Lei Jun presented aspects of the company’s self-driving initiative for public viewing, highlighting that the premium version of the SU7 will incorporate two Nvidia Drive Orin processing chips plus a laser sensor unit on the car’s roof to carry out certain partially autonomous driving functions. Xiaomi also showed a short video of the car drawing into a tight garage space autonomously.

The Chinese tech company has set a goal for its advanced driver assistance software to be available to drivers in 100 major Chinese cities by the end of the next year, according to Lei. Huawei and Xpeng Motors are for now the leaders of this booming market, with established carmakers from BYD to Great Wall Motor trying to catch up.

Smart cabin

The SU7 will be the latest Chinese car model powered by Qualcomm’s smart cockpit computing platform SA8295, after the Zeekr 001 FR and its sibling Jiyue 01, and its infotainment system will turn on in just 1.5 seconds. It is also integrated seamlessly into the Xiaomi ecosystem with the adoption of the company’s self-developed operating system, the HyperOS, which takes only 30 minutes or so to carry out important updates, according to the company. 

CEO Lei said the SU7 would create the same smooth experience that anybody with a Mi Phone is used to, as various apps are pushed from their phones to a 16.1-inch in-car dashboard once they sit in the car. Other devices, from tablets to home appliances, also seamlessly work with the vehicle, an integration trend led by auto and tech majors such as Huawei, Geely, and NIO.

Conclusion

Xiaomi will have to pick an appropriate price tag, given it starts with a somewhat broad, unclear positioning, said You Xi, a seasoned economic and financial writer and co-founder of Chinese online media platform Communication Planet. “It remains challenging for the company to extend its brand into EVs,” You added, citing similar offerings from multiple competitors among his reasons (our translation).

The smartphone giant plans to introduce two variants of the SU7 to “contemporary elites with taste in lifestyle and technology” in China over the next few months, said Lei. Some experts have predicted the premium version of the car, with an estimated driving range of 800 kilometers (497 miles), could cost consumers at least RMB 300,000 ($41,124).

Huawei is doubling down on electric vehicles with plans to run as many as 800 showrooms in China next year dedicated to the joint car brands that it has launched with manufacturing partners, aiming to become a more visible player in the world’s biggest auto market. 

Why it matters: The new shops, expected to present a broader portfolio with larger spaces compared to Huawei’s current policy of showcasing vehicles in its regular appliance stores, will allow Huawei to display models and arrange test drives for more potential buyers. They will also be part of a branding overhaul to enhance Huawei’s brand image as a major car tech company. 

• Huawei began selling EVs powered by its technologies and manufactured by partners via its sales network for smartphones in early 2021 under its “Smart Selection” approach, in which Huawei reportedly provides sales channels and has more control over vehicle development.

Details: In what could be the tech giant’s fastest period of growth in its history, Huawei is planning to operate 800 car showrooms next year and increase that number to 1,000 in 2025, people familiar with the matter told Chinese media outlet 36Kr. 

• Those new shops will feature a new brand called the Harmony Intelligent Mobility Alliance (HIMA), a collaborative initiative for carmakers and a rebranding of Smart Selection based on Huawei’s proprietary Harmony operating system. 
• Some of the smaller locations could start from 2,500 square meters, allowing six cars to be displayed in-store while also doubling as a delivery center with another six for-sale vehicles in parking spaces outside, according to a franchise disclosure document obtained by 36Kr. 
• Huawei’s preferred flagship stores require a wider area of 8,000 square meters or more, and the company is renovating some existing retail shops to showcase the new HIMA brand with improved layouts, according to the report. 
• Some existing locations do not showcase the newly launched Luxeed S7 due to limited space, the report said. Huawei currently has three models on sale in partnership with Chongqing-based manufacturer Seres and state-owned carmaker Chery. 
• Huawei did not respond to TechNode’s request for comment. 

Context: Sources added that a retail and distribution network of 800 shops next year will be comparable to that of Huawei’s major rival Li Auto, which operates nearly 400 direct-sales stores and 320 maintenance centers as of November. 

• Huawei is quickly expanding its EV lineup in collaborations with existing partners, which also include Changan and JAC. It is set to launch the M9, a full-size sports utility vehicle, with Seres at a price range of between RMB 500,000 and RMB 600,000 ($69,972-$83,966) on Dec. 26. 
• Aito, an EV brand set up by Huawei and Seres in December 2021, delivered nearly 19,000 vehicles in November on the back of strong order volume for its redesigned M7 crossover. It operated a network of 1,000 retail locations and service centers in 230 Chinese cities as of June. 
• Meanwhile, long-time rival Xiaomi is on track to launch its first EV model, the SU7, and is reportedly preparing showrooms for car sales with the first batch of display models expected to arrive early next year.

Xiaomi said on Tuesday that it had sacked three employees for “spreading rumors” about plans for its electric vehicle business, as the company also said it was planning legal action over photos of its first car model leaked online by two media outlets. For months, multiple reports have circulated on Chinese social media featuring unauthorized confidential information about the smartphone maker’s EV business.

Why it matters: The news comes as Xiaomi, known for its low-cost pricing advantage in the smartphone market, has captured growing attention from Chinese netizens due to speculation of an imminent launch of its inaugural EV model, potentially heightening competition in the already low-margin sector. 

Details: The three employees were found by the company to have spread inaccurate information without permission during conferences hosted by brokerages and investment firms, severely misleading the markets and disrupting operations at Xiaomi’s EV division, the company said in a post on the Chinese Twitter-like platform Weibo. 

• Xiaomi is taking legal action against the trio, who have been dismissed for breaching the company’s code of conduct. 
• In addition, the smartphone maker is taking legal measures against two Chinese media outlets over allegations that their employees leaked images of its upcoming EV and violated their non-disclosure agreements with Xiaomi. 
• The Beijing-headquartered tech giant said it will continue to take action to ascertain liability for the alleged wrongdoings, including leaks and rumor-spreading. 

Context: A research note recently circulated on the Chinese internet and obtained by financial news agency Jiemian published what it said was “key information” regarding Xiaomi’s first EV, naming some of the suppliers for components such as the head-up display. 

• Xiaomi is also rumored to be set to debut the car at a press conference on Dec. 28, an influencer with the handle “Dianwankeji” wrote earlier this month on social e-commerce app Xiaohongshu. The company later said (in Chinese) that it has not decided yet on the event date.
• On Nov. 15, images of Xiaomi’s first consumer car along with key specifications were posted online for public review, as required by China’s Ministry of Industry and Information Technology, TechNode has reported. 
• More information revealed by China’s industry ministry last week showed that the premium version of the SU7 sedan will have a driving range of 800 kilometers, powered by a 101 kilowatt-hour (kWh) battery pack sourced from CATL. 

On Tuesday, Oppo smartphone subsidiary OnePlus unveiled its flagship series OnePlus 12 just in time to celebrate the brand’s tenth anniversary on Dec. 16. To showcase the specifications of the new device, OnePlus China’s CEO Li Jie spent a full three hours describing it in detail at the launch event, making regular comparisons to Xiaomi’s 14 Pro throughout.

Why it matters: The launch of OnePlus’ new flagship is a direct challenge to Xiaomi and its subsidiary Redmi, as the Oppo sub-brand looks to focus on high-quality smartphones with cutting-edge features offered at competitive prices. 

Details: At the launch event, OnePlus repeatedly compared the OnePlus 12’s software and hardware capabilities with those of the Xiaomi 14 Pro, emphasizing its starting price of RMB 4,299 ($606), compared to the latter’s RMB 4,999 ($705).

• The OnePlus 12 features a 2K BOE screen with medical-grade eye protection, the Find imaging system created in collaboration with Hasselblad, and the latest Snapdragon 8 Gen 3 chipset.
• OnePlus claims to have worked with Chinese display panel maker BOE for the past two years to create the 2K BOE screen for the OnePlus 12. The screen boasts medical-grade eye protection and industry-leading peak brightness of 4,500 nits. 
• The OnePlus 12 offers a camera setup that includes a 50 MP Sony LYT-808 sensor, a 48 MP IMX481 ultra-wide-angle lens, and a 64 MP Omnivision OV64B periscope telephoto lens with 3x optical zoom. For selfies and video calls, it is equipped with a 32 MP Sony IMX615 sensor at the front. The Find camera system is enhanced with Hasselblad branding and tuning technology, ensuring a high-quality imaging experience, according to OnePlus.
• The new flagship comes with a Qualcomm Snapdragon 8 Gen 3 processor under its hood. Working in conjunction with the Adreno GPU, the smartphone aims to achieve an improved gaming performance, thanks to the PixelWorks X7 Visual processor, as claimed by the company.
• The phone has a 5,400 mAh dual-cell battery, marking the largest capacity ever applied in a OnePlus device. It can charge at up to 50W via the company’s self-developed AirVOOC technology, which is three times faster than the 15W rate of Apple’s MagSafe wireless chargers. 
• The entry level model with 12GB RAM + 256GB storage is priced at RMB 4,299 ($606), while the premium version of 24GB RAM + 1TB storage is available at RMB 5,799 ($818). The phone is available in black, green, and white.

Context: In June 2021, OnePlus announced it had merged teams with Oppo, its parent company, to streamline its operations. 

• According to market research platform Counterpoint, Oppo and Xiaomi accounted for 14% of each of global smartphone shipments in the third quarter of 2023, with both firms shipping around 41.5 million units. Oppo’s data includes figures for its OnePlus brand.
• The Xiaomi 14 and 14 Pro, the first phones to feature the Qualcomm Snapdragon 8 Gen 3 chipset, were launched on Oct. 26 in China. The two smartphones are currently only available in China but are expected to launch globally in early 2024.
• OnePlus founder and chief product officer Liu Zuohu stated at the anniversary event that OnePlus smartphones are available in 10,000 Oppo offline stores in China.

Huawei is spinning off its automotive business unit, enabling Changan Automobile and other manufacturing partners to invest, in a move aimed at turning the loss-making car division into a profitable operation amid fierce competition. 

Why it matters: The reorganization is a rare move for Huawei – a company under 100% ownership of founder Ren Zhengfei and its staff since 2003, according to its official website – as the Chinese telecommunication giant puts a date of 2025 on its target of profitability for its as-yet loss-making auto business. 

• Deemed by Citic Securities analysts as “a milestone” for the Chinese auto industry, the move is expected to help Huawei court new industry allies and gain investment to pursue intelligent vehicle technology. Established automakers such as SAIC have reportedly voiced concern about Huawei’s move into electric cars. 
• The equity structure of the new entity may be comparable to that of the United Automotive Electronic Systems, a joint venture formed by German auto supplier Bosch and several Chinese carmakers including SAIC, FAW, and Dongfeng in 1995. This would allow more automakers to benefit from collaboration, and not just Changan, analysts wrote in a Nov. 26 note. 

Details: The new joint venture will focus on areas already covered by Huawei’s Intelligent Automotive Solution (IAS) business unit, including the development of intelligent driving software, digital cockpit systems, and digital platforms, among others, according to a regulatory filing published by Shenzhen-listed Changan dated on Monday. 

• Huawei will take at least a 60% stake in the new entity but will no longer directly compete against the new company in principle. Changan and its relevant parties will acquire no more than a 40% stake in the JV. The two companies plan to discuss the details of the transaction and sign an agreement within six months, the filing said. 
• The establishment of the new entity will have no impact on the ongoing collaboration between Huawei and Chinese car manufacturer Seres, according to a Nov. 26 statement. Seres, which makes Aito-branded EVs for Huawei, added it has been asked to participate in the investment and is in discussions to jointly develop intelligent electric vehicle architecture.
• The entity will prioritize diversified ownership, said the filing. It is anticipated that various parties will engage deeply in the development of the open vehicle platform, said Richard Yu, CEO of Huawei’s consumer business group and chairman of the IAS BU, who compared the platform to “a train engine.” 

Context: Huawei, state-owned Changan and Chinese battery maker CATL announced a partnership to establish EV brand Avatr back in late 2020. The companies have sold roughly 20,000 units of the Avatr 11 battery electric crossover since delivery began last December, launching their second premium model with a starting price of RMB 300,800 ($41,240) earlier this month. 

• Huawei has also been selling EVs since mid-2021 with lesser-known Seres, formerly the Chongqing Sokon Industrial Group, followed by the launch of the first Aito-branded EV last September. Huawei said in early October that it had secured more than 50,000 non-refundable orders for the redesigned version of the M7, Aito’s second model, less than a month after its launch. That number was updated to more than 100,000 as of Monday.
• The Chinese tech giant is also partnering with domestic manufacturers Chery, BAIC, and JAC, showcasing the first model under the new Luxeed marque jointly set up with Jaguar Land Rover’s manufacturing partner Chery on Nov. 9. The Luxeed S7 sedan will be officially launched on Tuesday and the respective new models co-built with BAIC and JAC are set to hit the market in 2024. 
• Huawei reportedly invested $1 billion in its automotive business in 2021 and has since maintained its push into the Chinese intelligent EV market in an effort to diversify its revenue sources and offset the impact on its core businesses from US trade restrictions. The IAS BU recorded revenue of RMB 1 billion during the first half of this year, accounting for around 0.3% of its total revenue. 

READ MORE: Xpeng and Huawei-backed EV maker set new delivery records as demand grows for self-driving tech

Images of what could be Xiaomi’s first electric vehicle model have leaked online ahead of the car’s expected launch next year. The photos from the Chinese Ministry of Industry and Information Technology show a large sedan with styling similar to the Porsche Taycan, adorned with a Xiaomi logo. 

Why it matters: Automakers are required by Chinese regulators to apply for registration before officially selling vehicles in the country, and the government ministry’s post indicates that the debut of the first Xiaomi car is approaching. 

• Xiaomi has begun trial production of its first EV at its facility on the outskirts of Beijing, with the vehicle expected to hit the market as early as February, a person with knowledge of the matter told Chinese media outlet National Business Daily on Wednesday. 
• A Xiaomi representative declined to comment when contacted by TechNode on Thursday, but in late October, chief executive Lei Jun reaffirmed the company’s plan for the car to go on sale in the first half of 2024, according to an Oct. 25 post published on the Twitter-like platform Weibo. 

Details: The Xiaomi SU7 is around five meters long and spans a 3,000-millimeter-long wheelbase, making it bigger than many mid-size sedans such as Tesla’s Model 3. It has a total mass of 2,430 kg and a curb weight of 1,980 kg, based on the registration details revealed by the MIIT on Wednesday. 

• The car features a sleek, athletic low profile with Xiaomi’s logo on the front and its name on the rear hatch, similar to the Porsche Taycan, a likeness brought to light by a Chinese auto influencer. The images also show a couple of wheel options and a choice of yellow brake calipers.
• The SU7 will be able to reach a top speed of 210 kilometers per hour on a relatively affordable, iron-based lithium-ion battery from BYD. The top speed of the premium SU7 Max will be 265 km/h, with the higher-end model equipped with a more expensive, nickel and cobalt-based battery pack from CATL. 
• An electric motor will provide a power output of 275 kW and 220 kW respectively, while the top-end version will integrate laser sensor units on the roof to enable partially autonomous driving capabilities, according to images released by MIIT.
• The five-seater sedan will be manufactured at Xiaomi’s factory in the Beijing Economic and Technological Development Zone, which has an initial annual capacity of 150,000 units, although its production application was filed in the name of a subsidiary of state-owned automaker BAIC.
• This appears to confirm speculation that BAIC, a manufacturing partner of Mercedes-Benz in China, has joined hands with Xiaomi, meaning the smartphone maker is still waiting for final approval to begin manufacture from the Chinese authorities. 

Context: Xiaomi and Huawei are among the Chinese technology giants with the potential to become major players in the EV space with advanced intelligent capabilities and a broad sales network, which remain difficult for many carmakers to replicate, Morgan Stanley analyst Tim Hsiao commented on an earnings call held by Xpeng Motors on Wednesday. 

• Huawei said on Oct. 6 that it had secured over 50,000 non-refundable orders for the revamped M7 sports utility vehicle less than a month after its launch. The number was updated to more than 90,000 as of Wednesday, local media outlet IT Home reported. 
• The telecoms giant started pre-sales of the first electric sedan under the new Luxeed brand with automaker Chery on Nov. 9, followed the next day by the launch of the Avatr 12, a premium crossover co-developed with partners Changan Automobile and CATL. 

READ MORE: Five things to know about Xiaomi’s new electric car company

Huawei on Thursday revealed its first electric sedan under the new Luxeed marque in collaboration with automaker Chery, saying it will compete with Tesla and Mercedes Benz’s premium offerings at a price comparable to the cheapest models of its international rivals.

“After some deliberation, we will make all versions of the Luxeed S7 available for purchase despite making a loss,” Richard Yu, the chief executive of Huawei’s consumer business group, told the media during a press conference in Shenzhen (our translation). This will allow more customers to try Huawei’s smart vehicle technology at an affordable price, said Yu.

The aggressive pricing strategy unveiled at the Luxeed S7’s launch marks the latest push by the Chinese technology giant to crack the world’s biggest and most competitive electric vehicle market. Huawei hopes it will be a new revenue source to offset the negative impact of US restrictions on its smartphone business. 

Here’s what we know about the newly-launched Luxeed S7 sedan:

Pricing: The sedan comes at a minimum price of RMB 258,000 ($35,381), RMB 2,000 lower than Tesla’s entry-level Model 3 in China. Pre-sale started on Thursday and the official launch is scheduled for Nov. 28.

Automated driving: The Huawei-Chery electric sedan is the first model to use the tech giant’s latest proprietary Harmony operating system. Its autonomous valet parking feature enables the car to park itself in lots and then return to a designated spot using a remote-control assisted function.

The premium versions of the Luxeed S7 will include Huawei’s laser sensor units and its Advanced Driving System (ADS) that uses deep learning networks and computer vision algorithms, including one called the General Obstacle Detection network, for navigating its surroundings. 

Huawei has claimed its partially autonomous driving technology will be accessible on major city roads across China by the end of the year, potentially ahead of rivals including Xpeng Motors. 

Main specs: Yu specifically identified Tesla’s Model S as Huawei’s major competitor, claiming that Huawei and Chery’s full-size luxury sedan outperformed its rival’s in terms of range, energy efficiency, and luxury. 

The top-end Luxeed S7 will have a driving range of more than 800 kilometers (497 miles) and be capable of driving another 400 km on 15 minutes of supercharging using Huawei’s facilities. By comparison, the dual-motor Tesla Model S has a 715 km range and can add 347 km in 15 minutes. 

The car also impresses with high energy efficiency, consuming an estimated 12.4 kWh per 100 km, compared with 13.2 kWh and 17.5 kWh achieved by the rear-drive Model 3 and the dual-motor Model S respectively. “This is far ahead of our rivals,” said Yu, using a phrase that has become a Huawei-related buzzword on the Chinese internet. 

The S7 slightly beats out the Model S with a drag coefficient of 0.203. Meanwhile, it offers a 0 to 100 km/h (62mph) acceleration of 3.3 seconds, just under the 3.1 seconds reported by the Model S performance version but faster than the Porsche Taycan 4S, according to Yu. 

Interior: The sleek, aerodynamically favorable sedan boasts of a larger cabin space than its major luxury competitors with an interior length of 1,910 mm. The Mercedes E300L and the Tesla Model S measure 1,898mm and 1,816mm in interior length respectively, according to figures cited by Huawei during the press conference. 

The S7 also comes with a sporty design concept for the inside, featuring a wide dashboard, a 12.3-inch smart screen, as well as an oval-shaped steering wheel, allowing drivers to see the whole display, rather than having to view it through the steering wheel. 

In addition, it has adopted so-called zero gravity seat technology for the front passenger seat. This allows the human body to take on a neutral spinal posture, reducing the amount of stress placed on bones and joints, while the backs of the rear seats are heated, ventilated, and 27/32° adjustable.

READ MORE: Huawei-backed Aito now has 50,000 orders for its redesigned M7 model

Aito, a Chinese electric vehicle brand backed by Huawei, has received more than 50,000 non-refundable orders for its redesigned M7 in less than a month. The orders follow the Sept. 12 public launch of the sports utility vehicle, which features Huawei’s Harmony operating system and assisted driving technologies. 

Why it matters: The latest sales figures, as revealed by a senior executive at Huawei, show tentative signs of a bounce-back for Aito from a months-long slump and could be a boost to the confidence of Huawei’s car manufacturing partners. 

• Aito has also been buoyed by Huawei’s comeback in the smartphone market with the recent launch of its Mate 60 Pro series, following the US ban on exports of advanced semiconductor technology to the Chinese technology giant. 

Details: The revamped M7 crossover has racked up more than 50,000 pre-orders with non-refundable deposits of RMB 5,000 ($685) as of Friday, Richard Yu, the chief executive of Huawei’s consumer business group, said in a post on Chinese social media app WeChat. 

• Yu described the growth momentum of the new M7 as “a miracle,” adding that more than 10,000 customers placed their orders over the past two days. He called on sales employees to ramp up delivery to meet the growing demand (our translation). 
• Accumulative orders per store averaged more than 80 following the launch on Sept. 12, according to figures posted Saturday by Sun Shaojun, founder of consumer behavior research agency CarFans. Aito said in June it operated a network of around 1,000 retail locations and service centers in 230 Chinese cities. 
• Sun added that a surge in store traffic for Huawei’s new smartphones has boosted the sales of the Aito-branded EVs, produced by Chinese manufacturer Seres, over the recent National Day holiday season. Huawei began selling EVs with its little-known partner via its retail network in 2021.
• Roughly 40-50% of the M7’s buyers are Huawei smartphone users and were coming to the stores for the Mate 60 handsets, Jefferies analysts wrote in an Oct. 5 note, citing an executive of a Chinese auto dealership. Customers compare the six-seater with Li Auto’s L7, BYD’s Tang, and the Ford Edge, analysts said.

Context: Huawei on Sept. 12 unveiled the redesigned version of the M7 SUV, featuring Huawei’s Harmony operating system at a starting price of RMB 249,800 ($34,299), which is around RMB 70,000 lower than the initial version launched a year earlier.

• The vehicle also comes with Huawei’s latest assisted driving software, ADS 2.0, which will allow it to travel by itself on busy urban streets nationwide as early as December, making it one of the most ambitious players in the Chinese self-driving car space.
• Huawei has offered future owners of the new large-sized plug-in hybrid early access to purchase its Mate 60 smartphones. The Mate 60 Pro flagship handset reportedly incorporates a self-developed 5G processor, a breakthrough for the Chinese tech giant following US sanctions in 2019. 
• Two-year-old Aito has seen sales slump during most of 2023 amid fierce competition from more established rivals such as BYD and Tesla. Seres, which produces Aito-branded EVs, recorded sales of around 33,000 units for the first eight months of this year, representing a 15.6% decline year-on-year. 
• Meanwhile, Huawei has partnered with several other domestic automakers including Changan and BAIC. It is also on track to launch the S7 with carmaker Chery in November, the first sedan under a new marque called Zhijie in Chinese that will compete against Tesla’s Model S.

Nio took a giant leap into the smartphone arena on Thursday with the much-anticipated launch of its Nio Phone, the first handset designed by a Chinese automaker. The new device is hitting the market at a price comparable to the latest flagship offerings by Apple and Huawei. 

Having developed its own phone from the ground up, the electric vehicle maker expects to create an ecosystem across vehicles, devices, and services, which will provide a seamless experience for Nio users. The handset offers the purest form of the Android experience without any pre-installed apps or banner ads, chief executive William Li said during a press event in Shanghai on Thursday.  

Some of the standout features Nio highlights are a master remote control for vehicles with options to control everything from windows to seats, as well as seamless streaming of videos, music, and meetings from smartphone to car infotainment screen. Here’s what impressed us most about Nio’s first Android phone. 

Ultra wideband technology

Nio said the phone offers remote control for in-car devices which differs from most competitors by using Ultra Wideband (UWB) technology, an emerging wireless communication protocol that enables precise, speedy, and secure location tracking.

During a hands-on session where TechNode was present, a Nio ES8 SUV “greeted” the phone by turning its lights on when a Nio employee approached and automatically unlocked shortly before he reached for the door handle without taking out his phone. The smartphone also serves as a central hub to remotely operate the car’s air conditioning among other options at the touch of a single button. 

The short-range, high-bandwidth digital radio technology allows fast data transmission with increased security compared with other wireless standards such as NFC and Bluetooth, which are often absent from existing phone models produced by domestic makers such as Huawei and Xiaomi, according to Nio staff. The first initiative of this kind was announced by Geely-backed rival Meizu a month earlier. 

Several global automakers are also investing in the technology in collaboration with Apple. The US smartphone maker has reportedly been allowing BMW’s iX owners to unlock their cars using select iPhones or wearables since 2021, although most carmakers are currently unable to leverage the technology with Apple’s devices, Nio CEO William Li previously told Chinese reporters.

In-car connectivity

TechNode reporters also played the hit racing game title Asphalt on the in-car display with a Microsoft Xbox wireless controller. It offered a smooth experience which did not freeze or crash, as it runs in the smartphone’s background enabled with 5G services and a Qualcomm semiconductor. 

Nio’s in-car experience also allows users to stream videos on Bilibili, follow turn-by-turn navigation on Amap, or transition to live meetings on Dingtalk from their phones through the car’s infotainment screen. Huawei earlier announced a similar Super Terminal feature, while Geely claimed such capabilities with the recent launch of its new Meizu flagship series and operating system, Flyeme Auto.

It is worth pointing out that the feature is different from screen mirroring, as it actually creates a “doppelganger” of the Nio Phone on the in-car dashboard so that users can use the smartphone and the in-car system simultaneously yet separately. 

With its first self-branded device, Nio is one of the few Chinese automakers capable of integrating users’ smartphones with their car’s infotainment system at the operating system level. Such integration for Aito and Geely was enabled by their respective smartphone partners Huawei and Meizu. 

Specifications and prices

The Nio Phone is powered by a Qualcomm high-end Snapdragon 8 Gen 2 processor, the same as existing flagship offerings such as Xiaomi’s Mi 13, Oppo’s Reno 11 Pro, and the Meizu 20. It also comes with a 6.81-inch 2K+E6 Samsung screen, providing a resolution of 3,200 x 1,440 pixels, a 120Hz refresh rate, and a peak brightness of 1,800nits.

The device features a triple-camera system that includes three 50MP cameras and has a large battery of 5,200mAh, supporting 50 W wireless charging and 10 W reverse charging. An entry-level version weighs 212 grams and measures 165.19 x 75.54 x 8.9mm. 

The Nio Phone’s three versions come in seven colors, and are priced between RMB 6,499 and RMB 7,499 ($890-$1,027). Shipment is scheduled for Sept. 28. For comparison, Huawei’s latest Mate 60 Pro flagship phone costs from RMB 6,499, while Apple on Sept. 15 began selling its iPhone 15 series with a starting price of RMB 5,999 in China. 

Lynk & Co, a brand jointly owned by China’s Geely and Volvo Car, launched the 08, its long-anticipated plug-in hybrid crossover on Sept. 8. The automaker says the car has a starting price of RMB 208,800 ($28,815) and is powered by an in-house designed seven-nanometer (nm) chip, claimed by the company to be China’s first.

The compact sports utility vehicle is the first model under Lynk & Co which is exclusively plug-in hybrid. This marks a significant shift for Geely and Volvo as they make a determined move away from the internal combustion engine.

Having grappled with slowing growth in an increasingly competitive market, Lynk & Co expects the mid-sized 08 to be a high-volume model in the mainstream luxury SUV segment, competing against rival offerings including BYD’s Tang, Li Auto’s L7, and the Aito M5.

Why it matters: The Lynk & Co 08 is equipped with two SE1000 automotive chips, which is the first high-performance seven-nanometer semiconductor for cars designed by a Chinese company. The car can perform over 16 trillion operations per second (TOPS), Geely said in a statement. This is twice the number of Qualcomm’s Snapdragon SA8155P, the US tech giant’s flagship automotive cockpit platform. 

• It is also the first model to use Flyme Auto, an operating system jointly developed by Chinese smartphone maker Meizu and Ecarx, an auto tech startup backed by Geely’s chairman Eric Li. This offers an infotainment system that seamlessly connects users’ smartphone apps to the vehicle’s navigation screen.

Details: The Lynk & Co 08 uses a 1.5-liter four-cylinder engine along with a large 39.8-kilowatt-hour battery pack, providing a maximum driving range of 205 kilometers (127 miles) in all-electric mode and 1,400 km on a full tank plus full charge. Delivery is scheduled the begin later this month. 

• It uses little energy on short trips and ensures cost-competitive travel for daily commutes. By comparison, BYD’s Tang hybrid seven-seater and the Li Auto L7 extended-range hybrid run for up to 189 and 170 km, respectively. 
• The SUV boasts fuel consumption of 5.5 liters per 100 km, comparable to the 5.3L/100km of the BYD Tang DM-i, one of China’s best-selling hybrid models, and surpassing the Li Auto L7’s 7.6L/100 km. It can accelerate from 0 to 100 km/h (62 mph) in 4.6 seconds.
• The five-seater compact offers passengers a relatively large interior space measuring 4.8 meters in length and spanning a 2,915-millimeter-long wheelbase, close to the bigger but more expensive Nio ES6 and Li Auto L7, which are priced from RMB 338,000 and RMB 319,800, respectively.
• Priced between RMB 208,800 and RMB 288,000, the SUV is packed with advanced technology and luxurious design features, such as a 92-inch, augmented reality-based display, the largest of its kind in the industry, as well as a Harman Kardon audio system and frameless doors. 

Context: Lynk & Co reported a modest 6% year-on-year growth in sales for the first half of this year, while its peer Zeekr, a premium electric vehicle brand launched by Geely in early 2021, posted a remarkable 124% annual growth over the same period. Seven-year-old Lynk & Co, which formerly focused on China’s gas-powered vehicle segment, sold 180,127 vehicles last year, representing an 18.3% decline from a year ago.

• Ecarx announced the incorporation of the Flyme Auto into the Lynk & Co 08 SUV in March, followed by the public debut at this year’s Auto Shanghai show a month later. 
• Ecarx was founded by Geely chairman Eric Li and close associate Shen Ziyu in 2016, and set up a joint venture, SiEngine, to develop auto chips with Arm China two years later, Reuters has reported.
• Geely entered the smartphone industry with the establishment of a venture called Xingji Shidai in 2021, and renamed it Xingji Meizu after it acquired smartphone maker Meizu in mid-2022. 

OnePlus launched its Nord Buds 2 globally at a budget-friendly price of $59 in April. Our team received a gray model for a two-week trial. Here’s our take on the new earbuds. 

The Nord Buds 2, may cost $20 more than their predecessors, but they’re still some of the most affordable earbuds on the market and deliver solid audio quality and impressive active noise cancellation (ANC). Equipped with four microphones, the stylish earbuds – also available in white – come with a 12.4mm dynamic titanium driver, a 36-hour battery life, and IP55 water and dust resistance.

Stylish design and comfortable fit

With a stylish look and sustainably sourced materials, the Nord Buds 2 ought to appeal to a younger consumer base. The smooth, eye-catching design is augmented with speckled accents on the buds’ bodies, though at first glance this can be mistaken for specks of dust.

The compact, oval-shaped charging case and earbuds may be made of plastic, but they feel durable. There are three sizes of silicon tips available, the buds weighing 4.7 grams per earpiece, and despite somewhat chubby stems, they sat in my ears comfortably. 

The snug fit, combined with an IP55 rating which means they are resistant to light sweat and rain, makes the earbuds suitable for wearing during exercise. Over the fortnight I had them, I walked and jogged with them in and they didn’t fall out. 

Audio quality and active noise cancellation

For the price, the Nords Buds 2 deliver a relatively crisp sound quality with clear vocals, soothing treble, and convincing deep bass. The plus-sized 12.4 mm drivers feature a larger diaphragm with titanium coating, meaning users rarely need to turn the volume up beyond 50%. 

Impressively, the Nord Buds 2 are the first Nord product with up to 25dB2 of active noise cancellation. While noise-canceling is a standard feature in more expensive wireless earbuds, it is still not common in earbuds costing less than $100. ANC is effective at muting consistent low-frequency sounds, and can block some high-pitch frequencies too, without eliminating them. 

A surprising drawback is that the earbuds lack in-ear detection, meaning they are unable to automatically detect if they are being worn or removed. 

Battery life and tap controls

The Nord Buds 2 come with a 480 mAh battery that gives you seven hours of usage. With the case, they work for up to 36 hours. However, when using ANC, the battery life is reduced to five hours for the earbuds and 27 hours with the charging case. 

The earbuds support fast-charging and can gain five hours more battery life on just a 10 minute charge. Based on our test, the buds can support a two-hour commute every day and only need to be charged once a week.

The Nord Buds 2 come with built-in controls for quick adjustments, such as:

• One tap: Play or pause your music
• Double tap: Skip forward
• Triple tap: Skip backward
• Press and hold: Turn noise-canceling on or off

There is no tap control for volume however, and sometimes you can trigger commands without meaning to: when we went to adjust the earbuds to fit our ears, we accidentally turned off the noise-canceling mode. There is also no option to seamlessly switch between devices while wearing the buds. Each time you change from a laptop to a phone or tablet, you have to reconnect the earbuds, adding a degree of inconvenience. 

Conclusion

In general, the Nord Buds 2 are great value at $59. They deliver good sound quality and functional noise-canceling, despite lacking in-ear detection and seamless connectivity.

Pros

• Stylish design
• Lightweight and comfortable fit
• Dust and water resistant
• Great audio performance with convincing bass
• Impressive noise-canceling for the price
• Long-lasting battery
• Fast-charging support

Cons

• Speckled design looks dusty
• No in-ear detection
• Connectivity issues

On Wednesday, Chinese phone brand Honor launched its third-generation foldable phone the Honor Magic V2 at a new product launch event. The company announced it as the slimmest foldable on the market, measuring an ultra-thin 9.9mm in foldable state and weighing just 231 grams. 

Why it matters: Honor claims its new device breaks the boundary between regular smartphones and foldable phones. The Magic V2 is comparable in size to a standard smartphone – for comparison, the iPhone 14 Pro Max is 7.85mm thick and weighs 240 grams. 

Details: When smartphone makers first introduced new generation foldable phones in 2019, the devices’ foldable state was commonly around 16mm. By 2022, the thinnest model on the market, the Xiaomi Mix Fold 2, measured 11.2mm. The Honor Magic V2 is the first such device with a thickness below 1cm when folded. 

• Despite the thinner design, the phone offers a large 5,000mAh battery that can be fast-charged at 66W. Equipped with the Snapdragon 8 Gen 2 processor, it has three rear cameras including a 50MP main camera, a 50MP ultra-wide camera, and a 20MP telephoto camera.
• The Magic V2 utilizes a light titanium hinge and has been certified by Swiss testing and inspection authority SGS as being able to withstand more than 400,000 folds, according to Honor.
• The Magic V2 comes with a 7.92-inch primary screen and a 6.43-inch cover screen, both utilizing an OLED panel with a refresh rate of 120Hz. It features a high-frequency 3,840Hz PWM dimming function, which the company says eliminates flickering and ensures smooth animations. 
• The phone is available in three colors: black, gold, and purple. There are actually three black models, including the basic black version, a silk black version coated in vegan leather, and what the brand calls the ultimate black version, which comes with a golden brand logo.
• The device is priced from RMB 8,999 to RMB 11,999 ($1,255 to $1,674), with storage of up to 1TB.
• The Magic V2 is currently only available in China, though an international release is anticipated later this year. Its predecessor the Honor Magic Vs was introduced in China in November 2022, followed by a global release in February 2023. 
• In addition to Magic V2, Honor also unveiled the MagicPad 13, Magic Watch 4, and Honor Smart Screen 5 at the launch event. 

Context: According to research platform Counterpoint, global foldable shipments grew 64% year-on-year to 2.5 million units in the first quarter of 2023, while the overall global smartphone market faced a 14.2% year-on-year decline during the same period.

• In the first quarter of 2023, Honor shipped 9.7 million units globally, making it the fourth-biggest mobile phone maker by global market share, ranking after Apple, Oppo, and Vivo, according to market analysts firm Canalys.

On Thursday, Xiaomi released a Disney-themed Civi 3 to celebrate Disney’s 100th anniversary. The limited-edition phone is based on Xiaomi’s mid-range Civi 3, which debuted in China on May 25. The limited edition model incorporates elements from Disney’s classic Mickey Mouse character into the design and features a Disney 100 logo on the back. 

Why it matters: As China faces a slowdown in consumer electronics consumption, phone makers are looking for new ways to encourage sales and brand exposure. 

Details: The limited edition phone marks the first collaborative product between Xiaomi and Disney. It is also the first time that a phone brand has cooperated with Disney on actual device design. Currently, Xiaomi’s Disney 100th anniversary series products are offered exclusively in China, with a global launch yet to be announced.

• In addition to the device design and a Disney-themed phone case, the limited edition Civi 3 offers a built-in Mickey theme, including a charging animation, lock screen clocks, wallpaper, filter, and stickers. In terms of hardware, it sticks with the same specs as the ordinary Civi 3 model.

• The limited edition Civi 3’s back panel houses a triple camera setup positioned at the top-left corner and is encircled by a Mickey Mouse design and the Disney 100 logo.
• The device only comes in a 12GB + 512GB storage and is priced at RMB 2,899 ($407). The whole package includes the mobile phone, customized stickers, exclusive limited certificates, customized card pins, and Mickey-themed phone cases.
• The phone is equipped with a MediaTek Dimensity 8200 Ultra chipset, a 4,500 mAh battery, 67W fast charging, and a 6.55-inch OLED curved screen with a 120Hz refresh rate. Additionally, the camera boasts a 50MP Sony IMX800 sensor with an f/1.77 aperture and optical image stabilization (OIS). 
• In celebration of Disney’s 100th anniversary, Xiaomi also unveiled a range of Disney anime-style products, including Xiaomi true wireless noise cancellation headphones 3, a 10,000mAh charger, Xiaomi smart band 8, and a 20-inch travel case.

Context: On March 28, Redmi, a subsidiary owned by Xiaomi, launched the world’s first Harry Potter-themed smartphone. The Redmi Note 12 Turbo Harry Potter edition comes with customized Harry Potter design elements such as the lightning scar, golden snitch, and the iconic Hogwarts logo.

On Monday, phone maker Honor introduced its new mid-range flagship models Honor 90 and 90 Pro in China. The lineup is the successor to last year’s Honor 80 series and features a 200MP camera sensor, a quad-curved screen, a 5,000mAh battery, and the Qualcomm Snapdragon chipset. It is priced at RMB 2,499 ($350) for the standard model with 12GB + 256GB RAM. 

Honor also announced that the two devices will have GMS (Google Mobile Services) included in the global versions. 

Why it matters: As China approaches a major mid-year shopping festival known as 618 (June 18), many phone makers are releasing new affordable models to boost sales. In addition to Honor, Oppo launched its mid-range Reno10 series on May 24, while Vivo will unveil its Vivo S17 series on May 31. 

Details: As part of Honor’s new mid-range phone line, the Honor 90 series boasts a high-performance imaging system and display.

• Both models adopt a 200MP sensor for the primary rear camera and a 50MP selfie camera, while the Pro version features an additional 32MP portrait camera. 
• The Honor 90 features a 6.7-inch OLED curved-screen with 2,664 x 1,200 pixels, 1,600 nits peak brightness, 1 billion colors, and a 120Hz refresh rate. It is powered by the Snapdragon 7 Gen1 chipset. The Pro variant offers a Snapdragon 8+ Gen 1 chipset and a 6.78 inch display with a resolution of 2,700 x 1,224 pixels. 
• Both models support what Honor says is the industry’s first 3,840Hz ultra-high frequency pulse-width modulation (PWM) dimming technology to protect eye health. PWM is a common dimming feature used to adjust the current in white-LED driver devices. The company claims the phone is the most eye-health-friendly device on the market. 
• The Honor 90 Pro packs a massive 5,000mAh battery and supports 90W fast charging. Honor said it takes 15 minutes to reach 56% power. The 90 model only supports 66W fast charging. 
• Both models go on sale on June 7 in China; their global launch date has yet to be disclosed.

Context: Due to a slowdown in domestic consumption, China’s smartphone shipments declined 8% year-on-year in the first quarter of 2023, reaching their lowest level since the first quarter of 2020, according to Counterpoint. 

• The top five vendors in the first quarter of 2023 were Apple (with a 20% market share), Oppo (18%), Vivo (16%), Honor (16%), and Xiaomi (12%).
• Honor was established by Huawei as a budget smartphone brand in 2013. It was sold by Huawei in late 2020, partly in an attempt to ensure it avoided US sanctions targeting the Chinese telecommunications giant. 

At the BEYOND Expo 2023 tech conference in Macau on Thursday, the co-founder of phone maker Nothing, Carl Pei, held a fireside talk with Richard Lai, a senior reporter at Engadget, to discuss the challenges and development of the brand. 

Previously the co-founder of Chinese smartphone company OnePlus, Pei founded Nothing Technology Limited in London in October 2020. Positioning itself as a design-focused phone brand, Nothing’s first mid-range model, the Nothing Phone(1), was released in July 2022. It was particularly notable for the array of lights on its back, known as the Glyph. The Glyph functions as a notification system, flashing in different combinations and colors, and accompanied by varying vibrations.

Late last year, Nothing opened its first physical store, in London’s Soho district, featuring products such as the Ear(1) wireless earbuds and Nothing Phone(1). In October, Nothing will celebrate its third anniversary with the launch of its new flagship device, the Nothing Phone(2). It will also use this launch to enter the US market, having to date targeted India, Germany, and the UK for its phones.

Richard Lai, a senior reporter at tech media outlet Engadget, interviewed Pei about the development of Nothing as part of a fireside chat at BEYOND. The below excerpts highlight the key segments of their 30-minute discussion. Pei’s quotes have been edited and condensed for clarity.

In the beginning, the main challenge to kickstart the business was the shortage in the supply chain, coupled with being a new company and lacking trust in the market. However, we managed to overcome these issues over time. We simply spoke about our ambitions and explained why we had a chance at being successful. Thankfully, we were able to convince some people to support us and release our products. It unlocked the next phase of our journey, with supply chain resources and capital issues resolved.

We recognized an opportunity within the phone industry, considering that there are only a few big companies like Apple, Samsung, and a few Chinese brands. When a company becomes big and successful, it would not want to take substantial risks. The company knows its customers  and the kind of products they want, so the barrier to entry is high. This situation positions us as the only company that can do things differently. Smartphones have been around for almost 20 years, and have become monotonous of late. No matter who you talk to, whether it’s our team, consumers, or even our sales partners or carriers, everybody is afraid that there’s no more innovation. So I think that’s what we really want to play with, for example: how can we make technology more fun? Again, I think we’re in a very unique position to do that.

We have a strong design team. One of our co-founders started out from a well-known fashion brand. We also have the former head of design from Dyson, who joined us to lead our design efforts. Although I have a good eye for design, I’m more like an editor. I only intervene in very extreme cases, when they’re obviously going down the wrong path, but normally, I’m pretty hands off when it comes to design.

We have big ambitions, but as a company, we operate in a practical and pragmatic manner. When building our first phone, we did not have the engineering capabilities that we really wanted. We were actually hiring the team as we were building the product. A lot of the engineering work had to be outsourced to third parties. We needed time to become more confident in our engineering capabilities. People have very high expectations when you’re selling a flagship, but our company started off with a mid-range product (Nothing Phone 1). We always wanted to make a flagship device, but we just needed to take a step-by-step approach. Over the past year, our engineering team has gotten ten times stronger. Our design team has become stronger as well, and we can now finally take the step to create a genuine flagship product.

We are headquartered in London with a team of 450 employees. We really believe in leveraging the strengths of different regions. Prior to moving to London, I stayed in Shenzhen for 12 years. We have strategically distributed the hardware team and supply chain in Shenzhen, while building the software team in Taipei. Additionally, we have our manufacturing in India and small-sale offices in the Middle East. Our central thought is to connect the world’s best talent and strength from different fields.

When it comes to our products, we are already in two big product categories, audio and smartphone. Therefore, rather than diversifying into numerous products, I think, we should focus on expanding our penetration and market share within the products we already have. 

For our first phone, we lacked sufficient engineering capabilities on the software side. So, when we asked our users about the primary reason they bought our product, the number one answer was design. I think our first phone primarily stood out due to its hardware design. However, this year, we’re excited to bring that design expertise to the software side as well. I’m looking forward to this because if people already appreciate us for our design, imagine the impact when we apply it to our software too.

The Glyph Interface consists of five light components on the back of Phone(1) that provide you with a new way to communicate and interact with the Phone(1). That’s the concept of calm technology. You don’t have to actively engage with the phone, but it still gives you important information. For instance, when you’re driving a plane as a pilot, there are signals and lights in your periphery. You need to focus on what is ahead of you, but you can still see what is going on around you. There are so many features that we are looking forward to updating in the Glyph interface. We’ve been criticized a lot that it’s just a phone with some funky lights on the back. Hopefully, we will optimize this feature.

The real evolution is coming soon. Basically, it will allow you to set different light patterns depending on who’s calling you. So you can see whether it is your significant other, your boss, or somebody less important, and then decide whether you need to answer it or not. When you charge wireless on the back, it lights up to signal your charging state. But I think we’re barely scratching the surface. Our intention is to enable users to put their phones down, for instance, during dinner with friends, Nothing phone can notify you about what’s going on without you paying too much attention to it.

Even big companies are starting to take inspiration from us, companies that are way more successful. At least we’re moving up the value chain in that regard. We want to ignite change, then inspire others to be a part of that change. Overall, the industry is getting more interesting.

Oppo released the flip foldable phone Find N2 Flip globally in February as the brand’s first foray into the flip foldable smartphones. The device has been on sale in Europe and Asia since March, with a price of 849 euros ($978). The phone comes with 8GB RAM and 256GB storage and in two colors: purple and black. Our team received a black model for review and tried it out for a fortnight. 

The Find N2 Flip is the smaller flip foldable in Oppo’s first foldable release. The Find N2 is a bigger standard foldable that gives users twice the usual screen space. The Find N2 Flip is well-designed, likely to appeal to younger customers with lightweight design, large secondary display, and pocketable size. 

The key specs

Powered by a MediaTek Dimensity 9000+ processor, the Find N2 Flip offers a 6.8-inch AMOLED main screen and a 3.26-inch external screen. Flip phones tend to have small batteries due to their compact bodies and large hinges, but the Find N2 Flip managed to use a large battery of 4300mAh. In addition, the camera system includes a 50MP main camera with a Sony IMX890 sensor, 8MP ultra-wide camera, and a 32MP front camera.

Cute outer display and pocketable

The Find N2 Flip is surprisingly thin and light, weighing just 191g and measuring 7.45mm when folded. The device’s size when folded resembles a small makeup mirror – it’s delicate and compact and can be easily placed in a small bag or pocket. When handled in the palm of the hand, the Find N2 flip delivers a smooth and natural feel. 

With 3.26 inches, the Find N2 Flip’s external screen is the largest of any flip smartphone currently available. Despite the device’s lightweight and pocketable size, its external screen is big enough to showcase meaningful information and also allows users to check notifications, play music, answer calls, and take photos, so there’s no need to flip open the phone constantly. The Find N2 Flip offers six widgets for its cover screen, including weather, timer, audio recorder, camera, calendar, and earbud controls. Though the cover screen functions are currently limited, Oppo has repeatedly promised that it will expand the selection over time. 

Once opened up, the device feels a bit less convenient, the phone seems a little long and isn’t as easily swipe-able, especially after easy access on the external screen. The size of Find N2 Flip after unfolding is 166.2mm x 75.2mm x 7.45mm, while the 6.8-inch AMOLED inner screen has a ratio of 21:9. 

Adding to its cuteness factor and a clear attraction for younger users, the Find N2 Flip comes with five exclusive cartoon pet wallpapers. Users can choose different animals to display on the external screen, with cartoon pets displaying different animated states based upon how the device is being used. For example, when listening to a song, the pets on the wallpaper will “listen along.” Users can also click on the screen to “interact” with the pets.

Oppo uses a new Flexion Hinge, which ensures better resistance to dust, leaves little gap when closing the device and makes the fold barely visible. Although we admittedly only used the device for two weeks, we could hardly see the crease of the inner screen from the front and could only view a faint hint from the side under bright lighting. According to the company, even after 216,000 folds and unfolds, lab tests found that the crease remains almost imperceptible from most angles.

Durable battery and standard performance

When it comes to smartphone design, less space usually means less room for other components, like batteries. The improved, miniaturized hinge in Find N2 Flip made room for a high-capacity, fast-charging battery. To improve battery performance further, Oppo also worked closely with MediaTek to create an optimized version of the Dimensity 9000+ chip. In addition to the large battery capacity of 4300mAh, 44W SUPERVOOC fast charging allows users to go from nearly empty to 50 percent in just 23 minutes, and to 100 percent within one hour. Under normal usage conditions with screen time of between four and five hours, we were easily able to make the batter last for a day and a half or even two days. However, the device does not support wireless charging. 

The phone handles multitasking with ease and glides through multiple apps without a stutter. It’s unfortunate that the Find N2 flip is only available in a single memory and storage configuration of 8GB RAM/256GB internationally. In the Chinese market, the phone options are more diversified with 12GB RAM or 16GB RAM and 512GB of storage.

Photo friendly

The Oppo Find N2 Flip is equipped with a 50MP main camera with a Sony IMX890 sensor, an 8MP ultra-wide-angle lens, and a 32MP front camera. The 50MP main camera performs well in the day, offering detailed, crisp, and natural-colored imagery. Oppo’s self-developed MariSilicon X imaging system introduces better night shooting capabilities. 

Here are some examples of the device’s daylight and nighttime photography capabilities from our trial: 

The Find N2 Flip’s foldability also expands its photography features. With the cameras still operable when the device is partially folded, the phone can be placed on a surface for stable photography or video recording without the use of a tripod. It can also be used as a sort of camcorder when opened up to 90º, making for a more stable filming experience compared to the standard smartphone.

Conclusion

Although the Find N2 Flip is Oppo’s first flip foldable phone, it provides a mature product experience. The elegant design, compact body, weight, strong camera performance, and large battery all make Find N2 Flip an impressive option in the foldable phone category. 

Pros

• Large external screen
• Unnoticeable crease
• Decent 50MP main camera
• Large battery capacity for a flip phone

Cons

• Limited functions on the external screen
• No wireless charging
• No water resistance

Vivo released two new foldable flagship phones on Thursday, a large Vivo X Fold2 and a clamshell foldable Vivo X Flip, the first time the brand has released a smaller-style flip phone. The second generation of Vivo’s foldable line, the Vivo X Fold 2 is the first foldable smartphone powered by Snapdragon 8 Gen 2. The phone is now available for pre-order in the Chinese market and will start shipping on 28 April.

Why it matters: As the larger smartphone market sees a sustained period of slowing growth, brands are increasingly looking to foldable devices to boost flagging sales and diversify their offerings. In 2022, sales of foldable phones in the Chinese market reached 2.83 million units, up 144% year-on-year, according to research firm CINNO. Smartphone shipments in China in 2022 experienced a 22% drop from the year before, hitting 272 million. Despite strong growth, foldable still remains a niche sector however.

Details: With the inclusion of a Snapdragon 8 Gen 2 chipset, the first time Qualcomm’s high-end processor has been used on a foldable phone, the X Fold 2 is being positioned as a major flagship smartphone by Vivo.

• The Vivo X Fold 2 comes with a 2K+E6 Samsung dual screen, including a 8.03-inch E6 AMOLED main screen, providing a resolution of 2,160 x 1,916 pixels, a 120Hz refresh rate, and a peak brightness of 1,800nits. The external screen measures about 6.53 inches, with 2,520 x 1,080 pixels resolution, up to 1600 nits brightness, and a 120Hz refresh rate. Both screens support 3D ultrasonic screen fingerprints.
• In terms of performance, the Vivo X Fold 2 is equipped with Snapdragon 8 Gen 2 and LPDDR5X + UFS 4.0 memory. It also comes with a self-developed V2 imaging chip, first used on the Vivo X90 series, for improved camera and gaming performance. It has a large battery of 4,800mAh and 120W dual-core flash charge, which can be charged to 100% in 26 minutes.
• The phone weighs 279.5 grams, 31.5 grams lighter than the first generation. Folded, the phone measures 161.29 x 73.42 x 13.2mm; expanded, it measures 161.29 x 143.43 x 5.95mm.
• The triple-camera system includes a 50MP main camera with OIS support and an f/1.75 aperture, a 12MP ultra-wide lens and a 12MP telephoto camera. The primary 50MP main camera with Sony IMCX 866 sensor has a Zeiss T* coating.
• Additionally, the company claims the X Fold 2’s new self-developed hinge can take up to 400,000 folds without breaking. 
• The X Fold 2 is priced at RMB 8,999 ($1,306) for 12GB/256GB storage and RMB 9,999 ($1,452) for 12GB/512GB storage. It comes in three colors: black, blue, and red.
• The Vivo X Flip is the company’s first clamshell foldable, featuring a three-inch external display. It has a 6.74-inch 120Hz OLED inner screen with 1,200 nits brightness. Powered by a Qualcomm Snapdragon 8+ Gen 1, the new flip phone starts at RMB 5,999 (around $870) for the basic 12GB RAM + 256GB model.

Context: Vivo has a lot of catching up to do in the foldable sector, ranking fifth in China’s foldable market in 2022 and taking just a 5.8% share of a market dominated by Huawei and Samsung, according to CINNO. Huawei’s  share of the market last year was 51%, followed by Samsung at 22.8%, and Oppo at 7.7%. 

• Oppo is also seeing quick growth of its foldable phones this year, capturing a 30% market share in January 2023, overtaking market leader Huawei in that month. This growth is attributed to the strong performance of Oppo’s Find N2 and Find N2 Flip models.

On Thursday, Xiaomi released the upper-end version of its flagship phone, the Xiaomi 13 Ultra. Working with Leica, the Chinese smartphone maker is attempting to position the device as more like professional camera in a smartphone rather than a smartphone with powerful cameras. The 13 Ultra features a rear camera with four lenses, while the main camera uses a 50MP 1-inch Sony IMX989 sensor, offering a physical aperture that opens as wide as f/1.9. The phone is priced from RMB 5,999 to RMB 7,299 ($870 to $1,142). 

Why it matters: This update to the Ultra series, which has long been Xiaomi’s smartphone offering, indicates the firm’s continuing ambition to push smartphones more into the realm of professional camera devices, with photography seen as the main selling point over other functionalities.  

Details: To back up its pro-camera ambition, the Xiaomi 13 Ultra cameras use Leica’s newly designed Vario-Summicron lens, with the device also offering manual aperture and optical stabilization. Xiaomi has also added professional photography accessories, including a wireless handle with built-in buttons and dial to give the phone a more camera-like grip.  

• The main camera of the phone features a one-inch 50MP Sony IMX989 sensor with a variable aperture, optical image stabilization (OIS), and Leica’s Vario-Summicron lens. Users can manually change the physical aperture on the main camera from f/1.9 to f/4.0, allowing for greater depth of field or more light. Three supporting 50MP rear cameras include a 75mm telephoto camera, a 120mm super-telephoto camera, and a wide-angle 12mm camera with macro mode. 
• Summicron indicates a maximum lens aperture of f/2.0. The term was originally assigned to the most popular focal lengths in Leica’s M-System: 28 mm, 35 mm, 50 mm, 75 mm, and 90 mm, according to Leica. 
• Xiaomi is also offering professional photography kits to accompany the phone for an extra $116. These photography kits include a protective case made of nano-skin technology and a wireless photography handle, giving users a physical shutter button. The protective case also comes with a 67mm adapter ring for the camera, allowing users to attach other lenses, and comes with a lens cap and camera strap. 
• The 13 Ultra is equipped with a 6.73-inch dust and water-resistant 1440-pixel OLED screen and is powered by a Snapdragon 8 Gen 2 processor. The 5,000mAh battery can be fast-charged wirelessly.
• The 13 Ultra is released in China this month, ahead of its launch in international markets. The device comes with a vegan leather coating in green, black, or white and offers three storage options: 12GM RAM + 256GB, 16GM RAM + 512GB, 16GB RAM + 1TB.

Context: Xiaomi’s income slid significantly in 2022, totaling RMB 280 billion ($40.68 billion), a decrease of 14.7% year-on-year, according to its financial results. But the firm said it had still managed to increase investment in research and development. In 2022, Xiaomi invested about RMB 16 billion ($2.32 billion) in R&D, an increase of 21% year-on-year, CEO and founder Lei Jun announced at this week’s launch event. Lei reiterated that the brand’s focus on the high-end phone market will not change in the long term. Lei estimated that the firm’s investment will reach RMB 200 billion ($29 billion) this year.

• Xiaomi’s financial report for the fourth quarter of 2022 shows that the company’s high-end smartphone shipments increased by 6.8% year-on-year during the period.
• Xiaomi and Leica first announced their collaboration on advanced camera-centric smartphones last year. The 12S Ultra became the first Xiaomi smartphone to offer an entirely new imaging system developed by Leica when it was released in November.

Vivo, the Chinese phone maker known for its budget-friendly devices, released its new V27 series in India in early March, priced from $289 to $459. The mid-range smartphone lineup consists of the V27, V27 Pro, and V27e, with the V27 Pro being the premium model. TechNode has been trying V27 Pro out for the last fortnight and below are our thoughts.

The specs

The V27 Pro features a 6.78-inch 120Hz AMOLED screen, 50MP front and rear cameras, a 4,600mAh battery, 66W fast charging support, and a FunTouch OS 13 system based on Android 13. The Aura Light Portrait System is equipped with a Sony IMX766V Sensor and OIS (Optical Image Stabilization) support, which can create clear natural night photos in low-light environments. 

Powered by Dimensity 8200, a competitive 4nm chip, the V27 Pro is available in two colors, namely the Magic Blue and Noble Black. It offers three storage variants: 8GB + 128GB, 8GB + 256GB, 12GB + 512GB; the prices are respectively  37,999, 39,999, and 42,999 rupees ($462, $486, $523).

Sleek design

The V27 Pro’s most unique design features include its incredibly thin body design, color-changing back panel glass, and a 3D curved display with a 120Hz refresh rate. 

Vivo shaved the device’s thickness down to 7.4mm, making the V27 Pro the thinnest phone with a curved edge screen in the company’s history. The thickness of the Noble Black edition is 7.36mm while the thickness of the Magic Blue edition is 7.4mm. The thin design also makes the phone lightweight, weighing only 182g. But the phone does feel occasionally slippery in hand without a case, however. So the accompanying transparent phone case is a must if you want to ensure a good grip on the device. 

The phone’s back cover can change colors from light blue to dark blue depending on the light, adding to the phone’s stylish feel. 

The V27 Pro offers a 6.78-inch 3D curved screen with a refresh rate of 120Hz and ultra-high brightness. The 120Hz refresh rate and a visual enhancement feature provide a smooth gaming and video-watching experience. The 3D curved screen offers rich detail, but the device lacks stereo speakers, meaning the sound quality of the phone is average at best.

Beautiful night shooting

The V27 Pro features a 50MP primary rear camera with an f/1.9 aperture and OIS (optical image stabilization). It is assisted by an 8MP ultra-wide lens, a 2MP macro camera, and a ring-shaped dual-LED flash. On the front, the phone gets a 50MP selfie camera with an f/2.5 aperture and autofocus support.

The rear camera of V27 Pro has a 50MP OIS Ultra-Sensing Camera with Sony IMX766 sensor, which allows users to shoot clear, natural, and atmospheric night photos with ease. In addition, OIS allows for a longer exposure and increases light intake by six times, producing more stable snapshots and boosting image quality in low-light conditions. 

The following are some night street scenes we took with the device:

On cloudy days, the V27 Pro struggles to accentuate and enhance the natural light. Images taken in overcast conditions can therefore look a little dull and mediocre. However, the camera performs much better in warmer, brighter climates. Here are some photos we took to demonstrate the contrast between cloudy days and sunny days shooting with the phone:

The V27 Pro comes with a new wedding-style portrait feature, which is inspired by styles from Indian weddings. We did not have the opportunity to shoot a wedding, but this feature is worth exploring. The mode allows users to select three different filters, such as Prosecco, New Retro, and Pastels. Each one creates unique aesthetics, allowing users to choose the best style based on their preferences.

Performance and software

The V27 Pro is powered by a MediaTek Dimensity 8200 (4nm) chipset as its core processor, which is paired with 8GB/12GB of LPDDR5 RAM and 128GB/256GB UFS 3.1 storage. The storage isn’t expandable. The V27 Pro scored 839,769 points on the AnTuTu software benchmarking system, which is a good performance for mid-range phones in similar price ranges. As a reference, the Apple iPhone SE 2022 (iPhone SE 3) AnTuTu overall benchmark score is 762,983. Daily tasks such as watching videos, screen scrolling, sending messages, and playing games are relatively smooth compared to other mid-range phones. However, the phone does slow down and heat up a bit when running multiple apps in the background or playing high-performance games for more than an hour.

The V27 Pro comes pre-installed with the latest version of FunTouch OS 13, which is based on Android 13. It is a highly-customized mobile OS system based on Android. The “app pinning” feature helps to secure sensitive data that is convenient when someone else uses your phone. It is the capability to lock an application on the device’s screen and restricts the user from accessing anything else on the phone. However, this feature comes with a certain limitation as you will affect other functions on your device such as incoming calls, notifications & alarms.

Its split-screen mode is also effective, especially when wanting to copy information from one app to another, or when sending a message without interrupting the video-playing. 

While the phone comes with a 4600 mAh battery and support for 66W fast charging, it lacks wireless charging capability. Another downside is that the phone comes pre-installed with a slew of unnecessary apps. Also disappointing is the phone’s lack of dust and water resistance, making it less adaptable to different conditions.

Conclusion

The V27 Pro is an attractive phone with a decent design and impressive nighttime photography capabilities.  It can be a good mid-range phone for customers with a limited budget. 

Pros

• Elegant design and color-changing back panel
• Takes high-quality photos in low light
• 66W fast charging support
• 3D curved AMOLED screen with 120Hz refresh rate
• Triple camera system with a 50MP main camera

Cons

• Slippery without phone case
• Lack of stereo speakers
• No wireless charging support
• Lacks water and dust resistance
• Comes with unnecessary pre-installed apps

Geely’s high-end car brand Lynk & Co will be the first sub-brand from Geely to incorporate an in-car operating system called Flyme Auto in its upcoming sports utility vehicle called the 08, the brands announced on March 24. Flyme is developed by Xingji Meizu, a company established by Geely’s founder after Geely acquired smartphone brand Meizu last July. 

Why it matters: Lynk’s use of the Meizu operating system is the result of Geely’s long-term effort to develop more car technology in-house. The collaboration will be a test for both brands — Geely and Meizu — with the former focusing on building its software self-sufficiency and the latter looking to revive its diminishing smartphone business by testing its system on its new owner. 

Details: The operating system, Flyme Auto, is built jointly by Meizu and Ecarx (an auto tech startup backed by Geely). It is an all-new digital cockpit and infotainment system based on the electronic architecture of Meizu.

• The news was made public by Ecarx’s chief executive Shen Ziyu who made the announcement at a corporate event on Friday in the central city of Wuhan. He also added that Lynk & Co’s 08 crossovers would be the first model to use Flyme and Ecarx’s Antora 1000 Pro supercomputer platform.
• Shen said he expected the Lynk & Co 08 crossover, scheduled for release Thursday, to be a flagship example to automakers of how Ecarx could empower the development of in-car technology ranging from autonomous driving to video streaming.

Context: Geely made its first foray into the Chinese smartphone market in late 2021, hiring talent from domestic electronics companies such as ZTE and Xiaomi, and setting up a venture called Xingji Shidai in which chairman Li holds a 55% share. Xingji Shidai acquired the majority stake in Chinese phone maker Meizu last July, TechCrunch reported.

• Many Chinese automakers have been using high-performance chips from US chip giants Nvidia and Qualcomm for their automated driving systems and car dashboards. Some models of Geely’s Lynk have also used Qualcomm. These supply routes are now threatened by US restrictions on chip exports to China. EV upstarts Nio, Xpeng Motors, and Li Auto are also developing chips in-house to ensure their supply of the key components.

On Thursday afternoon, Huawei updated its flagship smartphones P series and Mate series with P60 and Mate X3. The phone release was part of Huawei’s spring product launch, which took place in Shanghai. In a bid to show its relevance and strength in consumer electronics, Huawei released 10 new products. The entire event lasted for more than four hours, and was livestreamed via the Chinese telecom giant’s Weibo account and its official website, with views on the former peaking at 600,000. 

Why it matters: The release of so many new devices was seen as an attempt by Huawei to demonstrate that its product research and development capabilities have not been dented by years of controversy and constraints. “We have been sanctioned for four years, but the spring is warm and the future is promising,” Yu Chengdong, the CEO of Huawei’s Consumer Business Group, said at the product launch. Other Chinese tech executives, such as founder of the Chinese internet portal Sohu Zhang Chaoyang and Weibo CEO Wang Gaofei, also attended the launch event.      

Details: The Huawei P60 series and Mate X3 mark the first time that the two flagship series have been updated at the same time. The launch also appeared to dispel previous reports that Huawei was considering selling its mobile phone unit.  

• In addition to the two phones, Huawei also released its Huawei Watch Ultimate smartwatch, Huawei smart-band B7, Huawei FreeBuds5 and Huawei FreeBuds Pro 2+ earbuds, Huawei Mate Pad11 tablet, Huawei Enjoy 60 phone, Huawei Q6 router, and Huawei Qingyun G540 laptop. 
• The Huawei P60 series consists of the regular P60, the P60 Pro, and the premium P60 Art, with prices ranging from RMB 4,488 to RMB 10,988 ($653 to $1599). It features the world’s first smartphone with two-way satellite communication technology, which supports the sending and receiving of messages without a mobile network signal. 
• The camera system is made up of a 48-megapixel main camera, a 13-megapixel ultra-wide camera, and a 48-megapixel telephoto camera with night vision. Huawei claimed that the Ultra Lighting Main Camera, boasting an F1.4–F4.0 auto-adjustable physical aperture, helps produce high-quality images in both daylight and night conditions.
• The Huawei Mate X3 foldable range includes a basic model and a premium model priced at RMB 12,999 and RMB 15,999 ($1892 and $2329). Both feature a lightweight body, IPX8 waterproof design, dual 120Hz screen displays and a triple camera setup, which is set to rival other leading foldable phones on the market. The Mate X3 weighs 239 grams, a little heavier than the 233-gram Oppo Find N2, but 10% lighter than the Samsung Galaxy Z Fold4. 
• The Huawei P60 series and Mate X3 foldable are both powered by a Snapdragon 8+ Gen 1 processor and support 4G only. They run on the new operating system HarmonyOS 3.1, which will allow users to customize the lock screen with new options and different display features.

Context: “2023 will be Huawei’s first year of returning to normal operations, despite ongoing US restrictions becoming the new norm,” Huawei’s rotating chairman Eric Xu said in an annual New Year’s message to employees at the end of 2022.

• In 2022, Huawei announced it signed more than 20 new or extended licensing agreements for its patents. The company ranked fourth last year by the number of patent grants in the US, according to IFI Claims Patent Services.
• Sales of foldable phones in the Chinese market surged 144% in 2022 over the previous year, growing faster than overall phone sales. According to the latest report from market research organization IDC, Huawei ranked first in China’s foldable phone market, with a share of 47.4%; Samsung ranked second with a market share of 16.5%.

Oppo released two flagship phones, the Find X6 and the Find X6 Pro, at its new product launch event on Tuesday afternoon. The Find X6 series features a triple camera design, with a wide angle lens with large 1-inch sensor, a periscope telephoto lens, and an ultra wide angle lens, as Oppo looks to dramatically upgrade its products’ imaging capabilities. 

Why it matters: In the past two years, rivals Vivo and Xiaomi have made significant progress in imaging, with the latter working with Leica for example, while Oppo’s camera systems have been seen as lagging behind as the company prioritized aesthetics. The new Find X6 phones, which are being positioned as high-end flagship models, are an attempt to regain the ground lost.

Details: The new X6 series was launched in the mainland China market only on Tuesday with prices starting from RMB 4,499 ($652). Equipped with three main cameras and advanced optical technology, the Find X6 series brings what Oppo claimed is “unprecedented image quality to both photo and video shooting on all three cameras.” 

• With its 1-inch sensor, the Find X6 Pro’s wide camera has the largest photosensitive sensor area of any smartphone camera. Similarly, the phone’s ultra wide camera is larger than any wide-angle smartphone camera to date. The two cameras are joined by a periscope telephoto camera, which is designed to capture images in low-light environments. 
• In terms of performance, the Oppo Find X6 uses the Dimensity 9200 flagship chip, while the Pro is powered with the Snapdragon 8 Gen 2. Both models have LPDDR5X memory and USF 4.0 flash memory. In addition, the Find X6 series is equipped with Oppo’s self-developed MariSilicon X chip, which is tailor made to improve imaging quality.
• Compared with its predecessor the Find X5 Pro, the Find X6 series offers a very different approach to design. Crafted from glass and aluminum, the centerpiece rounded lens module gives the Find X6 series a sleek appearance. The Find X6 features a 6.74-inch OLED screen, with a resolution of 2,772 by 1,240 pixels and supporting a peak brightness of 1,450 nit. The Find X6 Pro features a 6.82-inch screen with a 120Hz refresh rate and a resolution of 3,168 by 1,440, supporting a peak brightness of 2,500 nit.
• In addition to its flagship phones, Oppo also launched wireless noise-canceling earbuds Enco Free3 and its Oppo Pad2 at the event.

Context: According to market analysis platform StatCounter, Oppo accounted for 5.53% of China’s mobile phone market in February 2023, with Vivo making up 8.15% and Xiaomi 7.14%. 

• Oppo’s two main domestic rivals have both focused on imaging technology in recent years. In December 2022, Xiaomi launched its flagship Xiaomi 13 series phones with Leica optics.
• Vivo launched its flagship series the X90 for the global market last month, partnering with optical giant Zeiss to develop its camera sensors and lenses.

OnePlus, a Chinese phone brand owned by Oppo, revealed its new Ace 2V at a product launch on Tuesday, highlighting its high performance stats and low price tag as it looks to accrue market share in a segment long dominated by Xiaomi.

Why it matters: The Ace 2V provides a new threat to Xiaomi’s Redmi series when it comes to price sensitive consumers, a field where the latter has traditionally excelled. The basic Redmi K60 model is priced at RMB 2,999; the standard Ace 2V undercuts it by RMB 700. 

• Lu Weibing, Xiaomi’s president, announced a price cut for the Redmi K60 series on his Weibo account on Feb. 7, the same day that the OnePlus Ace 2V was revealed. A week later, president of OnePlus China Li Jie posted on his Weibo account, “Don’t give in to mediocrity, this is a victory for effort,” and “We won’t sacrifice specs and user experience to profit” (our translations).

Details: The Ace 2V phone began pre-sales on Mar. 7, though is currently only available in China. According to OnePlus, it will be renamed OnePlus Nord 3 in overseas markets, but its global release date is as yet unknown.

• OnePlus has priced its three Ace 2V models (12GB RAM + 256GB, 16GB RAM + 256GB and 16GB RAM + 512GB) at RMB 2,299, RMB 2,499 and RMB 2,799 respectively.
• The OnePlus Ace 2V offers a Dimensity 9000 chip, 12/16 GB of RAM and 256/512 GB of UFS 3.1 storage. At a press conference demonstration, the OnePlus Ace 2V achieved a score of 1.05 million on the AnTuTu software benchmarking system, the highest of any Dimensity 9000 phone to date. The company says that such specs will ensure a smooth gaming experience.
• The phone features support for 5G, Wi-Fi 6, Bluetooth 5.3, NFC, and several navigation systems. It includes an infrared port and 80W fast charging port, with a battery capacity of 5,000 mAh. It also offers a 6.74-inch OLED display with 2,772 x 1,240 resolution and a 120Hz refresh rate and comes with a three camera system featuring a 64 megapixel main camera, 8 megapixel ultra-wide angle lens, and 2 megapixel macro lens.

Context: In December last year, major Chinese phone maker Oppo announced that it would be investing RMB 10 billion ($1.43 billion) over three years as part of a “dual primary” strategy aimed at enhancing and clarifying OnePlus’ status. The two firms merged in 2021. 

• According to data from technology market research firm Counterpoint, Oppo was the third highest selling smartphone brand in China in the fourth quarter of 2022, taking 16% of the market and ranking behind Apple and Vivo. Oppo’s sales figures include those for OnePlus. Xiaomi’s market share was 12% for the same period. 
• In December, it was reported that Xiaomi was undertaking large-scale layoffs after a persistent decline in its phone sales over the course of 2022.

TechNode got hold of Vivo’s X90 Pro, the premium product of the Chinese phone maker’s new flagship series launched globally on February 3, and spent the last fortnight trying it out. Below are our thoughts on the phone.

The X90 Pro excels at visual capture. This is unsurprising given Vivo’s collaboration with optics master Zeiss and the phone’s 1-inch camera sensor. The X90 Pro introduces consumers to Vivo’s own optical image stabilization (OIS) technology, allowing for more intelligent and precise stabilization correction. It also boasts improved light sensitivity, aperture size, and natural color processing. The phone uses MediaTek Dimensity 9200 as the core processing chip, which we found gave it plenty of power for daily use plus enough left over to indulge in high-performance gaming.

The series was first released in China last November, starting with the X90 Pro. Now, you can buy the X90 in China and Southeast Asia, while the X90 Pro has reached stores in Southeast Asia and Europe. The new series ranges in price from $600 to $950, depending on model, storage, and where in Asia you’re shopping.

If you’re thinking of buying a new phone, it’s also worth comparing other offerings in a similar price range to Vivo’s X90 series. For example, Xiaomi’s 13 series will be launched globally on Feb. 26, costing an estimated $650 to $1,000.

Professional visuals with help from Zeiss 

For the series, Vivo partnered with German optical firm Zeiss to develop a large 1-inch IMX989 sensor. On the X90 Pro, the effort resulted in a stunning imaging system that excels in various scenarios and offers a wide aperture that opens up to f/1.75. 

Apart from Zeiss components, the X90 Pro is equipped with Vivo’s exclusively customized V2 Chip, which provides four major functional improvements on the imaging front. For example, the chip adopts a newly upgraded AI noise reduction algorithm, which boosts the main chip for further enhanced resolution in photos and videos captured at night. Some of our sample images were shot on a drizzling, foggy night in Shanghai, but the phone still managed to capture crisp, vivid images.

X90 Pro handled nighttime photography well in our tests. With a clean and depth-enhanced output, the camera displayed a similar level of professional, vivid imagery to photos taken with a large DSLR camera. In a richly lit environment, we can see the light and shadow effect between the buildings in great detail.

It is worth mentioning that when we shot a street lamp at night, the halo effect was minimized, and glare was almost absent. The phone also produces little noise in low-light settings. 

X90 Pro also uses ZEISS Natural Color 2.0 color profile, giving photos a realistic look. The two daylight photos above were taken in a natural tone setting. Many Android phones tend to render photos too bright, but the X90 Pro avoids this issue. 

A screen kinder for the eyes and a vegan leather back

X90 Pro features a 6.78-inch 3D curved screen with eye protection mode. With refinement of software and hardware, the screen decreases flicker and automatically adjusts brightness according to the ambient light and time of day, thereby reducing eye fatigue in dark environments. Besides, the new luminescent material reduces the level of harmful blue light.  

However, the X90 Pro only has a curved screen option, which may not be the first choice for users who favor a flat screen.

The X90 Pro features vegan leather which feels good in the hand and is dirt-proof. But this may not be popular with younger customers. Moreover, it’s a bit heavy to hold and somewhat lengthy to carry in the pocket. 

High gaming performance, cluttered UI

Vivo used a dual-chip setup for the new X90 series, including MediaTek Dimensity 9200 and vivo V2 Chip. With Dimensity 9200, X90 Pro, and X90 have ultrahigh AnTuTu Benchmark scores (a cell phone specs testing site) of 1.26 million and 1.22 million, representing a massive leap in performance.

We played Genshin Impact for 30 minutes, a mobile game known for its high demand on phone systems, setting it at the highest quality of 60 frames per second. The display was smooth when running pictures and fighting monsters. During playtime, the phone’s temperature was around 42 Celsius (107.6 Fahrenheit).

The phone’s user interface could use some improvement, as its default setting is a little crowded with all the recommended apps, games, and advertisements.

The X90 Pro offers a 120w wired fast charge and a 4,870 mAh large battery that takes only 29 mins to charge to 100%. For now, the series doesn’t support wireless charging.

Conclusion

In about two weeks’ use, the biggest advantage of the Vivo X90 Pro we found was its camera. It’s a good choice for photographers and can help hobbyists take better snaps. The vegan leather case design makes the phone unique. Its dual-chip setup assures smooth daily use and entertainment. As for long-term performance, it may need further observation when comparing MediaTek Dimensity 9200 with the Snapdragon 8 Gen 2. Below, TechNode summarized the main advantages and drawbacks we found with the Vivo X90 Pro: 

Pros

• Powerful camera system with Zeiss
• Dual chip technology MediaTek Dimensity 9200 and Vivo V2 chip
• Innovative design with the vegan leather
• High performance for gaming with eye protection screen
• 120W Dual-Cell FlashCharge

Cons

• No flat screen version, only rounded
• Inconvenient to carry in the pocket due to long screen
• Rear camera with protruding lens may cause dissenting views
• No support for wireless charging
• Too many built-in apps after startup

China saw smartphone sales slump 14% in 2022, marking the fifth consecutive year of decline, according to a Friday report by Hong Kong-headquartered consultancy firm Counterpoint.

Why it matters: Chinese smartphone sales reached their lowest level in a decade as consumers delayed replacing their smartphones due to sluggish macroeconomic conditions and Covid-19 containment measures.

• China’s smartphone industry still faces tough challenges in the short term amid supply chain disruption and weak consumer confidence, with gradual improvement expected in the second half of 2023, according to Chinese consultancy CINNO Research.

Details: The top three companies in the Chinese smartphone market last year were Vivo, Apple, and Oppo, holding 19.2%, 18%, and 17.5% of the market respectively.

• Huawei’s former subsidiary, Honor, was the only brand to record year-on-year sales growth in 2022, up 38% from the previous year. The report noted that the brand’s strong growth was largely due to its low base in 2021.
• Despite Apple’s sales decline in China, the US tech giant was the second-largest mobile phone brand in the country for the full year, with a 3% year-on-year drop in sales. In the fourth quarter of 2022, Apple achieved its “highest quarterly share ever” in China at 23.7%, the report noted.
• Foxconn’s major plant in the central Chinese city of Zhengzhou, the world’s largest iPhone factory, was hit by significant worker unrest related to Covid outbreaks and payment issues in the fourth quarter, which forced Apple to delay shipments of its iPhone 14 series. 
• Huawei outperformed rival brands in the October-December period. While all other top brands saw double-digit percentage sales drops, the Chinese tech giant’s sales grew 15%.
• China smartphone sales plunged 11% during Singles’ Day 2022, the largest online shopping festival and usually the peak sales period, Counterpoint said in a November report.

Context: Chinese smartphone shipments also reflect an uncertain market, with total shipments of about 286 million units in 2022, down 13.2% from a year earlier and the largest drop ever, market research firm IDC said on Sunday. This is the first time shipments have fallen below 300 million since 2013.

• The slump in China’s smartphone market is also in line with the industry’s global performance. IDC data shows global smartphone shipments dropped 11.3% from the previous year to about 1.2 billion units in 2022, the lowest figure in a decade.

Major Chinese phone maker Oppo will treat Oppo and OnePlus as “dual-primary” brands, it was announced at an event to mark the 9th anniversary of OnePlus on Dec. 17. Oppo will invest RMB 10 billion ($1.43 billion) in OnePlus in the next three years as part of the new strategy, according to Liu Zuohu (Pete Lau), founder of OnePlus and chief product officer of Oppo.

Why it matters: Since the two firms merged in 2021, OnePlus’ positioning has become somewhat unclear – it offers a less premium experience compared to Oppo and has lost some of its unique features. The new strategy and investment seem intended as a strong push to make OnePlus stand out again.

Details: In addition to the $1.43 billion investment, Oppo will also share more resources in terms of technology, retail channels, and after-sales services with OnePlus.

• The Oppo Research Institute Innovation Accelerator and Oppo’s research and development department will offer more cutting-edge technology to OnePlus as part of the new strategy.
• Oppo will also put OnePlus devices on shelves at its 5,000-plus offline retail outlets in China.
• The two brands will also share more than 1,000 offline after-sales networks.
• According to Liu’s comments, Oppo will become a “global tech brand”, with its two series Find and Reno focusing on imaging systems and design respectively.
• OnePlus will focus on performance and selling through online channels, Liu added.

Context: Liu founded OnePlus in 2013 after working at Oppo for 15 years. The two companies belong to BBK Electronics, with OnePlus manufacturing their phones in Oppo’s factories.  

• Liu returned to Oppo as chief product officer of the brand in 2020, a role he assumed in addition to his duties at OnePlus.
• Including OnePlus sales, Oppo is the fourth-largest phone vendor worldwide, accounting for 10% of the global market in the third quarter of 2022, according to hardware consultancy Canalys.

Chinese phone maker Oppo launched two new foldable phones – Find N2 and Find N2 Flip – for the Chinese market at a release event on Thursday. Available in three colors, the Find N2 has a price range of RMB 7,999 – RMB 8,999 ($1,147 – $1,290). The Find N2 Flip also comes in three colors and is priced from RMB 5,999 to RMB 6,999 ($860 – $1,004). The two models will initially be available only in China, with shipping starting on Dec. 23 for Find N2 and Dec. 30 for Find N2 Flip. Oppo confirmed to TechNode that the latter model would be introduced to overseas markets soon.

Why it matters: Oppo released its first foldable phone, Find N, last year, giving the brand a 4.6% market share (in Chinese) in the Chinese foldable market in the third quarter of 2022. This year, the firm focused on slimming down the weight of its next iteration. The new tablet-like Find N2 is even lighter than some regular phones, such as the iPhone 14 Pro Max.

• This is the first time Oppo has introduced a flip-style foldable phone, as the company looks to compete with Huawei and Samsung.

Find N2: The Oppo Find N2 uses Qualcomm’s high-end processor Snapdragon 8+ Gen 1, which was introduced earlier this year but has now been superseded by the Gen 2.

• The phone weighs 237 grams in green and white and is even lighter in black (233 grams), which is considerably less weighty than rivals’ offerings. Its thickness is 7.4 mm when opened and 14.6 mm when folded.
• The 7.1-inch inner display supports a 120 Hz refresh rate and LTPO adaptive refresh rate. The brightness can reach 1,200 nits in HDR scenes and 1,550 nits outdoors. The external display is 5.54 inches with a 120 Hz refresh rate and 1,350-nit peak brightness outdoors.
• The Oppo Find N2 is equipped with a triple-camera system, covering frames from 47 mm to 14 mm. Its main camera comes with a 500 million pixel resolution and an F1.8 aperture.
• Oppo offers LPDDR5 RAM and UFS 3.1 storage chips in this phone, with two available options: 12 GB RAM plus 256 GB storage and 16 GB RAM plus 512 GB storage.
• The phone features a 4,520 mAh battery, supporting a 67 W charging speed.

Find N2 Flip: Oppo’s first flip-style foldable phone has a 3.26-inch rounded rectangular screen that the firm claims is the largest external screen of any phone in its class.

• The main 6.8-inch display supports a 120 Hz refresh rate and 1,600 regional peak brightness.
• The phone adopts an old 4nm Dimensity 9000+ processor from MediaTek and comes with a 4,300 mAh battery, supporting 44 W charging speed.
• Powered by its in-house imaging processing chip MariSilicon X, the Find N2 Flip has a 50 million pixel (MP) main camera, 8MP teleport camera, and 32MP front camera.

Context: The foldable phone market has seen strong growth both in China and overseas in the last year. Counterpoint Research projected that global foldable phone shipments will increase 77.8% yearly to 16 million units in 2022, and hit 26 million in 2023.

• Samsung dominates the global foldable market, accounting for 62% of worldwide sales. Oppo took only 3% of the market by sale-through in the first half of 2022, ranking third behind Huawei, according to Counterpoint Research. 
• Huawei topped the Chinese foldable market with a 53.2% share of sales in the third quarter of 2022, according to Chinese hardware consultancy CINNO Research.

Chinese phone maker Oppo on Wednesday released its first smart health device, called OHealth H1. A small oval-shaped device that can take six key health measurements, OHealth H1 is targeted at family healthcare scenarios and daily monitoring use.

Why it matters: Oppo has been expanding its investment in digital health devices in recent years, hoping to diversify its offering and “use technological innovation to meet evolving healthcare needs,” according to a spokesperson. 

• Earlier this year, Oppo launched an accelerator to provide funding to innovative health tech projects around the world.  
• The firm set up Oppo Health Lab, a health research and development facility, in 2021, focusing on foundational technologies like algorithms and sensors.

Details: The OHealth H1 features six health data monitoring functions: blood oxygen, electrocardiogram, heart and lung auscultation, heart rate, body temperature, and sleep tracking.

• The device has a rounded oval-shaped design, weighing only 95 grams. It aims to help users to form a habit of monitoring their health metrics on a daily basis, without needing to wake up the device or pair it with phones.
• The OHealth H1 is equipped with a larger sensor on the side of the device, making it more sensitive than other daily health devices like smartwatches. It is designed to detect potential heart conditions such as irregular or rapid heart rhythms with the help of algorithms.
• The device’s sleep tracking feature can work without contact. The device can detect subtle mattress vibrations while users are sleeping within 20 cm (7.87 inches) of their pillows. 
• Oppo also offers an accompanying app called OHealth to help users to track their health data. The app features AI-assisted diagnosis and telemedicine features that allow users to have their data reviewed by qualified doctors for a professional diagnosis.
• Oppo says that all collected data is stored locally by default and that uploaded data will be encrypted with authorization from users.
• Oppo has yet to reveal the pricing of the device or when it will be released to the public, but a spokesperson told TechNode that it was already in production and will initially be available only in China, with an international launch still being planned. The spokesperson added that Oppo is still “refining the product to meet the requirements of local medical regulations and other relevant laws.”

Chinese phone maker Xiaomi unveiled its new Xiaomi 13 Series at a release event on Dec. 11, with camera systems from Leica and nine colors for the standard version and four for the Pro version. The new addition to the brand’s annually-updated flagship offering, the Xiaomi 13 series has a price range of RMB 3,999 to RMB 6,299 ($572.97 to $902.51).

Why it matters: Xiaomi’s flagship is a key indicator of the firm’s intention to appeal to a more premium market segment, with top-of-the-range specs and relatively affordable prices. 

• The adoption of a high-speed UFS 4.0 storage chip suggests that the use of this chip could be a regular offering for forthcoming Android flagships.
• The standard version of the Xiaomi 13 has an iPhone-like design with a flat-side frame, which has rarely been used in high-end Android phones in recent years. This rule-breaking design might help it stand out among its rivals.

Details: The Xiaomi 13 series come with top specs in major areas, including a Qualcomm Snapdragon 8 Gen 2 chipset, a high-brightness display, and cameras with a large sensor.

• For display, the two models support a 120 Hz refresh rate and 1,900 nites peak brightness, which comes courtesy of a new generation of illuminating materials. However, the standard version is equipped with a smaller 6.36-inch display (compared to 6.73 inches for the Pro model) and does not support LTPO adaptive refresh rate.
• The two models both feature Leica technology in hardware and software form for their cameras, including lens and color profiles. However, like its predecessor, the 12S series, the large 1-inch CMOS is exclusive to the most expensive model, which is co-developed with Sony. The Xiaomi 13 Pro also features special optical tech – floating focus – with its 75 mm lens, powering super close-up shots.
• The Xiaomi 13 is equipped with a 4500 mAh battery and a 67 W wired charging speed, while the Xiaomi 13 Pro comes with a larger 4820 mAh battery, supporting 120 W charging speed via wires. Both models feature 50 W wireless charging and 10 W reverse charging.
• The series will be available on Dec. 14 via Xiaomi’s official channels in mainland China, offering up to 12 GB RAM and 512GB storage. 
• Xiaomi has suggested they will introduce the series to overseas markets, with more details yet to be revealed. 

Context: Xiaomi is the third-largest phone vendor globally by shipments in the third quarter, accounting for 14% of the market, according to hardware insight firm Canalys.

• The phone maker generated RMB 70.47 billion in the third quarter of 2022, a 9.7% yearly decline, and its phone shipments also fell 8.4% year-on-year to 40.2 million units amid a global slowdown in consumer electronics.

Chinese smartphone maker Vivo’s sub-brand iQOO announced its new flagship phone the iQOO 11 on Thursday. The phone, which will be available in certain markets across Southeast Asia for the first time, adopts Qualcomm’s latest high-end chipset Snapdragon 8 Gen 2.

Why it matters: The iQOO 11 introduces an innovative update to the adaptive refresh rate, supporting partial refresh to increase power efficiency.

• The phone brand is also expanding to new markets with the device, with the iQOO 11 set to be made available in Indonesia, Malaysia, and Thailand. A spokesperson for the brand told TechNode that “iQOO will continue to develop across overseas markets and gradually extend its international presence in the future.”

Details: In addition to the Qualcomm chipset, the iQOO 11 offers high-spec storage and memory chips. The phone also adopts a new cooling system to maintain peak hardware performance when running games.

• With the support of the new Qualcomm chipset, the iQOO 11 is capable of using a low-power double data rate 5X (LPDDR5X) memory chip, which is 33% faster than the last generation of the LPDDR5. The model also offers 16 GB RAM.
• UFS 4.0 standard storage is another selling point, which offers higher performance and lower power consumption. Sequential write and read speeds are respectively up to 60% and 80% faster than older models.
• For the cooling system, iQOO adopts a three-layer graphite vapor chamber (VC) liquid design. The cooling area is slightly larger than the last generation and has a new stamped VC technique, with the effective cooling area rising by 19.5%.
• There is also a V2 chip to boost the gaming experience by increasing frames per second (FPS). Games can be rendered up to 90 FPS or 120 FPS, even when the game does not support such high frame rates. The technology lessens power consumption by freeing rendering pressure from the main chipsets. The V2 chip also offers filters to enhance gaming scenes.
• The display is another highlight. It used a 6.78-inch punch-hole display with 1440 × 3200 pixels resolution and a 144 Hz refresh rate. It also comes with the third generation of LTPO adaptive refresh rate technology, supporting different refresh rates for different display areas. The use of new E6 luminescent material also reduces power consumption by 13% compared to displays made with E5 material.
• The iQOO 11 offers the regular triple-camera combo: two ultra-wide cameras and a 50 mm portrait one. 
• With a large 5,000 mAh battery, the iQOO 11 supports 120 W speed charging.
• The phone is available in two colorways inspired by BMW M Motorsport: the Legend edition and the Alpha edition. It will be launched in Indonesia and Malaysia on Dec. 8, in Thailand on Dec. 15, and in India on Jan. 10.

Context: Founded in 2019, iQOO focuses on gaming phones for the Chinese and Southeast Asian markets.

• The brand took 4.6% of the Chinese smartphone market with “its competitive products and pricing” in the third quarter of this year, according to IDC. Together with parent company Vivo, it topped the Chinese market, shipping 20% of phones in the quarter. 
• In the global market, Vivo accounted for 9% of smartphone shipments in the second quarter of 2022, according to Counterpoint Research.

Phantom, a sub-brand of Chinese smartphone maker Tecno, released the X2, an update to its premium phone series, on Wednesday at a release event held in Dubai, United Arab Emirates. Tecno operates and serves in over 70 global markets. Transsion, Tecno’s parent firm, accounted for 48% of the African smartphone market in the second quarter of 2022, according to IDC, with Tecno alone taking 9.81% of the African smartphone market as of November.

Last year, Tecno relaunched its Phantom brand with a focus on the premium smartphone market amid an ambitious global expansion plan. The annual flagship, Phantom X2 5G, is the second generation of this brand and priced at 2,699 in South African Rands ($718) for all the first batches of available regions, including India, Nigeria, Kenya, Saudi Arabia, Colombia, Turkey, and the Philippines.

The phone has a decent body design and operating system, as well as long battery life. The device’s occasional inconsistent camera performance might undermine its ambition to compete with rivals’ high-spec flagship models. 

An impressive design

The Phantom X2 5G adopts a dual-curved body design. The rounded edges and glass back make it a comfortable device to hold. The “Stardust Grey” color – a lightly shiny graphite shade – gives it a smart, low-key business look. 

The frame on top has a mirror-like surface, while other parts are dull-polished to match the back case. The 6.8-inch punch-hole display looks frameless and is easy to control with one hand, considering its narrow width. And for a phone of this size, the X2 5 G’s weight is also acceptable – at 210.3 grams, slightly heavier than an iPhone 14 Pro.

The display performs well most of the time but can struggle when outdoors. Its peak brightness of 700 nits is not enough to see content in bright sunlight. There is an option in the settings that offer higher display brightness, but it consumes more power, and the phone might experience overheating.

Responsive OS 

The phone comes with the Android 12-based HiOS. The system runs smoothly and exceeds regular Android OS with rich built-in features and redesigned user interface.

The interface has a friendly color scheme and feels intuitive and accessible. The system provides a guide to help new users get familiar with the core features and system navigations.

There are also some well-designed widgets like Weather and To-dos. The negative home screen is replaced with a collection of widgets. 

Another highlight is one can access Tecno’s purpose-built sidebar using the “back” swipe. It’s useful for accessing common functions and apps quickly, even if the default trigger is a bit too sensitive at times.

Solid core performance 

Built with MediaTek’s 2021-launched flagship chipset Dimensity 9000, the phone can cope easily with daily use and is well-equipped for most heavy workloads. We tested it with top gaming titles from Google Play, such as Apex Mobile, Asphalt 9, and Genshin Impact. Apex Mobile and Asphalt ran smoothly, but when we pushed it further by running demanding games like Genshin Impact, the phone experienced frame drops and overheating.

The phone offers only 8GB RAM, but what surprised us is that, even while playing games, the system manages to keep previously-opened apps running in the background. 

For battery life and charging speed, the Phantom X2 5G is equipped with a large 5,160 mAh battery, meaning it can last all day with normal usage. But its 45-wattage charging speed falls well short of its premium market rivals, with other brands offering at least 60 W or even 200 W charging. With the charger coming in the box, it takes 90 minutes to fully charge from 20%. The phone also appears to use a private charging protocol, so when we connect it with a Power Delivery (PD) charger, the charging wattage is even lower.

The under-screen fingerprint recognition solution is appealing and easy to use, but it doesn’t always respond as quickly as expected, frustrating at times.

Mixed camera performance 

The Phantom X2 5G has a mixed camera performance. In some shooting scenarios, especially portrait mode, the results are stunning; yet the camera underperforms in full resolution mode, night mode, and can have some issues in color rendering.

The device has a triple camera system, with the main lens supporting a resolution of 64 million pixels. In regular mode, it can capture nice shots, but the full resolution – 64MP mode – is less ideal and pictures shot with this option can come out worse than ones taken in regular mode. The images do look larger than the low-resolution versions, but they would lack details.

The AI camera can recognize different scenarios most of the time, optimizing the images automatically. It can also combine different modes, for example, portraits with night or street view and HDR (high-dynamic range). 

The night mode is a bit disappointing, with a long wait (around six seconds) and often a worse image result than the normal mode.

The camera also occasionally captures images with some color issues. Highlights and shadows sometimes come with color aberration. The issue saw a slight improvement after a system update.

Conclusion

The Phantom X2 5G is pricier than other mid-end phones. The nice design in the back case and frameless display make a great first impression. Its front camera, system UI, system optimization, and battery life all perform well, but its back cameras and charging speed could use some improvements.

Here are our major takeaways on the Phantom X2 5G:

Pros

• A premium body design
• Satisfying selfie experience
• Well-optimized system
• Large battery

Cons

• Unstable image quality with back cameras
• Slow charging speed
• A display with low peak brightness and refresh rate

Xiaomi sees slowing sales across all its main offerings, from smartphones, AIoT, and internet service, its third-quarter earnings report shows. The smartphone and electronics maker reported quarterly revenue of RMB 70.5 billion ($9.9 billion), a 9.7% yearly decline.

Why it matters: As electronics makers around the world navigate a market downturn,  Xiaomi, the world’s third-largest phone maker, can provide investors and rivals some clues for the bumpy ride ahead.

Smartphone: Among the three sectors mentioned above, the smartphone business saw the largest yearly drop of 11.1%, shipping 8.8% fewer units in the third quarter, according to Counterpoint Research. Selling prices also saw a 2.2% quarterly decrease, averaging RMB 1,058 per unit.

• Xiaomi’s strategy of developing a vast network of offline stores in China took a hit due to frequent Covid outbreaks and strict control measures, making it less competitive compared to rivals like Oppo, Vivo, and Honor, the report said.
• The company’s performance during the Chinese shopping holiday Singles Day was also weaker this year, with an 11.9% yearly sales drop.
• “Overseas shipments accounted for more than 75% of Xiaomi’s total shipments. The sluggish macro environment, inflation, and foreign exchange fluctuations also took a toll on Xiaomi’s sales in the overseas market. On the bright side, we see that Xiaomi is continuously growing its market share in Europe, Latin America, and the Middle East,” analyst Mengmeng Zhang from Counterpoint Research wrote.

IoT and lifestyle: Xiaomi’s IoT and lifestyle business had a 9% yearly revenue decrease and a 4% quarterly fall due to “weak consumer sentiment.” However, the firm posted a 39.5% increase in connected IoT devices year on year, reaching 558.3 million as of Sept. 30.

• “Despite the segment’s slowing growth, Xiaomi made strong progress in smart home appliances, such as air conditioners, refrigerators, and washing machines, with yearly revenue growing 70%. Smart home appliances are necessities that can better withstand economic downturns,” Ivan Lam, senior analyst of Counterpoint Research said. Lam expected Xiaomi’s home appliances to continue driving demand, especially among younger customers.

Internet services: Xiaomi’s internet service also performed flat, with a 3.7% yearly decrease but a slight 1.4% increase from the last quarter. 

• “Although the monthly active users of MIUI have reached record highs both globally and in China, monetizing the traffic is challenging during the difficult macro environment and will likely carry through to 2023,” commented Archie Zhang, an analyst at Counterpoint Research.

Context: Despite market pressure, the firm is committed to investing in research and development: Spending in this sector saw a 25.1% yearly increase in the third quarter of 2022. One successful example of such an investment is the development of the innovative 1-inch camera CMOS, co-worked with Sony. Xiaomi covered half of the $15 billion developing expense, according to Xiaomi CEO Lei Jun’s post on Weibo.

• The firm’s growth strategy aims to push its products to a more premium market and lift prices of its upcoming Xiaomi 13 phones by 15% to 20%, according to Chinese media outlet The Paper.

Major Chinese phone vendor Vivo launched its flagship series X90 on Tuesday for the home market, partnering with optical giant Zeiss for camera sensor and lenses.

Why it matters: The phone came with a 1-inch camera sensor, the latest phone vendor to do so since Sony introduced the new 1-inch CMOS camera sensor. Sharp and Xiaomi also adopted the large camera sensor in their high-end phones earlier this year. Phone makers are embracing this new trend of beefing up camera functions, indirectly replacing entry-level compact cameras.

• X90 is the first phone series available with the latest high-end processor from Qualcomm and MediaTek.
• Vivo aligned its in-house imaging processing chip with the new V2 chip, which can work together with MediaTek’s latest chipset – Dimensity 9200.

Details: The X90 series contains three models: X90 Pro+ with Qualcomm’s flagship processor Snapdragon 8 Gen 2; X90 and X90 Pro with MediaTek’s high-end processor Dimensity 9200. Available in three colors, the series is priced between RMB 3,699 to RMB 6,999 ($517 to $979).

• For X90 and X90 Pro, Vivo introduced five major technology offerings to better utilize MediaTek’s chipset, including improving CPU performance, network connectivity, and power efficiency. It also features adaptive gaming frames for the popular Chinese mobile game Honor of Kings for the first time.
• The three models all have a 6.78-inch display with a 120 Hz refresh rate. X90 and X90 Pro are equipped with BOE displays, which are made of the new Q9 illuminating components, with 20% higher peak brightness (up to 1300 nits) and 15% less power consumption, according to BOE. The Pro+ model has a display that can reach a peak brightness of 1800 nits.
• X90 and X90 Pro come with a 4810 mAh and 4870 mAh battery, separately. Both support 120 W speed charge tech. X90 Pro+ has a 4700 mAh battery, with an 80 W charging speed. Except for X90, the other two models support wireless charging with a wattage of 50 W, it also supports reverse charging for other devices.
• For the camera system, X90 Pro+ has a qual-camera combo from 14 mm to 90 mm. X90 and X90 Pro come with a triple-camera combo, lacking the 90 mm lens. For the primary back camera, Pro and Pro+ models have Sony IMX989, a 1-inch COMS sensor. The series also features a Zeiss T* lens coat for better image quality at the optical level.
• The series is open for preorders, providing up to 12 GB RAM and 512 GB storage volume. 

Context: Vivo took 9% of the global smartphone market in the second quarter of 2022 ranking fifth after Oppo, according to Counterpoint Research.

• Vivo is celebrating its 10th anniversary of the X series, which focuses on camera and imaging tech, according to its website.
• The firm claimed that it had served over 400 million users globally till August this year.

Foxconn’s facilities in the Chinese city of Zhengzhou have made headlines around the world in recent weeks, as Covid outbreaks and control policies have hit the world’s largest iPhone assembly line. The city recorded 1,043 new Covid-19 cases on Tuesday, according to public data revealed by the local government, and at the time of writing, much of Foxconn’s operations in the city remain under strict control. The disruption has led many to predict stock shortages and longer delivery times for iPhone models in the near future.

Foxconn is Apple’s biggest iPhone assembler, accounting for 70% of global iPhone shipments. iPhone production accounts for 45% of Foxconn’s revenue, according to analysts from Fubon Research.

The affected Foxconn plant has 200,000 workers, and more than 10% of global iPhone production capacity is currently impacted by the Zhengzhou Covid outbreak, according to Ming-Chi Kuo, an analyst for TF International Securities.

The incident could be the catalyst that pushes Apple to move more production from mainland China to other regions such as India to reduce uncertainty and supply line dependency. According to Kuo, Foxconn will speed up its expansion of production capacity in India for the iPhone in the wake of the Zhengzhou Foxconn lockdown. He predicted that India-produced iPhones will increase more than 150% yearly in 2023 and that the share of global iPhone production in the country will increase sharply, from 2%-4% to 40%-45% in the next few years.

Below, TechNode summarizes the primary moments surrounding the Zhengzhou Foxconn lockdown since late October.

Oct. 26 – Covid cases detected at Zhengzhou Foxconn

• iPhone assembler Foxconn reportedly recorded Covid-19 cases at its assembly plant in Zhengzhou, its largest facility in mainland China.
• Foxconn confirmed the cases but claimed that production was still stable in an announcement released on Oct. 26.
• The announcement also noted that “Foxconn, in compliance with local epidemic prevention policies, is providing the necessary guarantees for livelihoods, including material supplies, psychological comfort, and responsive feedback.”

Oct. 28 – Closed-loop policy enacted as workers flee

• The Foxconn facility in Zhengzhou affected by the Covid outbreak began using a “closed-loop” system, only allowing workers to move between factories and dormitories and not allowing them to leave the site, according to an announcement on Oct. 28.
• Short videos purporting to show Foxconn workers bypassing security and Covid checks to climb out of the Foxconn facility went viral on Chinese social media.

Oct. 30 – Local government responds; analyst projects decline in iPhone production

• The Zhengzhou government released an announcement saying that the pandemic in the Foxconn facility was controllable as there were no cases with severe symptoms.
• The local government also stated that they would offer assistance with transporting workers who wished to return home.
• “More than 10% of global iPhone production capacity is currently affected as Foxconn’s Zhengzhou iPhone plants suddenly entered closed-loop production without warning,” wrote Ming-Chi Kuo, an analyst for TF International Securities.
• He added that the accident would have a limited impact on iPhone shipments for the fourth quarter of 2022, as the facility’s production capacity could gradually recover in the coming weeks.

Nov. 1 – Foxconn increases salaries to steady production

• Zhengzhou Foxconn announced that they would raise daily salaries from RMB 100 to RMB 400 (from $13.8 to $55.21) in November.
• The firm also adjusted its attendance award scheme from RMB 1,500 for 13 accumulated working days to RMB 5,000 for 25 accumulated working days.

Nov. 3 – Zhengzhou government forms unit to help Foxconn workers

• The Zhengzhou municipal government held a press conference on Nov. 3, saying they had formed a unit to enter the affected Foxconn facility to assist with Covid prevention work.
• A senior official from the local government stated at the conference that Foxconn was still operating normally.

Nov. 6 – Apple warns of iPhone production decline 

• Apple released a statement on Nov. 6, warning that its iPhone 14 Pro and Pro Max would see a production drop due to the Covid restrictions in Zhengzhou.
• The statement noted that the facility was “currently operating at significantly reduced capacity.” 
• Apple projected ongoing strong demand for the two Pro models, which led the company to warn that there would be longer delivery times for consumers.

Nov. 7 – Foxconn hires hourly paid workers

• In an attempt to revive production, Foxconn started to hire hourly paid workers on Nov. 7, with an hourly salary of RMB 30.
• The firm also encouraged former employees to come back with an extra subsidy of RMB 500.
• A source from Foxconn told Caixin that the Zhengzhou outbreak is expected to be controlled after this week, and Foxconn is preparing to return to full production later this month.

Chinese telecom giant Huawei introduced the Pocket S, a budget flip-style foldable phone, on Wednesday in China. The phone has a lower price range compared to other foldable phones, priced between RMB 5,988 and RMB 7,488 ($819 to $1,025).

Why it matters: Huawei has so far dominated the foldable phone market in China. The new Pocket S further lowers the entry price for a foldable phone, making it a strong rival to the Samsung Z Flip series.

• Huawei is also looking to appeal to a broader audience with the product, and some phone cases have been specifically designed to attract female users, whose tight-fit attire may not have enough pocket space to hold a traditional smartphone.
• Liu added that the formerly-released Huawei Pocket P50 is the model with the best sales of 510,000 units in the first three quarters in China. The release of Pocket S further lower the entrance of foldable phones, and he expected a larger market share from flip-style foldable phones.

Details: The Huawei Pocket S is a cheaper version of the Pocket P50, sharing a similar core experience but compromising on key specs like the processor and cameras. 

• The phone is equipped with a 6.9-inch OLED display, and its body is sized 87.3 x 75.5 x 15.2 mm when folded (half of a usual smartphone) and 170 x 75.5 x 7.2 mm when unfolded. The main display is of a 21:9 ratio, with a 120 Hz refresh rate.
• It also has a mini display on the cover next to the cameras to display essential information, which is 1.04 inches. Its resolution is 340 x 340 pixels with a 328 PPI.
• Huawei adopted a new hinge design for the phone, which is firmer and more durable, claiming a folding count of over 400,000.
• It has a 4,000-mAh battery and supports 40 W fast charging. Huawei claims that the phone can be charged to 52% in 20 minutes.
• Unlike the Pocket P50, the model has a dual-camera design and comes with a new RYYB (Red, Yellow, Yellow, Blue) sensor, like the Mate 50 series. With the new sensor, the camera can take in 40% more light, according to Huawei.
• The processor is a major compromise as the Pocket S is equipped with a Qualcomm 778G 4G mid-end chipset. Huawei applied a new cooling tech made of flexible graphene material to get more performance out of the processor.
• The Pocket S comes with a fingerprint sensor on the power button for biometric authentication. 
• The phone is available in four colors and three storage volume options: 128 GB, 256 GB, and 512 GB. All versions have 8 GB RAM. The former two storage options will be available from Nov. 10, and the 512 GB version will launch in December. 

Context: Foldable phone shipments in China saw a sharp yearly increase of 246% in the third quarter of 2022 to 1 million units. Huawei is the top foldable phone vendor in China, and shipped 44.9% (in Chinese) of the units in the country in the third quarter of 2022, according to IDC.

• For the first half of this year, Huawei accounted for 16% of the foldable phone market globally. Samsung led the global market with a 62% share, according to Counterpoint Research.
• Compared to those with larger displays, flip-style foldable phones have a smaller volume and weight and it targets users who prefer smaller phones or want an affordable foldable phone, Louis Liu, an analyst from CINNO Research told TechNode.

HHOGene, a new consumer electronics brand founded by the former CEO of Alibaba’s DingTalk Chen Hang, launched its first product GPods, an earbud that can beam lights, and have raised more than $120,000 on an Indiegogo campaign earlier this year. 

The GPods come with innovative light effects that are customizable, a unique selling point. It also has a comfortable wearing experience and decent sound quality in its price range. With a flashy light feature, the product targets fashion followers and music lovers that prefer something different. 

HHOGene GPods will be first available from Nov. 1 in the US, priced at $169. The brand offers four extra earbud casings to allow users to customize its light textures.

Shiny look with customizable light effects

The body design of the earbuds looks plain, but when you turn it on, its eye-catching light effects set it apart from other true wireless stereos (TWS).

The whole outer side of the “handle” parts of both earbuds can glow. The casing on the lights is well-processed to create a foggy effect, making the light look soft and elegant. HHOGene also offers detachable casings to help users switch from different textures. 

The light effects are customizable via a paired app, which has a neat and user-friendly UI and offers a variety of color pattern presets to choose from. Users can also generate customized patterns from photos. There’s even an option to make the earbuds glow with a color that matches one’s clothes.

The earbuds can also glow in sync with the rhythm of the song being played over them, with four modes for users to choose from – Ripple, Pulse, Bright, and Breath.

One can adjust brightness. However, the maximum brightness is still not enough, meaning the effect can be lost in bright daylight.

In-ear experience

HHOGene has done a good job in comfort. It’s less noticeable in the ears, thanks to its lightweight design (5.7 g per earbud) and comfortable tips. It remained a comfortable and snug fit after hours of wearing. However, the actual experience could naturally vary due to people’s different ear shapes.

The earbuds also offer controls on the handles. One can set different functions, such as skipping songs, pausing play, and answering phone calls, for gestures including single, double, or triple taps, and long presses for each side separately.

Clear sound with unique tone

GPods surprised us with its sound quality. The buds offers a clear and balanced tone and do a good job of capturing the details of music: high frequency is bright; the bass is solid and strong but not overwhelming. It don’t offer an intense, sometimes tiring listening experience as some of the other mainstream options in the market.

A special point lies in its presentation of the human voice, which feels especially close to our ears.

For the hardware specs, HHOGene GPods adopt a processor named BES2500 from Chinese firm Bestechnic, which is also used in Oppo and Huawei’s TWS products. They feature a mainstream Bluetooth 5.2 version, with AAC and SBC supports.

The potential of the earbuds’ sound quality is limited by its audio codec. It’s particularly telling when connecting to an Android device, as most of them have aptX codec, delivering higher-quality sound than the AAC codec, which GPods use. iPhone users don’t have such concerns as the devices only support AAC. 

Noise cancellation and other specs 

HHOGene Pods support active noise cancellation (ANC) and have a transparent mode like rival TWS in a similar price range. However, the feature is lackluster. 

One can tell the difference when turning the ANC feature on, but it’s far from satisfying. Another drawback is the background noise. One can hear weak white noise, like current pulses, when listening at certain low volumes. For people who prioritize ANC features in earbuds, there are better options in the market. 

Given the issues with this feature, it might be a better idea to simply turn it off and save an extra hour of battery life. The buds offer up to five hours with one charge, and 20 hours with the case.

Users can see the battery percentage of both earbuds and the charging case from their app. The app has also been optimized for Apple devices so that you can view the earbuds’ battery status on iOS’s widgets.

The earbuds have a relatively larger charging case in terms of body size. With the largest side facing up, the HHOGene Pods case is almost twice the size of that the Apple Airpods Pro in thickness. For people who are used to putting charging cases in their pockets, this may feel chunky. 

In summary, the HHOGene Pods is an impressive design. There are numerous TWS products that have hit the market in recent years but we rarely see something that introduces new designs while also offering a reasonable price and good sound quality.

Here are our main takeaways:

Pros

• Innovative light effects
• Comfortable in-ear experience
• Competitive price
• Long battery life 

Cons

• Oversized charging case
• Less-satisfying active noise cancellation
• No support for better audio codecs such as aptX or aptX HD

Correction: An earlier version of this article mistakenly said the brightness of the earbuds is unadjustable.

Singles Day, China’s biggest year-end shopping event, kicked off its pre-sale period across platforms on Monday. Sales data from e-commerce giant JD, a platform known for consumer electronic offerings, showed sizable growth in consumer electronic sales.

Why it matters: Although JD’s sales data showed growth, the data still suggests some cause for cautious optimism as the platform only revealed the percentage change in sales – not the exact number of units sold. This year’s Singles Day comes amid a backdrop of a global slowdown in consumer electronics due to weak demand, especially for smartphones and PCs. Brands are hoping that the mega e-commerce event can offset some of the losses in recent months. 

Details: Within the first second of Monday’s shopping event, smartphone sales from Apple, Xiaomi, Honor, and iQOO hit RMB 100 million ($13.76 million) cumulatively on JD, according to data from the platform. Oppo, Vivo, Samsung, OnePlus, Motorola, and Meizu saw 100% growth in sales in the first ten minutes compared with the same period last year. Foldable phones also had a 400% yearly growth in sales within the first ten minutes of the promotion. High-end gaming laptops equipped with a display with over 2k resolution and ultra-light laptops saw smaller 70% yearly growth in sales within the first ten minutes.

• These figures include both pre-booked purchases and real-time ones. 
• Meanwhile, sales of XR glasses were up eight times over the same period last year. 
• Nvidia’s newly released RTX 40 series graphics cards made by original equipment manufacturers (OEMs) sold out in the first three seconds on JD. The cards are built with new Ada Lovelace Architecture, which Nvidia says is two times better than the last generation on a range of critical specs.
• Other devices like compact printers and portable power generators also witnessed significant growth, rising 165% and 2,000% year-on-year, respectively.
• Home appliances from all brands achieved RMB 1 billion in sales within the first ten minutes of the sales event, a 40% year-on-year growth on JD. Midea, Haier, TCL, LittleSwan, Gree, Hisense, Rongsheng, and Sony all saw a 50% yearly growth in sales.

Context: Major e-commerce giants Alibaba and JD have started their yearly Singles Day shopping event with a major promotion of RMB 50 discounts for every RMB 300 spent.

• For last year’s Singles Day, JD and Alibaba’s Tmall accounted for 92.15% of the total GMV generated, according to BBC, quoting the e-commerce data platform Dianshubao.
• Last year, on the first day of Singles Day pre-sales, the high-end smartphone sales of Xiaomi, iQOO, Oppo, Honor, Huawei, and Vivo were four times those made during the same period in 2020, according to a report by Huaan Securities.

Chip manufacturer TSMC sees a declining utilization in 6nm and 7nm processes as people buy fewer smartphones and PCs amid a global economic slowdown. It expects to cut utilization of certain chips in the next three quarters.

Why it matters: The market downturn will not see a recovery in the next six to nine months due to the “gloomy economic outlook,” according to market analysis firm Canalys. Chip contractors like TSMC, which had a high capacity utilization rate, now face vacancies in certain tech nodes.

• Such issues could worsen the situation for TSMC, which is already facing the loss of orders from mainland China due to the latest US chip export controls. For example, Biren’s BR100 GPU has adopted TSMC’s 7nm process, but the chipmaker has put its work with the firm on hold due to the ban.
• In more positive news, the development could help to relieve chip shortages in other fields such as gaming consoles. Steam Deck, Xbox Series X, and Playstation 5 all use AMD customized processors built with TSMC’s 7nm tech.

Details: TSMC released its financial results for the third quarter of this year on Oct. 13 and gave conservative guidance of 0.4% quarterly revenue growth for the next quarter. The company also said its 6nm and 7nm production could remain affected until next year.

• C. C. Wei, TSMC’s CEO of the firm, stated that the firm’s 7nm production capacity utilization was affected as a result of the weak demands of personal computers and smartphones and semiconductor inventory adjustments, which will be relieved in the second half of 2023.
• 6nm and 7nm nodes comprised 26% of TSMC’s revenues in the third quarter of 2022, according to a report from Counterpoint. Smartphones and high-performance computing (HPC) devices, like CPU and GPU for PCs and servers, made up 32% and 38% of TSMC’s total wafer shipment volume in 2022, respectively.
• The report also pointed out that “the global foundry industry’s utilization rate has reached its peak level in mid-2022 [and] the downtick will bring down business in all aspects in the next few quarters before any signs of improvement emerge in inventory levels across the semiconductor supply chain.” 
• TSMC’s utilization rate of 6nm and 7nm could drop to 80% to 90% in the next three quarters, and it would be unlikely to recover until clients such as Intel deliver more orders.
• Counterpoint’s report does however agree with TSMC that there could be “positive drivers” via new products such as Wi-Fi, radio-frequency (RF), and solid-state drive controller chips migrating onto 6nm or 7nm when the inventory cycle ends in 2023.

Context: TSMC is a top chipmaker worldwide, dominating 56% of the market by revenue in the second quarter of this year, according to Counterpoint. The chipmaker generated a revenue of $20.23 billion for the third quarter this year, a yearly growth rate of 35.9%.

• 7nm and 6nm are important tech nodes, contributing 17% of the global chip foundry revenues in the second quarter of 2022.

Chinese phone maker Oppo released its new generation of smartwatches, the Watch 3 series, in August with a price tag of RMB 1,599 – RMB 2,099 ($228 – $300). The company first entered the watch market in 2020 and updated it annually.  

The latest series has a new look and offer more premium features such as long battery life, and always-on feature supported by LTPO OLED display. 

The version we tested, the Watch 3 Pro, is currently only available in mainland China and Oppo has yet to reveal any plans regarding overseas markets, but there is an expectation that it will eventually be sold internationally. 

A refreshed design

The first thing that impressed us about Oppo’s new Watch 3 Pro is the massive 48.5 mm curved display. It offers more space to display content than most of its Android rivals. Apple’s newly released Apple Watch Ultra comes with a 49 mm display but is more than doubled the price of Oppo’s offering.

The larger display enables the watch to showcase more information and users can track more metrics at the same time. An innovative change is the watch’s curved display, which fits better with one’s wrist and offers a clearer view when checking the watch from different angles. 

Another good touch of the watch is the mechanical rotating crown on the side. It offers another tangible way to interact with the watch, considering slides on the touch screen may sometimes block the display of other content. The crown also stimulates realistic mechanical vibration feedback when spinning.

Improvable on-wrist experience

The watch’s large size leads to a heavier weight of 37.5 g (without bands), – a thing to adjust for those who are used to a more lightweight watch. 

The black model we reviewed came with a classic-looking black rubber strap. The band is fastened through steps rather than being completely adjustable, which leaves it open to the possibility of being either too loose or too tight if your wrist doesn’t match up with the fixed steps. 

The rubber material is waterproof (potentially making it a good companion for swimmers) and is also easy to clean. But for all-day use, we would recommend getting a nylon or Milanese strap, which fits more wrist sizes and has better breathability. If you want a more stylish look, the silver version with a leather strap could also be a better choice.

Solid core experience

The system interface has a decent design, with good readability and accessibility. The font size and weight are well chosen, while essential information is marked with vivid colors. The transitional animation is quick and clean. 

With a swipe of the home screen, the watch can access all essential secondary interfaces, like essential health metrics, widgets, quick setting toggles, and notifications, similar to a phone’s swipe-up feature.

The watch we reviewed was installed with ColorOS, and given its marketing to the Chinese market, it did not support Google Play or any other WearOS features. It provided over 80 apps through the built-in app store, covering the most common Chinese apps such as WeChat and Alipay. This means that if you enable the e-SIM feature, you can leave your phone at home and have access to the most essential software.

And just like other smartwatches, you can receive notifications and calls, monitor sleep stages, and conduct a quick electrocardiogram (ECG) test. However, the ECG app, for now, says “coming soon.”

A good workout companion 

When doing intense workouts, the weight of the watch and its slightly rigid watch band take some getting used to. 

Despite that, the Watch 3 Pro has the potential to be a great exercise companion tool. Oppo sets four goals for users to hit, displaying these as four loops: steps, calories, workout, and activity. We found it a little harder to achieve the default goals, but one can adjust them to meet your needs.

The device can auto-detect six kinds of workout, including running, walking, cycling, swimming, elliptical machine work, and rowing machine activity. We tested walking and cycling and it had no problem detecting the former, but somehow missed the latter so we had to manually record the workout from the health app instead.

When it comes to manually recording, the watch offers dozens of types of workouts to choose from, with some featuring detailed subcategories. Dance, for example, has ten different styles, including waltz, street, and jazz. While this enables fitness enthusiasts to track their niche interests, it can feel daunting to new dancers. It also lacks a more general choice to record less common or freestyle workouts.

The recorded workout generally offers information about GPS mapping, duration, burnt calories, heart rate, etc. It even highlights different heart rate zones, helping users understand how close to their maximum heart rate a certain activity is getting them; for example, zone one is “warmup” and zone two is “fat burn.” 

Long battery life

The Oppo Watch 3 Pro’s battery life is impressive. Qualcomm’s new Snapdragon W5+ Gen 1 processor provides higher performance and halves the amount of power consumption compared with the last generation. It has a large 550 mAh battery, even bigger than Apple Watch Ultra’s battery volume, according to iFixit.

We turned almost all features on, including the always-on-display, all-day heart rate and blood oxygen monitoring, and workout auto-detect, to drain its power as soon as possible. We also paired it with a phone that was installed with dozens of news and social media apps, sending a plethora of notifications to ensure that the watch display has a longer illuminated period. Despite all this, the watch managed to last three days without charging. For regular usage, the battery should last a few more days.

With its charging stand, the watch can be fully charged in around an hour. 

What surprised us is that Oppo adopted a universal design for its charging stand: you can plug in any USB Type-C cable and supported charger to power it. Helping travelers to carry one less cable. 

Another neat feature is that the stand uses magnets to connect with the watch, charging through contactors. Compared with wireless charging, it can reduce overheating issues, but the contact points could also age from oxidation and corrosion.

Conclusion

The Oppo Watch 3 Pro has a classic design, a large display, long battery life, and a solid core experience. There is room for improvement, such as a more comfortable strap and weight reduction, but overall it is a reasonably priced high-end Android smartwatch. 

The upcoming overseas version should come with the full suite of Google offerings. We would recommend this watch to Android users with a larger wrist size, especially those who own an Oppo phone and can therefore unlock features across devices. For Apple users, it can still provide core smartwatch features and comes with a cheaper price tag than an Apple Watch. 

Here is our summary:

Pros:

• Long three-day battery life with all features on
• Large display
• Classic design
• Solid core experience and health monitoring
• Separate charging stand
• A competitive price tag

Cons:

• Less comfortable on the wrist with the default rubber band
• Auto workout detection and data monitoring are less reliable on occasion

Chinese phone vendor Vivo launched its second generation foldable phone, the X Fold+, in China at a release event on Monday night, with a price tag of RMB 9,999 – RMB 10,999 ($1,396 – $1,536).

Why it matters: Vivo’s new foldable phone uses a new high-end processor the Snapdragon 8+ Gen 1, following its rivals like Motorola, Xiaomi, Samsung, and Huawei. The phone maker’s market campaign focused on attracting consumers who prefer a stronger camera system and dual-fingerprint recognition (on both internal and external displays).

• China’s high-end phone market saw an increase in sales in the second quarter of this year, despite the overall decline in smartphone sales, with Android phones taking a bigger market share, according to reports from Counterpoint Research and IDC. Foldable phones, considering their expensive price tags and market targeting, could have more opportunities than before.

Details: The Vivo X Fold+, compared to its predecessor, has similar specs in terms of body size, case design, weight, display, and cameras. But the new generation is equipped with a new processor, better charging speed, and an improved battery.

• The phone adopts an inner folding design. A highlight of the phone is that it supports similar experiences to Samsung’s Infinity Flex, in that it is foldable in a variety of angles.
• With 311g, the phone weighs heavier than rival’s offerings. The Xiaomi Mix Fold 2 and Huawei Mate Xs 2 weigh 262 g and 255 g, respectively.
• The new model also upgraded its charging offering. With a 4,730 mAh battery and supporting 80 W charging speed, it charges 30% faster than the previous model.
• Vivo X Fold+ offers a qual-camera system supported by optical firm Zeiss, with frames ranging from ultra-wide to telephoto. The two primary cameras offer 50 million and 48 million pixels in resolution.
• The phone comes with an 8.03-inch inner and a 6.53-inch external display. Both support a 120 Hz refresh rate. The inner LTPO (a technology that supports adaptive refresh rate to save battery) display features a 2,160 x 1,916 resolution and 4:3.55 aspect ratio, with a pixel density of almost 360 pixels per inch (PPI). The outer display has 2,520 x 1,080 in resolution with a 21:9 ratio.
• The phone will be available on Sept. 29 in three colorways. Vivo offers two memory combos including 12 GB RAM plus 256 GB storage and 12 GB RAM plus 512 GB storage.

Context: Vivo has so far focused on selling foldable phones in China, it has yet to launch any foldable phones overseas, nor has it revealed any plans to do so.

• In the Chinese foldable phone market, Vivo ranked third (after Huawei and Samsung), taking 10% of the market share in the second quarter of 2022 by sales, according to CINNO Research.

TikTok owner ByteDance bolstered its lineup of VR headsets on Thursday by unveiling the new Pico 4 and 4 Pro as strong alternatives to the Meta Oculus, with prices starting from 429 euros ($421.79).

Why it matters: The Chinese tech giant is clearly eyeing the VR market, and this is its first VR product since acquiring the Beijing-based firm Pico last year for RMB 9 billion ($1.27 billion).

• ByteDance first announced the series overseas rather than in China, a break from most Chinese consumer electronics vendors and a clue to its prioritizing of global markets.

Details: The Pico 4 will be available in Japan, South Korea, and 13 European countries, including the UK, France, Germany, and Spain, shipping from October 18. And it will come to China, Singapore, and Malaysia later this year. A US release has not been announced.

• The Pico 4 has a similar standalone design to its predecessor, with the same 7nm Qualcomm Snapdragon XR2 processor supporting connectivity with Windows devices. The new generation does have larger 8 GB RAM and larger 4,320 x 2,160 resolution.
• The firm says the new products have adopted the popular pancake optical module, which has less weight and a smaller size than traditional Fresnel lenses. It offers a 105-degree perspective with 20.6 pixels per degree (PPD) and a 90 Hz refresh rate. 
• The Pico 4 can last three hours with a 5,300 mAh battery, according to the headset’s official spec pages. The battery is located in the strip that goes on the back of your head to aid balance.
• The headset uses inside-out tracking tech that enables the user to be located without external beacons or equipment. It comes with four cameras to support a full-color passthrough feature that creates mixed reality, something its rival Meta is still working on.
• The Pico 4 also comes with two motion controllers, which support vibration feedback.
• At the release event, Pico announced content partnerships with Ubisoft, Les Mills International, and Discovery for gaming, fitness courses, and video streaming, respectively. Popular dancing game Just Dance will arrive on Pico as an exclusive and there are also plans for a dedicated social platform, Project Pico World, which will be available sometime in 2023.
• The major difference between the standard version and the Pro version (which is coming soon) is that the Pro has three infrared cameras for eye and face tracking, and features accurate measurement and stepless automatic adjustment of the pupil distance and IPD to ensure image quality, reducing discomfort.

Context: Founded in March 2015, Pico is a major VR hardware and services vendor. In addition to its products for the consumer market, it also provides services for enterprise clients in the fields of education and healthcare.

• Pico took 11% of the global XR market by shipments in the second quarter of this year, ranking third overall. Its major rival Meta dominated with a 66% market share during the same period, according to Counterpoint, a Hong Kong-based research firm.

Major Chinese phone vendor Vivo launched its new V25 Pro overseas last month, targeting mid-end markets. Launched in 2015 with the V1, the V series is a product line exclusive to overseas regions. The V25 series is priced from $310 to $550 and sell in more than 20 markets across Southeast Asia, South Asia, Latin America, the Middle East, and others. 

The new phone has powerful cameras and a unique light-changing design on the body case. Its core performance specs are also enough for daily use. Yet there are notable shortcomings with its system user interface design and gaming performance. It’s a phone for people who prioritize good camera functions, but may not be ideal for an avid gamer on the same budget, which Xiaomi’s Redmi and Realme might have more competitive offers. 

Customizable, color-changing design

The V25 Pro’s back case has a shiny effect courtesy of its processed glass material. It reflects light in a “bling-bling” way. According to Vivo, the phone adopts a color-changing technique that alters its color after exposure to sunlight or ultraviolet (UV) rays for ten minutes. The function offers users a way to customize the back case by blocking the light with stickers. The parts exposed to light will present a deeper blue, while the rest remains in the original light blue like a watermark. The eye-catching effect is temporary and disappears within minutes depending on the lighting conditions. Vivo also didn’t provide stickers or other tools to help with such customization. 

The phone’s camera area in the back is well-designed, with lenses less prominent than rivals. Also, the phone adopts the popular dual-curved design, which gives it a great visual impact and makes for a good holding experience.

Realistic imagery

The Vivo V25 Pro’s cameras are among its most impressive features. The phone is equipped with triple back cameras: a 64 million pixel ultra-sensing camera, an 8 million pixel super wide-angle camera, and a 2 million pixel macro camera. The ultra-wide and macro cameras have much lower resolutions than the main one.

The cameras can capture realistic tones and deliver a natural look without being too plain.

It doesn’t over-process pictures, like up saturation and contrast levels for a more vivid and digitally sharpened look. The phone’s algorithm shows a preference for restricting highlights to keep more detail, offering a well-balanced tone. This could be a differentiator for users wanting a more realistic rendering.

The cameras also perform well in low light, capturing pictures fast and preserving details, thanks to its algorithms and optical image stabilization tech. The phone also comes with rich features for vlogging, such as dual view and fast autofocus.

Underwhelming UI

The phone comes with Funtouch 12, an Android-based system. But Vivo’s customization of this UI has a dated feel and is a bit disappointing. 

Most phone brands design their own home widgets like clocks, weather, and calendar. The system’s icon designs lack contrast in color and pattern, making it hard to distinguish their functions, while the names lack shadows and darkening effects to stand out from the wallpaper sometimes.

Vivo’s theme store can upgrade the looks but will cost money.

Ample for everyday apps

Built with a mid-end processor, MediaTech Dimensity 1300, and 12 GB RAM (plus eight RAM more offered by software), the phone can handle most daily tasks with ease.

We attempt to open as many apps as possible from the Google Play store and find the phone can handle over 20 frequently used apps running in the background and can resume any of them in an instant. Due to its high-speed UFS 3.1 storage chip, the phone is also fast when opening new apps.

The phone can handle playing casual game titles that demand less performance, with no overheating or frame-dropping issues. But with a 6nm mid-end processor, don’t expect the phone to handle heavy work for extended periods. 

When we played the demanding open-world game Genshin Impact with the highest setting, the CPU temperature reading from popular benchmark app Antutu shot up from 40 degrees Celsius to almost 80 degrees Celsius. The frame stability was fine, but the display emitted a lot of heat, which makes it uncomfortable to hold while playing.

Battery and charging performance is enough for daily use, too. The Vivo V25 Pro has a 4830 mAh battery with 66 W maximum charging wattage. We tested it with 20% battery life remaining, and within the first 10 minutes, it had charged to 47%. The phone took another 35 minutes to be fully charged, not as fast but still at an acceptable speed.

The battery can last reasonably long if you don’t push it too much. In the Genshin Impact testing, 50% of the battery life was gone in just two hours of gameplay. But left alone, with no heavy apps running, and the phone’s battery could last for more than two days. 

Conclusion

The Vivo V25 Pro is a good budget choice as a primary phone for daily use. It has a large battery to support all-day use, considerable RAM for heavy multitasking, and good cameras that deliver realistic shots. And yes, it has a unique back case that can change color for a short period. 

But it struggles to handle high-performance game titles, and some may find the system UI uninspiring. For people looking for higher performance within the same budget, the phone faces some serious competitors. 

Here’s our main takeaways on the phone:

Pros

• Unique, customizable back case design
• Good cameras that deliver realistic pictures 
• Large memory with extra volume powered by software
• All-day use battery life

Cons

• Dated system UI 
• Slower charging speed than some rivals
• Overtly overheat when playing performance-demanding titles

READ MORE: Honor 70 review: a mid-end phone with style

Chinese telecom giant Huawei introduced its new high-end Mate 50 phone series at a Tuesday product release event. The series features camera and glass upgrades and supports satellite texting.

Why it matters: Huawei’s new lineup offers several surprising features, with a notable breakthrough in cameras and satellite communication.

• Satellite features could be a new selling point for smartphones. Other firms are considering bringing satellite video calls to phones, including SpaceX, T-Mobile, and Chinese auto giant Geely. 

Details: Huawei’s new Mate 50 lineup is priced from RMB 3,999 to RMB 12,999 ($573.53 to $1,864.3), covering a wide market range. The Mate 50 standard, Pro, and the luxury RS model (with a Porsche-inspired design) are built with the newest high-end processor, Qualcomm Snapdragon 8+ Gen 1 4G. The lowest-priced Mate 50E model comes with a mid-end processor, Qualcomm Snapdragon 778G 4G. The standard, Pro, and E models have 8 GB RAM, while the RS model has 12 GB RAM. 

• All models in the Mate 50 series allow users to send texts over satellite, a feature powered by the Chinese satellite navigation system BeiDou. However, the option is only available in mainland China and does not support receiving texts.
• Devices are equipped with a 50 million pixels main camera with adjustable mechanical aperture, offering ten levels from F1.4 to F4. Additionally, thanks to the large aperture and new RYYB sensor (Red, Yellow, Yellow, Blue), the camera can take in 24% more light, according to Huawei. Sony and Samsung previously released phones with adjustable mechanical apertures, but both had a shorter range.
• Huawei also introduced new Kunlun Glass for the display, which offers 10 times more drop resistance than ordinary glass. In addition, the firm allows over ten older phone models to upgrade to the new glass, with prices starting at RMB 589.
• Chinese display makers BOE and Visionox supplied the Mate 50 series. A significant difference between models is evident in their display design. Standard and E models have a punch-hole display, while Pro and RS models have a wide-notch design for facial recognition sensors. 
• The E model does not support wireless charging, but all other models support 50 W wireless charging with the same 66 W charging speed.
• Mate 50, Pro, and RS will be available on September 21, and the Mate 50E will be available in October.

Context: Huawei is the fourth largest mobile vendor after Xiaomi, accounting for 6.03% of the global smartphone market as of August 2022, according to StatCounter, an analysis website started in 1999.

• Although Huawei’s market share has declined in recent years due to US sanctions, the company still accounted for 25% of all the owned and actively used smartphones in China in June 2022, according to QuestMobile, a Beijing-based data provider. However, when it comes to the number of newly activated devices, Huawei sits in fifth place with 7.75 million units in China during the first six months of this year, only half the number of Xiaomi phones activated in the same period.

Chinese phone maker Honor released the Honor 70 for the overseas market on Saturday at Internationale Funkausstellung Berlin (IFA) 2022, an industry exhibition in Germany. The model was first launched in China earlier this year and was the best seller in mid-priced phones during the 618 shopping holiday, according to Honor.

Honor 70 is a primary product line with a mid-range price tag and specs, compared to its high-end Magic series and lower-priced X series. 

For the review, TechNode is testing the Honor 70 Crystal Silver with 8 GB RAM and a Qualcomm Snapdragon 778G Plus processor. 

The phone is targeted at users who have a tight budget but a preference for stylish design. It offers solid performance in terms of core specs and surprised us a little in some aspects. 

Design that shines

The phone adopts dual-curved edges on the display with a frame in the middle, which makes it feel frameless.

The crystal silver colorway we have has a crystal-like back case. The base color is mixed with sparkly “stardust” with a gradient from the top to the bottom. Using a faceted design usually seen in diamonds and other jewelry, the case reflects surrounding light while still giving a comfortable holding experience.

In keeping with the sleek design, the back cameras are contained within two circles: one with two cameras and the other with one camera and a flash. The black surface of the two circles also contrasts pleasingly with the silvery back of the phone.

Modern user interface with smooth experience

We are pleasantly surprised by the phone’s stylish user interface. The wallpaper corresponds with the phone’s body color, the icons are well-designed, and the widgets (clock, calendar, weather, and search bar) are composed in a comfortable and appealing way.

The interface uses vivid but not overtly bright color while incorporating smooth and natural motion and transition animations. In some cases, such as shutting down background apps, the animations are even a little playful, like giving out a flipping motion. The phone’s high refresh rate of 120 HZ display works well with the system animation, leveling up the user experience compared to previous models.

Mid-end specs that exceed expectations

From the look of the spec, Honor 70’s 8 GB RAM and a mid-end processor, the Qualcomm Snapdragon 778G Plus, the phone may not seem built to handle heavy work such as playing games that consume a lot of memories and put pressure on processors. But after trying it with a few different types of games, the phone responds relatively well.

We started by trying out casual games like Subway Surfers, an endless runner game. The phone runs quite well without dropping any frames and we barely feel any heat from the device. 

We then push it further by running the demanding roleplaying game Genshin Impact. When it runs this title, the system kills almost all other background apps, with its 8 RAM creating a bottleneck. And with the highest graphic preset of 60 fps option on, it runs smoothly most of the time, but it does drop frames when loading complex scenes or if you move your character quickly around the game. 

Meanwhile, playing Genshin Impact on the phone sees the CPU temperature rise from 30 to 47 degrees Celsius, according to a reading from Antutu, a popular Chinese phone benchmark app.

That temperature may seem acceptable, but we felt it was a bit too hot to hold when playing games in summer. For such memory-consuming game titles that may push the processor to its limits, you could consider lowering the graphic settings for a better experience.

The phone can handle ambitious tasks, but our advice is to not push it too hard. As for everyday apps, the specs are more than enough. The phone’s 8 GB RAM (plus 2 GB extra offered by an effective feature allowing storage to be added to RAM) can run more than 10 lightweight apps in the background at the same time. 

Cameras with rich features

The Honor 70 has a triple back camera module and single front camera, with rich and playful features for vlogging and shooting. Two of the back cameras support 50 million-plus pixel resolution.

We took it out for some shots and the camera did a good job, capturing some nice colors and proper exposure even in complex scenes with large shadows. 

Lowlight scenarios are challenging for phone cameras due to the tiny size of the sensor which directly determines the image quality. We test the Honor 70 in a darkened art gallery and the phone does quite well, capturing detailed images, with a good balance of highlights and shadows; the white balance is accurate most of the time. The camera also has a night mode and a Macro feature. 

Its Aperture Mode, which can create partially-blurred bokeh images, works well. Shots with this mode may not look as flawless as true optical bokeh driven by a larger sensor and aperture, but this mode nevertheless exceeds our expectations of what a phone camera can do.

A highlight feature is Multi-Videos, which offers a great filming experience for vloggers and e-commerce livestreamers when looking to demonstrate an item or experience. It allows you to use both the front and back cameras at the same time and display the image in a split screen. It can quickly catch and focus on the main subject with options to adjust the zoom and beautify the image.

Display and charging

The Honor 70 adopts a 6.67-inch punch-hold OLED display, with 2400 x 1080 resolution. The display works nicely when we test it with HDR video samples. This mode shows off the benefits of the phone’s OLED display which offers great contrast and definite black without lighting up the pixels.

The device tends to display colors in a cooler tone if you compare its display with that of other phones or juxtapose it with a white wall. You may get used to it after a long time using it, but it could make you feel slightly uncomfortable if you use multiple devices at the same time.

The model we tried had a 4,800 mAh battery, supporting 66 W charging with the charger that comes with the device. The battery life won’t be a concern if you don’t overburden it. The 66 W charging speed is another compromise, as many other similarly priced phones in China now offer 150 W or even 200 W high-speed charging speed.

However, for the average user, the 66 W charging speed should be plenty: it can still fully charge this phone up from 20% in less than 40 minutes. 

Conclusion 

The Honor 70 is a stylish choice for vloggers and fashionistas on a tight budget. Its core specs can support everyday apps quite well and even deliver in some demanding scenarios.

However, it does have certain compromises as a mid-end model, in particular with regards to its display, charging speed, and cameras.

Even so, we are still impressed by its rich camera features and elegant design, including both the body and the user interface. In short, here are our major takeaways:

Pros

• Eye-catching design with good holding experience
• Featured camera system for vloggers and livestreamers
• Well-designed and friendly user interface

Cons

• Relatively lower charging wattage
• Compromised display
• Lack of dual speakers
• Only one memory option available overseas

Major Chinese phone vendor Oppo released ColorOS 13 in China, an operating system for phones made by Oppo and its sister brands OnePlus and Realme, at the 2022 Oppo Developer Conference (ODC) on Tuesday, following the announcement of the overseas version on August 18.

ColorOS 13 is based on Android 13, an open-source project led by Google. It inherits the original Android security pitches and bottom optimization but also introduces special features and localization through partnering with local firms. One particularly notable feature – Pantanal – allows for better collaboration between devices by offering a closer connection and reallocating resources.

Here are the key updates worth checking out.

Newly designed UI

A major update – with version numbers increasing in integers comparable to iOS 15 to 16 – generally means a fresh look in the new system’s user interface (UI). In the past year, Apple and Google haven’t introduced any major UI redesigns for Android 13 and iOS 16, so Oppo’s visual update makes it stand out among its rivals.

ColorOS 13 introduces a new UI design style called “Aquamorphic Design.” The update is inspired by the concept of water, aiming to create “a fluid, vibrant, and inclusive UI” from animation to component design. The colors and patterns are also based on the changing light between sunrise and sunset by the sea.

The new system has a card-style composition for increased accessibility, which looks cleaner and more friendly to use. Also contributing to the fresh feel, Oppo has launched a new font with a wider face that is easier to read. The new OS also introduces adaptive layouts optimized for devices in different size and statuses such as foldable phones and tablets.

New tech to optimize system fluency

Android’s background app running strategies left it a historical issue of how to allocate resources, including CPU time and RAM. Oppo is trying to further optimize system fluency by scheduling computing and RAM resources, prioritizing important tasks, and limiting greedy apps from running in the background via its algorithms to achieve a better balance between performance and power consumption.

It does this through its “Dynamic Computing Engine,” a system-level piece of technology formed from four computing engines that can increase battery life by 4.7% and performance by 10%, according to Oppo’s announcements at the event. The OS also aims to maintain more apps running in the background so that users can switch between them without a reboot or long wait.

Better connection among devices

As part of the new ColorOS, Oppo also revealed Pantanal, a cross-platform system which explores how to break the boundary between devices for better collaboration. The system can keep users in the loop of schedules on other devices via information from multiple devices such as enhanced Google Glance and Siri Advice. For example, it can remind users of a booked flight or the status of a coming taxi on multiple devices. Oppo has partnered with notable Chinese firms such as Li Auto, Tencent, Alipay, and Xiaohongshu for easier cross-device collaboration with Pantanal.

What really distinguishes Pantanal, however, is that the platform can not only handle data and information, but can also allocate computation and algorithm resources from multiple devices, including vehicles, phones, and tablets, to handle tasks like video creation.

It also extends connectivity to vehicles, offering more immersive in-car experiences such as using multiple car cameras to start video phone calls or running phone apps through the central vehicle console. Oppo has announced a partnership with Chinese automaker SAIC Motor as part of its moves into vehicle connectivity.

Privacy and other notable features

For privacy and safety, ColorOS 13 comes with a feature that can erase sensitive information on a screenshot from chat apps like ‎WhatsApp and Messenger. It also has a function to prevent unsafe apps from running, like Google Play Protection, using algorithms assisted by real humans.

ColorOS also includes an animation emoji feature called Omoji, similar to Apple’s Memoji, with a style that echoes the new UI. Users can create their own avatars, which can then be used to present or livestream in certain apps.

The update also features a new Meeting Assistant function for online meetings. The assistant can prioritize wireless data packages to provide a more stable connection, and enables users to capture text from the screen to make notes. It can also convert forms from the screen to common files like Excel sheets or PPT slides.

ColorOS 13 is now accessible via a beta program and will officially roll out to over 40 models this year, including OnePlus phones in China.

The new OS is one of the major phone operating systems in China, competing with Xiaomi’s MiUI and Huawei’s Harmony OS. The system sees major updates every year that typically follow Google’s original Android version for its Pixel phones. According to Oppo, the system has reached 500 million monthly active users globally.

Xiaomi launched the 12S Pro in China in early July. The phone is the mid-range offering in Xiaomi’s new 12S lineup (including the 12S, 12S Pro, and 12S Ultra), which updates annually and targets a broad range of mid-end to high-end users. The series is also the first Xiaomi phones to use Leica lenses. TechNode got a hold of the 12S Pro and spent a week using and testing it. Below are our thoughts on the phone. 

The phone can be a solid choice as a primary daily device. The Leica-branded cameras can lure photography lovers, and the 12S Pro’s specs offer a quality entertainment experience. We would also recommend it to avid gamers and video watchers.

Pleasant holding experience

Xiaomi 12S Pro has curved edges from the back case to the front display, with a metal frame in the middle. The model has a higher width-to-height ratio, narrow enough to hold with one hand. The curved edges help reduce discomfort.

The back case is made of delicately frosted glasses, which, in combination with the white color, will be free from fingerprints. 

Gaming and video experience

The phone runs on Qualcomm’s latest flagship processor, Snapdragon 8 Gen 1+, and its power excels. 

We played Genshin Impact, a detailed sandbox mobile game known for demanding high device specs, and it ran quite smoothly on the device under the highest graphic preset. After almost two hours of gameplay, it rarely dropped frames, and the phone temperature remained relatively consistent, with the back case feeling a little heated. Antutu, a popular Chinese benchmark app, reads around 36 degrees Celsius of CPU without workload and up to 50 degrees Celsius after two hours of Genshin Impact gameplay. The metal frame lets out more heat than the back case. We would describe it as “warm” rather than “burning.” 

The phone has a 6.73-inch punch-hole display with 3200 x 1440 pixels. It also comes with a high 120 Hz refresh rate. A highlight we enjoy is the phone’s 20:9 display ratio. The phone offers a better experience for watching videos, considering most popular films display at around a 21:9 ratio.

The display can also achieve a 1,500-nit peak and a 1,000-nit general maximum brightness. A benefit lies in the outdoors experience with this phone, especially in bright, sunny environments. We tested it in such bright lighting conditions, and it offers decent display quality – the color looks normal, and the phone didn’t overheat when operating with the display set to maximum brightness.

The phone can also handle 4K HDR videos quite well in high-contrast scenes, showing details in both shadows and highlights. The dual speaker with Dolby Atom enhances the entertainment experience even further.

Built-in Leica profiles for the camera

A key highlight of the phone is its Leica lens and software. The phone comes with various Leica color profiles. In Photo mode, there are two default options: Leica Authentic and Leica Vibrant. Both modes offer a sharp, vivid look. The colors are punchy yet not too overwhelming, keeping much of the detail in the dark and highlighted areas.

There are two additional monochromatic Leica profiles listed in the filters tab. The high contrast one – Leica HC – provides the distinctive black and white look that Leica is known for. If you are a fan of black and white photography and perhaps a fan of Japanese street photographer Daido Moriyama’s work, this would be a fun filter to explore. 

When it comes to the portrait mode on the rear camera, however, Xiaomi 12S Pro’s algorithm-driven bokeh falls short. It couldn’t always recognize the edge of many subjects, including human hair and other complex scenes. Therefore, we recommend shooting at a lower aperture to improve this issue.

The phone has three rear cameras, offering a range from teleport to ultrawide with five times optical and 20 times digital zoom capacity. We shot in different zoom ranges from a single perspective to demo how it works.

We use the main rear camera to do a standard test of its optical performance in a 16:9 frame to put some extra pressure on the lenses. A notable takeaway is the slight chromatic aberration that appears in high contrast areas. But overall, the image is quite sharp from the center to the corners. 

The front camera takes good quality shots most of the time and comes with a built-in beautification feature to offer choices, making you look better in pictures. However, the phone’s algorithm tends to overexpose when using the front camera, losing details in the highlights. After upgrading the system, the issue improved a little so it could be more of a preset preference issue rather than a bug. 

Long battery life, ultra-fast charging, and multi-tasking 

The phone is equipped with a 4600 mAh large battery, with 120 W speed charge support. Battery life is not a concern for daily use, and we were surprised by the efficiency of the fast charging feature. 

Furthermore, the phone’s battery holds up in demanding situations. For example, after two and a half hours of demanding gaming in the highest image quality, with 75% display brightness and Wi-Fi on, the battery went down 34%. Streaming a movie for two and a half hours using the same settings consumed 25% battery life.

Under these conditions,  the phone should theoretically give you over seven hours of demanding gameplay and 10 hours of streaming video playback.

When it comes to charging, the 12S Pro took only 4 minutes to charge from 20% to 40%. From 20% to full, it only took 23 minutes using the 120 W charger that comes in the box, if you close all apps. The phone lets out surprisingly little heat during the charging process, which is impressive because such a high wattage charging speed will generally lead to overheating. 

The phone’s large 12 GB RAM is a plus to the processor. We opened 20 apps, including news apps, social apps, and Chrome, and all work seamlessly in the background.

The phone system will automatically kill some inactive apps to save battery when you open power-intensive apps or games or lock the phone. But you can easily resume any previously opened app without much delay, thanks to its powerful processing and high-speed storage chips.  

Conclusion 

As a premium Android phone, Xiaomi 12S Pro has a low-key design and feels good in the hands. The performance, battery life, and charging capacity are more than enough for daily usage. You can play popular game titles like Diablo Immortal and Genshin Impact in the best image quality without experiencing frame drops. The new Leica camera system also performs well most of the time. 

It should be a phone that fits the bill for most Android users for daily use. Below, TechNode summarized the main advantages and drawbacks of the Xiaomi 12S Pro. 

Pros 

• Curved body design, feels good in the hand
• Brillant performance when gaming. Impressive heat control
• Large battery and 120 W fast charging
• Vivid photos with Lecia profiles
• A relatively competitive price

Cons

• Algorithm-driven bokeh does not always work as expected
• Charging when playing games can cause overheating issues
• Less promising image quality when shooting with the telephoto lens

Regional authorities in China’s central province of Sichuan said they will cut power supply to industrial factories for six days as the region suffers from heatwaves unseen in 60 years. The province saw a 25% surge in power consumption this year. 

Why it matters: More than a dozen notable electronics and semiconductor manufacturing firms, including BOE, Foxconn, CATL, and Texas Instruments, have factories in Sichuan. The power cut will directly impact their production, affecting downstream firms like Apple, Tesla, and Nio.

Details: The power cut will go into effect from Monday to Saturday, with all factories in the 19 cities of Sichuan province asked to suspend production, including those listed on the so-called “protected whitelist.” But the level of impact seems to vary between companies.

• Major Chinese display maker BOE confirmed that their factories based in Chengdu and Mianyang would “reduce their power usage to a minimum level” during the period, according to an announcement from the firm yesterday.
• Foxconn also shut down its factories in Sichuan temporarily. Ming-Chi Kuo, an analyst at TF International Securities, said the cut would “affect iPad assembly plants in Chengdu.” He added that “impacts should be limited if the power outage can end on August 20” and that flexible production scheduling would help to lower the effects.
• However, some semiconductor firms, including Chengdu Silan Semiconductor Manufacturing, Chengdu CORPRO Technology, and Square Route’s Chengdu sub-firm, told 21st Century Business Herald they are less affected by the policy.
• CATL, a major Chinese battery maker, also paused production in its Sichuan-based factory yesterday, sources familiar with the matter told Jiemian.

Context: Sichuan is a top area for producing electronics in China’s midwestern region. It brought in RMB 1.5 trillion ($215.6 billion) in revenue in 2021, according to 21st Century Business Herald.

• There are currently 717 registered firms in Sichuan focusing on hardware and smart devices, according to Qichacha.

Chinese smartphone maker Xiaomi revealed a new foldable smartphone, the Xiaomi Mix Fold 2, at a product launch event on Thursday, boasting a folded thickness that is close to that of a regular phone, thanks to its new screen and hinge design.

Why it matters: The Mix Fold 2 is also intended as a challenge to foldable phone giant Samsung, which launched its new Galaxy Z Fold 4 this week. Xiaomi’s model is cheaper, has a larger battery and screen, and a much faster charging speed.

Details: With a price range of RMB 8,999 to RMB11,699 ($1,336 to $1,736), the phone adopts an inner folding design with a 6.56-inch outer display and an 8.02-inch inner screen. Both displays support 120 Hz refresh rate, 1,000 nits maximal brightness, and Dolby Vision. 

• The phone uses Samsung for its inner display, offering a resolution of 2160×1914 pixels and POL-LESS technology, which Xiaomi claims gives the phone’s inner display 33% more light transmittance and 25% less battery consumption.
• The phone is equipped with a self-developed micro waterdrop hinge, which allows for a smaller bending radius and thinner screen modules, enabling a lighter and thinner hinge design.
• The Mix Fold 2 is 5.4 mm when unfolded and 11.2 mm when folded and weighs 262 grams.
• The device also features Leica-branded cameras, a partnership that was first introduced in Xiaomi’s recent 12S series. It has a 50-megapixel main camera, a 13-megapixel ultra-wide angle camera, and an 8-megapixel telephoto camera with two times optical zoom.
• In the core performance specs, the phone is built with Qualcomm’s new high-end 4nm processor Snapdragon 8+ Gen 1 and UFS 3.1 high-speed storage chips with a large vapor chamber panel for cooling. 
• The foldable phone comes with a 4,500 mAh battery with a 67 W charging speed. For comparison, the Samsung Galaxy Z Fold 4 only has a 4,400 mAh battery with a 25 W charging speed.

Context: Xiaomi introduced its Mix Fold 1 in early 2021, with the model becoming the seventh highest-selling foldable phone in the world in 2021, just behind Huawei’s Mate X2, according to a report from Omdia.

• Samsung dominates the international foldable phone market, with a 88% share in 2021, according to Omdia’s report. But in China, Huawei accounted for 53.7% of all foldable phone sales in the second quarter of 2022, shipping 351,000 units, while Xiaomi took 4.6% of the market during the same period, according to CINNO Research. 

Oppo-owned phone brand OnePlus introduced OnePlus Ace Pro on Tuesday, the latest device in its gaming lineup. The new phone is a local Chinese version of the OnePlus 10T announced on August 3 for sale in overseas markets.

Why it matters: Chinese smartphone makers are introducing high-performance phones at lower prices. The cheapest phone with Qualcomm’s newest high-end chip was the Realme GT2 Master Explorer Edition, released in July, and the OnePlus now provides a much larger RAM with the same starting price of RMB 3,499 ($520).

• Ace Pro partnered with Unity, a popular gaming engine, to optimize gaming performance.

Details: Built with Qualcomm Snapdragon 8+ Gen 1 and unique cooling tech, the core performance can be promising for gamers, but the model also compromised other specs such as the display. Li Jie, president of OnePlus in China, said at the release event that the firm expects sales of its new Ace series to reach millions of units in China. For comparison, the brand’s number series sold 2.4 million units in China, 36Kr reported on Wednesday (in Chinese). 

• The phone has a 6.7-inch AMOLED display with 1080p resolution and a 120 Hz refresh rate, but it does not fully support the battery-saving adaptive refresh rate technology that rivals in this price range have.
• For the cooling system, Ace Pro introduces a large vapor chamber panel and special cooling materials like graphite and diamond thermal gel.
• The phone has also been verified by Tencent for exclusive use in its League of Legends: Wild Rift and PUBG Mobile events. Previously, OnePlus has partnered with Tencent for the premiere launch of League of Legends on mobile with a 120 Hz refresh rate. 
• However, optimizations for special titles and devices require a lot of work. OnePlus found a way to do this work at the gaming engine and hardware level. 
• To optimize the phone’s performance for demanding gaming titles, OnePlus used technology from Unity, which powers 76% of mobile game titles. Through Unity’s Adaptive Performance interface, the phone can run faster when the game needs more computing resources by reducing frame drops in certain game scenarios. 
• The battery and charging specs are typical for mid-end to high-end phones, and is built with a 4800mAh battery, supporting 150W speed charge tech.
• The Ace Pro with 12 GB RAM and 256 GB storage sells for RMB 3,499. The 16 GB RAM models are available with 256 GB or 512 GB of storage and are priced at RMB 3,799 and RMB 4,299, respectively. 
• For fandom, OnePlus also worked with miHoYo to bring a Genshin Impact limited model to market in October.

Context: The Ace series was a product line of Oppo. OnePlus took over this year and has since launched three models targeting gamers.

• Oppo first introduced the Reno Ace in 2019 and made Ace an independent product line in 2020 with the Ace 2. The two were notable for their charging speed, one of the fastest among rivals.

Chinese telecom giant Huawei introduced the latest version of its HarmonyOS, a system for various smart devices, on Wednesday. The new HarmonyOS 3 system supports 12 different device types as the firm ambitiously looks to build its own closed-off ecosystem like Apple’s.

Why it matters: HarmonyOS, a Huawei-developed system originating from open-source projects, has amassed 300 million users since its launch in 2019. The third generation comes with more powerful features that connect different devices with one system while adding new local services such as a ride-hailing app.

Details: A key highlight of Huawei’s new operating system is a significant update of its cross-device integration feature called “Super Terminal.” HarmonyOS 3 is already open for public testing and will see a full rollout in September.

• First introduced in 2021, the Super Terminal feature is an integrated connection feature similar to a combination of Apple’s AirPlay, AirDrop, and HandsOff. It can connect a range of devices that run on HarmonyOS.
• Whereas HarmonyOS 2.0’s Super Terminal could only connect phones, tablets, PCs, audio devices, watches, and monitors, the new version supports 12 types of devices, with new additions including electric vehicles, smart glasses, printers, TVs, and E-ink readers.
• The feature allows connected devices can share information and send files to each other. For example, users can work on tablets and connect monitors and earbuds for a PC-like experience with a “pull,” a gesture to trigger a new connection with other devices. For drivers, the new HarmonyOS 3 adds support to connect phones and consoles in vehicles and the ability to use phone apps in cars.
• Huawei has also updated its transmission technology, reducing the latency to 1 millisecond between devices and claiming 20% better performance in highly interferential scenarios. The new update also claims to be 50% faster when establishing a new connection.
• The new Harmony operating system also incorporates more control of connected devices playing music or videos. For example, users can remotely control the playback and volume of TVs and stereos and can also share music with extra pairs of earbuds.

Context: In April, Huawei changed the name of its Consumer Business unit to Terminal Business, aiming to expand its focus from customer-facing business to enterprise and government businesses. The new HarmonyOS, along with new devices built with it, is part of this push to better serve customers with a variety of Huawei devices.

• Huawei’s consumer business saw a notable fall of 49.6% year-on-year to RMB 243.4 billion ($36 billion) in 2021, accounting for 38.2% of its total revenues. However, its enterprise business increased by 2.1% to RMB 102.4 billion, according to its financial report.

Major Chinese electronics manufacturer Anker introduced a new series of gallium nitride (GaN) chargers called GaNPrime at a release event on Tuesday. The new lineup offers fast-charging tech with higher charging wattage (up to 150 watts) and greater energy efficiency.

Why it matters: As a pioneer in charging tech, Anker managed to pack more power in smaller and lighter chargers. Its new 737 model, for example, supports 120W charging wattage, but the size is equal to most 60W chargers offered by Anker’s competitors. 

• Following Apple’s lead, almost all phone vendors stopped providing chargers in 2021, which makes it a good time for Anker to introduce its new lineup of products.
• Chargers that can cater to multiple devices started to trend last year. Anker’s new series can be a cheaper alternative to the expensive chargers offered by phone makers.

Details: The new GaNPrime series includes six products for the overseas market, with charging wattage ranging from 65W to 150W and multiple ports for multi-device charging. 

• There are three traditional chargers, two AC power products, and a power bank, which offers charging plugs on a portable battery.
• A key highlight of the lineup is Anker’s new charging tech PowerIQ 4.0. The new feature can allocate variable charging wattage to multiple devices in real-time based on power needs, reducing charging time by up to one hour.
• Apple has already released a similar product, the 35W dual Type-C charger, but it costs more and comes with a lower maximum charging wattage, relatively speaking. In addition, other rival products must pause charging when reallocating power.
• Anker partnered with Infineon, a major semiconductor manufacturer, to bring new tech to its devices. While traditional designs require two GaN components, the new products require only one, slimming down profiles of Anker’s new chargers. 
• To solve the issue of overheating, Anker introduced new heat control tech, which detects charger temperature and adjusts power output accordingly. The detection frequency is 76% greater than the previous generation of products, with a single charger making 3 million detections in a day.
• For the mainland Chinese market, Anker released two additional products supporting the latest USB protocol  PD 3.1, powered by a control chip developed by Anker (a pioneer of this standard), offering up to 140W charging speed in a single port.
• With a price range from $59.99 to $109.99, four of the chargers are now available overseas, and the other two — the 150W Charger and 733 Power Bank — aim to ship in the third quarter of this year. Both are available for pre-order on the official Anker website and Amazon.

Context: Founded in 2011, Anker is a major Chinese electronics company best known for its charging products. As a pioneer in the GaN charger field, Anker became the top brand in this market with the most sales worldwide in 2021, according to a survey from Frost & Sullivan, which was cited by the company at the release event.

On Wednesday, the Indian government accused Chinese smartphone maker Oppo of evading 43.9 billion rupees ($550 million) in import taxes.

Why it matters: The incident is the latest development in the Indian government’s investigations into Chinese tech firms with operations in the country, including Xiaomi and Vivo, which all faced tax scrutiny from the local authority earlier this year.   

• This is another setback to Oppo’s international business, as the firm is also caught up in multiple lawsuits with Nokia for 4G and 5G patents and facing a sales ban in Germany.

Details: India’s anti-smuggling agency, the Directorate of Revenue Intelligence (DRI), has launched an investigation, searching and questioning members of Oppo’s local offices, according to a press release from the Indian Finance Ministry on Wednesday.

• The investigation found evidence suggesting “wilful mis-declaration” in certain items imported by Oppo India for use in mobile phone manufacturing.
• The press release also said that Oppo didn’t include patent licensing fees totaling 14.1 billion rupees that were paid to overseas companies when calculating the value of goods imported, a violation of the country’s Customs Act and Customs Valuation Rules.
• The country’s Finance Ministry issued a notice to Oppo, informing the company that it must pay customs duty amounting to 43.9 billion rupees.
• An Oppo India spokesperson told TechCrunch that the company has a “different view on the changes mentioned in the SCN (show cause notice).” Oppo is reviewing the notice and will reply to present the firm’s side, according to the spokesperson. 
• Senior officials at Oppo India have already issued statements acknowledging errors and have voluntarily paid 4.5 billion rupees “as partial differential customs duty,” according to a report by Bloomberg.
• Oppo did not respond to TechNode’s inquiry for comment.

Context: In late May, India started probing the local units of two notable Chinese phone makers, ZTE and Vivo, for alleged financial improprieties, according to Bloomberg.

• India also demanded Xiaomi, another Chinese phone vendor that dominates the Indian smartphone market, pay about $88 million in import taxes in January.
• Chinese smartphone makers lead India’s market. Four out of five smartphone brands that ship most units in the country are Chinese brands: Xiaomi, Oppo’s sub-brand Realme, Vivo, and Oppo. The four brands took 63% of the Indian smartphone market in the first quarter of 2022, according to Counterpoint Research.

Oppo sister brand Realme launched a new high-spec phone, the Realme GT2 Master Explorer Edition, on Tuesday, at a relatively low price. 

Why it matters: Oppo’s Realme is known for making phones with high spec combinations at a low price, similar to Xiaomi’s sub-brand, Redmi. The GT2 features Qualcomm’s latest processor and new RAM technology.  

• Gaming features in this phone are also competitive among its rivals at the same price range, making it a good choice for gamers on tight budgets.

Details: Realme GT2 Master Explorer Edition is now the cheapest phone fitted with Qualcomm’s new processor, the Snapdragon 8+ Gen 1, a chip that higher-end Android phones tend to use. The phone sells 12.5% cheaper than three other phones that have used the chip, based on a calculation from TechNode.

• The phone has a 6.7-inch punch-hole display with a 120 Hz refresh rate, supporting on-screen fingerprint recognition. The display, however, has a lower definition than its rivals’ high-end models, a compromise made for cost control.
• One of the phone’s standout features is its adoption of the new LPDDR5X RAM with lower battery consumption, which helps reduce power consumption by 20% more than the previous generation of Realme phones, according to Realme’s Weibo post.
• In gaming features, Realme has adopted imaging chips from US-based firm Pixelworks, which generate extra frames for a smoother performance. This tech also helps offload GPU workload to reduce overall power consumption, which prevents overheating and helps to extend gameplay time on mobile devices.
• The phone also comes with a simulated arm trigger feature with pressure sensors for gameplay which, according to Realme, makes it the first company to use this function worldwide.
• The phone has three back cameras and 100W charge for a 5,000 mAh battery.
• Available in three colors, the phone will be available on July 19, pricing from RMB 3,499 ($520) for 8 GB RAM and 128 GB storage to RMB 3,999 ($595) for 12 GB RAM and 256 GB storage.

Context: Top Chinese phone brands Xiaomi, Oppo, and Vivo, have all established sub-brands like Redmi and Realme, and iQOO to better serve targeted groups that are more price sensitive. 

• These subbrands allowed the main brands to raise prices. For example, the price of Xiaomi phones has grown by around 30% since 2018.
• In the first quarter, Oppo took 22% of the market shares in China’s budget smartphones priced between RMB 3,000 to RMB 3,999 and 27% in phones priced between RMB 1,000 to RMB 2,999, ranking the third according to CINNO Research, a Chinese hardware insight firm.

Nubia, a brand owned by Chinese telecom firm ZTE, upgraded its gaming phone series with the new Red Magic 7S and 7S Pro on Monday. The new models introduce one of the fastest gaming frame rates and a virtual host for streaming as the brand looks to establish itself as a high-end gaming phone maker. 

Why it matters: In an effort to differentiate itself from other gaming phone makers, the new Red Magic models come with special tech to increase gaming frames per second to offer a smoother experience.

• Such a feature is a notable attraction for gamers as similar tech has been widely adopted on gaming computers.
• The phone also comes with a built-in virtual host for mobile gaming streamers, catering to the growing mobile game streaming market.

Details: The Red Magic 7S series’ gaming features are powered by Qualcomm’s latest high-end processor, the Snapdragon 8+ Gen 1, and Nubia worked with a partner to develop the Red Core 1 chip for additional display features. The standard version has up to 16GB RAM and 512 GB storage, while the Pro has options for 18 GB RAM and 1 TB storage.

• Red Magic 7S and 7S Pro both feature 6.8-inch AMOLED displays with 387 pixels per inch (PPI) density, helping to deliver detailed imagery. But the standard version has a better display in terms of refresh rate and maximum brightness, which could be an important selling point for players not willing to spend extra for a Pro. 
• The Red Magic 7S’s display has a refresh rate of 165 Hz and features 700 nits maximum brightness, while the Pro version only has a 120 Hz refresh rate and 600 nits maximum brightness.
• The new 7S series phones are both built with Red Core 1 processors which are developed by Nubia and a Shanghai-based chip design firm Shanghai Awinic Technology.
• The chip was first introduced into the 7 series in February, enabling gaming features such as vibration feedback, customizable touch control, and the ability for lights on the device to sparkle in sync with songs. The 7S Pro has a larger 5000mAh battery with 135W speed charging support, while the standard comes with a 4500mAh one, supporting 120W speed charging.
• The Red Magic 7S comes in two designs while the 7S Pro has four, including a Transformer’s Bumblebee limited edition. Pricing for the new phones ranges from RMB 3,999 ($594) to RMB 7,499 ($1,113) depending on storage and RAM choices.

Context: Nubia introduced the gaming phone series Red Magic in 2018, six years after the brand was first established.

• Red Magic and gaming giant Tencent reached strategic partnerships (in Chinese) to ensure optimized gameplay on the former’s phones in 2021.
• At the release event on Monday, Nubia also revealed that the Red Magic series is currently the top-selling high-end gaming phone (priced over RMB 4,000) in the world, accounting for 51% of the overall market in the first quarter of this year. Asus’s ROG and the Xiaomi and Tencent-backed Black Shark took 36% and 12% of the market, respectively.

Imagine a future scenario where patients don’t have to travel long distances or spend too much time talking to their doctors face-to-face, and where doctors can easily access their patients’ daily health data remotely, allowing patients, doctors, health plans and managers to remain seamlessly connected. 

Now, consumer electronics makers and scientists are seeing new possibilities for utilizing these tools — smartphones, apps, smartwatches — to help people live healthier lives though digital health treatment and detect problems early on. 

The growing trend of consumer digital health devices has contributed to the ongoing expansion of the digital health industry. The global digital health market recorded $145.57 billion in 2021, growing at a 16.9% compound annual growth rate from 2022 to 2028, according to US market research firm Vantage Market Research. 

The booming industry empowered more consumers to use health tools to monitor their own health. The health devices go beyond just tracking one’s walking steps, monitoring heart rates and calorie burns during a workout, or counting one’s sleeping hours. The tools can bring in a lot more in the future, potentially helping more people access quality healthcare and prevent costly surgeries and treatment by diagnosing cardiovascular diseases, cancer, or other diseases early on. “Digital health is a cultural transformation that creates a new status quo, where the relationship between a doctor and a patient becomes an equal-level partnership,” said Dr. Bertalan Mesko, Director of The Medical Futurist Institute during an interview.

Dr. Timothy Weadon, Director of Hardware Engineering for Health from OPPO explained such trends to TechNode, saying, “One key aspect of change over the next five years will be bringing in clinically validated metrics and bridging the gap between some of the consumer device industry and some of the real medical industry.”

Weadon also believes that in the future, the telemedicine industry can be well promoted by consumer device companies with its high connectivity between the health data and digital health devices, and those devices will come in all forms, not just wearables. “I think that we’re going to start seeing more contactless care where you can have various monitors that follow your health metrics and quantify with you while having minimal interaction,” he added. 

New startups to revolutionize digital health 

From May to August, OPPO Research Institute Innovation Accelerator calls for innovative proposals from around the world, running regional demo events in Israel and India to find the most promising health companies to work with. In its innovative program, OPPO has selected ten startup teams for the regional roadshow in Tel Aviv, Israel. The candidates’ research areas also reflect the trend of digital health. OPPO saw two companies bringing innovative ideas to personal healthcare through smart wearable devices and the ability to integrate data analytics: Facense and Docdok Health.

Launched in 2015, Facense is an Israeli company that develops smart glasses with head-mounted sensors for continuous signal measurement to monitor metrics like head movement, steps, skin temperature, and blood pressure for applications in diverse health and wellness. For instance, according to the firm’s roadshow slide, its smart glasses can detect potential Covid symptoms based on those sensors.

Docdok Health is a company that provides CE-certified software as a medical device app that delivers data-driven personalized healthcare. The firm has a three-step concept: connecting healthcare providers with their patients as a basis for personalized healthcare, compiling meaningful patient data and running smart analytics to grasp patients’ full picture, and applying the gained insights to improve patient outcomes.

Among the winning teams at the Israel roadshow, OPPO saw a more practical-focused firm, Social Mind, which provides AI and evidence-based interventions for parents with autistic children, transforming autism care with high quality and wide-reaching.

“Digital Health is new and emerging. It needs community effort and engagement with other startups as well as health institutions.” In addition to innovative ideas, Weadon said he’s also looking for teams that bring creative ideas with a passion. “I think a good team is not only a team that works hard or has a good direction, but they need to have passion and motivation. I think it’s really important that people work with passion to develop the next thing.”

Preventive healthcare, find problems early on

OPPO is a strong advocate for proactive and preventive healthcare. It launched OPPO Research Institute Innovation Accelerator in May and has included digital health as one of the topics of the project, and the other is accessible technology, aiming to push the digitalization in health care, making health care services more personalized.

The company plans to achieve its preventive health goals by applying holistic design concepts to its digital health devices. “As an engineer, I think about things as a system,” said Weadon, “the point of the design is to have an impact to really enable and empower our users to have a better life and also to be able to go and enjoy the activities that they have and help them with those devices.”

When it comes to smartwatches, OPPO believes it’s about having real, accurate, clinically meaningful information and creating a full loop experience for users, so they can take that information and make decisions that lead to healthier lifestyles. And the firm builds its devices works in an invisible and nonintrusive way, hoping the users would set their devices and forget them.

Chinese telecom giant Huawei is entering the ride-sharing market with the launch of a standalone car-hailing app “Petal Chuxing.” The company looks for ways to expand its car-related business and diversify revenue sources as sales of its smartphones slow.

Why it matters: Huawei’s foray into ride-hailing is a natural extension of the company’s ambition to become a key player in the automotive space as the autonomous ride-hailing service has the potential to make up a significant percentage of new car sales in the long run.

Details: Huawei launched a ride-sharing app called “Petal Chuxing,” based on its navigation app “Petal Maps,” which allows users to request rides from multiple ride-hailing providers, state media publication National Business Daily reported on Friday.

• Users can now access two domestic ride-hailing companies — Shenzhou Zhuanche, a Chinese car rental firm Car Inc subsidiary, and state-backed Shouqi. Huawei is testing the service in Beijing, Shenzhen, and the eastern city of Nanjing, the report said.
• At a press conference last week, Huawei’s head of consumer business Richard Yu said that the company has made Petal Maps more competitive than similar offerings by seamlessly linking users’ Huawei handsets to the HarmonyOS-powered vehicles.
• A Huawei spokesperson declined to comment further when contacted by TechNode, saying the company will share more information once it is available.

Context: Huawei first launched its proprietary mapping service for overseas users in October 2020, a year after US sanctions barred the company from including Google software and services on its devices. The service now has 28 million users from over 160 countries.

• The company also obtained a permit to draw up high-definition maps in its home country in mid-2019, a stepping stone to developing its self-driving car technology.
• Chinese tech companies Alibaba and Meituan also operate ride-sharing aggregation platforms, while automakers such as Geely, FAW, and Dongfeng, have built their own ride-hailing apps to take on long-time market leader Didi Chuxing.

READ MORE: Huawei begins selling EVs in stores, may offset sinking phone sales: CEO

Taiwan-based personal computer vendor Asus has teamed up with Tencent to release two new gaming phones aimed at professional mobile gamers. The phones, which go by the name ROG 6 and ROG 6 Pro, were announced on Tuesday, with price ranging from RMB 3,999 to RMB 7,999 ($597 to $1194).

Why it matters: Asus has used its brand, ROG (Republic of Gamers), to build a suite of professional gaming devices, such as laptops, phones, and desktops. The latest phone from Asus, the ROG 6, is backed by Tencent and offers deals for the gaming giant’s titles.

Details: Designed specifically for gaming, the ROG 6 and ROG 6 Pro models have been built with oversized specs, including a maximum of 18GB RAM. The two models have also been built with special designs and features that optimize them for gameplay.

• The ROG 6 and the Pro both use Qualcomm’s latest high-end Snapdragon processor, which runs 15.8% faster than the previous generation of the chip series.
• The phone also features an upgraded cooling system for continuous peak performance. The phone also uses 3300mg of boron nitride between the radio frequency board and the motherboard, a material that can cool the whole device more efficiently.
• Different from the common design of most android phones, which generally feature the main processor at the top of the phone, ROG builds its processors in the middle of the phone, an area where players do not typically hold the phone while gaming. This design ensures better cooling and further limits avoid any overheating scenarios.
• Another notable feature is that ROG 6 and ROG 6 Pro have built-in triggers, similar to those used on a console controller, and updated X-axis rectangular linear vibration motors for feedback, which offers immersive gameplay.
• The battery and charging system on these new phones also optimized the design for gamers. Both models use a 6000 mAh battery, which can be charged via two USB Type-C ports that are built in the middle on both sides of the phones, making it more convenient to play while charging. 
• The phone’s body is designed with a cyberpunk aesthetic, in white and black-themed colors. ROG also launched an extra cooling accessory and a full-size controller for phones with similar designs.
• The two models will be available to buy on July 12.

Context: Launched in 2006, Asus’ ROG focuses on various gaming hardware, from laptops to separate components like motherboards. The brand has become established in communities of spec geeks (people who prioritize high-level performance and metrics in devices) and gamers on its quality and iconic illumination effects.

• During JD’s recent shopping holiday, Asus topped the motherboard sales chart according to Chinese media outlet ZOL.

Aito, a Chinese electric vehicle brand backed by Huawei, received more than 10,000 pre-orders for the M7 in just two hours, after it was unveiled on Monday. The new model is the brand’s second production vehicle featuring Huawei’s HarmonyOS operating system for cars.  

Why it matters: While reservations do not always translate into actual sales, the M7 has captured people’s attention, signaling that Huawei is turning into a serious rival to existing carmakers since entering the burgeoning EV space about one year ago.

• Experts believe that the new car will become a direct competitor to Li One, a popular large plug-in hybrid vehicle launched by Chinese EV maker Li Auto that has similar configurations and a similar price point. Aito has the potential to achieve a sales volume of up to 100,000 units for this year, state media outlet Shanghai Securities News reported Monday, citing analysts from China Securities.

Details: More than 10,000 people pre-ordered the Aito M7 sports utility vehicle in the first two hours after the car brand began accepting RMB 1,000 ($149) deposits on Monday afternoon, a company spokesman told TechNode on Tuesday.

• With a four-cylinder, 1.5-liter engine developed by Huawei and a 40.6 kWh battery pack supplied by CATL, the M7 will be able to go as far as 1,220 km (758 miles) on a full tank and 100% battery charge. It consumes 6.85 liters of fuel per 100 km, well below the 7.8 liters of Li Auto’s L9 SUV and the 10.8 liters of the BMW X7.
• The car uses Huawei’s HarmonyOS operating system, enabling drivers to access “all the mobile services“ from Huawei’s app store, Richard Yu, chief executive of Huawei’s consumer business group said during a press conference.
• The six-seater luxury SUV will have a starting price of RMB 319,800 ($47,737) and will be delivered to customers in August. More than 600 Huawei stores around China will provide test drives starting July 23, and that number will be increased to over 1,000 stores by year-end, according to Yu.

Context: Huawei and its manufacturing partner Sokon have seen a steady increase in sales of the M5, their first vehicle under the Aito brand, shipping 7,021 crossovers in June, a 40% increase from a month earlier.

• According to the latest figures, Aito has reached total delivery of 18,317 units in just four months since delivery began in March. Prior to this, the two companies had experienced an initial setback, delivering only around 8,000 Seres-branded electric crossovers in 2021 after unveiling in April, last year.
• Huawei’s core business growth is still under pressure from US sanctions with revenue dropping by 14% year-on-year to RMB 131 billion in the first three months of 2022, CNBC reported. The smartphone maker has also partnered with state-owned automakers like BAIC and Changan to make EVs.
• Domestic EV makers Nio and Li Auto released their new crossovers, the ES7 and the L9, last month, respectively, and scheduled delivery to begin in August. Another rival Xpeng Motors is set to launch its second SUV model G9 in the same month and will begin delivery in September, with pricing expected to start at more than RMB 300,000.

On Monday, Xiaomi introduced a new series of high-end smartphones, 12S, using Sony imaging sensors and Leica lenses. The premium 12S series models are priced from RMB 3,999 to RMB 6,999 ($598 to $1046).

Why it matters: With the new series, Xiaomi has hoped to compete with rivals by offering high-end smartphones at a competitive price. The firm has focused the series on quality lenses and imaging capabilities. 

• Xiaomi’s new series is the first to use Qualcomm’s latest processor, making them potentially the fastest among all Android phones. 

Details: The three models – the Xiaomi 12S, 12S Pro, and 12S Ultra – share the same processor, coming with slight differences in other specs like charging speed, cameras, display specs, and cooling system. The three models will be available on Wednesday exclusively in China, coming in two colors for Ultra and four for the other two models, according to Android Authority.

• The phone uses Qualcomm’s latest processor Snapdragon 8+ Gen 1. Xiaomi 12S Pro’s theoretical performance exceeds all existing Android phones, scoring 1.1 million points on Antutu, a benchmarking app.
• The camera is an upgrade from the Xiaomi 12 series. Featuring Leica lenses, the series are the first Xiaomi phones after Xiaomi announced a long-term strategic cooperation with Leica in May. 
• The 12S series features Leica’s lens and imaging profiles, while the Ultra version comes with special camera lens materials, such as new materials and aspherical lenses, to achieve better imaging quality. The Xiaomi 12S Ultra has three cameras from 13mm to 120mm. 
• The Ultra model also adopts a relatively largest 1-inch CMOS imaging sensor – the Sony IMX989 – behind the main camera. Such a large sensor helps deliver better imaging performance, especially in low light. Other brands like Sony and Sharp attempted to adopt a large imaging sensor on smartphones, but the two brands have relatively small smartphone shipments. 
• The 12S series’ screen specs follow industry standards and have fewer highlights. The Xiaomi 12S Pro and Ultra feature a 6.73-inch LTPO display with a curved edge design, supporting adaptive refresh rate and 2k resolution. The display can also present content with up to 1,500 nit peak brightness and native 10-bit color depth, providing a rich color range and smooth transition, which the brand says guarantees an HDR entertainment experience.
• For battery and charging, the Xiaomi 12S Ultra will be the first model equipped with the new Xiaomi Surge G1 battery management chipset. It has a large 4860 mAh battery, but its charging speed is 44% slower than the Xiaomi 12S Pro’s 100 W fast charging.
• The three models all support 50 W wireless charging and 10 W reverse charging. 

Context: Chinese phone makers have often relied on partnerships with notable camera or lens makers to broaden their appeal. Huawei previously partnered with Leica for imaging systems in smartphones. 

• Vivo has partnered with Zeiss, another notable German optical giant, to design camera systems since 2020.
• Meanwhile, OnePlus teamed up with Hasselblad on phone camera optimization in March 2021. 
• In February, Oppo also announced to work with Hasselblad.

Qualcomm and MediaTek plan to cut another 30% in 5G chip orders in the second half of 2022 due to a decline in orders from Chinese phone makers, according to Ming-Chi Kuo, an analyst at TF International Securities and a frequent Apple supply chain news commentator, wrote in a May 22 report.

Why it matters: Weak demand in the Chinese smartphone market has resulted in domestic phone makers cutting orders, causing a ripple effect in the industry. Additionally, android phones are using processors one or two generations behind Apple, making them face a long uphill battle in China.

Details: Qualcomm and MediaTek, two of the world’s largest system-on-a-chip (SoC) makers, have reportedly been forced to cut orders after Chinese phone brands had to cut smartphone orders as a result of Covid-19 lockdowns across China and weak demand for smartphones.

• Kuo surveyed major Chinese Android phone brands, including Xiaomi, Oppo, Vivo, Transsion, and Honor, finding that they had cut another 100 million orders since his last survey on March 31. 
• Kuo’s survey also showed that Taiwan-based MediaTek has cut orders for the fourth quarter of this year by 30%-35%, with those mainly focused on mid-to-low-end chips. Additionally, Qualcomm cut orders of its high-end Snapdragon 8 series by about 10%-15% for the second half of 2022.
• Kuo explained that the performance of 5G chips can be seen as a long-term indicator of the strength of the smartphone industry. Due to the longer lead-time needed for 5G chips, declining orders indicate that the Chinese smartphone market will remain muted during the peak season of the third and fourth quarters and won’t see a comeback till the first quarter of 2023.
• Louis Liu, an analyst from CINNO Research, told TechNode a similarly pessimistic prediction and believes that smartphone sales in China would drop by 7%-8% this year.

Context: China shipped 17.6 million smartphone units in April, a yearly decline of 21.6% and 12.2% less from March. The decline can be attributed to a drop in market demand and less promising processors for Android phones compared to Apple’s, according to a report from CINNO Research.

• Apple, on the contrary, remains relatively strong in the Chinese market due to the US company’s processors being two generations ahead of those supplied by Qualcomm and MediaTek.

Chinese smartphone maker Xiaomi released the Redmi Note 11T Pro and Pro+ on Tuesday, priced at RMB 1,799-2,499 ($270-$374). The new models mark a further move into higher-end markets for the sub-brand Redmi, which was previously focused primarily on budget devices.

Why it matters: The new series is indicative of the maturation of Xiaomi’s phone offerings, which have found significant popularity in China and in developing markets overseas. The new Redmi Note phones, targeted at middle- and high-end customers, will intensify competition between Xiaomi and rival brands such as Oppo’s Realme.

Details: The newly released Redmi Note series promises higher specs than previous Xiaomi models without abandoning the brand’s affordable image.

• The new phone features a highly-rated MediaTek Dimensity 8100 processor, produced by TSMC’s 5nm process and an efficient cooling solution.
• The Redmi Note 11T Pro and Redmi Note 11T Pro+ come with a 6.6-inch 144 Hz LCD screen, which changes tone according to the environment; however, the screen is a downgrade from the Redmi Note 11 released in February.
• The two models are distinguished by their battery capacity and charging speed. The plus version has a 4,400 mAh battery which is smaller than the pro’s 5,080 mAh. However, the plus version features a much faster wire charging speed thanks to its in-house Surge P1 charging chip, which charges 79% faster than the pro model.
• As for the cameras, the new phones have a 64 million pixel primary camera alongside additional wide-angle and macro cameras. 
• Other features include Dolby-supported dual speakers, high-resolution audio verification from Sony, Bluetooth 5.3 and Wi-Fi 6 capability, and an infrared remote control feature for home appliances.

Context: Xiaomi is the third-largest mobile vendor globally after Samsung and Apple, with a  12.8% of the global smartphone market share in April, according to web analytics firm StatCounter.

• Xiaomi initially launched the Redmi brand to sell budget devices, but in 2019, it began moves to attract more medium and high-end customers.
• Redmi said on its social media accounts on Tuesday that sales of its Note series had hit 280 million units in total worldwide. 
• Xiaomi’s phone sales have been driven chiefly by emerging markets outside its home market. The company is the highest-selling phone brand in India, accounting for a quarter of all sales in the country. In contrast, it occupied just 1.4% of the North American market in April 2022, according to StatCounter.

Chinese smartphone maker ZTE announced the launch of Axon 40 Ultra on Monday, the third generation of a smartphone that features an under-display camera.

Why it matters: ZTE has adapted an under-display camera design, rather than traditional options like notch display or hole-punch display,  to create an all-screen design. 

Details: Axon 40 Ultra is equipped with an all-screen 6.8-inch display. The phone maker touts improved screen image quality compared with previous generations.

• The new phone has a 93.1% screen-to-body ratio. For context, Apple’s iPhone 13 Pro Max has a screen-to-body ratio of 87.4%.
• In previous generations, ZTE had to compromise other qualities to achieve the under-display camera design, like decreasing pixel density, leading to less ideal display quality. The Axon 40 Ultra has solved such issues by increasing the screen’s pixel density while reducing the size of pixels around the camera area.
• ZTE has also used new tech that separately controls every single pixel and decentralizes transparent circuits to create clearer image quality. The camera area is barely noticeable in a comparison video in the latest generation.
• Another important spec of the phone is its triple 64 million pixel cameras. Axon 40 Ultra is the first to adopt a dual Sony IMX787 sensor for all back cameras. Other brands like Xiaomi, Huawei, and Apple have used high spec sensors on only one primary back camera.
• The Axon 40 Ultra will be available from Friday in China and launched in June for overseas markets, with prices ranging from RMB 4,998 to RMB 7,298 ($747 to $1,087).

Context: ZTE also revealed its 2021 overall performance during the product launch, recording 100 million unit shipments, with 50% of chips used in these shipments developed by the firm.

• ZTE released Axon 20, the world’s first all-screen phone with an under-display camera, in September 2020, which sparked critical reviews due to poor image quality.
• Since then, Xiaomi and Samsung have launched phones that have adopted an under-display camera option. They are Mix 4 and Galaxy Z Fold 3 phones. 
• In 2018, ZTE paid $1 billion fines to settle with the US government after being banned for working with American supplies. The US accused the company of violating a 2017 deal by evading sanctions on Iran and North Korea. In November 2021, the Federal Communications Commission stopped issuing new licenses to ZTE, cutting off the firm’s last hope to sell phones in the US.

The CEO of Huawei spinoff Honor told state media on Thursday that the smartphone company plans to push overseas sales over the next five years. 

Why it matters: In November 2020, Huawei sold Honor, a budget smartphone sub-brand, to a majority Shenzhen state-owned company. In the 18 months since this sale, the firm has steadily gained market share in China and reached the top spot in domestic sales in March. Outside of China, the brand faces fierce competition from Chinese peers like Xiaomi, Vivo, and Oppo, as well as industry leaders like Apple and Samsung.

• In the latter half of 2021, Honor made it into the top-5 selling smartphone brands (in Chinese) in China, and most recently, the brand topped the sales chart in March (in Chinese), according to Chinese marketing research firm CINNO. 
• Honor has limited overseas reach, failing to crack the top 5 brands in terms of sales (which take 70% of the market share) in 2021. 

Details: Honor’s CEO Zhao Ming told China Securities Journal (in Chinese), a state-owned media outlet, on Thursday that the company will “fully launch sales to the overseas markets and expects no bottleneck period for the next five years.”

• Zhao added that more than half of the company’s 12,000 employees work in the company’s research and development unit. He also emphasized that Honor plans to invest more in research than in marketing.

Context: Founded in 2013, Honor was formerly owned by Chinese telecom giant Huawei as a sub-brand. 

• Huawei sold Honor to save the brand after it was sanctioned by the US and was cut off from using US technology, like Google services and critical chips, in 2019. Honor now has none of Huawei’s sanction burden and is able to use Google services and Qualcomm chips. 
• After the spinoff, the brand lost access to over 100,000 patents from Huawei.

On Thursday, Chinese telecommunications giant Huawei released Mate Xs 2, the second generation of its foldable Mate Xs series, priced from RMB 9,999 ($1505).

Why it matters: Huawei first adopted an outer folding design for its foldable phones in 2019, differing from mainstream models that folded inward, thereby solving the key issue of the prominent crease on the screens of foldable phones. With new hardware updates, Mate Xs 2 is vying to be a strong competitor in this vertical.

Details: Targeted at the high-end market, Huawei highlighted Mate Xs 2’s top-line tech specifications at the launch event on Thursday.

• According to the company, the new foldable phone continues with an outer fold option and has a 7.8-inch display, which downsizes to 6.5 inches when folded. 
• The maximum size of the model is slightly smaller than the 8-inch display on the recently released Vivo X Fold but is 18% lighter in weight.
• The OLED display on the Mate Xs 2 supports a 120 Hz refresh rate, with high rate dim illumination tech, that can reduce the harm to users’ eyes in dark environments.
• The phone is equipped with a Qualcomm Snapdragon 888 4G processor and has two combinations for memory storage: 8 GB RAM plus 256 GB or 512 GB storage and 12 GB RAM plus 512 GB storage. Huawei is having difficulties buying 5G chips due to US export restrictions. 
• The Mate Xs 2 features three cameras, which gives users the option of framing from ultra-wide to telephoto, with a maximum of 5,000 pixels image quality when shooting with the main camera. The phone also supports filming in 8K resolution.
• Although Huawei’s outer folding design solves the creasing issue, it makes the display more fragile, especially the phone’s folded spine. Huawei has yet to introduce extra protection that can solve this issue. 

Context: In 2021, Huawei shipped 900,000 units of foldable phones, accounting for 10% of the market, a distant second to Korean manufacturer Samsung, which accounts for 88% of the market.

• While many Chinese phone manufacturers have released their own foldable phones, such as Xiaomi, Oppo, and Vivo, Huawei remains predominant among Chinese brands.

OnePlus, the Chinese smartphone maker owned by Oppo, launched a new product line named Ace, targeting the global mobile gaming market. The company released the first model of the series on Thursday, pricing at RMB 2,499 ($384).

Why it matters: OnePlus is expanding its offering to the global mobile gaming market after launching OnePlus 9R last year.

• Chinese phone makers, like Xiaomi, have been known to use game performance metrics to sell their phones. OnePlus is vying to be a strong competitor in this vertical. 
• The mobile gaming market is rapidly expanding, and the global revenue of the sector will reach $116.1 billion in 2024, as estimated by global gaming insight firm Newzoo.

Details: On Tuesday, OnePlus revealed the new Ace product line for mobile gaming, alongside a new entrance level True Wireless Stereo (TWS) earbuds in a release event.

• The first model of Ace is powered by a customized processor designed by MediaTek. The 8100-MAX processor is said to be optimized for high-performance games and low-light videography. The new phone also features a 6.7-inch and 120 refresh rate screen supplied by a Chinese display maker BOE, and comes with a fingerprint scanner, which supports heart rate detection. OnePlus also announced an external cooler which they claim to improve overheating issues in mobile gaming.
• The names of the series, Ace, and the black and blue case color cater to OnePlus’ targeted users of mobile games. In many games, the term ace refers to a player who has defeated all enemies. The black and blue color versions of the phone also go by the names Kaihei and Huilan, which are gaming terms in popular games Dota.

Context: OnePlus merged with Oppo, another major smartphone brand in China, last year and is now an independent brand under the Oppo umbrella, focusing on overseas markets.

• In the premium smartphone market, where phones sell for over $400, OnePlus ranked fourth in North America in terms of sales in 2021. The brand is even more popular in India, where it is listed second among premium smartphones, behind Apple.
• On the brand’s eighth anniversary last year, Liu Zuohu, the founder of OnePlus and CPO of Oppo, announced that the company had shipped 10 million phones globally since it began operating in 2013.

Chinese smartphone manufacturer Vivo released its first foldable phone on Tuesday, targeting premium users with a price tag of around $1,500. 

Why it matters: Vivo follows the footsteps of rival brands such as Xiaomi, Huawei, and Oppo, releasing its first foldable phone. Global shipments of foldable phones will hit 15.7 million in 2022, forecasting a yearly growth rate of 107%, according to market research firm CINNO Research.

• The new phone, called the Vivo X Fold, showcased more tech than just foldable tech, Louis Liu, an analyst from a Chinese hardware insight firm CINNO Research told TechNode. The new phone addressed some of the shortcomings of previous models from other brands with features such as rapid wireless charging and on-screen fingerprint recognition, Liu added. 

Details: Using a Samsung display screen, the Vivo X Fold has an 8.03-inch interior display when used in tablet mode and a 6.53-inch exterior display when folded. For comparison, an iPhone 13 has a 6.1-inch display, and a regular iPad is 10.9 inches. 

• Both displays support a 120 Hz refresh rate with a battery-saving display tech called Low-Temperature Polycrystalline Oxide (LTPO), which claims to reduce power consumption by about one-third. 
• A model with 12GB RAM and 256GB of storage is priced at RMB 8,999 ($1,413); a model with 512GB of storage and the same RAM spec will cost RMB 9,999 ($1570).
• Liu also said that compared to its sister brand Oppo’s foldable model Find N, the Vivo X Fold is a more premium device, adding that Vivo focused more on internal technology whereas Oppo focused on getting an optimal display size when folded.

Context:  CINNO predicts that Samsung will lead the foldable market this year with a 70% share.

• Vivo is the largest smartphone maker in China based on shipments in 2021, according to IDC.
• Vivo, Oppo, and OnePlus – three of the biggest smartphone brands in China – have shared roots: they are or were indirectly owned by Better Life Group. Therefore, while the brands share technology in some cases despite the competition. For instance, OnePlus and Oppo will merge their phone operating systems to the singular ColorOS, according to a post in the OnePlus community on March 8.

Chinese EV maker Nio is taking a step into hardware by developing its own smartphones, Chinese media 36Kr reported. The move makes Nio the latest Chinese automaker to diversify operations in the hope of protecting its core EV business amid increased competition. 

Why it matters: Nio’s pursuit of making smartphones comes as other Chinese tech companies are making plans to build EVs, looking to profit in the world’s biggest auto market embracing EVs.

• EV makers are also carving out a new growth story at a time when chip shortages remain a major stumbling block to car sales and the industry is still years away from realizing a fully autonomous future, Lu Shengyun, a partner at tech consultancy firm Artefact said.
• Lu added that it “totally makes sense” for EV makers to develop smartphones vital to intelligent and connected vehicles and their mobile ecosystems. But it’s yet to be seen whether these automakers can deliver seamless user experience across devices.

Details: Nio recently hired Yin Shuijun, former president of the smartphone unit of Chinese mobile internet firm Meitu, to lead the new business in Shenzhen, Chinese media 36Kr reported Wednesday, citing people familiar with the matter.

• The EV company has been mulling the idea for some time and had previously approached talent from multiple smartphone makers, including Honor, a Chinese budget smartphone brand formerly owned by Huawei, the report said.
• One of the world’s biggest EV startups with a $35 billion valuation, Nio has posted multiple jobs on job recruitment site Liepin, such as telecom testing engineers (in Chinese), suggesting the company is assembling an engineering team for making smartphones.
• A Nio representative declined to comment further when contacted by TechNode on Wednesday.

Context: Nio is not alone in exploring new areas for expansion, as multiple Chinese tech companies are also looking to enter the EV space.

• Xiaomi last March unveiled its plan to invest a total of $10 billion in making autonomous EVs over the next 10 years, while Huawei has partnered with domestic automakers, including BAIC and Changan, to sell its self-driving and in-car software.
• Chinese auto major Geely made its foray into the smartphone market with the establishment of a RMB 715 million ($113 million) venture in the central city of Wuhan in September and was reportedly in discussions to acquire an Alibaba-backed smartphone maker.
• Nio’s fellow startup Xpeng Motors has taken a slightly different approach with the debut of a low-speed robot toy pony for children last September, as part of the company’s strategy to create a robotic ecosystem that will enable driverless mobility SCMP reported. 

Geely is reportedly in advanced talks to acquire Meizu Technology, a domestic smartphone maker backed by e-commerce giant Alibaba, as the Chinese auto group aims to provide a mobile-driven in-car experience and pose a challenge in the smart mobility race.

Why it matters: The move comes against the backdrop of China’s big tech firms, like smartphone maker Xiaomi and search engine Baidu, pushing to develop vehicles with smart cabin systems and autonomous driving technologies, developments that pose major threats to traditional automakers like Geely.

Details: Hubei Xingji Shidai Technology Co Ltd, a smartphone venture launched and majority owned by Geely chairman Eric Li, has begun talks to buy Meizu, a small and relatively obscure smartphone player, Chinese media outlet 36Kr reported Friday, citing people with knowledge of the matter.

• Geely is currently carrying out due diligence on the niche handset maker, the sources added, while other details surrounding the acquisition such as the sale price are unknown.
• A Geely spokesperson declined to comment on the report, saying only that the company is working to “expand the industrial footing” of its newly-established cellphone business. Meizu did not respond to TechNode’s request for comment on Monday.

Context: Geely announced its entry into the competitive Chinese smartphone market by establishing Xingji Shidai with registered capital of RMB 715 million ($113 million) in the central city of Wuhan in September, Reuters reported. Geely chairman Eric Li owns a 55% stake in the venture, according to Chinese business research platform Tianyancha (in Chinese).

• The private automaker has hired Wang Yong, a former vice president at telecommunications giant ZTE, to help lead its smartphone business, while stepping up efforts to poach talent from electronics giants such as Xiaomi and Oppo, the 36Kr report added.
• In early 2015, Alibaba invested $590 million for an undisclosed minority stake in Guangdong-based Meizu, with the e-commerce behemoth at the time reportedly intending to integrate its custom mobile operating system YunOS into mobile devices. The company was handed an antitrust fine of RMB 500,000 ($79,000) by local regulators in November last year, because of the deal.

Xiaomi has hired Yu Liguo, a former senior executive at state-owned automaker BAIC Motor, to lead its autonomous electric vehicle (EV) project. The move brings a highly-experienced executive from the traditional auto industry to the 12-year-old smartphone maker.

Why it matters: The hire is the latest sign that Xiaomi is serious about venturing into the EV industry.

Details: Yu has come aboard as vice president of Xiaomi’s auto unit and a “political commissar” at its Beijing headquarters, according to an internal letter published Friday and obtained by Chinese media outlet 36Kr.

• Yu will be tasked with leading Xiaomi’s car-making project and managing the development and implementation of key business goals, and will report directly to CEO Lei Jun, a person with direct knowledge of the matter confirmed with TechNode on Monday.
• Yu will also play a major role in talent management of the auto unit and report his daily work as a “commissar” to Liu De, a senior vice president and head of Xiaomi’s organization department, the person said.
• Yu began his career at BAIC in 2012 and worked as the president of Arcfox, an EV unit of BAIC, from 2020-2021. His leadership of the EV program at Daimler’s Chinese manufacturing partner resulted in the launch of the Alpha S vehicle, its flagship electric sedan co-developed with Chinese telecommunication giant Huawei in early 2021.

Context: The news comes just months after Li Tianyuan, a former exterior designer of BMW’s electric vehicle the iX, joined Xiaomi, an appointment that was made public via a group photo of the firm’s corporate executives posted by CEO Lei Jun last September.

• The Chinese smartphone giant is targeting the first half of 2024 to produce passenger EV that could include its own assisted driving technology, Lei told investors last October, six months after unveiling Xiaomi’s $1.5 billion auto investment plan.
• Xiaomi will face significant competition in the transportation space, with a host of startups jostling for a place in the EV market alongside banner brands such as Tesla and General Motors Wuling.

Read more: Drive I/O | Chips, batteries, AV: Xiaomi’s most high-profile auto investments of the year

Smartphone giant Xiaomi on Wednesday announced that it is acquiring Deepmotion, a Beijing-based startup that develops digital mapping technology for autonomous vehicles. 

Why it matters: The acquisition is Xiaomi’s latest move in its bid to build its own intelligent connected cars. An expansion into China’s auto sector could greatly expand Xiaomi’s mobile ecosystem and create new revenue streams for the company.

Details: Xiaomi has reached an agreement to acquire Deepmotion Tech Ltd in a cash-and-stock deal valued at $77.37 million, according to the smartphone maker’s quarterly results, released Wednesday. The company did not reveal when it expects the deal to close.

• In an earnings call on Wednesday, Xiaomi’s president Wang Xiang said the purchase is aimed at accelerating the consumer electronics giant’s plan to develop autonomous driving technologies, which Wang called the most crucial part of intelligent and electric vehicles.
• Wang added that the company has been aggressively recruiting automotive engineers, and has established its self-driving team with a batch of 500 experts after kicking off its electric vehicle project in March.

Context: Xiaomi has struck several deals to invest in autonomous driving startups in recent months, as the Chinese tech giant ramps up its efforts to develop driverless car technology and mass produce  its first EV in the next three years.

• The company earlier this month raised its stakes in Geometrical Pal, a startup that develops software solutions that allow radar sensors in AVs to sense the environment. Xiaomi also invested in self-driving software developer Zongmu Technology in June, Bloomberg reported.
• Deepmotion was formed in mid-2017 by four computer scientists from Microsoft Research Asia, the research arm of the US tech company in the Asia Pacific region. In March 2018, the startup raised “dozens of millions of US dollars” from venture capital firms Redpoint China Ventures and Source Code Capital.

Chinese telecommunication giant Huawei announced major updates to its self-developed operating system HarmonyOS at a launch event Wednesday night. The proprietary system is now being used on phones for the first time, achieving an essential goal for the company. 

Why it matters: Huawei has long relied on the Android system, but it lost access to key services thanks to US sanctions in 2019. Huawei is aiming to build a new mobile ecosystem independent of Google’s Android and Apple’s iOS. However, the company chose to focus on promoting the system’s versatility across smartwatches, tablets, and other device at the launch event. 

• The new mobile system is unlikely to reverse plunging smartphone sales in overseas markets because the system is unlikely to support key Google applications such as YouTube and Gmail. 

Details: HarmonyOS is available on Huawei’s Mate 40 and Mate X2 smartphone models, as well as smartwatch Huawei Watch 3 and tablet MatePad Pro, the Shenzhen-based company announced Wednesday evening. 

• Huawei phone users need to fill out an application to receive an update to HarmonyOS, a Huawei phone owner told TechNode. Most Huawei phones currently run on a Huawei-customized Android system called EMUI. 
• The update process took about 10 minutes and all previously installed Android apps worked on HarmonyOS, said the user.
• Huawei told TechNode that HarmonyOS is “by no means a copy of Android or iOS.”
• “Huawei is not launching HarmonyOS to replace iOS or Android. The design logic is different, source codes are different, and use scenarios are different,” the company said in a statement to TechNode. 
• When Huawei first unveiled the system in August 2019, it said HarmonyOS would be open-source, but the system has remained closed-source. A Huawei spokesperson told Technode on Thursday that the company participates in an open-source project named OpenHarmony and contributes to it.

Context: HarmonyOS was widely seen as an alternative to Google’s Android mobile operating system, but it has taken Huawei about a little less than two years to deliver the system to phones. Huawei first deployed the system on smart televisions in August 2019 and then on smartwatches in September 2020. 

• Huawei said last month it expects more than 300 million devices (in Chinese) to run HarmonyOS by the end of the year. The company said it is talking to 200 global app developers to create apps for the platform.

Chinese smartphone maker Xiaomi said Wednesday a US district court has ordered the Defense Department to lift a ban on American investment in the company.

Why it matters: Xiaomi has evidently shaken off a geopolitical burden that have weighed down its shares since earlier this year. It is unlikely that the Biden administration will appeal against the decision.

• Xiaomi was placed on a list of “Communist Chinese military companies (CCMC)” by the outgoing Trump administration on Jan. 15, a week before it left office.

• A similar move against China’s three major telecom companies led to their delisting from US stock markets in May.

Details: The US District Court for the District of Columbia issued a ruling ordering the US Department of Defense to remove Xiaomi from the CCMC list, said the smartphone maker in a filing (in Chinese) to the Hong Kong exchange on Wednesday.

• The order “officially revoked all restrictions on the purchase or holding of the company’s securities by US investors,” said Xiaomi.
• The company is “an open, transparent, publicly traded, independently operated and managed corporation,” it said.
• The Biden Administration has previously said it won’t challenge a ruling by a federal judge that temporarily blocked enforcement of the blacklisting.

Context: An executive order signed by US President Donald Trump in November bans American investment in companies that it deemed owned, controlled, or affiliated with China’s military.

• In February, Xiaomi filed a lawsuit against the US government over the decision to add it to the CCMC list. Xiaomi said that it believes its inclusion was “factually incorrect and has deprived the company of legal due process.”
• In March, a federal judge temporarily blocked enforcement of the ban on the company, calling the decision to blacklist Xiaomi “deeply flawed.” Xiaomi is not state-owned.
• China’s three state-owned telecom operators, China Mobile, China Unicom, and China Telecom, said on May 8 that they would be delisted by the New York Stock Exchange on May 18. The three firms were added to the CCMC list by the Trump administration last year.

Huawei’s auto push won’t include making its own cars, the company said Monday. The statement comes on the heels of a series of high profile moves into auto technology by the telecoms giant, and reports that it plans to manufacture its own vehicles. 

Why it matters: Huawei’s statement comes amid unease from existing carmakers that Huawei will enter the industry by manufacturing its own cars.

Details: Huawei has not invested in any automakers and is not interested in acquiring majority stakes in car companies in the future, the company said in a statement on Monday.

• The Chinese smartphone maker reaffirmed that it will stick with a “long-term strategy” of manufacturing key components for intelligent and connected vehicles.
• “Persistent rumors that Huawei is investing in its own car production capabilities, or that we own shares in car manufacturers, are unfounded and do not stand up to scrutiny,” Huawei said.
• Shares of BAIC Blue Valley and Changan Automobile, two of the company’s major auto partners, plunged 10% on Monday following Huawei’s announcement. Both companies’ shares slumped a further 4.8% and 4.4%, respectively, on Tuesday.

Context: China’s tech and auto industries have long swirled with rumors of Huawei buying stakes in domestic car companies.

• The smartphone maker seeks to tap into the autonomous and electric vehicle market as its core businesses faces pressure amid US sanctions.
• According to a Reuters report in April, Huawei was looking to acquire a controlling stake in the EV unit of lesser-known domestic carmaker Chongqing Sokon, in a move that would enable the tech giant to make Huawei-branded cars. Sokon’s latest model, the Seres SF5, has been on sale in Huawei stores since last month.

Huawei has appointed the head of its smartphone business to take charge of its young vehicle technology unit, part of a wider management reshuffle as the telecommunications giant tries to break into the fast-growing autonomous and electric vehicle sector.

Why it matters: The appointment is expected to initiate a round of restructuring which will place Huawei’s nascent intelligent automotive solution (IAS) business unit and the team that develops and sell in-car services for automakers under its core consumer business group.  

• The IAS unit was set up in May 2019 to develop self-driving system as well as key components for autos and was previously under the Information and Communications Technology Infrastructure managing board.
• Huawei’s consumer business group, is seeking adoption for an Android alternative called HarmonyOS targeting various connected devices including autos other than smartphones.

Details: Richard Yu, chief executive of Huawei’s consumer business group, was appointed concurrently CEO of the auto solutions unit. Current head Wang Jun will remain as the president of the unit, a source with direct knowledge of the matter told TechNode on Wednesday. Chinese media first reported the shift, citing an internal memo dated Tuesday.

• Yu was also relieved from his role as CEO of Huawei’s cloud and artificial intelligence business unit, an appointment made three months ago and reported by the South China Morning Post. Zhang Ping’an, current president of Huawei’s cloud unit will be promoted as the CEO of the unit and led by Eric Xu, Huawei’s rotating chairman.
• A month after putting EVs on sale in dozens of its flagship stores, Huawei is ramping up a push into electric and connected vehicles. Yu recently set an ambitious annual target of selling 300,000 EVs next year, Chinese media reported Wednesday citing sources.
• The company has secured around 6,500 orders for the Seres SF5, a plug-in hybrid launched by its partner Sokon last month, according to the report. It has planned to sell EVs in at least 200 shops by the end of July and increase that number to more than 1,000 by year-end.

Context: Huawei has been seeking new growth drivers as its smartphone sales plunged globally last year. The smartphone business is running out of key components from US suppliers while being cut off from Google’s Android by the US sanctions.

• The telecoms company last month co-launched Alpha S, a premium electric sedan targeting Tesla’s Model 3, with state-owned automaker BAIC and pledged to start delivering self-driving capabilities for highways and urban streets at the end of this year.
• Ford manufacturing partner Changan is also reportedly (in Chinese) on track to unveil a new premium EV brand, co-developed with Huawei and Chinese top battery supplier CATL, later this month. Huawei last month announced to spend $1 billion in research and development for autos this year.

Chinese telecommunications equipment maker Huawei reported Wednesday that its revenue for the first quarter fell 16.5% year on year, in the company’s largest quarterly top-line decrease since US export restrictions took hold.

Why it matters: The decrease in revenue reflects the toll that US sanctions have taken on a company that was once the world’s largest smartphone maker.

• US sanctions imposed in 2020 and 2019 barred Huawei from access to critical semiconductors it needs to produce consumer products. The company was also banned from using Google’s Android mobile operating system, which heavily dented the appeal of its smartphone offerings in overseas markets.

Details: Huawei said in a statement Wednesday that its revenue for the first quarter of this year was RMB 152.2 billion (around $23.5 billion), a year-on-year decrease of 16.5%.

• The company said the results were “in line with forecast.”
• Net profit in the quarter was RMB 16.7 billion, up from RMB 13.3 billion in the same quarter last year.
• “2021 will be another challenging year for us, but it’s also the year that our future development strategy will begin to take shape,” said Eric Xu, Huawei’s rotating chairman.
• “No matter what challenges come our way, we will continue to maintain our business resilience. Not just to survive, but do so sustainably,” Xu said in the statement.

Context: Huawei said earlier this month that its revenue for 2020 reached RMB 891.4 billion, up 3.8% year on year, but slower than the annual growth rate of 19.1% in 2019.

• The company saw revenue growth from its consumer business—which includes smartphones, tablets, and computers—fall sharply. Growth in this segment fell to 3.3% last year from 34% in 2019. 
• Huawei’s revenue for the fourth quarter of 2020 fell 11% year on year to RMB 220.1 billion—the first time on record that its quarterly revenue contracted.

Last week, UK-based semiconductor design company Arm announced plans for the next generation of chips. The v9 architecture comes ten years after the release of v8, which is currently the standard used for mobile phone central processing units (CPUs) and many other processors.

There are some good articles on the new features v9 brings to the table, most notably the Realms feature, which promises to increase security by running applications while data is protected from inspection or intrusion by the host or any other software running on that host. The new architecture will also bring AI/ML extensions for AI support across its CPUs, network processing units (NPUs), and graphics processing units (GPUs), and the ability to improve performance by accelerating workloads in a CPU environment in ways that previously required external hard accelerators.

Licensing architecture

I’ve written an overview of major architectures in China elsewhere, but here’s a brief recap: Many Chinese companies design Arm-based chips, but most will license complete Arm cores on a single-use or multi-use basis, so they don’t have to design a core themselves.

More ambitious chip design companies may get an architecture license, which allows the licensee to change the design itself. This is what you need to create a customized core like the Kirin line of phone CPUs, designed by Huawei’s HiSilicon for use in its phones. But it’s difficult to build a core from scratch, so you have to be highly skilled.

Currently, only two companies in China have an architecture license for v8: Huawei and Phytium Technology, a fabless chip design company focused on Arm server chips..

Notably absent

Arm’s press release included several quotes from high-profile partners around the world, including representatives of three major Chinese smartphone brands; Xiaomi CEO Lei Jun, Vivo CTO Shi Yujian, and Oppo Head of Research Levin Liu. Notably absent were Huawei and Phytium Technology.

Both Huawei and Phytium previously bought architectural licenses from Arm, in part as a way to advertise their independence and control. To help them sell such a message Arm also created Arm China, a separate company that has its own issues.

The smartphone makers that did make the press release, have never been architectural licensees of Arm v8. This could change as they look to develop their own chips. All these companies have been investing heavily in building their own internal chip design capabilities.

However, I think for the time being they will stick with application processors from Qualcomm or MediaTek. As part of Arm’s presentation MediaTek announced that its first smartphone chip using the v9 architecture will be available by the end of 2021, sooner than any Chinese handset OEM would be able to design their own. That’s a lot sooner than they’re likely to be able to make their own.

Chinese handset companies will likely license Arm cores for individual designs, such as Xiaomi’s recent image signal processor design. Xiaomi’s previous attempt at an application processor was somewhat of a failure, and it makes sense for the company and others like Oppo and Vivo to focus first on simpler designs that can help them differentiate their products and also help them gain valuable real-world chip design experience.

So what are we to make of the absence of current licensees Huawei and Phytium? Are they not considered key partners, can they license v9 architecture, and does it even make sense for them to?

Can Huawei buy the v9 architecture?

Huawei has struggled to access semiconductors and IP since the US placed it on a list of companies which require licenses to buy US or US-linked technology. The absence of either company in Arm’s presser could imply that one or both won’t be able to upgrade to v9.

In response to such speculation, Arm has said that it can continue to license its IP to China including Huawei, concluding that its IP is of UK-origin and so not subject to the US ban. Ian Smythe, vice-president of solutions marketing at Arm said, “Following a comprehensive review, Arm has determined that its Arm v9 architecture is not subject to the US Export Administration Regulations,” adding that Arm had informed US government agencies of this conclusion.

That might not be the last word for Huawei. Ultimately, the US government may conclude that Arm’s Austin facility, which contributes to a lot of its high-performance architectures, means that Arm’s IP is sufficiently of US-origin to face export restrictions.

Phytium on thin ice

Phytium is not on the export ban list, and as such does not face the same restrictions as Huawei. However, it is on a list of “military-linked” companies that face restrictions on cross-border investments.

Also, the Washington Post reported today that that the Trump administration was planning to put Phytium on an export blacklist, but “ran out of time”. The article also reported Phytium chips are used at supercomputing centers that design advanced weapons systems for the People’s Liberation Army. This could heighten Washington’s scrutiny of the company, potentially leading to sanctions.

My best guess is that they will go ahead and secure a v9 license without much trouble, but they may be trying to keep a low profile in the hope that the US will not decide to target them. Watch this space.

Now or never

An architectural license gives Huawei and Phytium a certain amount of security: Once granted, the license is permanent, meaning Huawei would be able to continue designing new v9 chips indefinitely whatever actions Washington takes. But under present circumstances it might not be too useful.

An architectural license does not mean the licensee is licensing a specific core. They receive a set of specs for Arm’s cores and a testing suite. This allows the licensee to customize their own processor to fit their application. They can make cores that are faster, smaller, or less power hungry than standard Arm cores, or otherwise differentiated from standard Arm licensees.

Qualcomm and Apple rely on such licenses to create their chips, as did Huawei for its Kirin series. There are only a handful of such licensees globally, mainly because it costs a lot and requires a lot of time and internal expertise to create your own custom Arm core, while there are perfectly good cores available to license at a much cheaper price.

A license alone isn’t enough to make chips. If Huawei is able to buy an architectural license and does so, it still has no access to the EDA tools it needs and the fabs to actually manufacture a high-end Arm-based chip.

But it could be now or never. As competing companies move to v9, Huawei’s v8 license will soon be obsolete. It could actually make sense for the company to go in on an architectural license it can’t use for now in the hope that further down the line either restrictions on the company are removed or domestic self-sufficiency gets to a point where Huawei can get back into the high-end chip game.

With Nvidia’s acquisition of Arm also on the horizon, Arm could soon become a US-owned company. It could make sense for Huawei to lock in access to its IP now, although the same concerns could also motivate China to block the deal.

Conclusions

Access to IP is a chokepoint for semiconductors in China. As I’ve written before, RISC-V may help with this to some extent, but it isn’t as mature as Arm yet, and processor cores are just one of many different types of IP within a chip.

Despite RISC-V’s growth, Arm’s v9 architecture will be a core component for handset, server, IoT and automotive chips for the coming decade. For Huawei it may make sense to get in now, while it still can.

For its part, Arm will want to be free to license to Chinese companies and will be happy to take Huawei’s money. However, the reach of the US government can be long and if the Nvidia acquisition goes through I struggle to see companies on the entity list being allowed access. 

Some domestic analysts argue that Huawei should not rely on architectural licenses. “You may get a v9 license this time, but what about v10 or v11, etc? Does endlessly licensing foreign IP mean independence?” (my translation).

It would be strange to see China without any Arm architectural licensees, but that is a prospect.

We may also see new Arm licensees. Perhaps the likes of Oppo or Vivo will decide it makes sense for them. We all know they are investing huge sums into their own IC design capabilities.

Revenue growth for Chinese telecommunications equipment maker Huawei fell dramatically in 2020 as overseas sales shrank in the wake of US sanctions and disruptions caused by the Covid-19 pandemic, the company reported on Wednesday.

Why it matters: The decline comes as Huawei’s revenues shrank in all markets but China. Huawei was placed on a US trade blacklist in 2019, blocking the company from sourcing US-made components without permission.

• Huawei has faced pushback across international markets as countries around the world place restrictions on rolling out the company’s telecommunications equipment.
• Huawei’s smartphone sales have fallen drastically since the ban. In the fourth quarter of 2020, Huawei shipped just 33 million handsets globally, down 41% year on year, data from Counterpoint Research showed.

Details: Huawei’s revenue reached RMB 891.4 billion in 2020, up 3.8% year on year, but down from an annual growth rate of 19.1% in 2019.

• The company saw revenue growth from its consumer business—which includes smartphones, tablets, and computers—fall off a cliff. Growth in this segment fell from 34% in 2019 to 3.3% last year.
• “The US restrictions have impacted our business, especially our mobile phone business, and that resulted in modest growth last year,” Ken Hu, Huawei’s rotating chairman, said during a press conference on Wednesday.
• Sales from the company’s enterprise business were a bright spot, increasing 23% year on year to reach RMB 100 billion. Revenue from its carrier business increased just 0.2% annually to RMB 300 billion, slowing from 3.8% in 2019.
• The company’s net profit hit RMB 64.6 billion, up 3.2% on the year but slower than the 5.8% in 2019.
• China accounted for much larger portion of the company’s overall sales. The country made up nearly two-thirds of its revenue last year. In 2019, sales from China accounted for just under 60% of its revenue.

This article has been corrected to reflect that Huawei’s consumer business revenue growth fell, not its revenue as previously stated. 

Chinese tech giant Xiaomi is throwing its hat into the red-hot electric vehicle market with a RMB 10 billion ($1.52 billion) investment to set up a fully owned subsidiary for its auto business, to be led by chief executive Lei Jun.

Founder and CEO Lei at a press event in Beijing on Tuesday said Xiaomi had decided to strike out on its own on EVs in an effort to operate an ecosystem that will provide seamless user experience, and will not consider outside funding. Lei said he was aware of the complexities of making cars with extreme capital intensity, saying that the company is now ready to pour money into the project and face losses over a long-term period.

“We look forward to the day when Xiaomi cars will run on roads across the globe… This would be the last startup project in my career and I shall stake all I have to work this out,” the 52-year-old serial entrepreneur said (our translation). In an announcement published Tuesday, Xiaomi said the company plans to invest a total of $10 billion in the project over the next 10 years.

Following in Apple’s footsteps, Xiaomi has pledged to develop high-quality EVs with a “best-in-class” connected device ecosystem for global customers, according to Lei. The world’s fourth-biggest smartphone maker recorded shipments of nearly 150 million units in 2020 with an annual growth rate of 19%. Sales for competitors Samsung and Huawei shrank a respective 14% and 22%, according to figures from Canalys.

Xiaomi also boasted of having one of the world’s biggest Internet-of-Things (IoT) platforms, connecting 325 million smart home appliances as of last year, excluding handsets and laptops. It has also remained the top-selling television set maker in China since 2019, accounting for around 20% of market share, according to data compiled by Beijing-based consultancy All View Cloud (AVC).

However, the Chinese consumer electronics giant is seeking new sources of growth amid a slowing market. Its IoT and consumer products segment slowed sharply to 8.6% annually last year from 41.7% in 2019. The company also missed analyst revenue estimates for the fourth quarter, according to Bloomberg.

In the meantime, the global automotive industry is undergoing a landmark transition, and the shift to battery-electric, self-driving cars from traditional, internal-combustion vehicles has reached a major inflection point. China is expected to maintain its global leadership in EV production and adoption. IHS Markit forecasted that China will regain growth momentum at double-digit rates in 2021 and beyond, as the government continues to push the EV industry forward and consumer demand recovers.

Xiaomi has long been rumored to be plotting a move into the booming, crowded EV market. Last week it denied a Reuters report that it was in discussions with Chinese automaker Great Wall Motors for contract manufacturing. Shunwei Capital, a venture capital firm formed by Lei, invested in Nio in its Series A back in 2015 and became an early investor in Xpeng Motors two years later.

Baidu is also accelerating the push into the market. In January it set up a joint venture with automaker Geely. The Chinese search company has set a goal to launch its first own-brand EV within three years, chief executive Robin Li said during an earnings call last month.

Chinese telecommunications giant Huawei will begin charging smartphone makers royalties of up to $2.50 for each 5G-enabled handset they sell that uses its patented 5G technology, the company announced on Tuesday.

Why it matters: The plan means global smartphone makers like Apple and Samsung are likely to pay 5G-related royalties to Huawei, the owner of the world’s largest portfolio of 5G patents, potentially opening a new revenue stream for the company as its smartphone sales shrink.

• Huawei has declared ownership of 3,007 5G patent families—groups of the same or similar patents filed in different nations, according to GreyB, an intellectual property research firm.
• Around 18.3% of Huawei’s patent filings are considered “essential” to the 5G standard—protocols and technical specifications that allow connectivity between 5G devices, according to GreyB. Smartphone makers have to pay for those “standard essential patents,” or SEPs, if they want to make 5G-compatible devices.

Details: Huawei has set the royalty for its 5G SEPs to up to $2.50 for each device, said Ding Jianxin, head of Huawei’s Global Intellectual Property, at a press event on Tuesday. The royalty will be charged based on the sales price of the handset at a “reasonable rate,” Ding said.

• Other major 5G patent owners are charging more than Huawei’s planned rate. Nokia said in 2018 that it will charge EUR 3 (around $3.57) per device for its 5G SEPs. Ericsson said in 2017 that its rate would be between $2.50 and $5 per device.
• Huawei will negotiate royalty rates and possible cross-licensing of patents with Apple and Samsung, Huawei Chief Legal Officer Song Liuping said on Tuesday. 
• Huawei said in a statement that it expects to earn between $1.2 billion and $1.3 billion from its intellectual property inventory, but it didn’t say how much of it will come from its 5G patents. The company has said it has invested 10% to 15% of its revenue in research and development (R & D) every year for the past decade.

Context: Huawei is losing its status as a smartphone powerhouse following US sanctions over the past two years. The company has been cut off from the global semiconductor supply chain and now relies on stockpiles to maintain production. But it remains a major standard-setter in 5G, meaning the world’s largest handset makers will still need to cooperate with the company to make 5G phones.

• In February 2020, Huawei filed two lawsuits against Verizon, alleging that the US carrier infringed on 12 of its patents.

Huawei on Monday unveiled its latest foldable phone as the embattled Chinese smartphone maker ramps up efforts to entice premium phone users in its home market.

Why it matters: Huawei is focusing its limited production capacity on high-end models after being cut off from the global chip supply chain. The new phone is priced starting at RMB 17,000 (around $2,785).

• The company’s last foldable phone, priced at RMB 16,999, was met with great enthusiasm from Chinese consumers. The model sold out within seconds of being made available.

Details: The Mate X2 foldable phone features an 8-inch interior display when unfolded and has an additional 6.5-inch exterior display.

• The 256GB version of the Mate X2 starts at RMB 17,999 while the 512GB version costs RMB 18,999. The model will is available for purchase in China starting Thursday. The company did not say if it will be available in overseas markets.
• Two rounds of US sanctions last year have “made our operations extremely difficult,” said Richard Yu, head of Huawei consumer business, at the launch event on Monday. “But thanks to our partners and consumers… we survived in 2020.”

Context: Huawei, once the world’s largest handset vendor, is now ranked third globally after shipping 170 million units in 2020. 

• A January report by market research firm Trendforce estimated that the company’s smartphone shipments will drop to 45 million units in 2021.
• The sharp decline is mainly because the company sold off its budget brand Honor last year. The company has been cut off from the global semiconductor supply chain and now relies on stockpiles to maintain production.
• In January 2020, Huawei told Chinese media that it sells approximately 100,000 units of its Mate X foldable device every month.

Chinese smartphone maker Xiaomi said on Sunday it had sued the US government over a move by the Trump administration which bars American investment in the company.

Why it matters: This is the first legal challenge launched by Chinese firms on the Trump administration’s investment blacklist. The US Department of Defense (DOD) alleges that the entities are “Communist Chinese military companies,” meaning they are owned or controlled by the People’s Liberation Army.

• Chinese tech companies have won legal challenges against the US government sanctions before. In December, a district judge fully blocked the Trump administration’s attempt to ban the Chinese video-sharing app TikTok in the US.
• But Huawei, a Xiaomi rival, has found little respite pursuing legal challenges. In February, a federal judge rejected Huawei’s constitutional challenge to a US law that restricts it from doing business with US federal agencies.

Details: Xiaomi said in a statement filed with the Hong Kong exchange on Sunday that it had filed proceedings in the US District Court for the District of Columbia against the DOD and the Department of the Treasury on Friday. 

• Xiaomi said that it believes its inclusion on the blacklist was “factually incorrect and has deprived the company of legal due process.”
• The firm has asked the court to declare the decision illegal and to reverse the course, it said.
• Defendants of the suit also include the US defense secretary, Lloyd Austin, and Janet Yellen, the Treasury secretary, according to a court filing.
• The DOD didn’t “provide any explanation for its decision to designate Xiaomi as a Communist Chinese military company,” nor did it give Xiaomi any opportunity to explain, the company said in the court filing on Friday.
• Xiaomi denied any allegations that it is owned, controlled, or does business with China’s defense industry.
• The Defense and Treasury haven’t responded to the lawsuit.

Context: An executive order signed by former US President Donald Trump in November bans American investment in companies that are deemed to be linked with the Chinese military.

• American investors will be prohibited from buying Xiaomi shares and will have to divest their holdings by November, according to the executive order.

Chinese smartphone brand Honor on Friday unveiled its first model since Huawei sold the unit in November, under pressure from US sanctions.

Why it matters: Huawei sold Honor to keep the brand free from US technology export restrictions. Friday’s launch shows that the strategy has achieved initial success, as Honor’s new phone contains technology that Huawei still finds difficult to acquire.

• The processor which powers the new model, the Honor V40, is made by Taiwanese chipmaker MediaTek, which is subject to a US export regulation imposed last year. It requires chip vendors around the world to acquire a special license from Washington to sell products with American technology to Huawei.
• V40 users in overseas markets will reportedly be able to Google apps and services. Huawei is still blocked from using those services because of a 2019 US ban.

Details: The 6.7-inch V40 smartphone lineup starts at RMB 3,599 (around $556), featuring a 50 million-pixel camera.

• The V40 is powered by MediaTek’s Dimensity 1000 Plus system-on-a-chip (SoC), which is compatible with next-generation 5G wireless technology.
• It also uses Samsung’s charging technology, according to Honor CEO Zhao Ming.
• Zhao said in a live-streamed press conference on Friday that the company now has five research centers and more than half of its staff work on research and development.
• It’s unclear whether Honor bought MediaTek’s processors before or after its split from Huawei. MediaTek told reporters (in Chinese) on Wednesday that it is still “assessing its cooperation” with the company as it launches a new series of 7-nanometer Dimensity 1000 chips.
• The model is available to order online for domestic consumers starting Friday. The company did not announce an international launch plan during the press conference. It is not yet listed on its international website.

Context: Huawei in November sold Honor to a government-backed consortium. Honor is a budget smartphone brand that Huawei established in 2013. It competes with other budget brands such as Xiaomi and Oppo while the Huawei brand sells to the high-end handset market. 

• A report released by research firm Trendforce this month said Honor will become a direct Huawei competitor.

Using your smartphone at restaurants has become the standard, and sometimes the only, way to order food at eateries in China. Customers scan the QR code displayed on their table and can place an order on their smartphones right away without assistance from waitstaff. 

To access the ordering page and digital menu, customers are often required to follow the restaurant’s social media page. Oftentimes physical menus are not in sight; some restaurants won’t provide them at all. 

While some customers view mobile phone ordering as an efficient innovation, many still prefer browsing a physical menu and in-person ordering. Aside from feeling impersonal and intrusive, requiring food orders via phone also places the elderly and the digitally unskilled at a disadvantage.

In response, Nanjing Consumer Association said last week that consumers have the right to say no to mandatory phone ordering, and restaurants should offer services that all customers can access. As a government-backed organization, consumer associations in China handle consumer complaints and work with regulators and law enforcement to protect their rights.

“Services without options encroach on consumer rights,” (our translation) Wei Cao, deputy secretary general of the Nanjing Consumer Association said in an interview (in Chinese) with China National Radio.

In late November, China’s State Council introduced a set of measures aimed at bridging the technology gap for seniors. Specifically, the guidelines require the technology used in existing services including transportation, consumption, and healthcare be evaluated to guarantee accessibility for the elderly. The guidelines also encourage the development of tech innovations aimed at seniors.

Boon for business, bad for user privacy

For restaurants, the smartphone ordering system is more cost efficient—it’s cheaper than making physical menus and saves on manpower. It also helps speed up the ordering process, thus allowing more customers to dine during busy hours. 

Having customers place their orders via smartphone can save restaurants about 30% of their labor costs, Yu Xuerong, president of the Jiangsu Catering Industry Association, said in the report.

It has also proven a boon for business marketing. In order to access a menu, diners are frequently required to “follow” restaurants on social media and subscribe to promotions, driving down marketing expenses while boosting user engagement. 

Those cost savings can come at the expense of user privacy. Customers are often required to fill out personal information such as names and phone numbers, and agree to share their locations, which helps businesses collect user data, analyze what dishes are more popular, and raise prices accordingly.

Felix Lee, a frequent restaurant-goer in Beijing, doesn’t like ordering on his phone at restaurants, even as a digitally savvy millennial. 

“It deprives my freedom to subscribe to pages at my own will and I am annoyed by their occasional pop-up ads,” he said. 

Lee normally unfollows the restaurant pages to unsubscribe from the promotions as soon as he completes his order. 

But for the elderly and the digitally unskilled, requiring food orders via smartphone is more than a nuisance and unpleasant privacy invasion. 

According to a report by the China Internet Network Information Center, there were 463 million Chinese not on the internet as of June. They are nearly evenly divided by location: 43.8% live in urban areas and rural residents account for 56.2%. 

Increasingly widespread mobile adoption has marginalized this segment of China’s population. Some businesses have even transitioned to mobile-only ordering, and refuse to take cash. 

In November, an elderly woman was denied the ability to pay in cash for her medical insurance. She was told to either pay on her phone or have a relative help her, according to a video posted to Chinese microblogging site Weibo. The video attracted more than 23 million views and 20,000 reposts, spurring netizen backlash against the bank. 

The same month, a video of a 94-year-old woman being propped up by family members in order to activate face recognition for her social security card at a bank in Hubei province went viral on Weibo. It sparked discussions about the burden forced upon the elderly by increasingly digitized services and the technology gap.

Restaurants need to develop and advance digitally to cater to customers using more efficient methods, while maintaining service channels for those accustomed to traditional ways, Yu of the Jiangsu Catering Association said.

Covid-19 widens technology gap

The Covid-19 pandemic has further compounded the technology gap. Essential information and services such as opening hours for public places and reservation systems at hospitals require using the internet, while digital health codes are required to enter public spaces. Digital reservation and registration is often required at tourist sites as well. 

An elderly man over the summer in the northeastern Chinese city of Harbin, and another senior citizen in Fushun in nearby Liaoning province earlier this month were barred from boarding buses because neither had a smartphone to scan the health code required for entry, according to Chinese news reports.

Seniors are often forced out of such digital checkpoints, and vital tasks such as hospital visits and Covid-19 tests commonly require online reservations during the pandemic. Chunhui Wang, professor and economist with Zhejiang University said in an interview (in Chinese) that senior citizens need to receive digital education while guidance and assistance should also be provided to those in need for mobile payments, health code scans, and digital reservations.  

Correction: an earlier version of this story incorrectly stated that Yu Xuerong of the Jiangsu Catering Industry Association said restaurants could save 30% of labor costs through marketing and promotions, rather than through the practice of placing food orders via customer smartphones.

Shares of Chinese smartphone maker Xiaomi plunged 11% on Friday morning after the Trump administration added it to a blacklist, forcing Americans to divest holdings and barring share purchases.

Why it matters: Xiaomi is the second-largest smartphone maker in the Chinese market and ranks fourth globally. The company has been caught in US-China geopolitical tensions for the first time, its troubles bearing resemblance to its main rival Huawei.

• However, Xiaomi is unlikely to face the same degree of US restrictions as Huawei, which has been essentially barred from the global high-end semiconductor supply chain. The Trump administration will end next week and there is no sign that it will place export restrictions on Xiaomi.
• A similar move against some Chinese telecom companies had led to their potential  delisting from US stock markets. Xiaomi is listed in Hong Kong, indicating that the price plunge on Friday could be shareholder panic selling.

Details: The US Department of Defense on Thursday added Xiaomi and eight other Chinese firms to a list of “Communist Chinese military companies,” according to a statement on its website. An executive order signed by US President Donald Trump in November bans American investment in such companies.

• Other companies added to the list include Commercial Aircraft Corporation of China, a state-backed aircraft maker; Gowin Semiconductor, a Guangzhou-based chip designer; and Beijing Zhongguancun Development Investment Center, a government-led venture capital firm.
• Shares of Xiaomi in Hong Kong dropped more than 11% on Friday morning.
• Xiaomi said in a statement Friday that it had confirmed that it is “not owned, controlled, or affiliated with the Chinese military,” and that the company’s products are all for “civilian and commercial use.”
• A Xiaomi representative did not immediately respond to a request for comment.
• US investors will be prohibited from buying Xiaomi shares and will have to divest their holdings by November, according to the executive order.

Context: Xiaomi shares reached a historical high of HKD 35.3 (around $4.6) on Jan. 5, driven by strong sales and a weakened Huawei. Market research firm Trendforce expects Xiaomi will be ranked the world’s third-largest smartphone vendor in 2021 while Huawei, which ranked third in last year, will fall to seventh this year.

• The Trump administration reportedly considered adding other Chinese tech giants including Alibaba, Tencent, and Baidu into the investment blacklist. All three companies are listed on US stock markets.
• On Wednesday, the Wall Street Journal reported that the US had decided to not to add them to the blacklist.

Update: This article has been updated to include a statement from Xiaomi and to correct a typographic error.

Chinese telecommunications giant Huawei, once the world’s largest handset vendor, will fall to seventh place in global smartphone shipment rankings in 2021 according to a report published Tuesday.

Why it matters: Huawei is losing its status as a smartphone powerhouse following US sanctions over the past two years. The company has been cut off from the global semiconductor supply chain and now relies on stockpiles to maintain production. To increase its chances of survival, it sold in November its budget handset brand Honor, which is now becoming a rival. 

Details: Huawei is expected to ship 45 million smartphones in 2021, ranking seventh among global vendors, according to a Trendforce report published Tuesday. Huawei shipped 170 million units in 2020, ranking third globally, according to the report.

• The changes in Huawei’s smartphone sales owe both to the US export restrictions and the Honor spin-off, according to Trendforce.
• Honor will become a direct competitor, thus making it harder for Huawei to regain market share for smartphones, the report said.
• Samsung will remain the world’s largest smartphone vendor and Apple will retain the second slot, said the report. Chinese company Xiaomi, which ranked fourth in 2020, will become the third-largest smartphone vendor in 2021. 
• Global smartphone shipments dropped 11% year on year in 2020 to 1.25 billion units, Trendforce said. The number is expected to increase by 9% to 1.36 billion this year.

Context: Huawei was briefly ranked the world’s largest smartphone vendor in the second quarter of 2020, according to market research firm IDC. The company’s smartphone shipments then plunged 22% in the three months ended September to 51.9 million units, causing it to fall to second place on the top smartphone vendor list for the quarter.

• Huawei has also lost access to popular Google services and apps including YouTube and Gmail because of a US trade ban in May 2019, making its handsets less appealing to overseas consumers.

Huawei founder Ren Zhengfei announced on Wednesday a reorganization that granted the head of its consumer business group oversight over its car business operations as the company moves to shore up promising new revenue streams.

Why it matters: Huawei is sharpening its focus to its budding connected car business following US sanctions which have strangled the company’s smartphone unit by clamping down on its access to chipsets.

• Huawei’s revenue growth rate declined to 9.9% year on year in the first nine months of the year from 18% in 2019, which the company said “basically met expectations.”
• Its global smartphone shipments fell 23% year on year in the third quarter, market research firm Canalys said in a recent report.
• Shenzhen-based Huawei last week announced it was selling its budget smartphone brand Honor to a consortium including major partners and the local government, which could make Honor no longer a subject to US sanctions.

Details: Huawei’s Intelligent Automotive Solution business unit was moved under the consumer business managing board, currently led by the group’s CEO Richard Yu, according to an announcement (in Chinese) dated Oct. 26 and posted to its online community on Wednesday.

• Yu will also lead the investment decision-making on the company’s intelligent automotive parts-related business in addition to its consumer device unit, Ren said, adding that the company aims to create more synergies between the two.
• Ren reaffirmed its strategy in the announcement that it has no intention to build cars, but to become a parts and solution provider for the growing segment of intelligent and connected vehicles.
• A Huawei spokesperson told TechNode on Friday that the move does not reflect a change in the company’s focus on smartphones. “It’s a normal business restructuring and has nothing to do with business priority change or US sanctions,” he added.

Context: Huawei in May 2019 placed its auto business unit under its information and communication technology (ICT) infrastructure managing board which mainly oversees its carrier and enterprise businesses and is led by rotating chairman Eric Xu.

• The Chinese telecommunications giant has invested heavily in the new potential revenue stream, spending more than $500 million during the first 10 months of this year. The unit had around 4,000 employees as of September, according to a Caixin report (in Chinese).
• The auto unit’s operations had been fragmented prior to the restructuring. On one hand, it develops car components and software solutions such as a power management system and charging solutions for electric cars, Caixin reported citing company employees.
• Meanwhile, the consumer group offers Hicar, a platform similar to Apple’s Car Play for connecting smart devices to vehicles, and the in-vehicle version of its Harmony operating system is jointly developed by the two teams, the sources said.

This article and its headline were revised Friday to include comment from Huawei.

Xiaomi reported on Tuesday better-than-expected revenue of RMB 72.2 billion (around $11 billion) for the third quarter, the fastest growth the Chinese smartphone maker has seen since its 2018 listing.

Why it matters: The strong performance shows how the Beijing-based company has benefited following US sanctions imposed on its archrival Huawei. Xiaomi’s global smartphone shipments grew 45% year on year to 47.1 million units in the third quarter while Huawei’s fell 23% year on year to 51.7 million units, according to market research firm Canalys.

• However, Xiaomi President Wang Xiang warned of a “supply chain shortage” in the fourth quarter during an earnings call late Tuesday. Wang did not provide further details but said the difficulty could last until next year.
• Unlike Huawei, which has been essentially cut off from the global semiconductor supply chain because of US sanctions, Xiaomi is free of geopolitical tensions. 

Details: Revenue for the world’s third-biggest smartphone vendor in the September quarter grew 34.5% year on year, said the company in a filing with the Hong Kong exchange Tuesday.

• More than half of Xiaomi’s third-quarter revenue came from overseas markets, which grew 52.1% year on year to RMB 39.8 billion, the company said. Its smartphone shipments in Europe grew 90.7% year on year in the same period, seizing an 18.7% market share, said the company, citing Canalys data.
• Xiaomi’s adjusted net income for the quarter grew 18.9% year on year to RMB 4.1 billion, according to the unaudited results. Shares of the company more than doubled this year.

Context: Xiaomi beat Apple to rank the world’s third-largest smartphone vendor in the third quarter behind South Korea’s Samsung and Huawei, according to Canalys.

• The company is also expected to benefit from the sale of Honor, Huawei’s budget phone brand, just last week. Analysts suggested that the company could gain around 15 million units in additional smartphone shipments because of Honor’s exit.
• Xiaomi’s Wang said during the Tuesday earnings call that the company has no plans to change its market strategy because of the Honor sale. “We were also informed by the media that Huawei sold Honor. Anyway, our strategy is unchanged and I don’t see the necessity to change it,” he said.

Huawei is selling its budget smartphone unit Honor, the company said Tuesday, to a consortium that is majority-owned by the local Shenzhen government in a deal to keep the brand alive.

Why it matters: The sale is a direct consequence of US technology export restrictions imposed on the Shenzhen-based company over the past year and a half. The world’s second-largest smartphone maker has lost access to most high-end semiconductors as well as Google apps and services on the Android operating system crucial to its handset offerings.

• The Honor brand buyer is majority held by the Shenzhen government. Huawei has been trying to shake off its connections with the Chinese state.
• A change of ownership may help Honor regain access to semiconductors it needs. However, the company’s premium Huawei smartphone brand—more dependent on sourcing advanced chips—is still subject to US restrictions. 

Details: Newly founded Shenzhen Zhixin New Information Technology will acquire all of the business assets of the Honor brand, according to a joint statement published in a local newspaper on Tuesday.

• Shenzhen Zhixin New Information Technology is 98.6% owned by a company that is wholly owned by the State-owned Assets Supervision and Administration Commission (SASAC) of the municipal government in the southern Chinese city of Shenzhen, according to Chinese corporate information platform Tianyancha.
• A limited partner holds the remaining 1.4% of the company, which is 62.34% held by an investment firm owned by the Shenzhen SASAC and the Finance Commission of Shenzhen Municipality.
• Huawei said in its statement that more than 30 Honor agents and dealers, including retail giant Suning.com, co-founded Shenzhen Zhixin New Information Technology along with the majority owner. However, there was no public record of such entities holding stakes in the new Honor owner.
• A Huawei spokesperson declined to comment when contacted by TechNode on Tuesday.
• Huawei said in a statement Tuesday that its consumer business had been under “tremendous pressure” because of “a persistent unavailability of technical elements needed for our mobile phone business.” The US government previously imposed license requirements on global semiconductor foundries and vendors that ship to Huawei products which contain US technology.
• “This sale will help Honor’s channel sellers and suppliers make it through this difficult time,” Huawei said.
• The statement did not disclose details of the deal. Reuters previously reported that it might be an all-cash sale worth between RMB 15 billion (around $2.2 billion) and RMB 25 billion.

Context: Honor is a budget smartphone brand that Huawei established in 2013. It completes with other budget brands such as Xiaomi and Oppo while the Huawei brand sells to the high-end handset market. 

• The Honor brand now sells more than 70 million units annually, Huawei said.

China’s Cyberspace Administration has cracked down on eight mobile browsers, ordering them to stamp out clickbait and misinformation.

Why it matters: By targeting the largest platforms, the authorities are sending out a signal to other smaller browsers that they may be next in line. Platforms that do not change their practices likely face suspensions or bans. 

Details: The order affects Alibaba-backed UC, Tencent’s QQ, Huawei, Qihoo’s 360, Tencent-backed Sogou, Xiaomi, Vivo, and OPPO.

• The announcement says (in Chinese) that browsers have spread “chaos” by amplifying unofficial media sources and disseminating news that violates regulations. 
• It criticizes browsers for editorializing articles to misrepresent policies that impact people’s livelihoods and spreading rumors.
• It also singles out problems like creating clickbait through exaggeration, sadfishing, or smearing. On QQ’s homepage on Oct. 27, for instance, one top post was “No hope! Western media: No saving Huawei.”
• Also under fire is information that is vulgar, graphic, or gossipy and against “socialist core values.”
• Browsers must submit plans on how they will rectify their practices and conduct self-scrutiny by Oct. 28. They will also have to submit reports on the results of these assessments and their content operation system specifications by Nov. 9.
• Huawei and QQ have already issued statements promising to clear up their browsers of questionable content. 

Context: Unlike the US where services are protected from liability for content published on their platforms, China holds companies accountable for content that appears on their home pages. Mobile web browsers wield distinct power: 872 million people in China access the internet through their mobile phones, and browser home pages have become key to their news-reading habits. 

Huawei said Friday its earnings for the first nine months of the year “met expectations,” though its revenue growth in the third quarter slowed sharply from the previous quarter.

Why it matters: The deceleration highlights how US restrictions on Huawei’s ability to source crucial high-end semiconductors have taken a toll on the Chinese telecommunication company’s business.

Details: Huawei said in a statement Friday that it booked income of RMB 671.1 billion (around $100.4 billion) in the first nine months of the year, growing 9.9% year on year.

• The company’s revenue for the third quarter was RMB 217.3 billion, a year-on-year increase of 3.7%, according to TechNode’s calculations of earlier data. The company’s second quarter revenue had rebounded to 22% compared with the same period a year earlier.
• The company’s net profit margin in the first three quarters was 8.0%, compared with 8.7% in the same period last year, according to the company’s statement disclosing unaudited financial data of the period.
• “Throughout the first three quarters of 2020, Huawei’s business results basically met expectations,” it said.
• The Shenzhen-based company said its supply chain was “under intense pressure” and its production activities and operations saw “increasing difficulties,” citing only the global outbreak of Covid-19. However, a series of sanctions imposed by the US government have cut the company off from the global semiconductor supply chain, and it is now relying on wafer stockpiles to maintain production.
• Analysts predict the company’s stockpiles of semiconductors will only last until June 2021.

Context: After three rounds of export restrictions, the Chinese telecommunications equipment and smartphone maker has lost nearly all access to semiconductors using US technology—specifically the high-end chips it needs for its carrier and handset businesses.

• In May 2019, the US government banned American companies from shipping components and technology to Huawei, but granted the company a series of reprieves, the last of which expired in August.
• In May and August, the US imposed similar export requirements on global semiconductor foundries that use American technology and third-party vendors that sell products to Huawei.
• In July, Huawei said its revenue during the first half of the year grew 13.1% to RMB 454 billion.

China Tech Investor is a weekly look at China’s tech companies through the lens of investment. Each week, hosts Elliott Zaagman and James Hull go through their watch list of publicly listed tech companies and also interview experts on issues affecting the macroeconomy and the stock prices of China’s tech companies.

Make sure you don’t miss anything. Check out our lineup of China tech podcasts

Elliott and James welcome IDC’s VP of Device Research Bryan Ma to the show. They discuss how Xiaomi is benefiting from Huawei’s international troubles, the foothold they continue to establish in India and SE Asia, and how the pandemic has been a surprisingly good year for PC makers.

For a map of the Xiaomi ecosystem, and more information on its web of product partners, check out VC Roundup | How big China tech uses investments to build empires.

Hosts may have interests in some of the stocks discussed. The discussion should not be construed as investment advice or a solicitation of services.

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Chinese smartphone maker Huawei is in talks with several Chinese electronics companies to sell parts of its Honor smartphone unit, Reuters reported Wednesday.

Details: Digital China, a Shenzhen-based cloud service provider, has become the frontrunner in the contest to buy Huawei’s Honor business. Other suitors include Chinese electronics maker TCL and budget smartphone maker Xiaomi, according to Reuters, citing people familiar with the matter.

• The deal could include the Honor brand, research and development capabilities, and related supply chain management business.
• The deal may be an all-cash sale and could worth somewhere between RMB 15 billion (around $2.2 billion) and RMB 25 billion, one of the sources said.
• Honor is a budget smartphone brand that Huawei established in 2013. The business mostly operates independently from Huawei, Reuters said.
• Huawei has been heavily restricted from accessing advanced semiconductors that are crucial to its smartphone production. A change of owner may help Honor circumvent the restrictions, according to Kuo Ming-chi, an analyst at TF International Securities.

Go deeper: Exclusive: Huawei in talks to sell parts of its Honor smartphone business – sources – Reuters

Shanghai-based Hurun publishing group estimated that Huawei, which it calls the most valuable consumer electronics company in China, is worth $160 billion in its first-ever report ranking the country’s consumer electronics companies published on Monday.

Why it matters: Assessing Huawei’s value is difficult because the company is not publicly traded. The report offers a glimpse of the mysterious company’s overall size and how its value has been impacted by US sanctions aiming to cut it off from the global semiconductor supply chain.

Details: Hurun said in a report (in Chinese) Monday that Huawei was valued at RMB 1.1 trillion (around $160 billion), ranking it as the most valuable consumer electronics company in mainland China.

• Rupert Hoogewerf, Hurun’s chairman and chief researcher, said in the report that Huawei’s valuation shrank from RMB 1.2 trillion last year to RMB 1.1 trillion this year because of US sanctions.
• The valuations were calculated by share prices as of market close on Sept. 30 for publicly traded entities, or estimated based on similar public companies if they were unlisted, according to Hurun.
• Trailing Huawei are Chinese smartphone makers Xiaomi, valued at RMB 434 billion; Vivo, worth RMB 175 billion; and Oppo at RMB 170 billion.
• Huawei declined to comment on the valuation.

Context: Though not listed, Huawei releases reports about its quarterly and annual earnings. In July, the company said its revenue for the first six months of the year grew 13.1% year on year to RMB 454 billion.

• Huawei maintains that it is a private company 100% owned by its employees. The company had issued virtual shares to some 104,572 employees as of end-2019, including company founder and chairman and chief executive Ren Zhengfei, who held 1.04% of Huawei’s total shares, the company said in its 2019 annual report (in Chinese).
• The South China Morning Post said in a report in September that each virtual share of Huawei was valued at RMB 7.85 in 2019.

The US Commerce Department license granted to Intel allowing it to continue supplying Huawei shows that Washington wants the Chinese telecommunications company to rely on US products rather than make its own chips, according to an industry expert.

The US government has imposed license requirements on chipmakers around the world which want to sell products that contain US technology to Huawei. The new restrictions came into effect on Sept. 15.

Silicon Valley-based Intel supplies integrated circuits such as systems-on-chip (SoCs), central processing units (CPUs), and graphics processing units (GPUs), used in computers. However, the company doesn’t contract out its manufacturing capabilities to make customized chips for clients, nor does it sell chip-making tools or machinery.

The move shows the US “may be willing to grant licenses as long as it doesn’t help Huawei create its own chips,” Stewart Randall, head of electronics and embedded software at Shanghai-based consultancy Intralink, told TechNode on Thursday.

Intel’s license to continue shipping to Huawei doesn’t help Huawei make its own chips but it does help the Chinese company’s server, personal computer, and laptop product lines, Randall said, adding that this shows Washington wants Huawei to “rely on US chips.”

Intel is the first company known to have received US permission to sell chips to Huawei. Huawei suppliers around the world, including Chinese contract chipmaker Semiconductor Manufacturing International Corp., South Korean chipmaker SK Hynix, and Taiwanese chip designer Mediatek, have applied to the US government for similar licenses. None of the applications have yet been approved.

On Wednesday, Huawei rotating chairman Guo Ping told reporters that US chipmaker Qualcomm is applying for a license to sell its chips. “If Qualcomm were granted the license, we will be willing to use their chips to make phones,” said Guo.

Huawei now relies on its stockpile of semiconductors to continue making products ranging from 5G base stations to smartphones and laptops. Guo said Wednesday that the company is still verifying how many wafers they have in stock.

“We have sufficient chip stock for base stations… But as to smartphone chips, we are still looking for solutions because Huawei uses hundreds of millions of smartphone wafers every year,” Guo said.

Analysts said Huawei’s stockpile of chips may last four to 10 months. “We are confident that Huawei’s chip stock can last until the end of this year… It is possible that Huawei will still have chips to use in the first half of 2021, but, in this period the uncertainty is huge,” IDC analyst Will Wong told TechNode in an interview last week.

Huawei’s long-awaited Android replacement is here. On Sept. 10, the company announced that its in-house mobile operating system, the Harmony OS, will be available on handsets starting next year.

The announcement came just days ahead of a US Commerce Department deadline which cut the company off from all possible sources of high-end chips, critical for its smartphone and carrier businesses. Analysts said the company may have to halt hardware production starting in the middle of next year.

The company first debuted Harmony OS in August 2019, shortly after new Huawei devices lost access to Google services on the official version of Android as a result of a May 2019 US ban. Harmony was widely seen as an alternative to Google’s Android mobile operating system, but at first Huawei only deployed it on devices like smart television sets and smart watches.

Starting from scratch

A third operating system outside of Apple’s iOS and Google’s Android could be an important source of revenue for Huawei’s consumer business to offset losses in hardware sales. In 2019, income from mobile services accounted for 10.5% of Google parent company Alphabet’s revenues and 17.8% of Apple’s, according to TechNode’s calculations.

Experts say that it will be difficult for Huawei to generate material revenue from the new operating system. The company faces challenges ranging from establishing a profitable business model to attracting app developers. If Huawei can no longer make smartphones, persuading other phone makers to adopt the system will prove challenging, they said.

Both Google and Apple take a 30% cut from transactions made on their platforms, which include sales of apps and digital content, as well as in-app purchases.

But there is a difference in China which makes earning revenue more difficult, according to Rich Bishop, chief executive officer of Appinchina, a company that helps overseas developers distribute their apps in China.

“All of the [third-party Android] app stores in China only make money from games. For any non-gaming apps, they don’t charge any fee.”

“But if they are able to make Harmony OS successful, for example, they have 500 million people around the world using Harmony OS to download apps and games from the Huawei store, then potentially they could make a lot of money,” Bishop explained.

“But that really depends on whether they can persuade everybody to sign up to Harmony OS.”

Will Huawei convince developers?

It is relatively easy for a developer to convert an Android app to a Harmony OS app, Bishop said. “Huawei obviously is a massive company with a lot of resources, and they are working very hard to try to persuade as many developers as possible to set up a Harmony version of their apps,” he said.

But according to Richard Yu, president of Huawei’s consumer business, the company’s mobile service ecosystem now has around 1.8 million developers, but only 96,000 apps. Most of these developers have yet to make an app for Harmony OS.

“Most developers are basically going to wait and see because they don’t particularly want to start assigning resources to develop for a third mobile OS,” Bishop said.

“I think they are just gonna see how successful the ecosystem is and whether other companies are making good money from Harmony OS, and then they may decide to develop Harmony OS apps too.”

Weighing politics and competition

The other challenge Huawei faces in promoting the Harmony OS is attracting new users. It is now the world’s largest smartphone vendor, but its handset capacity is under huge pressure because of the semiconductor restrictions.

Rumors spread that Huawei smartphone peers Xiaomi, Oppo, and Vivo could adopt Harmony OS, with a number of articles in Chinese either predicting that they would or calling upon them to do so in support of the company. Huawei denied that it had reached a deal to put Harmony on competitors’ phones, but none of the other companies have commented.

But they would have to be very patriotic to support a competitor.

“Smartphone makers like Xiaomi, Oppo, and Vivo have been facing great pressure from Huawei in the past year after it shifted its focus on the domestic market,” Will Wong, analyst at market research firm IDC, told TechNode. 

“If they adopt Harmony OS, they are essentially helping Huawei. So I think the possibility is low.”

Bishop of Appinchina agrees. “I don’t think that other domestic manufacturers like Xiaomi and Oppo would want to use Harmony OS, because obviously, it is a much weaker ecosystem than Android. And it’s run by a competitor, Huawei,” he said.

Both Wong and Bishop reckon that the only reasons that other Chinese phone makers would use Harmony OS would be “political.”

“I don’t think Huawei’s competitors will say ‘absolutely no,’ to Harmony OS because the political risk is a very important factor in today’s market,” said Wong.

“The only way I can really see it working is if the Chinese government, because of the US-China decoupling, says: ‘all right, China needs its own mobile OS.’ And therefore, they kind of require every Chinese manufacturer to offer Harmony OS or to have it as an option,” said Bishop.

On Wednesday, Zhang Pingan, president of Huawei’s consumer cloud business unit, told reporters that the ecosystem of Harmony OS is always “open” to other smartphone makers.

“I think we will work together with all hardware makers to build a better ecosystem and help developers avoid switching back and forth between different platforms,” he said.

US officials have complained many times about “loopholes” that allow Huawei to keep its chip supply chain running in the face of export controls. Now it seems that the “loopholes” are closed, and tight.

After being subjected to three rounds of export restrictions, the telecommunications equipment and smartphone maker has lost nearly all access to semiconductors using US technology—meaning the high-end chips it needs for its carrier and handset businesses.

Richard Yu, president of Huawei’s consumer business, said Aug. 7 that the company had to stop making its in-house Kirin chips, which are widely used on the company’s mobile devices, because they are made using US technology.

Despite the looming bans, Huawei has been on a roll lately. The company was ranked the world’s largest smartphone vendor for the first time in the second quarter. However, in an event last week, Yu said the growth of Huawei’s smartphone sales during this period had been “affected” by “a shortage of components.”

In other people’s eyes, however, the situation could be much worse. Analysts told Reuters that US export restrictions would threaten Huawei’s status as the world’s largest handset maker, and warned its smartphone business would “disappear entirely” if it could not source the chips it needs.

The uncertainty in Huawei’s supply chain has also taken a toll on its carrier business. The British and French governments have told domestic telecom operators to phase out Huawei equipment, citing the risks of the company’s supply chain continuity.

It looks like the end of the world for the company. But what options does Huawei still have? We asked experts, and it doesn’t look good.

What happened this week?

Huawei has faced escalating US restrictions for over a year.

May 16, 2019: The US government bans American companies from shipping components and technology to Huawei, but granted the company a series of reprieves, the last of which expired in August. 

May 15, 2020: The White House announces plans to tighten its stranglehold, cutting Huawei off from global semiconductor foundries that use American software and technology to Huawei. These news rules officially took effect on Tuesday. 

Aug. 17: US government expands licensing requirements, seeking to prevent Huawei buying US-linked chips through subsidiaries or third-party vendors

After Tuesday’s deadline, Huawei will lose access to most of the semiconductor fabrication plants in the world that can make high-end chips because they use US technologies. Huawei cannot buy ready-made chips that contain US technology from any third parties because of the August ban.

Experts said that the US will move swiftly to block any further “loopholes.” The company has stockpiles of chips, but only enough to last a few months. It has to plan out how to use these stockpiles in order for its production to continue.

Can Huawei still get chips?

Huawei has an in-house chip designer known as Hisilicon. This subsidiary designs a variety of chips used in Huawei’s products. They include the Kirin series for mobile devices and the Balong series for telecommunications gear.

Hisilicon could struggle to continue designing Kirin or Balong chipsets because it lost access to US-origin electronic design automation (EDA) tools, Jan-Peter Kleinhans, project director at Germany tech-policy think tank Stiftung Neue Verantwortung, told TechNode in an email.

EDA is a category of software tools for designing electronic systems such as integrated circuits and printed circuit boards. The EDA industry is dominated by three US, or US-linked, firms—Synopsys, Cadence, and Mentor Graphics. Together they account for 60% to 70% of the global EDA market and around 95% of sales in China.

But even if Huawei managed to design chips, it would still need an outsourced fabrication plants to manufacture them, like nearly all semiconductor companies. Taiwan Semiconductor Manufacturing Co. (TSMC), South Korea’s Samsung, and Chinese company Semiconductor Manufacturing International Corp. (SMIC) are Huawei’s existing suppliers. All three are forbidden to use US-origin manufacturing equipment to fabricate chips for Huawei, Kleinhans said.

They can apply for licenses to continue supplying Huawei—but it’s up to Washington whether to grant them. SMIC, China’s biggest chipmaker, said Tuesday it had applied to the US government for a license to continue supplying to Huawei. TSMC reportedly planned to apply for a license to continue shipping to the company. A unit of Samsung is also seeking approval from the US government to continue supplying Huawei.

“The outlook is rather grim,” Kleinhans said. “Also, even if Huawei finds ways around the current restrictions, the US government’s trajectory is pretty clear: this is now the third export ban against Huawei. There can easily be a fourth or a fifth, if they deem it necessary.”

So far, none of the applications have been approved.

How will Huawei make phones?

With Huawei’s chip stockpile, smartphone production may not need to halt immediately. But the question is: How long will Huawei’s stockpile last?

Four to 10 months, according to analyst Will Wong at market research firm IDC.

Wong told TechNode that Huawei currently has a stock of high-end chips from TSMC and medium- to low-end chips from Mediatek, a Taiwanese chip designer.

“We are confident that Huawei’s chip stock can last until the end of this year,” Wong said. “It is possible that Huawei will still have chips to use in the first half of 2021, but, in this period the uncertainty is huge.”

The company might use Mediatek chips to produce more medium- to low-end phones during the rest of the year to make up its losses in the high-end handset market, said Wong, adding that Huawei might have to save some chips for production next year.

“All Huawei has to do is to bide its time, because there might be a turnaround after the November US presidential election,” he said.

“No matter how much chip stock does Huawei have, it has to race against time,” he said. “There may be a better situation after the election, or perhaps Huawei can manage to produce chips in China, but the key is time.”

A Huawei spokesman declined to comment on questions about the company’s plans for chip sourcing. He said in a statement to TechNode that the company is “still evaluating the long term impact of the matter at hand and are actively seeking solutions to minimize the impact for everyone.”

How will Huawei’s carrier business be affected?

The US government has been pushing Western countries to avoid Huawei equipment in their next-generation 5G networks, saying that the Chinese government could use its gear for spying purposes. Huawei, the world’s largest supplier of telecom equipment, has repeatedly denied the allegations.

Eventually, some US allies announced they would begin excluding Huawei. But what made some European countries dodge Huawei products were not Washington’s security warnings, but the possibility that the company would not be able to supply them due to semiconductor export bans.

In July, the United Kingdom and France instructed telecom operators to phase out Huawei equipment from their current networks over the next few years. Both countries cited the uncertainty around the company supply chain as a reason for doing so.

“The UK government revised its 5G strategy and excluded Huawei from further 4G/5G deployments exactly because they are not confident that Huawei will be able to serve British operators in the future because of the US export control,” said Kleinhans.

“Following the UK’s analysis, I think it’s fair to say that Huawei will struggle to maintain or even upgrade customer networks in the near future,” he said.

The global economic downturn caused by Covid-19 was always going to hit the smartphone market. But as smartphone makers shifted their conferences online, pandemic conditions eased up in China, making it the only phone market in the world that saw sequential growth in the second quarter of the year.

A ‘new’ 5G Iphone?

Apple’s Chief Financial Officer Luca Maestri told investors on a recent call, “Last year we started selling new Iphones in late September; this year we expect supply to be available a few weeks later.” The new phone may launch on time, but delivery and sales will face delays.

It may well be that Tim Cook isn’t worried about the delay. Last year, even though Apple was forced to accept price cuts and massive discounts, the new Iphone 11 became one of the best-selling phones in China. Alongside it came the revamped Iphone SE, whose strong value for money made it the most popular Apple model in the world. Global shipments of the new Iphone SE reportedly reached 12-14 million units in Q2 2020.

The success of these two phones gives Apple reason for confidence. According to data from market research firm CINNO, in Q2 2020, Iphone sales in China increased 62% year-on-year to 13 million units.

With this momentum, the launch of the 5G Iphone, expected in fall 2020, is hotly anticipated.

5G is becoming an essential selling point in the Chinese market. Statistics from the China Academy of Information and Communications Technology show that domestic 5G mobile phone shipments reached 13.911 million units in July. The data shows that 5G smartphones accounted for 62.4% of domestic mobile phone sales, exceeding 60% of the total for the second consecutive month.

The wave of 5G replacements is likely to build over the next few months. Analysis by research firm Counterpoint suggests that more than 50% of global 5G phone sales this year will come from China.

The survival of Huawei

At the end of March, Huawei rotating chairman Xu Zhijun said that 2020 was Huawei’s most difficult year, and called for the company to come together to overcome its difficulties.

When it rains, it pours.

According to international media reports, Huawei’s temporary reprieve from a ban on importing US technology expired on Aug. 13 this year. There has been no word of a renewal.

Its relationship with the Google Play Store has been severely disrupted. Huawei devices that came with pre-installed Google mobile services can still download and update Google applications through other channels. But newly released phones, such as the P40, cannot use such services.

Huawei is working to mitigate the loss of the Google Play Store. Its phones come equipped with a Huawei suite of mobile services, and a homegrown operating system called HarmonyOS, or HongmengOS in Chinese, is coming to smartphones in early 2021, the company announced Sept. 3.

On the existing foundations of the HarmonyOS ecosystem, breaking into overseas markets may take a while. Few of the world’s most popular apps are available in Huawei’s app store, although some can be installed independently. Richard Yu has predicted that apps like Facebook will eventually join the Huawei app store.

Harder to evade are the US’s new restrictions on the company’s semiconductor supply chains.

Huawei’s executive director Richard Yu said at the China Informatization Hundreds Conference 2020 that due to the second round of sanctions by the United States, Huawei will lose its chip making capacity on Sept. 15. As a result, the company’s smartphone shipments this year might be fewer than last year’s 240 million, Yu said.

The dwindling supply of chips will severely challenge Huawei’s market competitiveness in the phone business. Coupled with the ban on overseas GMS services, its vitality in overseas markets has been struck a heavy blow, and this has cast a long shadow over Huawei’s confident New Year vision.

Xiaomi at ten: a fork in the road

When Covid-19 hit China, Xiaomi’s shipments were already lowest among the four leading manufacturers, which also include Huawei, Oppo, and Vivo.

Despite strength in online sales channels, the epidemic era hasn’t been kind to it. In Q2 2020, the company accounted for only 10.4%, or 9.1 million, of the 87.8 million smartphone units shipped in China, its 21.9% year-on-year drop in sales second worst among the major brands, data from IDC said.

Xiaomi’s setbacks overseas have been worse as it lost production and order capacity due to the virus. In India, one of its strongest markets, Xiaomi’s overall shipments fell 48.7% year-on-year.

Xiaomi models do not have a reputation for value, and it hasn’t come up with an alluring flagship model to attract consumer attention. Its surround-screen model , announced with much fanfare last year, was indefinitely delayed in 2020. The same holds true for chips. After the first generation of its phone chips was released in 2017, Xiaomi hasn’t released any plans for a second generation.

Xiaomi also lags its peers in R&D spending. In 2019, Oppo and Vivo both increased their R&D spend to RMB 10 billion ($1.46 billion) . Xiaomi only invested RMB 7.5 billion in 2019, and plans to reach RMB 10 billion this year.

Lei Jun, Xiaomi’s co-founder and CEO, has pursued business diversification for a while. But despite growth in IoT sales prior to 2020, Xiaomi remains a smartphone company. Its handset shipments account for 50.1% of its total revenue.

Internet of Things (IoT) products have performed well in recent years. But even in this market, Xiaomi is slowing down, weighed down by excessive reliance on hardware sales and the complicated supply chain logistics of selling hundreds of products. Its Q1 2020 earnings report shows little growth in IoT.

Oppo is diversifying

Meanwhile, Oppo has increased its investments overseas and established a semiconductor company called Zheku Technology.

Zheku may be Oppo’s way out. The company has always focused on marketing and offline channels and has suffered a lot during the Covid year. Its eye-catching advertisements—often seen on other manufacturers’ gadgets—are increasingly unable to cover up performance shortcomings. These are now compounded by anti-China sentiment in India, which sent shipments to India plummeting in the second quarter by 51% year-on-year. Oppo has lost more than any other of the top five brands in India.

For Oppo, this year may be the most difficult since it got into smartphones. This is despite Oppo’s accomplishments in 2019: reorganizing its product line, strengthening finances, establishing an independent chip department, developing independent sub-brand Realme, and launching IoT products; it also began to increase R&D to compete with its rivals.

A painful readjustment is now necessary. In the face of these challenges, Oppo recently announced that OnePlus founder and CEO Pete Lau (who will remain founder and CEO of OnePlus) has returned as senior vice president of shared parent company Ouga Holdings, and is fully responsible for the Ouga ecosystem’s product planning and experience, including Oppo.

In desperate times, Oppo is rallying its troops, and wants to reorganize its product line by bringing back veterans of the brand, strengthen differentiation, guard its market share, and regain the attention of its customers—who have very much glanced away.

Chinese smartphone maker Huawei announced Thursday that Harmony OS, its in-house replacement for Android, is coming to smartphones. The mobile operating system will be available to developers in December, company officials said, with consumers to see it next year.

Why it matters: This is the first time the embattled Chinese company confirmed that its HarmonyOS, known in Chinese as HongmengOS, will run on mobile devices. The new OS is a sign that Huawei is inching towards independence from American technology for its smartphone ecosystem.

• The company first announced the operating system in August 2019 after new Huawei devices lost access to Google services on the official version of Android as a result of a May 2019 US ban.
• HarmonyOS, widely regarded as an alternative to Google’s Android mobile operating system, already runs on a series of Huawei devices such as smart television sets and smartwatches.
• The company previously did not confirm that the system would be deployed to smartphones. Analysts told TechNode that this was to avoid “harming its relationship with Google.” Most current Huawei handsets still use the Android operating system.

Details: Richard Yu, head of Huawei’s consumer business group, said in an event Thursday afternoon that HarmonyOS will come to smartphones early next year, as he announced the 2.0 version of the operating system. Developers will get early access in December.

• Yu, citing market data, said that the company became the world’s largest smartphone vendor in the second quarter. “But a shortage of components has affected our growth in recent months,” he said. 
• Yu had previously said Huawei would stop making the Kirin chipsets used in high-end smartphones starting from September, citing US pressure on the company’s suppliers.
• Yu also said that a Hongmeng app ecosystem is developing. A Huawei executive said in November smartphones running the HarmonyOS was ready in technology, but the app ecosystem was “lagging behind.”
• The HarmonyOS ecosystem has around 1.8 million developers and some 95,000 apps, said Yu. He added that developers can easily convert an existing app for other devices to a smartphone app on the HarmonyOS.
• Yu also announced that the operating system will be open-sourced on Gitee.com, a Chinese homegrown alternative to American source code management platform Github, on Thursday. In July, the Chinese government chose (in Chinese) Gitee.com to build a Chinese “independent open-source code hosting platform.”

Context: Huawei sold 55.8 million smartphones in the second quarter and, for the first time, reached the top spot in global smartphone vendor ranking, according to market data provider IDC. But the US-China trade war has threatened the company’s access to critical inputs for its smartphones.

• On Aug. 18, the US Commerce Department added 38 Huawei subsidiaries into the so-called “Entity List” and imposed license requirements on any transactions involving items subject to US export controls, meaning that Huawei can’t purchase commercially available chips it needs from third-party vendors.
• The bans will tighten next week, when major chipmakers plan to end shipments to Huawei on Sept. 15.

Correction: An earlier version of this story wrote that HarmonyOS will be “deployed” to smartphones in December. In fact, it will be made available to developers in December, according to the company’s announcement, and consumers will get phones with the new operating system next year.

Chinese scooter maker Ninebot on Tuesday gained final approval from the Shanghai Stock Exchange to register on the bourse’s Nasdaq-style STAR Market, according to a notice on the board’s website.

Why it matters: The Beijing-based company, incorporated in the Cayman Islands, is expected to become the first foreign-registered company with a variable-interest entity (VIE) structure to list on a stock exchange in Mainland China.

• The STAR Market, which opened for trading a year ago, has allowed VIEs and unprofitable companies to list, in a bid to lure Chinese tech companies home from New York.
• The effort started to pay off: Alibaba’s fintech affiliate Ant Group on Monday announced a dual-listing plan to IPO on the STAR Market and the Hong Kong Exchange.

Details: Ninebot has been allowed to submit registration filings to the China Securities Regulatory Commission, the country’s top securities watchdog, for a final review, the STAR Market’s website shows (in Chinese).

• Ninebot plans to issue around 7 billion Chinese Depository Receipts (CDRs) through its custodian bank, raising more than RMB 2 billion (around $287 million) from the domestic market. CDRs are shares of non-Chinese companies that are allowed to trade on China’s financial markets, functioning similarly to American Depositary Receipts.

Context: Founded in 2014, Ninebot is now the world’s largest vendor of electric scooters. The company snapped up failing American personal-transport manufacturer Segway in 2015.

• Chinese smartphone maker Xiaomi owns around 22% of Ninebot. The scooter maker is also one of the so-called “Xiaomi ecosystem enterprises”—companies that leverage Xiaomi’s retail channels to sell their products.
• Ninebot lists Xiaomi as an important customer with related-party sales to Xiaomi accounting for 52.3% of its total revenue in 2019, according to its prospectus.
• The company booked revenue of RMB 4.6 billion and a net loss of RMB 459 million in 2019.

Huawei said Monday its revenue during the first half of the year grew 13.1%, a significant slowdown from the same period last year as the company faces stricter sanctions from the United States.

Why it matters: The Shenzhen-based telecommunications gear maker’s business in the first six months of the year was hit by a double whammy—a new round of US sanctions imposed in May and the Covid-19 pandemic that has disrupted the global economy.

• “The complex external environment makes open collaboration and trust in global value chains more important than ever,” Huawei said in a statement Monday.

Details: Huawei booked RMB 454 billion (around $64.9 billion) in revenue in the first six months of the year with a net profit margin of 9.2%, the company said in the statement.

• Huawei’s consumer business earned RMB 255.8 billion, while its carrier and enterprise units reaped a respective RMB 159.6 billion and RMB 36.3 billion, the company said.
• Second quarter revenue rose 22.7% year on year, according to TechNode’s calculations based on stated data.

Context: The same period a year earlier, the company reported 23.2% year-on-year revenue growth, before the impact of a May 2019 US blacklisting that sought to cut the company off from American technology. Huawei touted the growth as proof that US sanctions had a limited impact on its business.

• The ban took effect in May after several reprieves. Before that, some of Huawei’s important American partners such as Google—which provides commercial licenses to millions of Huawei’s Android-powered smartphones—had already terminated cooperation with the company, dealing a blow to its consumer business, its biggest source of revenue.
• In May, the US Department of Commerce announced a new regulation requiring companies around the world to obtain licenses for sales to Huawei of semiconductors made with US technology, an upgraded version of a May 2019 ban that applied only to American companies.
• The new regulation could potentially cut Huawei off from the global semiconductor supply chain. Affected Huawei suppliers include Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker which produces high-end chip designs for Huawei; Taiwan’s Win Semiconductors, which makes Huawei’s radio frequency chip designs; and South Korea’s Samsung Electronics, which ships memory and storage to Huawei.
• Huawei had reportedly started shifting some production of its chip designs from overseas contract makers to domestic ones such as Shanghai-based Semiconductor Manufacturing International Corp., but experts believe the homegrown alternative is too backward in technology to supply the cutting-edge chips that Huawei needs.

The board of Chinese smartphone maker Xiaomi passed Tuesday a resolution on share buybacks, paving the way for the company to repurchase up to $4.3 billion in shares.

Why it matters: Tuesday’s announcement is part of the company’s broader efforts to boost investor confidence.

• The company’s share prices have lost nearly a third of their value since debuting on the Hong Kong stock exchange in July 2018, hurt by a slowing smartphone market and low margins in its hardware business—the company’s biggest source of revenue.
• Xiaomi share prices surged 8.7% during Wednesday’s morning trading session.

Details: Xiaomi’s board of directors has approved a resolution allowing the company to repurchase up to 10% of its issued shares, according to a statement filed with the Hong Kong stock exchange on Tuesday.

• Xiaomi has issued 24.1 billion shares, according to the filing, meaning the company could buy back up to 2.4 billion shares. The value of that 10% of shares as of Wednesday was HK$33.1 billion (around $4.3 billion).
• The resolution allows the company to repurchase shares, but it has not yet announced a plan. A Xiaomi representative declined to comment.

Context: The Beijing-based company is looking to roll out a more aggressive share buyback initiative following an earlier plan announced in September to repurchase up to HK$12 billion (around $1.6 billion) worth of stock in an effort to halt its decline in value.

• The company has executed nearly 20 buybacks since the September announcement. In April, it spent nearly HK$500 million on two buybacks on two consecutive days.
• Shares have climbed 65% since the announcement. However, they remain at two-thirds the value of the initial public offering price.
• The company said in March its revenue for the fourth quarter rose 27.1% year on year to RMB 56.5 billion (around $8 billion), with RMB 66 billion in cash reserves as of end-2019.

Apple has advised one of its Airpod factories in China to make a major investment in a key supplier as the company moves to create an alternative to its longtime Iphone assembler, Taiwan’s Foxconn, according to a Nikkei Asian Review report.

Why it matters: The deal would bring Luxshare-ICT, a lesser-known Chinese assembler of Apple’s Airpods, closer to producing Iphones, grabbing share from Foxconn.

• Hon Hai Precision Industry, known as Foxconn, is the world’s largest electronics contract manufacturer and a major Iphone assembler. 

Details: Luxshare has been in talks with Taiwan’s Catcher Technology, the world’s second-largest metal casing provider, for more than a year and has recently entered a deeper round of negotiations, according to the Nikkei report, citing a person familiar with the talks.

• The deal in question covers some of Catcher’s facilities in China, its workforce, and its business opportunities with Apple, the report said.
• The report cited anonymous sources as saying that Apple is keen to reduce its heavy reliance on Foxconn, which has accounted for more than 50% of iPhone production since 2007.

Context: Luxshare will help Apple produce 3 million to 4 million Airpod units in Vietnam in the second quarter as the California-based tech giant further diversifies its production out of China, according to another Nikkei report published last week.

• Apple had previously asked suppliers to assess cost implications for shifting 15% to 30% of hardware production out of China at the peak of the trade conflict between the US and China last year.
• Foxconn recently moved some of its Iphone production lines out of China and has started to produce some Iphone XR units in India.

Read more: Apple partner Foxconn struggles to reopen plants

Smartphone sales in China fell 22% in the first quarter as a result of the Covid-19 outbreak, according to a report released Wednesday, with embattled Chinese smartphone maker Huawei the only manufacturer that saw a growth in the quarter.

Why it matters: The coronavirus outbreak has accelerated a downward trend in the world’s largest smartphone market.

• Analysts had forecasted a year-on-year drop of 15% to 20% in China’s Q1 smartphone shipments caused by delayed factory reopenings in February.
• The report by market research firm Counterpoint Research also attributed the decline to “dismal sales” in February. But e-commerce platforms, it said, have helped smartphone vendors to recover some of the losses.

“The drastic fall in Q1 China market was primarily dragged down by the dismal sales of smartphones in February (-35% YoY)… However, during the lockdown period in China, local e-commerce giants such as Alibaba and JD.com managed to sustain efficient business operations and delivery services in major Chinese cities outside of Hubei province. For the strong support from these e-commerce players, China’s smartphone sales appeared less negative than our original expectation.”

—Flora Tang, research analyst at Counterpoint Research

Details: Huawei was the only smartphone vendor in the top five that posted positive year-on-year growth of 6% in the first quarter, according to the report. The Shenzhen-based company retained the top spot in China’s smartphone market with 39% share.

• Sales of Apple’s iPhones fell 1% in the first quarter compared with the same period a year ago. The company sold less than half a million iPhones in China in February. However, sales surged in March, rocketing 406% from February to around 2.5 million units.
• Sales of smartphones compatible with 5G networks grew 120% compared with the previous quarter, the report said, as Chinese carriers step up efforts to build more 5G base stations in urban areas.
• “We expect 5G smartphones to rise to account for over 40% of total smartphone sales in China by the end of 2020,” said Mengmeng Zheng, research analyst at Counterpoint.

Context: Huawei said last week its total revenue for the first quarter grew only 1.4% year on year to RMB 182.2 billion (around $25.7 billion). During the same period, China’s GDP contracted 6.8%.

• In a bid to boost sales, Huawei has teamed up with food delivery platform Meituan, allowing consumers to order its smartphones and tablets and receive them within an hour from flagship stores.
• Observers were not optimistic about China’s smartphone market over the long term. According to a recent report by market research firm Strategy Analytics, 37% of Chinese consumers have delayed plans to upgrade their handsets.

In partnership with

Editor’s note: This article is first published on TechNode Global by Shi Hui Tan in partnership with Huawei Assistant. We believe in transparency in our publishing and monetization model. Read more here.

Huawei recently showed off new, Asia-specific content that’s just rolled out to Huawei Assistant.

Keen to give it a whirl, TechNode’s editor, David Cohen, gave a review of the Chinese version of Huawei Assistant and Huawei Ability Gallery at our Shanghai office while our TechNode Global (Singapore) country manager, Shi Hui Tan, visited a Huawei store in the city-state to check out the international version.

If you can’t play the video above, click HERE.

Huawei is facing a big challenge outside of China where, as was reported in 2019, new versions of its smartphones lose access to popular applications and services including Google Play, Google Maps and the Gmail app. 

To overcome this, Huawei is launching its own version of these, including the revamped Huawei Assistant and the new Huawei Ability Gallery. It’ll be interesting to see if the big-name Southeast Asia apps will sign up for the Huawei Ability Gallery – it’ll be a crucial factor for Huawei to stand up against the competition. 

Xiaomi has hired the president of an online bank to lead the smartphone maker’s budding consumer finance business, the company announced Thursday.

Why it matters: The Beijing-based company is actively seeking new growth opportunities outside smartphones as global handset sales shrink. The company has been trying to leverage its massive global handset user base to boost other business segments such as personal cloud service and consumer finance service.

• Xiaomi has long been planning to spin off its finance business into an independent entity—similar to Alibaba’s division of Ant Financial, which has grown into one of the world’s largest tech startups with an implied valuation of $200 billion.

Details: Xiaomi has appointed Zhao Weixing, the former president at Sichuan Xinwang Bank, as the vice president of its fintech branch, the company said on social media platform Weibo (in Chinese) Thursday.

• Zhao has served as a top executive at China Minsheng Bank, Shanghai Pudong Development Bank, and the Bank of Hangzhou, the company said.
• Founded in 2016, Sichuan Xinwang Bank is China’s third online banking firm following Tencent-backed Webank and Alibaba-backed Zhejiang E-Commerce Bank.
• Xiaomi owns a 29.5% stake in Sichuan Xinwang Bank, according to corporate information platform Tianyancha (in Chinese).
• Zhao will report to Hong Feng, chairman of Xiaomi’s fintech branch, the company said.
• Sichuan Xinwang Bank told Chinese news outlet Caixin that Zhao would continue participating in the bank’s development “by other means” despite his departure.

Context: In January, Chinese regulators gave Xiaomi the green light to set up a consumer finance company in the southwest municipality of Chongqing.

• The company, however, has yet acquired a consumer finance license, which allows holders to lend money to consumers. In March 2019, it had to break up a peer-to-peer (P2P) lending subsidiary based in Zhuhai, Guangdong province amid a nationwide crackdown on online lending.
• Amid the domestic regulation uncertainty, the company is simultaneously eyeing fintech markets overseas.
• The company acquired its digital banking license in Singapore in January and was said to be in talks to expand its financial product offering in India late last year.

China’s Huawei reported Tuesday sharply slower revenue growth in the first quarter of 2020 as the company faces both trade restrictions from the US and the global coronavirus outbreak.

Why it matters: The dismal revenue numbers for Q1 provide a picture of how the Covid-19 outbreak has affected China’s electronics manufacturing sector and smartphone market.

• The country reported last week that its first-quarter GDP contracted by 6.8% from a year ago—the first quarterly revenue decline of the country since at least 1992.
• Huawei, however, is expected to gain from China’s massive “new infrastructure” initiative that aims to stimulate the country’s virus-hit economy by pouring trillions of RMB into 5G networks, data centers, and artificial intelligence. 

Read more: China’s ‘new infrastructure’ projects, explained

Details: Huawei’s revenue for the first quarter grew only 1.4% year-on-year to RMB 182.2 billion (around $25.8 billion), according to a company statement published Tuesday.

• The growth rate for Q1 2019 was 39% year-on-year.
• “Huawei’s business is continuing as usual and its overall business results in Q1 2020 are in line with expectations,” said the company in the statement.
• Its net profit margin in the quarter was 7.3%, slightly lower than the 8% margin reported in the same period last year.

Context: Huawei reported 23.2% year-on-year revenue growth in the first half of 2019. This was shown by the company as proof that the US sanctions had a limited impact on its business.

• The Trump administration added Huawei on a trade blacklist in May, barring US companies from exporting to Huawei without government approvals.
• Huawei said in October its revenue growth for the first three quarters of 2019 was 24% year on year.
• The company said earlier this month its revenues for the full year 2019 rose 19.1% to RMB 858.8 billion.
• In an interview with the Wall Street Journal in March, Huawei founder and CEO Ren Zhengfei said the company had lower expectations for its first-quarter revenue but the company’s revenue for the whole year would keep moving ahead.

Chinese smartphone maker Xiaomi has spent $64.5 million on buying back its shares in the past two days, company filings show.

Why it matters: The buybacks come during a slump in Asian markets, with Hong Kong’s Hang Seng Index falling 1.9% on Wednesday and the Japanese market benchmark Nikkei 225 index down by 1.7%.

• Shares of Xiaomi have climbed 4.6% since Tuesday when the company announced the first buyback.
• The share repurchases are also part of measures taken by the company to boost investor confidence.
• The global smartphone market is expected to be severely hit by the coronavirus outbreak.
• Official data has shown a 36.4% dent in China’s handset sales in the first quarter.

Details: Xiaomi spent HKD 250 million (around $32.3 million) on a share buyback on Wednesday following a similar repurchase of HKD 249.6 million on Tuesday, according to company filings to the Hong Kong bourse.

• The buybacks are part of Xiaomi’s previous plan to repurchase up to HKD 12 billion worth of stock that they announced in September.
• The company said in a statement in September that the plan would “broadcast the company’s confidence in its own business outlook and prospects, and will benefit the company as well as its shareholders.”

Context: Shares of Xiaomi have dropped by nearly 20% since March, canceling out the company’s gain since its HKD 12 billion share repurchase announcement.

• The company said last month its revenue for the fourth quarter rose 27.1% year on year to RMB 56.5 billion (around $8 billion) while it booked net income of RMB 2.3 billion in the period, a year-on-year increase of 26.5%.
• Xiaomi’s cash reserve was RMB 66 billion (around $9.3 billion) as of the end of 2019, according to the company’s annual results released last month.

Watch: We got our hands on Xiaomi’s new super secret phone. Here’s our review.

Handset sales in China surged 241% in March compared with the previous month though were still down 23% from a year earlier, according to official data released Monday.

Why it matters: China’s handset consumption has started to recover from the Covid-19 pandemic but its aftershocks continued to weigh.

• The turnaround is partially because local smartphone makers refreshed their handset lineups in March, including Huawei’s P40 flagship and Xiaomi’s budget phone, the Redmi Note 9 Pro. In total, smartphone makers launched 34 new models in March, accounting for 87.2% of the new handsets launched in the first quarter, according to data released by China’s Ministry of Information Industry and Technology (MIIT).

Details: China’s handset sales in March were 21.8 million units including 6.2 million which are 5G compatible, according to the MIIT.

• Apple’s iPhones saw a surge in demand during the month as sales rose 406% from February to around 2.5 million units, according to MIIT data and TechNode’s calculations.
• Total handset sales in the country dropped 36.4% year on year to 49 million units in the first quarter, according to the data.

Context: Despite the rebound in monthly sales, observers were not optimistic about China’s smartphone market over the long term. According to a recent report by market research firm Strategy Analytics, 37% of Chinese consumers have delayed plans to upgrade their handsets.

• “The supply chain and full ecosystem may be back up to speed as we enter Q2, 2020 but it is clear that a significant portion of consumers are not yet ready to return to previous patterns and purchase intentions. Operators, vendors and retailers will have to work extra hard to persuade hesitant smartphone owners that new devices and new 5G services are worth making an investment in relative to other priorities,” Linda Sui, director of smartphone research at Strategy Analytics, said in the report.
• In a bid to boost sales, Huawei has teamed up with food delivery platform Meituan to allow consumers to order its smartphones and tablets and receive them within an hour from flagship stores.

In partnership with

Editor’s note: This article is first published on TechNode Global in partnership with Huawei Assistant. We believe in transparency in our publishing and monetization model. Read more here.

How many apps are there on your phone? And of those, how many do you use pretty much every day?

I’d bet that, apart from games, it’s not that many. So wouldn’t it be useful to have quick access to your most loved and most useful apps in one place, with just one swipe?

How many apps are there on your phone? And of those, how many do you use pretty much every day?

I’d bet that, apart from games, it’s not that many. So wouldn’t it be useful to have quick access to your most loved and most useful apps in one place, with just one swipe?

That’s basically the idea behind Huawei Assistant, which puts your most essential apps and services – like sports results, stocks, and travel itineraries – onto smart cards that are accessible with one swipe.

Huawei says app developers get more views for their content or more clicks for their services by laying them out in cards inside Huawei Assistant. Globally there are 400 million monthly active users of Huawei phones, boosted by shipments last year of 240 million.

This points to the changing face of home screens across the phone industry as laid-out, real-time, and easily accessible content becomes more important. Device makers are betting that people – as they spend more time on personal devices rather than consuming media in more traditional ways – want to focus on their most used apps while also doing less tapping. For example, within Huawei Assistant, a user can see the weather, traffic reports, and upcoming reminders – all the crucial info they need within the next hour or so – in one glance, each ensconced in their own cards, all scrollable on one screen. No need for opening or closing any apps.

The ongoing evolution is so vital to the mobile industry that it already has a name: the “minus one screen.” And Huawei Assistant is a prime example of why it makes sense.

As well as these widgets, this handy screen also has an AI search bar, helping you find items on your phone as well as answers from across the web. Plus, it has shortcuts so you can access your most used actions with just one tap.

To help folks make the most of Huawei Assistant, there’s Huawei Ability Gallery, where you can find a bunch of new apps primed with smart cards.

New content

At a virtual press conference last week for Malaysia’s launch of the Huawei P40 series of phones, the company showed off new, Asia-specific content that’s just rolled out to Huawei Assistant.

One of these is a stocks card from Investing.com, which looks like this:

And this is how it looks on the same Huawei P40 when dark mode isn’t activated:

The smart card is customizable so that it shows the stocks you want to keep an eye on:

Plus, now there’s football results courtesy of the popular 365 Scores:

You can configure your teams to watch, from leagues across the globe.

Coming soon to Asia are smart cards for flight bookings, hotel reservations, taxi-hailing, and food orders.

These Huawei Assistant smart cards are not confined to your phone – they’ll appear on your Huawei TV or tablet as well, if you own those, exactly as you set them up on your phone.

Instant access buttons

Continuing with the theme of customization, Huawei Assistant has shortcut buttons, which appear above the AI Tips, where you can set up four icons for the most important things you need to jump to.

If you’d rather not configure your own, the phone will suggest a few buttons that it thinks you’ll need most often.

You’ll notice a fifth button – that allows you to browse a lot more handy shortcuts to tools and service on your phone and around the web.

Another useful card within Huawei Assistant is the AI Tips one, which shows things like notifications, reminders, or phone usage info.

Plus there’s Newsfeed, giving you real-time and popular news stories based on the language and region settings of your device.

And this is what the AI search bar looks like:

Huawei Assistant is fixing a problem that cropped up as soon as apps went mainstream – that all your useful information and fun content got siloed across numerous apps. Now’s the time to tap less but get more done.

Get more information about Huawei Assistant here.

Huawei, the world’s largest maker of telecom equipment by revenue, released earnings for 2019, saying that it missed a target set internally by $12 billion due to a US trade ban. The company also warned of retaliation by the Chinese government.

Why it matters: After a year of “unprecedented challenges” brought by a US ban on sales of its gear to American companies, the marquee Chinese technology company reported significantly slower profit growth and revenues which missed its own goals by a wide margin.

• Despite the May ban, US suppliers continued to deal with Huawei. Eric Xu, Huawei’s chairman, said in an interview that in 2019 the company spent $18.7 billion with US companies. 
• Its annual earnings report also laid out future growth directions besides 5G: smart wearables and internet of things devices, cloud service platforms and artificial intelligence, and billion-dollar programs that support developers to add to its homegrown ecosystem, in an effort to pose a viable alternative to Android and Apple applications.

“The Chinese government will not just stand by and watch Huawei be slaughtered on the chopping board.”

—Eric Xu, Huawei rotating chairman, at a press event

Details: Huawei reported revenues of RMB 858.8 billion ($123 billion) for 2019, an increase of 19.1% year on year and maintaining consistent top line growth compared with a year ago when revenue rose 19.5% on an annual basis.

• It posted net profit of RMB 62.7 billion, slowing to 5.6% growth year on year compared with 25.1% year on year in 2018.
• Xu warned of retaliatory measures by the Chinese government during the annual report press event, saying “Why wouldn’t the Chinese government ban the use of 5G chips or 5G chip-powered base stations, smartphones and other smart devices provided by American companies, for cybersecurity reasons?”
• The carrier business grew 3.8% year on year to RMB 296.7 billion and accounted for 34.5% of the company’s total revenue, falling below 40% for the first time. Last year, it made up 40.8% of total revenue.
• Its consumer business earned RMB 467.3 billion during the year, making up more than half of total revenue (54.4%).
• Xu said that the US sanctions meant that its consumer business lost $10 billion in overseas markets. It remains the fastest growing of Huawei’s three major businesses. 
• Huawei shipped 240 million smartphone units globally, up 16.5% year on year compared with 35% year on year in 2018.

Context: The US banned its companies from doing business with Huawei in May but has since issued temporary licenses to allow Huawei to continue. It extended on March 10 this license again to May 15.

• Huawei said that its RuralStar base station solutions allow more than 40 million people living in remote areas to have mobile internet coverage. That includes a quarter of the smallest wireless carriers in the US on which many of the country’s farmers rely.   
• Huawei’s executives said that Covid-19 has affected its plans to build 5G infrastructure in Europe and China, though domestic construction may ramp up since the outbreak seems to be under control in China. 
• Much of Huawei’s manufacturing is based in southern China which means its supply chains are less affected by the Covid-19 lockdown in Hubei, central China.

Xiaomi said Tuesday it has resumed production capacity by 80% to 90%. However, they also warned that demand for smartphones in overseas markets would be hit by the spread of Covid-19 in March and April.

Why it matters: The Beijing-based smartphone maker has a strong presence in overseas markets such as India and Europe. It is likely to see a drop in sales in the first half of the year as the pandemic spreads around the world.

• The company is selling the idea that smartphones are necessary goods and demand will bounce back after the pandemic is over.
• “Smartphone is becoming a basic necessity and the demand for it should resume soon in India and Europe. We are optimistic about the growth in overseas markets,” Wang Xiang, president of Xiaomi, told reporters and analysts in an earnings call Tuesday.

Read more: Xiaomi wants to be exempted from an e-commerce ban in India

Details: Xiaomi’s production was severely impacted in February when the coronavirus outbreak intensified in China, but its production capacity has been resumed to 80% to 90% of the normal state, according to Wang.

• He said sales of smartphones in the domestic market have also bounced back to 80% to 90%.
• Wang expects that the demand for smartphones in India and Europe will see a drop in March and April, but expects a recovery to begin by May.
• The company said Tuesday its revenue for the fourth quarter rose 27.1% year on year to RMB 56.5 billion (around $8 billion), slightly higher than analysts’ average estimation of RMB 54.9 billion.
• The company booked a net income of RMB 2.3 billion in the period, a year-on-year increase of 26.5%.
• Revenues at Xiaomi’s smartphone business rose 22.8% year on year to RMB 30.8 billion in the quarter.
• The company said it sold 32.6 million smartphones in the quarter, a 30.5% rise compared with the same period of 2018. Its smartphone shipments for last year were 124.6 million units in total.

Context: Market research firm IDC estimated that smartphone sales in China may fall as much as 40% in the first quarter compared with the same period last year.

• Xiaomi’s share price has dropped more than 22% since the beginning of March.
• To avoid sales loss in India, Xiaomi’s biggest overseas market, the company has asked New Delhi to list smartphones as an essential commodity so that they can be sold on e-commerce platforms during the nationwide lockdown in India.

Chinese handset makers including Xiaomi and Realme are asking the Indian government to list smartphones as an essential commodity so that they can be sold on e-commerce platforms during the nationwide lockdown in India.

Why it matters: India is one of the most important overseas markets for many Chinese smartphone makers, and a 21-day national lockdown in the country, starting Wednesday, is expected to severely hit handset sales.

• E-commerce deliveries of essential and necessary goods such as food and medical equipment will be excluded from India’s curfew restrictions during the lockdown, according to local newspaper, The Economic Times.

Details: Xiaomi and Realme have united with two industrial bodies to seek an exemption for deliveries of smartphone along with other electronic devices during the national lockdown, The Economic Times reported on Monday.

• The letter, written by local industry representatives the Manufacturers’ Association of Information Technology (MAIT) and India Cellular & Electronics Association (ICEA) on March 27, also seeks to remove restrictions on the movements of electronics components for inland and export purposes.
• “Smartphones today are probably the most essential items after food and groceries that anybody needs. We can increase social distancing and reduce the number of people going out if everyone is using a smartphone,” Manu Kumar Jain, the managing director of Xiaomi India, told The Economic Times.

Context: Xiaomi is India’s biggest smartphone vendor with a market share of 27% in the fourth quarter, while Realme is the fifth-largest with an 8% market share.

• South Korean smartphone makers Samsung and LG have suspended their factories in India on requests from local government, ZDNet reported last week.
• Smartphone sales in China dropped 54.7% year on year in February when the country was essentially locked down because of the coronavirus outbreak. The figure will likely fall 40% in the first quarter compared with the same period last year, according to market data firm IDC.

Luo Yonghao, the founder of struggling Chinese smartphone maker Smartisan, announced Thursday he is embarking on a new business endeavor: an e-commerce livestreaming business selling gadgets, groceries, and snacks.

Why it matters: Luo is an internet celebrity as well as one of China’s most iconic tech entrepreneurs with a number of outrageous antics under his belt. But he is also ridden with debt after notching a series of failed businesses including an e-cigarettes startup and a synthetic “shark skin” manufacturer.

• Livestreamed e-commerce has taken off in China with sales reaching RMB 440 billion (around $62.3 billion) in 2019.
• Alibaba’s livestream e-commerce platform Taobao Live has seen rapid growth as offline businesses increasingly seek out online marketing and sales channels during the Covid-19 epidemic.

Details: Luo will form a team to sell products including tech gadgets, books, furniture, groceries, and snacks on livestream platforms, he said in a post on his social media account on Thursday.

• Luo said he used to believe that there was no value in e-commerce livestreaming. “But after reading a report by China Merchants Securities (CMS), I decided to become a livestreamer,” he said.
• It’s unclear which report Luo was referring to. Chinese media implied it might be a report that the state-owned securities firm released in January, which said China’s livestreamed e-commerce market may “reach RMB 1 trillion in the future.”
• “Never bought anything from livestreaming platforms? That’s because you’ve never seen us livestream,” he told his 16 million followers on micro-blogging platform Weibo.
• The post amassed more than 8,000 comments and 26,000 likes on Weibo as of Friday.

Context: In November, Luo was placed on an official blacklist for debt defaulters, which barred him from spending on travel and other major purchases. A court record showed that he along with Smartisan, the smartphone company he founded, owed RMB 3.7 million to suppliers.

• Founded in 2012, Smartisan was never able to distinguish itself in China’s fiercely competitive smartphone market. In its six years of operations, the company sold only around 3 million smartphones, in sharp contrast to top-performing Huawei, which shipped 240 million units last year alone.
• Beijing-based Bytedance licensed in January a number of Smartisan’s patents to ramp up its online education business. The TikTok owner also recruited dozens of employees from Smartisan later that month.

This week, our source was Ran Caijing, where we came across an overview of the effects of the Covid-19 epidemic on Chinese tech companies—especially smartphones. Below, we summarize the key points of the article for TechNode members. TechNode has not independently verified the claims below.

The epidemic is raging around the world. Which Chinese technology companies are most affected?

Jin Yufan, Su Qi, and Tang Yahua (edited by Wei Jia)

Ran Caijing, March 13

Outline

While Chinese domestic epidemic peak has passed, Covid-19 has begun to erupt worldwide, forcing the World Health Organization to adjust the situation to a “global pandemic” level.

Affected by the epidemic and other factors, global financial markets have melted down. The US stock market has collapsed three times so far, twice this week. Affected by the broader market, star Chinese stocks fell across the board: Alibaba fell 6.94%, Jingdong fell 7.87%, Pinduoduo fell 6.42%, NetEase fell 7.88%, Baidu fell 8.55%, and Ctrip fell 5.95%.

The impact of the epidemic on the global economy has gradually spread from the demand side to the supply side. China, and the United States, Japan, South Korea, Germany, Italy, Spain, Iran, and other countries with severe outbreaks are mostly important exporting countries.

Business alarms and bets

The epidemic has sounded alarms for different industries:

• The retail consumption expected by tourists has vanished, creating a global alarm for businesses in the industry. 
• Manufacturers of smartphones have bet heavily on the 5G replacement wave this year, but the consequences of supply chains disruption are still difficult to predict. 
• Cross-border e-commerce and logistics capacity have been disrupted. 

Tourism

According to the United Nations World Tourism Organization (UNWTO), the global outbound tourism market in 2018 was worth $1.45 trillion. Chinese tourists spent more than $277 billion abroad, close to one-fifth of global outbound tourism spending. However, right now the global tourism industry is practically stalled, while Chinese domestic travel service providers are also suffering unprecedented hits.

Bigger companies can live longer. Those who already struggle with capital may die, especially if the emergency carries on for two or more months. 

There is not much support for SMEs in terms of policies. The rent and labor costs cannot be reduced, with the only solution being layoffs

According to Ran Cai Finance, when Ctrip was at its worst situation, domestic orders losses were at around 80%. Now they are gradually recovering, but international orders present the most difficult recovery in the short term. 

That’s bad news for Ctrip since outbound travel, international flights, high-star hotels, and other businesses may not account for the largest number of people, but represent a larger proportion of revenue and profits.

Smartphones

Even though Chinese factories are resuming work and retail stores are reopening, the demand side continues to be suppressed.

The entire mobile phone industry is not driven by the supply chain, but by the market. As long as the consumer demand and consumption level in the market are still there, retail growth will occur after the epidemic.

Recently, the American market research company Strategy Analytics predicted that global smartphone shipments in 2020 will be 10% less than expected, and China’s smartphone shipments will be 15% lower than expected.

As the world’s second-largest smartphone manufacturer, Huawei has cut its 5G smartphone shipments by 20% this year. Apple also announced in February that it was unable to meet previously released revenue expectations in the first quarter.

Supply problems

The impact on the supply side is greater. A mobile phone requires at least 300 parts. Even though basic parts are produced domestically, key components are still subject to foreign companies in the United States, Japan, and South Korea. In addition to Huawei’s own Kirin chip, other mobile phone manufacturers commonly carry Qualcomm’s chips, whereas the memory comes mainly from Korean and Japanese companies. The current epidemic situation in these countries is no less serious than in China.

However, the crisis on the supply side of mobile phone manufacturers may be an opportunity for domestic suppliers. In fact, the lower-ranked supply companies that were originally used as backup solutions in China may have the opportunity to make their debut on the main chain. Ultimately, if the epidemic lasts for a long time, it may break the current mobile phone supply chain layout.

Cross border e-commerce

According to Chinese Ministry of Commerce data, as of February 20th, the number of masks imported was more than 12 million units. Cross-border e-commerce platforms and enterprises of 59 cross-border e-commerce test zones have imported nearly 1 million sets of protective clothing.

The categories that e-commerce platform users pay most attention to during the epidemic are masks, disinfection products, and health products. With the epidemic becoming stable in China, the demand for e-commerce platform users to purchase protective masks has stabilized.

The global epidemic is urgent, and the supply chain, logistics capacity, and pace of resumption of international business on the e-commerce platforms have been disrupted.

The spread of the global epidemic will inevitably affect the operation of global logistics, which will be a major challenge for foreign trade in the future, but what is really affected is the deep participation in overseas local procurement and warehousing.

Events

The interruption of global personnel flow, the lack of a large number of face-to-face exchanges, and the cancellation of exhibitions have led to low communication efficiency and limited global exchange of innovative ideas, which will adversely affect the development of technology products, software and hardware. However, the occasion may also force the introduction of more advanced communication methods with the use of 5G, AR, VR, holographic projection, and sensor fields.

Online services

The obvious winner in the epidemic is the gaming industry. The market share of Chinese games is already the biggest in the world and, thanks to the pace of globalization, the expansion of Chinese game companies has gone very fast. Companies such as Tencent and FunPlus have achieved very good results in global competition and in the event of the outbreak they will continue to grow in the global market.

Companies that focus on games going overseas are likely to replicate the game boom during the Chinese New Year. With the large-scale isolation in many places around the world and the decrease in offline entertainment, games will get a big explosion in players.

Besides gaming, recently the price of study packages of online education companies has increased, and the visit traffic has more than doubled compared with the same period last year.

Another bright side may lay in the fact that new advanced technologies such as artificial intelligence, Internet of Things, big data, 5G, and cloud computing have performed well in many aspects of the epidemic. Big data and cloud services are effective assistants for epidemic control; 5G cloud intelligent disinfection, temperature measurement and delivery robots have also quickly joined the fight against the epidemic; unmanned operations have greatly reduced the probability of contact infection and cross infection and improved the efficiency of medical staff.

Between the lines

From a Chinese perspective, PMI has fallen to a historic low, even lower than the 2008 financial crisis, with the pain much more severe than during the SARS period. Looking at the world, the global PMI is also declining sharply. Therefore, for the Chinese domestic market, in addition to the export of epidemic prevention-related supplies, the overall probability of overall trade exports in the second quarter will be greatly affected.

However, if the epidemic situation is effectively controlled within two months, China’s technological innovations such as e-commerce, especially the fresh food e-commerce industry, online education, games, etc., as well as enterprise (government) information-based tracking, will usher in fast growth.

Finally, even though the impact of the epidemic on the global Internet industry is minimal, the impact on the physical industries is long-lasting, even fatal to some companies. Because of the uneven climate and healthcare conditions in overseas countries, the epidemic development around the world is not easy to stop.

Foxconn warned Tuesday that its first quarter revenue may decline 15% as a result of the Covid-19 epidemic as the Taiwanese manufacturer struggles to restore normal production levels in its China factories.

Why it matters: The warning from Foxconn, China’s biggest private-sector employer, highlights the effect that the Covid-19 outbreak has had on the country’s economy, especially in the electronics industry.

• Foxconn, formally known as Hon Hai Precision Industry Co Ltd., has been actively pushing to resume production in China. However, the Covid-19 epidemic has stopped many migrant workers from returning to work after the Spring Festival holiday.

Details: Foxconn said its revenue would drop 15% year on year in businesses including consumer electronics and enterprise products in the first quarter, Reuters reported, citing company Chairman Liu Young-Way.

• The company said its revenue would recover after the first quarter as production returns to normal in China.
• The virus will have a short-term impact on Foxconn’s business as the impact to its supply chain was “not that great,” the company said.
• “Prevention of the outbreak, resumption of work and production are our top priority,” Liu said.

Context: Foxconn booked NTD 1.054 trillion (around $35.2 billion) in revenue in the first quarter of 2019.

• In order to lure workers back to plants, Foxconn’s main iPhone assembly factory in the central Chinese city of Zhengzhou was reportedly offering bonuses of up to RMB 7,000 (around $1,005) to each new recruit.
• Chinese officials have also urged factories to restart operations. Local governments and enterprises have been sending trains, buses, and planes to transport workers back to manufacturing hubs such as Shenzhen and Dongguan in Guangdong province.
• Chinese President Xi Jinping has called for local governments to “continue to make unremitting efforts in various prevention and control work and resume work and production in an orderly manner,” according to state media Xinhua.

Huawei is testing a new search app similar to Google for its smartphone ecosystem in a bold new step to further challenge the US search giant on its home turf.

Why it matters: The Chinese telecom and smartphone giant has been working on replacing all Google apps and services for its in-house Huawei Mobile Service (HMS) framework on Android phones.

• The world’s second-largest smartphone vendor is banned from using Google products on handsets which have launched after May because of a US trade blacklist.
• The Shenzhen-based company debuted in Europe last month a phone with HMS pre-installed. Instead of using Google Play, the buyers will have to use the company’s App Gallery to download apps.

Details: Huawei is recruiting users in the UAE to test its new Huawei Search app, according to a forum post published on Feb. 26 on the company’s website.

• “We are excited to announce the upcoming launch of the Huawei Search app and invite our UAE users to participate in our user beta test,” the company said in the post.
• The app allows users to search the internet for webpages, videos, news articles, and images, according to XDA Developers, which first reported the beta test.
• The search service is operated by Aspiegel Limited, a subsidiary based in Ireland, according to the app’s user agreement. Aspiegel’s website describes it as a mobile service provider for Huawei device users in Europe, Canada, Australia, and New Zealand.
• However, it is unclear whether the company developed the search engine from scratch or it used a third-party search service. According to the XDA story, the search app’s Privacy Statement says users have the “right to request delisting of a search result,” which may imply that it is not a third-party search engine.
• Huawei declined to comment when contacted by TechNode on Tuesday. 

Context: Citing security reasons, Google last month warned users against loading its apps through unofficial channels to new Huawei devices made available to the public after the trade blacklist.

• Last month, the company released a new version of HMS, adding capabilities such as Quick Response (QR) code extraction, near-field communication (NFC), and identity authentication.
• HMS provides mobile applications corresponding to Google offerings. They include Huawei App Gallery, a mobile wallet, a video-streaming platform, and a music app.

Popular infection simulation game Plague Inc. has been removed from Chinese app stores, Apple and Xiaomi users noticed today, after enjoying renewed popularity during the Covid-19 outbreak.

Why it matters: The removal shows just how serious the country’s authorities are in managing the public perception of the virus.

• Chinese authorities have been known to ban adult content and games with politically sensitive hidden messages. Plague Inc. has been praised for its educational value and scientific approach.

Details: TechNode has confirmed that Plague Inc. is not available on the Chinese versions of the Apple and Xiaomi app stores as of Thursday.

• The game is still available on Steam, a video game download platform that is not blocked in China, though this loophole may be short-lived.
• The internet regulator informed Ndemic Creations that the game was removed from app stores for “illegal” content, the developers said in a statement released on their website on Thursday evening.
• Plague Inc. is a strategy simulation game that invites users to create and evolve a pathogen to take over the human population, before humans come up with a cure. It was was developed by UK-based Ndemic Creations in 2011.
• The developer was not immediately available for comment when contacted by TechNode on Thursday.

Context: In January, the eight-year-old game beat Minecraft in Apple’s US App Store’s paid games popularity rankings, according to market intelligence firm Apptica. This happened on the day that Wuhan, the central Chinese city considered the epicenter of the outbreak, was cut off from the world.

• At the time, Plague Inc.’s UK-based developers responded to the news with a statement asking players to remain grounded in reality.
• “Please remember that Plague Inc. is a game, not a scientific model and that the current coronavirus outbreak is a very real situation which is impacting a huge number of people,” Ndemic Creations said.
• The game was recognized by the US Centers for Disease Control and Prevention back in 2013 for creating a “compelling world” which “engages the public on serious public health topics.”
• It has found enduring popularity since its creation and has been downloaded by 130 million people, according to the developer’s website.
• The coronavirus has sparked heated discussion on Chinese social media about the government’s emergency response, as well as alleged acts of censorship.
• The virus has spread to more than 78,000 and killed over 2,700 people in China as of Feb. 27, 2020, according to official data.

Update: added a statement from the game developer in the Details section.

A factory of iPhone assembler Foxconn in central China is reportedly offering bonuses of up to RMB 7,000 (around $996) to each new recruit in an effort to lure workers back to plants and restore normal production levels.

Why it matters: The Taiwanese contract manufacturer is struggling to resume production in China after the deadly Covid-19 virus stopped millions of migrant workers from returning to work after the Spring Festival holiday.

• Officials have also urged factories to restart operations. Local governments and enterprises have been sending trains, buses, and planes to help workers travel back to manufacturing hubs such as Shenzhen and Dongguan in Guangdong province.
• Delays in Foxconn’s production, a key manufacturer for Apple, Huawei, Amazon, Google, and many others, are likely to affect supply chains for several major electronics brands.

Details: Foxconn’s main iPhone assembly factory in Zhengzhou in central Henan province is offering RMB 7,000 as an incentive to new workers who meet certain requirements, Chinese business news site Star Market Daily reported on Sunday.

• New workers will have to clock in to work for more than 35 days to receive RMB 3,000 and more than 60 days to receive the remaining RMB 4,000, according to the report, citing an anonymous source working at a recruitment agency for the Foxconn plant.
• The report said that there are currently around 20,000 to 30,000 workers working in the plant. At its peak, the plant’s workforce numbered nearly 450,000 to meet iPhone demand, Chinese media reported.
• Foxconn, formally known as Hon Hai Precision Industry Co Ltd., declined to confirm the hiring bonuses, saying that it “does not comment on operation details of specific plants” when contacted by TechNode on Tuesday, citing a company policy.
• The company said in a statement to TechNode that it is “closely cooperating with local governments’ call to resume operations” and is organizing workers to go back to work.

Context: China is pushing people to get back to work as the “world’s factory” tries to balance containing the Covid-19 outbreak that has killed more than 2,600 people and offsetting the hit to its economy.

• President Xi Jinping has called for local governments to “continue to make unremitting efforts in various prevention and control work and resume work and production in an orderly manner,” according to state media Xinhua.

Huawei launched an upgrade to its foldable smartphone on Monday, putting on offer for overseas users its proprietary ecosystem to replace the Google app and services it has been banned from.

Why it matters: In launching its self-developed app ecosystem to users outside of its home turf, the Chinese tech giant is ratcheting up its competition with Google in the Android service market. It has stepped up efforts to lure users and developers to switch to its alternative to the Google Mobile Services (GMS) framework, which it lost access to in May.

• The world’s second-largest smartphone maker has repeatedly said that it will not abandon the Android mobile operating system, which runs on most of its smartphones. But without Google, it has to develop alternative offerings for its phones.
• The company’s in-house replacement, known as Huawei Mobile Services (HMS), provides mobile applications corresponding to Google offerings such as the Play store, YouTube, and Google Maps.

Details: Huawei launched the Mate XS in an event live-streamed from Barcelona. The new model is an upgrade of the Mate X phone that it showcased last year which features a flexible screen that can fold into a 6.6-inch smartphone and unfold into an 8-inch tablet.

• The Mate XS improves upon its successor with a more durable screen and hinge mechanism, Richard Yu, CEO of Huawei’s consumer business group, said on Monday.
• The EUR 2,499 (around $2,714) device runs the HMS core which provides apps through Huawei’s App Gallery, said Yu.
• The new model will come with a feature akin to WeChat’s mini program. The feature, known as Quick App, will allow users to load apps in second without downloading them from the app stores, according to Yu.
• The company also announced a $1 billion subsidy scheme to boost its global developer program. “We welcome every developer worldwide to join HMS,” said Yu.

Context: Google has banned Huawei from using GMS on new phones as a result of a US trade ban imposed in May.

• Citing security reasons, Google on Saturday warned users against loading its apps through unofficial channels to new Huawei devices made available to the public after the trade blacklist.
• Huawei has teamed up with Xiaomi, Oppo, and Vivo to form an alternative to Google’s Play store to distribute Android apps to users outside China.
• Last month, Huawei released a new version of HMS, adding capabilities such as Quick Response (QR) code extraction, near-field communication (NFC), and identity authentication.

Huawei will launch in Europe next week its first smartphone that will run on the company’s in-house service framework instead of Google’s, as the Chinese handset giant moves to offset a US trade ban’s impact on its overseas smartphone sales.

Why it matters: The move marks Huawei’s efforts as the world’s second-largest smartphone maker to challenge Google’s dominance in the Android ecosystem in markets outside of China.

• Experts believe that a lack of Google apps and services will slash the appeal of its new phones in the western markets such as Europe, the company’s biggest overseas smartphone market. 
• The company has seen its smartphone shipments drop by 16% in the third quarter and 7% in the fourth quarter, according to market research firm Canalys.

Details: The Shenzhen-based company has chosen not to substitute the open-source Android mobile operating system that its handsets all run on. Instead, it developed alternatives to popular Google apps and services that it lost access to as a result of a US trade blacklisting that took place in May.

• Huawei will launch its Honor V30 smartphone series which uses Huawei Mobile Services (HMS) next week in European markets, Chinese media Beijing News reported on Monday, citing the Honor department within the company.
• An alternative to the Google Mobile Services framework, HMS provides mobile applications corresponding to Google offerings. They include Huawei App Gallery, a mobile wallet, Huawei Video, and a music app.
• The V30 is also the first Honor smartphone that is compatible with the next-generation 5G network. Honor is a Huawei budget sub-brand.
• The company will hold a product event in Europe though the Mobile World Congress (MWC) was canceled, according to the report.
• A Huawei spokesperson declined to comment.
• The company said in a statement last week that it would hold “online and regional events to show Huawei’s latest products and solutions” in Barcelona after the MWC cancellation announcement.

Context: Huawei has accelerated its pace to promote HMS and lure more developers to its app platform.

• It was reported earlier this month that the company had teamed up with Xiaomi and Oppo to form an alternative to Google’s Play store.
• The company released last month a new version of HMS, adding capabilities such as Quick Response (QR) code extraction, near-field communication (NFC), and identity authentication.

China’s biggest smartphone makers are delaying new product launches that had been scheduled around the Mobile World Congress (MWC) after the event organizer announced it was calling off the world’s largest mobile phone trade show this year.

Why it matters: The annual event held in Barcelona is one of the most important stages for Chinese smartphone makers to unveil new products to an international audience. The exhibition’s cancellation and forced delays for product launches could hurt revenues from overseas markets, compounding expected losses in domestic sales brought by the Covid-19 outbreak.

• Panic about the Covid-19 epidemic has led to a 70% drop of smartphone shipments for offline channels in China during the Spring Festival holiday, a major shopping season in the country, Fang Jing, chief analyst at Cinda Securities, told TechNode in an interview last week.
• He predicted that the overall smartphone shipment figures in China would drop by 15% to 20% year on year in the first quarter.

Details: GSMA, the MWC organizer, announced Wednesday that the event this year was cancelled due fears about the virus outbreak in China which has spread to countries in Europe and North America.

• Chinese smartphone makers, including Huawei, Xiaomi, and Oppo, had plans to launch new products in Barcelona around the event which was scheduled to run from Feb. 24 to 27.
• Vivo, the world’s fifth-largest smartphone vendor, said in a statement sent to TechNode on Thursday that the company had decided to reschedule the product launch of its Find X2 smartphone from Jan. 22 to March.
• The Dongguan-based company told TechNode on Tuesday that it planned to attend the MWC and that it had sent some staff to Barcelona ahead of time for self-quarantine purposes.
• Huawei said last week that it would attend the tech conference as planned. The world’s second-largest smartphone maker usually makes major product releases for overseas markets during the MWC. A Huawei spokesman declined to disclose to TechNode whether the company had plans to do so this year.
• Xiaomi planned to hold a press conference on Feb. 23 in Barcelona to release its new flagship smartphone, the Mi 10. The handset will be launched in China via livestream on Thursday afternoon. A Xiaomi spokesman did not say whether the Barcelona launch will be canceled or delayed.

Context: Multiple telecommunication firms including Ericsson, Nokia, Intel, LG, Sony, and Amazon, as well as hardware companies had pulled out from the MWC prior to GSMA’s announcement.

• The GSMA also holds an MWC designed for Chinese companies and audiences in Shanghai every year. This year’s MWC Shanghai will be held from June 30 to July 2, according to its website. It is unknown whether this event will also be affected.

iPhone assembly plants in China belonging to Foxconn will not return to normal production volumes for at least another week due to the novel coronavirus outbreak, multiple media reports have reported, with some factories remaining closed and delayed returns expected for significant parts of its labor force.

Why it matters: Foxconn, also known as Hon Hai Precision Industry Co., is China’s largest private sector employer and the world’s biggest iPhone assembler. Delays in Foxconn’s production, a key manufacturing contractor for Huawei, Amazon, Google, and many others, are likely to affect supply chains for several major electronics brands.

• The coronavirus outbreak, first reported in Wuhan, the capital of central Hubei province, has infected more than 40,000 worldwide and killed 909, and brought China to a standstill.

Details: Local authorities in Shenzhen have ordered Foxconn to keep its factories closed over the next week due to “violation of epidemic prevention and control” which could result in the death penalty, Nikkei Asian Review reported on Saturday, citing anonymous sources familiar with the matter.

• The local government of Longhua in Shenzhen, where Foxconn’s largest factory is located, denied the report in a WeChat post (in Chinese) on Sunday. It said that on-site inspections to determine whether Foxconn plants are adequately equipped to prevent the virus from spreading were still ongoing.
• The Longhua government added that the company had applied for resumption of work on Feb. 6.
• But labor shortages could continue to crimp Foxconn’s operations even after the plants re-open. As the number of infections rise, travel is limited and people across China remain in quarantine.
• Apple analyst Ming-Chi Kuo said Foxconn’s Shenzhen factories will not open until at least next week, and that 40% to 60% of the workforce will resume normal operations.
• In the northeastern city of Zhengzhou, about 10% of Foxconn’s factory workers or 16,000 people returned to work today, Reuters reported Monday quoting a person with direct knowledge of the matter.
• About 30% to 50% of the workers in the Zhengzhou plant will return to work next week, Ming-Chi Kuo estimated.
• Foxconn responded to reports saying they are working closely with local governments to fulfill requirements for the resumption of work. Factories will re-open in a piecemeal fashion, according to a statement the company sent to TechNode.

Context: Southern Guangdong province, where Shenzhen is located, has reported the second-highest number of coronavirus infections after Hubei. Shenzhen counts 368 confirmed cases, compared with 337 in Beijing and 295 in Shanghai, according to official data.

• Foxconn’s labor and safety practices have been criticized in the past. In 2011, an explosion in a Chengdu factory working on Apple, Microsoft, and Samsung contracts led to three deaths and 15 injuries.
• Up to eight factory workers sleep in the same room in Foxconn’s dormitories, according to a 2017 investigation by the Guardian.
• Apple has closed all its retail stores in China until Feb. 13 or 14, Bloomberg reported on Friday.
• In June, Foxconn announced it will be improving its production capacity outside mainland China to mitigate risks arising from the trade war, as well as rising labor costs.
• South Korean manufacturers Samsung and LG were set to resume operations today, Korean media reported.

Top Chinese smartphone makers including Xiaomi, Huawei, Oppo, and Vivo are teaming up to form an alternative to Google’s Play store to distribute Android apps to users outside China, Reuters reported Thursday.

Why it matters: The four Chinese handset giants together accounted for around 40% of global smartphone shipments in the fourth quarter, underscoring the potential for the partnership to take a chunk of business from Google’s Play store in the international Android app distribution market.

• Huawei’s ban from accessing Google services or apps on its new phones is a strong motivating factor for the world’s second-largest smartphone maker to create a Play store alternative.
• Xiaomi, Oppo, and Vivo, however, are not restricted by the ban and have full access to Google’s services overseas.

Details: The four companies are forming a group known as the Global Developer Service Alliance (GDSA) which aims to make it easier for developers of games, music, movies, and other apps to market their products in overseas markets, according to the Reuters report citing anonymous sources.

• The GDSA was initially aiming to launch in March, but it is unclear how the plan will be affected by the recent coronavirus outbreak.
• The alliance plans to offer its services to developers in nine “regions” including Russia, India, and Indonesia, according to its website.
• The website, however, does not list Huawei as a member.
• A Xiaomi spokesman told Reuters that the GDSA “solely serves to facilitate the uploading of apps by developers to respective app stores of Xiaomi, OPPO and Vivo simultaneously.” The spokesman denied that Huawei was involved in the alliance.

Context: The four companies use respective self-developed Android app stores in addition to third party app stores in the China market because Google services are not accessible in the country.

• Huawei has been actively looking for replacements since it lost access to Google apps and services. The company updated last month its developer tools in efforts to lure more developers to work on its Huawei Mobile Service ecosystem.
• The company released in August its Harmony operating system as an Android alternative. However, company executives have said that Huawei is still using Android as a “first choice.”

This article was co-authored by Wei Sheng.

China’s tech stocks have dropped sharply since Jan. 13, when an epidemic disease known as novel coronavirus went global. On Tuesday Feb. 3, they started to recover, but most have a long way to recover from January losses.

E-commerce giant Meituan Dianping opened at HK$109.20 (about $14) on Jan. 13, dropped to HK$99.50 by the end of the day Feb. 3, and has climbed back to HK$100.50.

The stock rise coincided with a strong monetary boost from Beijing on Tuesday. The People’s Bank of China injected RMB 400 billion (about $57 billion) of liquidity to the banking system and strengthened the yuan exchange rate to support the economy.

The liquidity injection was the largest in the past year, sending a strong message to markets that the government will support the Chinese economy during the virus outbreak.

Manufacturers of surgical masks, now widely used and sometimes mandated in China for protection against airborne viruses, have seen a surge in share prices. Stock for three Chinese firms TechNode analyzed have gained 40% in share price since Jan. 13, indicating that investors expect a prolonged health crisis.

But things are looking up this week in tech. Stocks on Shanghai’s tech board started to climb on Tuesday, gaining back on the past few weeks’ losses. The benchmark SSE Composite Index, in which the STAR Market is listed, has gained close to 3% since Tuesday.

China’s Nasdaq-style STAR Market has been on a roller coaster ride after it reopened on Monday. Most shares dropped during the first day of trading after the week-long break with 43 out of 79 listing companies seeing their share prices reach the tech board’s daily limit of 20% downside.

E-commerce bounceback

The e-commerce sector has been hit the hardest among those analyzed, as expectations for consumption were low in the past few weeks. Share prices of the six companies TechNode analyzed saw a 9.4% decrease on average until Feb. 3, and have since won back 5.4%.

Millions of people are staying at home this week due to obligatory work-from-home policies, adding on the fact that fears of the virus spreading is running high. But fear of the virus might prove beneficial for e-commerce companies.

“Alibaba and Meituan’s share prices dipped slightly, but are now on an upward trajectory, as investors price in how important e-commerce will be over the coming months,” Michael Norris, leader of research and strategy at AgencyChina, told TechNode.

Cities across China have ordered entertainment venues to shut down and shopping malls to take strict entry measures during the Spring Festival break which went from Jan. 23 through Feb. 2 after a last-minute extension.

“Over the coming weeks, the default for many folks’ consumption will be e-commerce,” Norris said. E-commerce and delivery platforms have already implemented “no-contact delivery,” meaning the delivery driver doesn’t come in person with the person receiving the goods. This scheme meets consumer desires and “the stock market has responded positively to these developments,” Norris said.

Luckin Coffee shares have dropped by 29%, from $44.17 on Jan. 13 to $31.35 on Feb. 3, the biggest drop among the companies analyzed. On Saturday, the US investment firm Muddy Waters delivered a further blow to China’s largest coffee chain, saying that it believes the company is inflating sales numbers. Luckin Coffee stock has increased by 24.56% this week, recovering to $39.05.

Luckin shares dip further despite refuting fraud claims

Shoppers going online

Smartphones and telecommunications companies have also seen a drop. The five companies TechNode analyzed showed a 2.3% decrease since Feb. 13.

“We predict the overall smartphone shipment in China to drop by 15% to 20% year on year in the first quarter,” said Fang Jing, chief analyst at Cinda Securities, a Beijing-based investment firm.

The drop is attributable to the government’s calls remain during the Spring Festival holiday in an effort to contain the spread of the virus, Fang said.

The holiday is usually considered a barometer of Chinese private consumption because of the traditions of gift-giving and family reunions. However, fears of the deadly coronavirus that has killed 491 people and sickened 24,363, based on official data, have kept shoppers away from the streets.

“We have seen shipments of smartphones through offline channels drop by 70% during the Spring Festival holiday,” said Fang. “If the situation is not going to take a turn for the better, the percentage will likely increase.”

Instead, people are going online for electronics consumption. Online shipments of smartphones are expected to account for as much as 40% in the first quarter, Fang said, adding that the proportion was only 28% in the same period last year.

With a small store footprint, Xiaomi relies on online sales, which makes it a strong contender for the coming months when e-commerce will become an even bigger pillar of consumption. Its stock climbed 3.29% in the time period analyzed, making it the only rising stock in the smartphones and telcos category.

Compounding on Xiaomi’s relatively good outlook in China, are good results in India. The Beijing-based company remains the top smartphone brand in India, according to research by market intelligence firm Canalys published on Jan. 29.

Supply chain delays

The epidemic also creates challenges and disruptions for supply chains in China, especially after authorities in some big cities announced rules barring companies from resuming operations for a certain period of time following the break.

Companies in Shanghai, for example, are not allowed to re-open offices before Feb. 10, meaning either remote work or a longer holiday. In the meantime, jobs that require the physical presence of employees, like factories, remain closed.

DingTalk, WeChat Work overburdened as hundreds of millions work remotely

Car manufacturer Hyundai had to close all its factories in South Korea after it ran out of critical components coming from China. The world’s fifth-largest automaker said it would take three to four weeks to switch to parts made outside China.

“We expect that most consumer electronics manufacturers will resume operations on Feb. 9 or Feb. 10, which means a delay of roughly one week,” said Fang.

“But, given that the first quarter is always a low season for electronics consumption in the year, the impact is limited. We expect that orders affected by the delay will account for less than 2% of smartphone makers’ annual orders.”

CORRECTION: An earlier version of this article erroneously reported Meituan Dianping’s stock price as though it were listed in US dollars. The company’s shares are priced in Hong Kong dollars.

News that a Taiwanese supplier for Apple and Samsung with factories in China plans to set up new production facilities in Vietnam following a US-China “phase one” deal is a signal that the trade friction merely hastened the process of electronics manufacturers diversifying from China, according to an analyst.

Why it matters: The so-called phase one trade deal was expected to restore confidence in China’s economy, but Pegatron’s move shows that tech companies are still trying to disentangle their supply chains from “the world’s factory” to mitigate risk.

“The trade war accelerated manufacturers’ moving away from China and it sent a strong message: Do not put all your eggs in one basket.” (our translation)

—Will Wong, smartphone analyst at IDC Singapore

Details: Vietnam lacks the level of infrastructure and skilled labor pool that supports China’s manufacturing capacity, Will Wong, a Singapore-based smartphone analyst at market research firm International Data corporation, told TechNode. But local governments remain hopeful that it will become central to electronics supply chains in the future and are trying to attract investment, he added.

• Pegatron has already leased a production facility in a city in northern Vietnam called Haiphong, Bloomberg reported on Tuesday. In that facility, the Taipei-based company plans to make styluses for South Korean smartphone giant Samsung, the report said.
• The electronics manufacturer is also looking for a site in north Vietnam to build a production facility from scratch, but Pegatron doesn’t plan on shifting iPhone assembly to Vietnam, according to the report.
• The company’s share prices showed no significant fluctuation since the announcement, declining 0.6% by market close on Wednesday.

Context: Increasing labor costs and stricter regulation in China had tech companies looking for  manufacturing facilities elsewhere prior to the trade war, Wong said.

• It is uncertain what the impact of this trend will be on the Chinese economy. Under the “Made in China 2025” strategic plan, Beijing wants China to shift from being the “world’s factory” into a high-tech powerhouse that develops its own auto technology, semiconductors, robots, pharmaceuticals, and more.
• Foxconn, the world’s largest electronics manufacturer, in June assured investors that it had an “agile” plan to move iPhone production out of China in case tariffs rendered US-bound exports too expensive.
• “If Apple needs us to move our supply chain, we can do that with the fastest speed. US-China relations are changing dramatically and we are closely monitoring them, and so does Apple,” Young-Way Liu, a member of Foxconn’s operation committee said at the time.
• Pegatron spun off Taiwanese laptop maker Asus in 2009 to make motherboards.

Includes contributions from Wei Sheng.

Huawei released Thursday a new version of its developer tools aimed at replacing Google’s similar offering as the world’s second-largest smartphone maker struggles to gain independence from US technology.

Why it matters: The company has stepped up efforts to create an app and mobile service ecosystem to replace Google Mobile Service, which it lost access to after a US export ban imposed in May.

• The Shenzhen-based company’s in-house alternative, Huawei Mobile Service (HMS), provides services such as the account system, location kit, push notifications, and in-app purchases, according to its website.
• Experts believe that with a “joint effort” from developers worldwide, Huawei could replace most Google apps and services such as Google Play, Google Maps, and Gmail with “good alternatives” on its Android phones.

Details: Huawei released HMS Core 4.0, a collection of features open to developers, adding capabilities such as Quick Response (QR) code extraction, near-field communication (NFC), and identity authentication, according to a company statement on Thursday.

• While HMS Core is a kit for developers, HMS Apps provides mobile applications corresponding to Google offerings. They include Huawei App Gallery, a mobile wallet, Huawei Video, and a music app, according to the statement.
• More than 1.3 million developers from the globe have registered on the GMS platform, maintaining more than 55,000 apps, the company said.

Context: Earlier this week, Huawei announced it had shipped over 240 million smartphones in 2019, a 16.5% increase compared with the previous year based on data from IDC.

• The company is investing around $26.1 million into a benefit scheme for British and Irish developers to make apps on its HMS, it said on Wednesday in London.
• In September, it had to launch a new 5G-compatible smartphone lineup without Google apps or access to its services in Europe.
• The company debuted its in-house mobile operating system HarmonyOS in August, but company executives have stated that it is not an Android replacement.

Lenovo and Xiaomi may be in for a legal dispute after the head of the personal computer giant’s smartphone business jumped ship to the smartphone maker on Thursday.

Why it matters: The move followed a leadership reshuffle at the world’s fourth-largest smartphone maker in late November in which the roles of as many as eight high-ranking executives were affected. Xiaomi ceded significant share in the domestic smartphone market to rivals last year, falling to 9% in the third quarter from 12% in Q2, according to market research firm Canalys.

• Chang Cheng, former head of Lenovo’s smartphone unit, announced his departure from Lenovo on Dec. 31. He has more than 3 million followers on China’s social media platform Weibo and has openly criticized Xiaomi’s smartphone offerings, including a comment in March on founder Lei Jun’s Weibo post about the low-end Redmi Note 5 in which Chang called the phone a “bucket” in reference to its thickness.
• Chang’s departure is seen as a blow to Lenovo’s underperforming smartphone business. Revenue for the company’s smartphone division dropped 7% year on year in the quarter ended Sep. 30.

Details: Lenovo said it would take legal action on Thursday, the day Chang announced he had joined Xiaomi.

• The personal computer manufacturer said it has signed non-compete clauses with all of its executives and that it would seek to resolve disputes “within the legal framework” should there be any breaches, according to Chinese business media Yicai, citing a Lenovo spokesperson.
• The Yicai report cited a source close to Xiaomi as saying that Chang left Lenovo without signing a non-compete clause and he was not paid any related compensation.
• Xiaomi declined to comment when contacted by TechNode on Friday. Lenovo did not immediately respond to requests for comment.

Context: Chang joined Lenovo in 2000 as a research and development director at Lenovo’s laptop business unit.

• He became the CEO of ZUK, a smartphone spin-off, in June 2015, and was appointed a Lenovo senior vice president.
• Lenovo’s smartphone business has struggled to gain traction in recent years, even after it bought US-based handset brand Motorola from Google in 2014 for $2.9 billion. Its market share in China has remained less than 1% since 2017.

China became the largest market globally for smart speakers earlier this year with some 10.6 million units shipped in the first quarter. In fact, three of the world’s five leading smart speaker vendors in the third quarter were Chinese, according to market research firm Canalys. 

The top Chinese players are household names: e-commerce giant Alibaba, search operator Baidu, and handset maker Xiaomi. They all rely on a little-known startup called SoundAI for critical voice interaction technology.

The backstory: The Beijing-based startup makes voice recognition and artificial intelligence (AI) software, helping smart speakers from leading manufacturers to listen to and process users’ requests.

• The company’s products include Azero, a voice interaction kit that runs on smart speakers, connected cars, and wearables; Babel, a voice recognition software; and Cimon, an audio processing tool.
• SoundAI raised RMB 200 million ($28.6 million) in its most recent funding round (Series B) in December 2018. It valued the company at RMB 1 billion (around $143 million).
• Chen Xiaoliang, a researcher at the Institute of Acoustics under the Chinese Academy of Sciences, founded the firm in May 2016.

Unique selling point: SoundAI’s technology is found in more than 20 million products, ranging from smart speakers and conference systems to robots and connected cars. It also runs a strong research and development (R&D) arm with more than 1,000 patents secured so far, according to its website.

“Voice is the most natural way of communication, and smart speakers will see great demand in the near future. Our voice technology has been used in the smart speaker offerings from top players including Baidu, Alibaba, Tencent, Huawei, and Xiaomi. Our cooperation with these firms is not easy to replace.”

—Chen Xiaoliang, founder and CEO of SoundAI, in an interview with TechNode

The investors: The company has closed four rounds of investment to date, bringing in investors such as Baidu, FreesFund, Qihoo 360, Aplus Capital, and the Bank of Beijing.

• Qihoo 360, better known as a cybersecurity firm, and Baidu both make smart speakers. Baidu was the third-largest smart speaker vendor globally in the third quarter.

Present condition: The company has a team of around 200 employees, mainly from top Chinese universities such as Tsinghua and Peking University, as well as tech companies including Google, Broadcom, Tencent, and Baidu.

• The company works with 150 companies in sectors ranging from smart home and education to healthcare and manufacturing, according to Chen.
• Current information on the company’s profitability was unavailable at the time of writing.

The landscape: Global smart speaker shipments grew by more than half year on year to hit 34.9 million units in the third quarter, according to market research firm Strategy Analytics. China accounted for 36% of global shipments.

• In the two years since their emergence in the Chinese market, smart speakers have evolved from niche gadgets into one of the most sought after devices in Chinese households.
• Smart speakers are a key item for controlling intelligent home platforms, a booming sector.
• The device’s popularity in China is partly due to a price war waged between the country’s tech heavyweights, with average prices slashed to under $20 from about $100 in 2017.
• Another Strategy Analytics report predicts global consumer spending on smart home-related hardware, services, and installations to reach $103 billion in 2019 and $157 billion in 2023.
• As a voice recognition technology provider, SoundAI shares the market with smart home solution provider Tuya Smart and Unisound, a Qualcomm-backed voice-to-text software maker, among others.

China’s tech giants battle for smart speaker supremacy as price war rages on

Prospects: The company is likely to maintain growth as the smart speaker becomes a fixture in the “vast majority” of Chinese households. Baidu’s recent move to pull out of the price war by cutting subsidies indicates organic demand is increasing.

• SoundAI is on a list of 100 tech companies that Chinese business news platform Sina Finance expects to go public on the STAR Market, the country’s Nasdaq-style tech board on the Shanghai Stock Exchange.

The Chinese market for wearable devices reached 27.15 million units shipped in the third quarter of 2019, up 45.2% from 20.97 million units in the same time period last year, according to a report from market research firm International Data Corporation (IDC). The report predicts the market to reach 200 million units in 2023.

Why it matters: The report highlights the fast growth of China’s wearable devices market, and the fact that Chinese companies are the biggest players in this field.

Details: Xiaomi is leading the market, with a quarter of all shipments, but Huawei saw the biggest increase in shipments. The Shenzhen-based telecoms giant saw its shipments almost double in the last year, doubling its market share from 10.7% in the third quarter of 2018 to 20.7% in the third quarter of 2019.

• The market saw some consolidation in the time period , as the total share of the top five companies grew from 59.8% to 70.2% in that time period.
• BBK Electronics, the parent company of Oppo, is the only company in the top five that saw its market share decrease, from 9.8% to 7.7%.

Context: Xiaomi overtook Apple as China’s largest seller of wearable devices in 2018.

Chinese augmented reality (AR) headset maker Nreal filed on Tuesday a motion to a California court, seeking to dismiss a lawsuit brought by its US-based rival Magic Leap accusing the company and its founder of stealing its technology.

Why it matters: The June lawsuit brought by a US firm against a Chinese company over intellectual property (IP) reflects the broader dispute between the world’s two largest economies over technology theft.

• Beijing-based Nreal was founded by ex-Magic Leap employee Xu Chi, who left his position at the US firm as a software engineer in 2016.
• The two companies both manufacture headsets for so-called augmented, or mixed reality, an interactive technology combining a real-world environment with computer-generated images.

Briefing: American AR startup accuses Chinese ex-employee of IP theft

Details: In a motion filed with a federal court in San Jose, Nreal claimed that Alibaba-backed Magic Leap is “filing lawsuits to slow down new entrants in the AR market,” according to a company statement.

• Nreal stated the lawsuit by Magic Leap was “vague and unsubstantiated,” and that it was brought because the Chinese company was developing a similar device to Magic Leap’s AR headset.
• In the June lawsuit, Magic Leap alleged Xu exploited its confidential information to “quickly develop” a prototype of mixed-reality glasses and other devices that are “strikingly similar” to its designs.
• Florida-based Magic Leap did not immediately respond to an emailed request for comment on Wednesday.

“We will fight Magic Leap’s meritless legal claims and will not allow them to distract us from innovating and delivering unparalleled augmented-reality products.”

— Xu Chi, Nreal founder, in a statement

Context: Founded in January 2017, Nreal received $16 million Series A+ from investors including Everbright and Baidu’s online video unit iQiyi in January. The valuation is unknown.

• The company released $499 AR glasses in January at the Consumer Electronics Show 2019 in Las Vegas.
• Last week, Apple told a federal court that it had “deep concerns” that two Chinese-born former employees accused of stealing trade secrets would try to flee back to China.
• Tesla in March accused a former employee of stealing IP worth hundreds of millions of dollars and sharing it with its Chinese rival, Guangzhou-based Xpeng Motors.

Liu Chuanzhi, the founder of Chinese computer giant Lenovo Group, will announce his retirement and step down as the chairman of Lenovo parent company, Legend Holdings, on Wednesday, according to Chinese media reports.

Why it matters: The 75-year-old entrepreneur is widely regarded as the godfather of China’s emerging powerhouse economy and his founding of Lenovo three decades ago still ranks as one of the biggest technology success stories in China.

• Liu guided Lenovo’s transformation more than 30 years ago from a computer importer to China’s first multinational company and the world’s largest personal computer seller.

Details: Legend Holdings will issue a public notice announcing Liu’s retirement after the Hong Kong stock exchange closes on Wednesday afternoon, Shanghai-based media outlet the Paper reported on Monday, citing anonymous sources.

• The management role for Legend Holdings will be handed over to a team led by current senior vice president and chief financial officer Ning Wen.
• Legend Holdings president, 57-year-old Zhu Linan, will also announce his resignation on Wednesday, according to the report.
• Legend Holdings could not be reached for comment. A Lenovo representative declined to comment when contacted by TechNode on Tuesday.

Context: Founded in 1984, Lenovo’s businesses range from producing personal computers, smartphones, and servers, to information technology (IT) management software and electronic storage devices.

• Legend Holdings is a Beijing-based investment holding company and Lenovo’s controlling shareholder. The company went public in Hong Kong in June 2015.
• Lenovo acquired IBM’s personal computing business for $1.8 billion in 2005, a deal that many people hail as a turning point for China’s technology sector.
• In 2014, Lenovo bought US-based handset brand Motorola from Google for $2.9 billion in a bid to accelerate its fledgling smartphone business.

Apple’s iPhone shipments in China dropped by more than 35% in November compared with the same period last year, Reuters reported, citing a report by Credit Suisse.

Why it matters: The November figures are the iPhone’s second consecutive double-digit decline despite Apple’s efforts to lure more Chinese consumers by significantly lowering the price of its newly released iPhone 11 series.

• Apple priced the iPhone 11 at $50 less than the preceding model following a year of heavily discounting older iPhone models in a bid to offset aggressive competition from Chinese competitors such as Huawei and Oppo.
• The overall Chinese smartphone market declined by 1.5% year on year in November, a modest recovery from the 6.7% year-on-year dip in October, according to a report by the China Academy of Information and Communications Technology.

Details: Total iPhone shipments in China in the September-November period dropped 7.4%, said Credit Suisse analyst Matthew Cabral in the report, citing data from China’s Ministry of Industry and Information Technology.

• Total iPhone shipments in China are down 7.4% year on year in the period from September—when iPhone 11 hit the market—through November, according to the report.
• The analyst also said Apple expects more tariffs imposed on its products sold in the US if the 15% tariffs on billions in Chinese-made goods come into effect on Dec. 15.
• However, Apple could avert the duties after US President Donald Trump signed off on an initial trade agreement with China on Thursday, according to Bloomberg.

Huawei widens lead in China smartphone market after US ban: report

Context: Apple has had a tough time in China this year. The company’s smartphone shipments in China fell 28% year on year in the third quarter, while unit shipments for Huawei, its biggest rival in China, surged 66% in the same period, according to data from market research firm Canalys.

• Apple held 5.2% of China’s smartphone market share in the third quarter, ranking fifth behind Chinese handset makers Huawei, Vivo, Oppo, and Xiaomi.

Beijing has ordered the offices for all government agencies and public institutions to remove foreign computer equipment and software from their offices within three years, the Financial Times reported.

Why it matters: The government directive, which comes as Washington attempts to limit the use of Chinese technology and is cracking down on some of China’s biggest tech companies including telecommunications equipment maker Huawei and artificial intelligence firm SenseTime, is likely to be a blow to US tech firms such as HP, Dell, and Microsoft.

• The move is a part of broader efforts from Beijing to push for reliance on homegrown technologies and mobilize public and private sectors to support domestic tech companies.
• The US has also been trying to exclude Chinese players, including Huawei and its rival ZTE, from the country’s telecommunications market citing national security risks.

Details: It is estimated that 20 million to 30 million pieces of foreign-made hardware will need to be replaced, and that the process will begin next year, said the Financial Times report, citing unnamed analysts at state-backed broker China Securities.

• The analysts said that around 30% of the hardware will be substituted with Chinese-made products in 2020, 50% in 2021, and 20% the year after.
• The order came from the ruling Chinese Communist Party’s Central Office earlier this year, said the analysts.
• Analysts are also skeptical about whether China can find appropriate alternatives to software and operating systems such as Microsoft’s Windows and Apple’s macOS.
• China’s homegrown desktop operating systems, such as the Kylin OS, has a limited ecosystem of developers producing compatible software, said the report.
• It is also challenging to define “domestically made” hardware and software, the report said, citing as an example products made by Chinese-owned personal computer manufacturer Lenovo, which use processor chips by Intel and hard drives made by South Korea’s Samsung.

Context: Smartphone and laptop maker Huawei announced its in-house operating system, the HarmonyOS, in August in August as a response to the US government’s blacklisting of the company.

• The company hasn’t decided to run the system on its handsets because of the lack of a mobile application ecosystem.

Xiaomi co-founder and chairman Lei Jun has stepped down as the company president for China, according to an internal company letter, following a drop in smartphone market share since he took the position in May.

Why it matters: Besides Lei, the company reshuffled seven other high-ranking executives within the ranks of the world’s fourth-largest smartphone maker.

• The Beijing-based company’s smartphone shipments in China declined 20% year on year in the second quarter and 33% in Q3 with market share shrinking to 9% from 12% during the six-month timeframe, according to market research firm Canalys.
• Xiaomi’s disappointing performance in the Chinese smartphone market came as rival Huawei ramped up its marketing in China over the past few months to offset weak international sales caused by a US export ban. Huawei nabbed a record 42% market share in China in the third quarter.

Details: Lei retained his roles as the company chairman and CEO while Lu Weibing, the former brand manager for the company’s budget phone spin-off brand Redmi, will replace Lei as the company president for the China region, according to an internal letter sent to Xiaomi staff on Friday, Chinese business newspaper Time Weekly reported on Sunday.

• Wang Xiang, who used to lead the company’s international business, was promoted to president of the company while former president Lin Bin was made vice chairman of the board, according to the letter signed by Lei.
• Former chief finance officer Shou Zi Chew now leads the company’s overseas business.
• Co-founder Li Wanqiang, who used to be in charge of Xiaomi’s marketing and brand strategy, resigned from the company while senior vice president Qi Yan has retired, according to the letter, which also said that they would both retain advisory roles.
• All of the changes took effect on Friday, a company spokesman told TechNode on Monday.

Context: Xiaomi last week reported 5.5% year-on-year growth in Q3 revenue, in the company’s slowest-ever growth since its July 2018 listing in Hong Kong.

• The modest earnings growth is partially due to declining smartphone sales, which dropped 8% year on year during the quarter.
• Despite the decline in the Chinese market, Xiaomi’s international business remains strong, especially in Europe, where the company’s smartphone sales surged 73% year on year in Q3.

Xiaomi’s Q3 growth slows amid dwindling smartphone sales, Huawei competition

Updated: added that Lei Jun will also remain in his role as CEO at Xiaomi.

Chinese smartphone maker Xiaomi reported 5.5% year-on-year growth in third quarter revenue on Wednesday, in the company’s slowest-ever growth since its July 2018 listing in Hong Kong.

Why it matters: The underwhelming earnings report reflects the mounting pressure on Xiaomi as it faces aggressive competition from rival Huawei in China’s saturated smartphone market in the past few quarters.

• The Beijing-based company has seen its smartphone shipments in China drop by 33% on an annual basis in the third quarter while those of Huawei expanded 66% year on year for the same time period.
• Overall smartphone sales in China shrank 3% year on year in Q3.
• Xiaomi has looked to European markets, where Huawei phones are restrained by its blocked access to Android as a result of a US trade ban, to make up for weak sales at home.
• The company’s Q3 smartphone shipments in Europe surged 73% year on year to reach 5.5 million units, though still dwarfed by Huawei’s 11.6 million units sold in the region during the same time period.

Details: The company’s revenue in the third quarter rose to RMB 53.66 billion (around $7.6 billion) from RMB 50.85 billion the same period a year earlier, a 5.5% year-on-year increase.

• It generated RMB 3.5 billion in profit during the quarter, a 20.3% increase compared with the same period last year.
• Revenue from smartphones, which accounted for most of Xiaomi’s total revenue, fell 8% year on year to RMB 32.3 billion in the quarter.
• Xiaomi chief finance officer Shou Zi Chew attributed the smartphone sales drop to the bleak smartphone market where wireless operators are upgrading their networks from the current 4G to 5G at an earnings call with analysts on Wednesday.

“We are in a transitional period from 4G to 5G and the smartphone market is under great pressure… We are very confident about the 5G era because we are good at bringing new technologies to consumers” (our translation).

—Shou Zi Chew, at the earnings call on Wednesday

Context: Xiaomi in September launched the country’s cheapest 5G-compatible smartphone, the Mi 9 Pro, at a starting price of RMB 3,699.

• Company chairman Lei Jun announced last week that Xiaomi is building a “smart plant” in Beijing to manufacture its flagship handsets.
• In a further global push, Xiaomi is planning to enter the Japanese smartphone market next year, according to Nikkei.

Xiaomi to launch first manufacturing plant in December: chairman

Huawei launched Monday a new lineup of its MateBook D laptops with the Windows 10 operating system pre-installed, days after Microsoft was granted a license from the US government to export software to the company.

Why it matters: The move shows Huawei’s multi-billion dollar consumer business is still restrained by a US trade ban imposed in May that bars the company from purchasing components and technology from American firms.

• The restrictions have hampered the Shenzhen-based company’s smartphone business, particularly in Europe, pending an export license approval for Google, the owner of the Android mobile operating system that runs on most Huawei phones.

Details: The company launched two laptops on Monday, the MateBook D 14 and MateBook D 15, which will ship with Microsoft’s Windows 10 operating system, said Yu Chengdong, head of Huawei’s consumer business, at an event in Shanghai.

• The series will start from RMB 3,999 (around $568.8) and hit the market on Dec. 3, said Yu.
• Alternatively, the laptops are offered with pre-installed Linux, an open-source operating system that is popular among developers, for the price of RMB 3,699, according to Yu.

Context: Microsoft said on Thursday it had been granted a license from the US Department of Commerce to export “mass-market” software to Huawei on Nov. 20, Reuters reported.

• The move was opposed by US lawmakers with a bipartisan group of 15 senators urging the Commerce Department to suspend the issuing of licenses on the grounds of national security in a letter to the department on Thursday.
• In June, Huawei canceled the launch of a new product in its MateBook series because the US trade blacklist had blocked the company’s access to the Windows operating system, The Information reported.
• In a later interview with CNBC, Yu said the launch date of the laptop “depends on how long the Entity List will be there.”

Chinese smartphone maker Xiaomi has started to pre-install an earthquake early warning system on a recent version of an operating system installed on its smartphone and television sets, the company announced on Tuesday.

Why it matters: The Beijing-based company is one of the first handset vendors to provide the potentially life-saving service.

• The current earthquake early warning system in China depends on public loudspeakers installed on the streets of cities within China’s seismic zones, according to Wang Tun, director of the Institute of Care-life, a Chengdu-based non-governmental organization that provides the earthquake early warning system to Xiaomi.
• The local government of China’s Sichuan province, a quake-prone province in the southwest, has approved TV and smartphone vendors to provide quake warning services on their devices, but users have to install related apps themselves, Wang told TechNode on Tuesday.

“Earthquakes are small-probability events and people are not willing to install alert apps on their phones when they don’t happen… It is significant that Xiaomi pre-installs the earthquake early warning system on televisions and smartphones, because people will not need to download related apps to be warned of earthquakes” (our translation).

—Wang Tun, to TechNode on Tuesday

Details: The warning system is pre-installed on Xiaomi’s MIUI 11, the company’s user interface (UI) for smartphones and smart TVs based on Google’s Android operating system released on Oct. 22. Devices shipped with the UI installed will receive the alerts, Fan Dian, the general manager of Xiaomi’s Internet of Things (IoT) platform department, said at a tech event in Beijing on Tuesday.

• Current Xiaomi smartphone users can also activate the function by updating their phones to the latest MIUI, according to Xiaomi.
• Devices running MIUI 11 have delivered alerts ahead of a 4.1-magnitude earthquake that hit Yibin, Sichuan, on Nov. 10, said Fan.
• Wang told TechNode that his institute is already in talks with top Chinese smartphone makers, including Oppo and Huawei, to pre-install the system on their phones.
• He believes that the delivery rate of earthquake alerts in quake-prone areas could reach 80% to 90% of the population once the system is installed on handsets from other top smartphone makers—a huge increase compared with the current rate of around 30%.

Context: In June, a 6.0-magnitude earthquake hit Yibin, killing 13 people and injuring 199.

• An early warning system was triggered in the city 10 seconds before the earthquake struck.
• A three-second head start before a tremor hits can prevent 14% of casualties, according to state-run news agency Xinhua.

Huawei’s long-awaited Mate X foldable phone sold out within seconds of being made available in China on Friday, months after the planned mid-year launch.

Why it matters: The RMB 16,999 (around $2,419.7) device has become the second consumer-ready foldable phone in China after Samsung launched its Galaxy Fold last week, which also sold out soon after sales opened.

• Huawei has ramped up smartphone marketing in China amid uncertainty in its overseas markets and thus has widened its market share in the country to 42% in the third quarter.
• The device is only available in China and the company said it has no timetable for sales in overseas markets because demand in the country has exceeded supply.

Details: Huawei began selling the Mate X smartphone, which is compatible with next-generation 5G networks, on Friday morning on the company’s e-commerce platform Vmall.

• Stock allocated for Friday’s sales ran out “seconds after it kickstarted,” according to local media.
• A Huawei spokesman declined to disclose the number of devices sold on Friday.
• Vmall is the only channel where consumers can buy the Mate X at the moment, the spokesman said.
• Sales of the device will restart every Friday at 10:08 am. The next round of sales will take place on Nov. 22, according to the website.
• The current production capacity of the handset is roughly 100,000 units per month, according to Kevin Ho, president of Huawei’s handset product line.
• Ho said at a panel discussion at TechCrunch Shenzhen 2019 on Tuesday that foldable phones would be “the direction where smartphones evolve.“

“People want smartphones to be as small as possible when they carry them, but they want them to be as big as possible when they use them… and the foldable phone is a good solution” (our translation).

—Kevin Ho at TechCrunch Shenzhen 2019 on Tuesday

Context: The Mate X, which was first released in February at the Mobile World Congress in Barcelona, features a flexible screen that can fold into a 6.6-inch smartphone and unfold into an 8-inch tablet.

• Samsung launched its RMB 15,999 Galaxy Fold last Friday in China after it hit markets in South Korea, the US, Singapore, and some European countries.
• Motorola, the US smartphone brand owned by Chinese PC maker Lenovo, launched on Wednesday a foldable phone that features a 6.2-inch foldable screen and revives the design of its classic Razr handset released in 2004.

HarmonyOS phone tech is ready but lacks ecosystem: Huawei executive

The technology needed to run Huawei’s in-house mobile operating system, the HarmonyOS, on smartphones is ready, but the ecosystem is still lagging behind, said Kevin Ho, the president of Huawei’s handset product line, on Tuesday.

Speaking at TechCrunch Shenzhen 2019, Ho said that millions of applications are needed to perfect the mobile OS ecosystem, and this remains the toughest problem for Huawei to solve at present.

The OS, officially unveiled in August, is widely considered as an alternative to Google’s Android. Yu Chengdong, CEO for Huawei’s consumer business group, said at the launch that HarmonyOS would support a wide range of devices from personal computers to smartwatches, as well as virtual reality glasses, without mentioning any plans for installation on smartphones.

Huawei’s Hongmeng may not replace Android on smartphones after all

Ho reaffirmed that Huawei doesn’t have a plan to launch a smartphone running the HarmonyOS and that the company is still sticking to Android.

HarmonyOS is able to run on multiple internet of things (IoT) devices so developers need only to build one version of an app to deploy it through different platforms, he added.

“Currently we are working with developers around the world [to build the ecosystem],” said He, who called developers to build apps based on Huawei Mobile Services, the company’s alternative to the Google Mobile Services (GMS), the apps and services by Google that often come pre-installed on Android.

The GMS is currently unavailable on new Huawei phones due to the US export ban on the company which bars sales of components and technology from American companies to Huawei.

The company launched the Mate 30 series in September in Europe, marking its biggest smartphone market outside China. It sold without Google apps and services pre-installed, a move which experts believed would slash the appeal of the new models in the West.

Tiago Alves, vice president for Asia Pacific at Portugal-based Android app store Aptoide, told TechNode in an interview in June that no consumers in Europe would want a phone without Google services.

However, he said it would be possible for Huawei to build an ecosystem without Google, and the process should be a “joint effort,“ where those alternatives to Google apps and services such as the Google Play Store, YouTube, and Gmail are populated by many different developers.

If the Huawei OS can offer all of these Google services—something that will take a while to develop—then users will buy a phone that uses the system, said Alves.

Chinese smartphone maker Xiaomi is planning to enter the Japanese market next year as the company expands its global presence to offset sluggish market conditions and fierce competition at home.

Why it matters: Revenue for the Beijing-based company grew 15% year on year in the second quarter to RMB 51.9 billion (around $7.4 billion) aided by an increase in overseas sales, which accounted for more than 40% of the company’s total revenue.

• Xiaomi is the biggest smartphone vendor in India, where it outsold all competitors, including global smartphone leader Samsung, to take a 28% market share in the quarter ended June, according to market data provider Counterpoint.
• It is also the fourth-largest smartphone seller in Europe with shipments in the same quarter growing by nearly half to reach 4.3 million units.
• At home, smartphone leader Huawei has encroached on market share from other players over the past two quarters as it steps up marketing efforts in China to offset falling sales in overseas markets.
• Huawei grabbed 42% of China’s smartphone market in the September quarter after shipments rose by nearly two-thirds. Xiaomi during the same time period saw its shipments sink 33% year on year, leaving it with only 9% share.

Details: Wang Xiang, head of Xiaomi’s international operations, disclosed on Monday Xiaomi’s plans to enter the Japanese smartphone market in the next year, according to Nikkei.

• Xiaomi will initially offer multiple models, along with linked wearable devices, in the market through the company’s own sales channels, including online.
• The company eventually hopes to partner with wireless carriers, the main distributors for phones in Japan, said Wang, without mentioning any specific names.
• The company will set up a Japanese subsidiary soon to prepare for the launch, Wang said, declining to provide details about specific products.

Context: In January, Xiaomu announced that it would set up a business unit to expand on the African continent, appointing its Vice President Wang Lingming (no relation) to head up the new unit.

• In February, Xiaomi signed a partnership agreement with Africa’s leading e-commerce platform, the Nigeria-based online marketplace Jumia, to open a Mi official store, gaining access to millions of customers across 14 countries, including Nigeria, Egypt, Kenya, Ivory Coast, Morocco, and Ghana.
• The African market push stagnated after Vice President Wang was sacked from the company for violating a law banning obscene behavior, including public nudity.

Huawei widens lead in China smartphone market after US ban: report

The high-profile founder of struggling Chinese smartphone maker Smartisan has been placed on an official blacklist for debt defaulters, which bars him from spending on travel and other major purchases, a local court document showed.

Why it matters: The public debt blacklist, maintained by China’s top court and including contributions from municipal-level courts, is part of the country’s growing push to curb nonperforming loans.

• Some 3.6 million entities were placed on the blacklist in 2018, according to a report (in Chinese) released by Credit China, the governmental website which hosts the debt blacklist.
• Founded in 2012, Smartisan was never able to distinguish itself in China’s fiercely competitive smartphone market. In the six years since it was founded, the company has sold only around 3 million smartphones, in sharp contrast to top-performing Huawei, which shipped 35.2 million units last year alone.

Details: Beijing-based Smartisan, along with its founder and former CEO Luo Yonghao, were put on the blacklist for defaulting on payments toward RMB 3.7 million (around $527,000) of debt owed to Jiangsu-based electronics suppliers, according to a consumption restriction order by a local court published on Sep. 24.

• The order also bars Luo from spending at luxury hotels, night clubs, and golf clubs, or going on vacation. Any violation will lead to fines or detention, according to the order.
• In a statement posted on his social media account, Luo apologized to his creditors and promised to pay off all his debt in the future.
• The serial entrepreneur, who is also known for his stand-up comedy episodes that earned him early popularity, vowed that he would become a street performer to clear his debt if he had to.

Context: Beijing-based Bytedance licensed in January a number of Smartisan’s patents to ramp up its online education business. The TikTok owner also recruited dozens of employees from Smartisan later that month.

• In March, it was reported (in Chinese) that Smartisan has ceased research and development because of sagging smartphone sales.
• The company confirmed last November that it was suffering from cash flow problems, leading to difficulties paying salaries giving rise to plans to lay off as much as 60% of employees.

Huawei’s handset shipments in China rose two-thirds during the third quarter, helping the firm to hit a market share of 42%, data from market research firm Canalys shows.

Why it matters: The data indicates that the world’s second-largest smartphone maker has fared well at home despite the US blacklisting that is impairing performance overseas.

• Chinese consumers rallied behind the company after Washington moved to bar the Chinese telecoms giant from doing business with American companies.
• A sense of patriotism is likely to be a key driver of the sales surge as 42.9% of Chinese consumers intend to choose Huawei when switching from iPhones.

Unchanged:

Details: This quarter marks Huawei’s sixth consecutive quarter of double-digit growth, and places the Shenzhen-based company way ahead of its competitors with a 25 percentage-point lead over second-placed Vivo.

• Huawei smartphone shipments in China expanded 66% year on year to 41.5 million units, despite the overall market shrinking 3%.
• As Huawei consolidated its position in the market, all other vendors lost ground. Vivo supplanted Oppo in second place, while Xiaomi fell to fourth, Canalys said.
• Apple kept hold of fifth place in part due to September’s iPhone 11 launch. The new handset made up 40% of its shipments in the period.

“Huawei opened a huge gap between itself and other vendors. Its dominant position gives Huawei a lot of power to negotiate with the supply chain and to increase its wallet share within channel partners.”

-Nicole Peng, vice-president of mobility at Canalys

Context: The US ban, enforced in May, cut off Huawei from key suppliers, including chipmakers and Google’s Android operating system used in its devices.

• In response, Huawei announced it was building its own OS and, most recently, entered the electric vehicle business.
• As Washington officials urge world leaders in politics and business to shun Huawei from 5G networks, Huawei claims to have secured more than 50 contracts worldwide.
• On Monday, a report by the Sunday Times claimed that the UK, one of the US’s closest allies, is preparing to allow Huawei to be involved in the development of next-generation communications.

Net profits for Transsion, the Chinese smartphone maker, in the first three quarters of the year surged 732% year on year to RMB 1.3 billion (around $180 million), according to the company’s filing, while revenues continued to slow.

Why it matters: This is the first quarterly earnings report released by the Shenzhen-based budget mobile phone seller since its listing on China’s tech-focused STAR Market in September.

• The surge in profit, however, was not driven by a corresponding surge in revenues, which rose a modest 6.7% year on year.
• The company profited from foreign currency futures purchased during the first five months of 2018 to hedge against the rapid devaluation of US dollars against the Chinese yuan.

Details: Revenue growth during the three quarters ended Sept. 30 is slowing for the mobile phone maker, down significantly from 12.9% in 2018 and 72.2% in 2017, according to its prospectus filed in April.

• The company sold 16.6 million smartphones and 38.2 million function phones in the first two quarters, according to the filings.
• Revenue for the third quarter was RMB 6.4 billion, up 9.7% year on year, while net profit grew 436.7% on an annual basis to RMB 483 million.

Transsion’s lead in African phone market under threat from fellow Chinese rivals

Context: Founded in 2016, the company went public on the STAR Market on the Shanghai Stock Exchange last month, raising RMB 2.8 billion.

• The company, which owns three phone brands—Tecno, Itel, and Infinix—held a combined 48.7% share of the mobile phone market in Africa last year, according to its prospectus, citing data from research firm IDC.
• Transsion has been ceding market share in Africa to peers including Samsung and Huawei.
• The company has a strong presence in other emerging markets such as India, but analysts have said its handset profit margins are significantly lower than those of premium smartphone makers.

Chinese telecommunications giant Huawei said on Wednesday that the company has no plans to sell its foldable smartphone in overseas markets and that the device will launch in China on November 15.

Why it matters: The world’s second-largest smartphone vendor, hamstrung by a US export ban that blocks access to the most popular features of Google’s Android mobile operating system, is approaching overseas markets with caution as it ramps up marketing efforts in its home territory.

• Google said in August that it could not sell the license that is required to pre-install popular Google apps and services such as YouTube and the Play Store to Huawei for new devices.
• Huawei smartphone sales in Europe, the company’s biggest market outside China, tumbled 16% year on year in the second quarter, though it retained its position as the second-largest smartphone vendor in Europe with 8.5 million units shipped in the quarter ended June 30.
• In the same period, domestic shipments of Huawei smartphones soared 38% year on year, which analysts said stemmed from patriotic fervor among Chinese shoppers in response to US restrictions on the company.

Huawei to launch new 5G-capable handset in Europe without Google

Details: Kevin Ho, vice president of Huawei’s consumer business unit, told reporters at the launch of the Mate X foldable phone on Wednesday that there is no timetable for the device to go on sale in overseas markets because its demand has exceeded supply in China.

• The current production capacity of the RMB 16,999 (around $2,405) device is roughly 100,000 units per month, according to Ho.
• The company also announced that its smartphone shipments in 2019 to date had exceeded 200 million units, reaching the sales benchmark two months earlier than last year.
• The increase is attributable to strong domestic sales figures, while sales in overseas markets slipped, according to Ho.

“Our strategy is based on carriers’ 5G roll-out in different regions… A global launch plan [for the Mate X] is under review.”

⁠—Huawei spokesman to TechNode on Thursday

Context: This is not the first time that Huawei has deferred its overseas markets from launch plans for new handsets.

• The company delayed sales of its newly launched Mate 30 5G smartphone series in Europe in September because the handsets have no access to Google apps and services under the US trade ban. However, it said last month that it is planning to launch the Mate 30 series in Southeast Asia in October.
• NTT Docomo, Japan’s largest mobile carrier, said last month it would not offer phones from Huawei for its 5G network based on concerns about restricted access to Google services, according to Nikkei Asian Review.

Update: an earlier version of this story referred to Kevin Ho as He Gang, as he is also known.

Chinese financial service providers including Alipay, WeChat Pay, and Bank of China withdrew the fingerprint authentication feature from their apps on several Samsung smartphone and tablet devices known to be affected by a glitch in the sensor.

Why it matters: Samsung’s security snafu comes as its China operations are on the decline.

• The company’s market share for handsets in China has dropped sharply from 20% in 2013 to 1% in the first quarter of the year, and appear to account for less than 1% in Q2 as indicated by figures from Counterpoint Data.
• Earlier this month, the Korean smartphone maker closed its last factory in China amid intensified competition from Chinese brands like Huawei and Xiaomi.
• Samsung is the world’s “leading manufacturing enterprise” and shutting its doors in China will have a major impact on local phone factories, according to a South China Morning Post report citing Liu Kaiming, the head of the Institute of Contemporary Observation, a labor NGO.

Details: After Samsung confirmed on October 17 reports about the glitch in its fingerprint reader, a number of bank and payment apps in China, the UK, South Korea, and Israel temporarily disabled the fingerprint authentication feature, warned users to disable the feature on their smartphones, or have pulled support for the feature from their apps.

• The flaw in the ultrasonic fingerprint reader allows anyone to access the mobile device if the display is covered with certain third-party screen protectors.
• Bank of China issued a statement on October 19 about disabling the fingerprint authentication on the Galaxy S10 and Galaxy Note 10 smartphones, as well as the Tab S6 tablet.
• Samsung users in China reported that the function has also been disabled on Alipay and WeChat Pay, according to Sina News.
• Samsung acknowledged the issue on Thursday and confirmed the vulnerability affects several models including Galaxy Note 10, Note 10+, S10, S10+, and S10 5G. The smartphone maker said that a software patch to fix the glitch will be rolled out soon.

Context: The Korean electronics conglomerate topped the chart in global smartphone shipments in the second quarter of 2019 despite its shrinking share of the China market.

• Earlier this month, researchers at Google’s security group disclosed that they had discovered a zero-day flaw in Android that affects several popular smartphone models including Samsung, Huawei, Xiaomi, and Google.

Apple CEO Tim Cook started a three-year term as a top adviser at Tsinghua University, China’s most prestigious academic institution, chairing his first meeting on October 18, according to the school website.

Why it matters: Cook’s appointment places him at the heart of Beijing’s goal to increase the gravitas of Chinese universities.

• Apple’s relationship with Chinese authorities is under fire, after the Silicon Valley company pulled an app that tracks police activity in Hong Kong amid months-long protests.

“In the next three years, I will work with all of the board members to promote the development of Tsinghua University School of Economics and Management and to lead the effort to build it into a world-class school.”

—Tim Cook, CEO of Apple

Details: The university announced Cook’s participation in the advisory board meeting and his mandate on its WeChat account.

•  The board was established in 2000 with the aim to make the school a world-class institution. It is comprised of entrepreneurs, scholars, and Chinese Communist Party officials, among others.
• The day before the advisory board convened, Cook met with Xiao Yaqing, director of China’s State Administration for Market Regulation in Beijing and “conducted in-depth exchanges on expanding investment and business development in China, protecting consumer rights and fulfilling corporate social responsibility,” according to the governmental body’s website.

Context: Apple is one of few Silicon Valley giants whose products are allowed in the Chinese market, along with Microsoft and Oracle.

• The company has been criticized for its activities related to China, such as harsh working conditions at its manufacturing partner Foxconn’s factories, censorship, and privacy concerns.
• On October 10, Apple removed a crowd-sourced map from its App Store that helped Hong Kong protesters keep track of police, following criticism from Chinese state-owned media outlets.
•  Cook defended the move, saying that it was removed because it was in breach of the law.
• About two weeks ago, news site Quartz was also removed from the App store, a move that its CEO attributed to coverage of the Hong Kong protests.
• Earlier in October, the Taiwanese flag emoji disappeared from the iOS keyboard.

There are around 35 million households with smart speakers in China, and the device’s popularity is increasing rapidly, according to a report released by market research firm Strategy Analytics on Thursday, with some 59% of respondents saying that they can’t imagine living without the gadget.

Why it matters: In the two years since its emergence in the Chinese market, smart speakers have evolved from niche gadgets into one of the most popular electronic devices in Chinese households, making the country the largest market for the product worldwide.

• The device’s popularity is partially due to a price war between Chinese tech giants including Alibaba, Baidu, and Xiaomi, slashing average prices to under $20 from about $100 in 2017.

“The Chinese market for smart speakers is growing extremely rapidly and this research shows that Chinese consumers love the convenience and entertainment value which smart speakers offer. If what Chinese people say turns out to be true, smart speakers will be in the vast majority of households within the next few years.”

⁠—David Watkins, director of smart speakers and screens at Strategy Analytics

Details: Around 63% of the individuals surveyed who do not currently use a smart speaker plan to buy one within the next year, said the report. Another 22% said they planned to purchase one later.

• Xiaomi is the most well-known brand, with 71% of consumers surveyed recognizing the smartphone maker as having a smart speaker on offer, compared with Huawei at 53%, Baidu at 47%, and Alibaba at 37%.
• More than half of the 1,044 respondents own more than one smart speaker, not unusual in the Chinese market where smart displays account for a third of smart speakers in households.

China’s tech giants battle for smart speaker supremacy as price war rages on

Context: In April, it was reported that Amazon, the world’s largest seller of smart speakers, hired thousands of workers to listen to voice commands from some of its Echo smart speaker users.

• The news sparked privacy concerns among consumers that smart speakers are eavesdropping on conversations. These fears did little to slow worldwide sales, which grew 55% year on year to 26.1 million units in the second quarter, according to research firm Canalys.
• Total shipments in China’s smart speaker market nearly doubled to 12.6 million units in the second quarter, more than twice as large as the US market which shipped 6.1 million units during the same period.
• Baidu, China’s search engine giant, replaced Google in Q2 as the world’s second-largest smart speaker vendor after sales surged 3700% year on year to 4.5 million units.

Transsion Holdings, the largest mobile phone vendor in Africa, priced its initial public offering (IPO) on Monday at RMB 35.15 (around $4.93) per share to raise RMB 2.8 billion on China’s Nasdaq-style tech board.

Share prices for the Chinese smartphone maker opened 50.7% higher at RMB 53, valuing the company at RMB 42.4 billion (around $5.95 billion).

Why it matters: The Shenzhen-based budget mobile phone seller has a strong presence in emerging markets such as Africa and India, but has been criticized for its weak research and development capabilities.

• The average selling price for Transsion smartphones was around $69 in 2018, and feature phones were priced as low as $9.8, according to the company’s prospectus.
• The company only spent 3.1% of revenue on research and development in 2018, according to company documents.
• Chinese telecom company Huawei sued Transsion just a week before it went public alleging intellectual property infringement.

Details: The Huawei lawsuit has had limited impact on Transsion’s performance in the market. Its share price peaked at RMB 69 per share on Monday morning, and closed 64.4% higher than its IPO pricing at RMB 57.8 for a market capitalization of RMB 46.2 billion.

• The lawsuit, which was filed September 23 to the Shenzhen Intermediate People’s Court, shows Huawei was claiming RMB 20 million from Transsion Holdings and five of its subsidiaries.
• Zhu Zhaojiang, chairman of Transsion, told Chinese media Yicai on Monday that he believes “the law will bring a fair response” (our translation).

Context: Transsion Holdings was founded in 2006 by former employees of Ningbo Bird Company, which was once one of the biggest mobile phone makers in China.

• The company, which owns three phone brands—Tecno, Itel, and Infinix—held a combined 48.7% share of the mobile phone market in Africa last year, according to its prospectus, citing data from research firm IDC.

Chinese drone maker Ehang has secretly filed an application for an initial public offering with Nasdaq, seeking to raise as much as $200 million, Bloomberg reported on Thursday, citing people familiar with the matter.

Why it matters: The drone maker joins a number of Chinese startups seeking to raise funds on US stock markets, such as coffee chain Luckin Coffee, despite Beijing’s efforts to lure high-tech firms to list domestically.

• China has set up a Nasdaq-style tech board on the Shanghai Stock Exchange to boost investments to the country’s high-tech sectors, but the bourse gives its preference to companies in the semiconductor and traditional manufacturing industries.

Details: Ehang plans to offer 10% to 15% of its shares in the IPO, with the company’s valuation not yet set due to volatile market conditions, according to the report.

• The company is still deliberating the matter and details of the offering including timeline and fundraising size could still change.

Context: Founded in 2014, the Guangzhou-based company specializes in drones used for commercial uses such as agriculture.

• The company pivoted to the passenger drone market in 2016 when it unveiled a passenger drone concept which it said would retail for up to $300,000.
• Early last year, the company said it had tested the vehicle which is capable of carrying one person at speeds of up to 80 miles per hour.
• In January, EHang was authorized by the Civil Aviation Administration of China as the first company to test autonomous aerial passenger vehicles.
• The company is testing low-altitude drones to shuttle passengers in Guangzhou.

Chinese smartphone maker Xiaomi unveiled the country’s cheapest 5G-compatible smartphone on Tuesday as the company seeks to revive its image as an affordable handset brand in the 5G era.

Why it matters: The world’s fourth-largest smartphone maker is looking to offset slowing hardware sales by taking advantage of momentum promised by the impending launch of ultra-fast 5G internet.

• The Beijing-based company has seen its share prices tumble in the past year as it faces stiff competition from rivals such as Huawei and Oppo in a saturated global smartphone market. Its market share in China declined by 20% year on year in the second quarter while Huawei’s share surged 31%, according to market research firm Canalys.
• Worldwide smartphone shipments fell 2.3% year over year in the same period, the seventh consecutive quarter of decline, according to research firm IDC.
• Consumers are still lukewarm about the technology, with 5G smartphones accounting for less than 1% of mobile phones sold in August in China though nine 5G devices are being sold in the country.

Details: The Mi 9 Pro, which debuted on Tuesday at an event in Xiaomi’s headquarters in Beijing, will start at RMB 3,699 (around $520), significantly cheaper than any other 5G smartphones launched in the Chinese market.

• The handset boasts Qualcomm’s Snapdragon 855+ processor, featuring up to 8GB RAM and 512 GB storage.
• Pre-sales will begin 5 pm Tuesday and shipments to Chinese consumers will begin on Friday, according to company founder and CEO Lei Jun.
• The company also announced its newest model, a concept smartphone called the Mi Mix Alpha. The “surround screen” smartphone features a display that curves entirely around the device, leaving only a slender bar on the back to house the camera modules.
• Xiaomi says it is looking to start small-scale production for the 5G device at the end of December and it will hit the market with a RMB 19,999 price tag, though no date was specified, according to a statement the company sent to TechNode on Tuesday.

“This year is the initial phase for 5G smartphones, and the costs for them are higher, that’s why the Mi 9 Pro is more expensive than the Mi 9. Please understand!” (our translation)

—Lei Jun, Xiaomi founder and CEO, at the Xiaomi 9 Pro launch on Tuesday 

Context: Xiaomi launched its first 5G smartphone, the Mi Mix 3 5G, in February at the Mobile World Conference in Barcelona, Spain. The EUR 599 (around $658) device went on sale in Spain and Italy in May but hasn’t arrived at its home market yet.

• Smartphone makers including Huawei, Xiaomi, ZTE, and Samsung are all selling 5G smartphone models in China. Before the Mi 9 Pro, the cheapest 5G smartphone in the Chinese market was the RMB 3,798 iQOO Pro 5G, while Samsung’s Note 10+ 5G is the most expensive at RMB 7,999.
• Experts expect (in Chinese) that prices for 5G handsets will fall as low as RMB 1,000 by 2020.

This story has been updated to include the Mi Mix Alpha announcement and to correct the name of the Mi 9 Pro.

Apple said on Monday it will keep making new Mac Pro desktop computers in the United States after the company was granted certain tariff exemptions from the US government, reversing earlier plans to move production to China.

Why it matters: The California-based tech giant has been embroiled in a trade war between the US and China, with the American President Donald Trump pressing the company repeatedly to move more of its production from China to the US and imposing billions of dollars in tariffs on Chinese-made goods.

• Many of Apple’s products are designed by the company in the US but are imported from China after assembly, meaning that they are subject to the US tariffs.
• The $6,000 Mac Pro desktop, which was introduced in 2013, is Apple’s only major device assembled in the US.

Details: The Mac Pro desktops will continue to be manufactured in its Austin, Texas facility, said Apple in a statement on Monday.

• The company said it would begin production of the latest Mac Pro, which was unveiled at Apple’s annual Worldwide Developer Conference in June, at the same facility “soon,” without specifying a date.
• Texas Governor Greg Abbott said in a statement that he was grateful for Apple’s investment and that the move was a testament to the state’s workforce and business climate, according to the Wall Street Journal.

“…every Apple product is designed and engineered in the US, and made up of parts from 36 states, supporting 450,000 jobs with US suppliers, and we’re going to continue growing here.”

—Tim Cook, Apple CEO, in the statement

Context: Apple had tapped Taiwanese contractor Quanta Computer to manufacture the Mac Pro and was ramping up production at a factory near Shanghai, according to a Wall Street Journal report in June citing people familiar with the plans.

• The Monday decision follows the Trump administration’s move last week to grant 10 tariff exemptions on items Apple imports from China, including its Magic Mouse 2, Magic Trackpad 2 and some internal components.
• But that will not change the fact that the company’s major products such as iPhones and MacBooks will face tariffs after December 15.

The Chinese startup that is behind KFC’s recent drone deliveries in Hangzhou aims to revolutionize the country’s food takeout market.

Ordering food online in China is easy and convenient—One click and your cuisine can arrive within 30 minutes. Now, Hangzhou-based startup Antwork wants to improve it further by using drones instead of delivery drivers.

The backstory: Antwork wants to build low-altitude airspace logistics networks in urban areas that are capable of replacing human labor and cutting costs in China’s multi-billion food delivery and courier markets.

• Antwork uses drones and autonomous vehicles to provide food and package delivery services in urban areas. The company aims to set up different sites within a city to collect packages from shippers or deliver them to customers, and uses drones to connect these sites.
• The company is valued at RMB 300 million (around $42.3 million) following its RMB 30 million Series A+ funding led by Panda Capital with support from Unity Ventures, one of its early backers.
• Antwork was co-founded in 2015 by Zhao Liang and Zhang Lei, who both attended Beijing University of Aeronautics and Astronautics. Zhang holds a Ph.D. in aircraft and avionics. 
• The company is headquartered in Hangzhou with offices in Beijing and Shanghai.

Unique selling point: Antwork is the first Chinese company to pass the Specific Operations Risk Assessment (SORA), the Civil Aviation Administration of China’s multi-stage process of risk evaluation for certain unmanned aircraft operations. The certification means that Antwork can conduct urban parcel delivery using drones, co-founder and chief operating officer Zhao told TechNode.

• The temporary approval issued by regulators in July allows Antwork’s drone delivery networks to operate in Hangzhou for one year. After that, the company could obtain formal approvals, which would allow it to expand services to other cities, said Zhao.
• The cost of delivering packages through Antwork’s drone logistics network is RMB 2 per kilometer at the moment, according to Zhao. He added that the cost could fall as the technology develops and the scale of its network expands.

“We are the first company to obtain approvals to conduct drone delivery in crowded metropolitan areas…It took us from January through July to complete all of the assessment processes from the CAAC, and they were very cautious and strict. This also proves that our technology is recognized by the authorities and is advanced.”

— Zhao Liang

The investors: Apart from Panda Capital and Unity Ventures, the company’s other backers include Gobi Partners, Sequoia Capital China, and Tisiwi. It has closed three funding rounds since 2016, while the amounts for the first two deals were not disclosed.

• Unity Ventures, a Beijing-based venture capital firm led by a Baidu veteran Shaw Wang, has participated in all three funding rounds

Present condition: Antwork has already started some commercial operations in Hangzhou, where it is working with fast-food chain Kentucky Fried Chicken to deliver food orders by drone, Zhao told TechNode.

• The company’s other partners include coffee chain Starbucks, state-owned courier China Post, and e-commerce company Suning.
• The company has around 40 employees, and 80% of them are in research and development, said Zhao.

The landscape: Other players in China’s drone logistics market include hardware maker Ehang and food delivery services Meituan and Ele.me.

• Guangzhou-based Ehang released its first logistics drone, the Tianying, last year. The company partnered with German postal giant DHL Express in May to launch a drone delivery solution that provides parcel deliveries in Dongguan, Guangdong province.
• Meituan and Ele.me both have been testing their drone food delivery solutions in recent years.
• Antwork’s businesses also face many regulatory obstacles. For example, Beijing, one of China’s most populous cities, doesn’t allow civilian drones to fly in most parts of its airspace. Zhao, however, believes that the regulations will move forward in step with the development of technology.

Prospects: According to Zhao, Antwork aims to eventually become an urban air mobility (UAM) provider, meaning that it will be able to move not only goods but also people by air.

• The global UAM market will hit $1.5 trillion by 2040 with China becoming the largest market, according to a report from investment bank Morgan Stanley.
• The sky is less complicated than the ground, so it’s easier to realize autonomous driving in the sky, said Zhao. “Our ongoing goal is to build an autonomous low-altitude airspace logistics network.”

“With the increase in labor costs, machines will finally replace human workers in many industries in the future. Drones have advantages over human beings in terms of speed and efficiency, so they can do better in the logistics sector, where the market is very profitable.”

— Xie Zhenliang, managing director of Unity Ventures, told TechNode.

Huawei launched a new 5G-compatible smartphone lineup in Munich, Germany on Thursday without Google apps or access to its services as the Chiese tech giant contends with a US trade blacklist barring it from purchasing American-made technology.

Why it matters: Experts believe that a lack of Google apps and services will slash the appeal of the Mate 30 series in the western markets such as Europe, Huawei’s biggest overseas smartphone market.

• The company said it has no timetable for the availability of the new flagship series in Europe.
• The company will start taking pre-orders for the devices in China next week and they will be available in Southeast Asia sometime next month.

Details: The Mate 30 series will operate on an open-source version of Google’s Android operating system, but they won’t come with popular Google apps such as Gmail, YouTube, or the Google Play Store.

• Huawei will offer its own Android skin called EMUI10 on the new devices.
• The phones will ship with a Play Store alternative called the AppGallery, which the company confirmed on Thursday will allow downloads of more than 45,000 apps, including Facebook, Instagram, and WhatsApp.
• The new devices use Huawei’s Kirin 990 processor, the company’s first smartphone chipset to include a built-in 5G modem.
• The lineup includes the Mate 30 and Mate 30 Pro, both of which are available in 4G and 5G models.
• The two devices will start at EUR 799 (around $883.2) and EUR 1,099 (around $1,214.9), respectively.

Context: Huawei is the world’s second-largest smartphone vendor following South Korea’s Samsung and the biggest smartphone seller in China.

• The lack of Google apps will have little effect on sales in the Chinese market because most of Google’s services are blocked in the country.
• Huawei smartphone sales in Europe tumbled 16% year on year in the second quarter.
• NTT Docomo, Japan’s largest mobile carrier, said this week it would not offer phones from Huawei for its 5G network, based on concerns about restricted access to Google services, according to Nikkei Asian Review.
• Google has cut Huawei off from future updates and services for the Android operating system after the US put Huawei on a trade blacklist in May.
• Smartphone makers need to purchase a license from Google to pre-install popular Google apps and services.
• Google said last month that it could not sell the license to Huawei because a temporary reprieve from the US government does not apply to new products such as the Mate 30.

Chinese vendors in August sold 291,000 5G phones or less than 1% of the country’s overall mobile phone shipments despite efforts to boost slowing smartphone sales by offering new, cutting-edge handsets.

Why it matters: The gloomy sales signal skepticism from Chinese consumers about pricey 5G handsets prior to widespread rollout of the next-generation networks.

• China’s three major carriers were granted commercial licenses for the next-generation wireless technology in June, but there has been no publicized launch date for 5G network services.
• A United States export ban on Chinese telecommunications equipment maker Huawei, which is also a major 5G gear supplier for Chinese carriers, may delay 5G network rollouts.

Details: August smartphone shipments were down 5.3% year-on-year to 30.9 million units in China, according to a report by the China Academy for Information and Communications Technology.

• 4G phones remain the majority of the country’s mobile phone sales with 29.5 million units sold.
• Nine 5G smartphones went on sale in China in the first eight months of this year.

Chinese buyers shrug off lack of 5G as orders for Apple’s iPhone 11 surge

Context: Smartphone vendors are scrambling to offer handsets compatible with next-generation wireless networks amid a saturated and slowing smartphone market.

• Smartphone makers such as Huawei, Xiaomi, ZTE, and Samsung all have their 5G smartphone models on sale in the Chinese market.
• Relatively high prices for 5G handsets have also excluded many consumers. On the low end of the range, Vivo’s iQOO Pro 5G is priced at RMB 3,798 (around $534.8) while Samsung’s Note 10+ 5G is the most expensive at RMB 7,999 (around $1,126).
• Experts expect (in Chinese) that prices for 5G handsets be as low as RMB 1,000 by 2020.
• Sales for Apple’s iPhone 11 series soared in China after pre-orders opened on Friday despite the absence of a 5G-compatible version.

While Huawei’s US woes continue, one Chinese handset maker has already managed to do the impossible and gain a foothold in the market. OnePlus may not be as well-known as more prominent players such as Huawei and Xiaomi, but the company has secured a firm following overseas.

Amid reports that a new OnePlus flagship handset could land as soon as next month, TechNode looked at Wikipedia data to see how interested English-speaking markets really are in the Shenzhen-based company and how its popularity compares with the other players.

Wikipedia is often the first port of call for potential customers as they look to learn more about a brand or product. Hits on the online encyclopedia can act as a strong indicator of a brand’s level of exposure in different markets.

OnePlus has long pursued a “global-first” strategy, and Counterpoint ranks the company as the world’s fifth-largest premium smartphone brand, though it only makes up a 2% share. The company is not the only Chinese smartphone maker to pursue expansion into overseas markets, and it still trails players like Huawei and Oppo.

TechNode looked at Wikipedia product page view trends for the OnePlus 7 compared within equivalent flagships from Huawei and Xiaomi. Ever since the OnePlus 7 launched in May, it has drawn significantly more page views than the Huawei P30 or the Xiaomi Mi 9, two models that far outperform the OnePlus 7 in terms of shipments.

Cult following

Though the company was a relative latecomer to the smartphone market, it has built up a cult-like following among Android fans since its 2014 launch of the One model, a cut-price device featuring the popular open-source CyanogenMod operating system. The debut handset outperformed countless global competitors in terms of quality, performance and affordability. While CyanogenMod has since been discontinued, OnePlus’ reputation lives on—a key factor behind its click numbers.

OnePlus’ global presence expanded further in late 2018 with the launch of the 6T handset in the US market through partnerships with key carriers including T-Mobile, Verizon, and AT&T. At a time when Huawei and ZTE products were subject to a sales ban in the country, the 6T launch stood out.

Within weeks of its May launch, the OnePlus 7 Wikipedia entry was receiving close to double the views of the Huawei P30 page. Despite an earlier release and significant shipments overseas, the Xiaomi Mi 9 did not have a dedicated entry until April; among the trio, it still has the lowest daily views.

The trend in clicks on the OnePlus 7 page includes two major peaks, both far in excess of 3,000 daily views. The first occurred at its launch while the second one followed a major update of the handset’s OxygenOS system.

In terms of daily page views for Huawei’s P30 line, they hit an all-time high of more than 2,500 in April when the Lite variant model was announced. Another spike in clicks occurred in the middle of the next month when the controversial company was added to the US Entity List, effectively ending Google support for future products.

Stable reputation

Even beyond Wikipedia page views, OnePlus does punch above its weight against the industry mainstays. The firm also receives more consistent reviews on key platforms, according to a sentiment analysis undertaken by TechNode.

TechNode calculated sentiment scores for the three handset lines based on review articles and comments on The Verge, Engadget, and TechRadar websites. We counted the number of positive and negative words from content using the Bing sentiment model, a lexicon that simply categorizes certain words as positive or negative. The higher the score, the more positive the sentiment.

Technode found that while the P30 and P30 Pro garnered a higher sentiment score according to reviews, their score from comments came out the lowest. Although reviews of the OnePlus 7 and 7 Pro were less positive, their reader comments were considerably more positive.

Extra factors

Since the analysis only includes English-language websites, the presence of the three brands in other markets globally was not taken into consideration.

In recent years, Xiaomi has grown to lead the Indian smartphone market with a 28% market share in the second quarter. Huawei, on the other hand, has been successful in Europe, ranking second for shipments in the first quarter with a 26% market share, a mere five percentage points shy of the leader Samsung.

Xiaomi and Huawei’s global success is not reflected directly through the English-language Wikipedia pages. According to a Google Trends comparison, OnePlus 7 has been the most searched model in the US in recent months among the trio. However, the Huawei P30 proved a more popular search term on a global scale.

The firm’s decision to pursue a “one flagship per year” strategy has paid off based on the hype surrounding its products this year. OnePlus’ success in launching products in the US markets has also provided a leg up in efforts to compete with Huawei and Xiaomi abroad.

Chinese smartphone maker Vivo announced its new premium device, the Nex 3. Vivo will offer a 5G version of the handset, following the rest of the world’s major smartphone makers.

Why it matters: Vivo is vying to remain competitive in global markets, as telecom operators around the world work  to deploy 5G services to consumers.

• Still nascent, adoption of 5G devices are expected to remain limited until well into 2020, according to research firm Gartner.

“We’re trying to provide more choices for consumers.” 

—Ding Guanli, Vivo Product Manager

Details: The screen on the Vivo Nex 3 curves over the sides on the phone, giving the device the world’s largest screen-to-body ratio at 99.6%, according to Vivo Nex Product Manager Li Xiang. This “Waterfall Full View” feature is unique in the market, and should remain without any competitors for the next six months, Xiang said in a Weibo post.

• Both 4G and 5G versions of the Nex 3 use the Snapdragon processors made by US-based Qualcomm.
• Gartner expects global 5G smartphone sales to represent 1% of total sales in 2019 at 15 million units.
• At most, 1 million 5G handsets will to be sold in China in 2019, Bryan Ma, Vice President of client services at market intelligence provider International Data Corporation (IDC), told the South China Morning Post. Ma said this number will jump to 57 million units in 2020, or 15% of the Chinese smartphone market.
• The new handset will be available in China, and Vivo is in talks to launch the device in Europe and the US, Engadget reported.

Context: Share of international sales for the Dongguan-based company are some of the smallest among Chinese smartphone makers, but is climbing. Vivo accounted for 7.4% of global smartphone shipments in the first quarter of 2019 compared with 5.6% the same period a year earlier, according to data from IDC.

• Gartner forecasts smartphone sales in China will increase in 2019 by around 3%, whereas single-digit rates of decline are expected in Japan, Western Europe, and North America.
• Vivo posted an 8% year-on-year decrease of domestic smartphone shipments in the second quarter, whereas those for Huawei surged 27% during the same time period.
• Huawei, ZTE, and Xiaomi are already selling 5G handsets in China, while Apple’s newly released iPhone 11 does not include any 5G capabilities.

Advance orders for Apple’s new iPhone 11 series soared over the weekend after pre-orders kicked off on Friday, data from e-commerce sites Tmall and JD.com showed.

Why it matters: The absence of 5G compatibility did little to damp the appeal of Apple’s newest handset to Chinese consumers.

• Chinese internet users have been critical of Apple for its lack of a 5G device since the California-based electronics maker presented the iPhone 11 series on September 10.
• China’s three major carriers were granted commercial licenses for the next-generation wireless technology in June, but there has been no publicized launch date for 5G network services.
• A United States export ban on Chinese telecommunications equipment maker Huawei, which is also a major 5G gear supplier for Chinese carriers, may delay their 5G network rollouts.

Details: Day one pre-sales for the iPhone 11 series—which include the iPhone 11, iPhone 11 Pro, and the iPhone 11 Pro Max—on Chinese e-commerce site Tmall surged 335% compared with those for the iPhone XR models launched a year ago, according to Chinese media outlet Yicai.

• Sales for the new devices on the site reached RMB 100 million (around $14.1 million) in less than a minute, according to Tmall.
• The day one pre-sales for the iPhone 11 series also jumped 480% on JD.com, another Chinese e-commerce site, said the report.
• Pricing for the iPhone 11 series starts at RMB 5,499, cheaper than the launch price for the XR models by RMB 1,000.

Context: Apple’s rivals in China such as Huawei, Xiaomi, and ZTE have already launched their 5G smartphones for the country’s early adopters.

• Huawei and Xiaomi both have one 5G smartphone model on sale in the Chinese market, and Huawei plans to launch another 5G device in the country this year.
• ZTE was first to the market with the early August launch of China’s first 5G smartphone.
• Greater China, which includes mainland China, Hong Kong, and Taiwan, will account for 34.0% of global 5G smartphone shipments in 2023, according to research firm Canalys.

A Huawei executive has confirmed that its next flagship smartphone, the Mate 30, will deliver without Google services or apps pre-installed, and that alternatives were in active development.

Why it matters: The absence of Google services and apps will have little effect on the new handset’s performance in Huawei’s home market as they are blocked in China, but experts have said that it may significantly lower its appeal in overseas markets.

• Smartphone makers need to purchase a license from Google to pre-install popular Google apps such as the Google Play Store and Google Maps.
• Google said last month that it could not sell the license to Huawei because a temporary reprieve from the US government does not apply to new products such as the Mate 30.
• “No consumers in Europe would want a phone without Google services,” Tiago Alves, vice president of Asia Pacific at Aptoide, a Portugal-based Android app store, told TechNode in a June interview.

Details: Wang Chenglu, Huawei’s president of consumer software, confirmed at the International Radio Show (IFA) consumer electronics expo in Berlin last week that the new Mate 30 handset would launch without Google’s apps or access to its services, and the company is developing alternatives so that user experience faces as little disruption as possible, according to Ausdroid, an Australia-based tech news outlet.

• The devices will run the Android 10 operating system with Huawei’s EMUI 10, the latest version of its mobile user interface, layered on top.
• Huawei is set to unveil the Mate 30 line on September 18 in Munich, Germany, but it is unclear when the devices will go on sale.

Context: Huawei released its in-house mobile operating system, HarmonyOS, last month, which is considered to be an Android alternative.

• Huawei’s upcoming P40 flagship handset may run the HarmonyOS, said Richard Yu, CEO of Huawei’s consumer business group.
• Huawei smartphone sales in Europe tumbled 16% year on year in the second quarter, though it retained its position as the second-largest smartphone vendor in Europe with 8.5 million units shipped during the quarter ended June 30.

Apple and its manufacturing contractor Foxconn admitted to breaking Chinese labor regulations by the excessive use of temporary staff in the world’s largest iPhone factory, according to Bloomberg. The accusation came in a report by non-profit advocacy group China Labor Watch (CLW), which also said that Apple’s Taiwanese manufacturer subjected staff to other illegal and harsh working conditions.

Why it’s important: This is not the first time Foxconn, China’s largest private sector employer, has broken Chinese labor laws. Last month, Foxconn fired two executives after another CLW report found that temporary staff and underage interns making Amazon Echo speakers exceeded the legal limit in its Hengyang factory in central Hunan Province.

• Apple has sought to mitigate poor labor standards in some of its vendors by pressuring them to change their practices or face losing contracts with the Silicon Valley giant, as well as with an annual responsibility report on its supply chain.

Details: For its report, CLW claims it sent undercover investigators to Foxconn’s Zhengzhou plant in central China, including one who worked there for four years. At the world’s largest iPhone factory, CLW found that around 50% of the workforce in August was made up of temporary staff, including interns who were in high school. Chinese law stipulates that only 10% of a factory’s plant should be temporary.

• The report said that last year, 55% of the workforce were dispatch workers including student interns, compared with 50% this August. The number now is around 30%, as teenage interns are returning to school.
• Apple sent an investigator to the factory to examine findings in August, but did not stop manufacturing activity despite the violation, the CLW said on Sunday.
• On Monday, Apple told Bloomberg that it is “working closely with Foxconn to resolve this issue” and that it will “take immediate corrective action” after finishing an operational review. It added that less than 1% of workers were teenage interns.
• Apple denied other allegations in the report, Bloomberg reported. CLW claimed that during peak production periods, resignations are not approved, some temporary staff have not received promised bonus payments, student interns work overtime—prohibited under Chinese law, workers stay overnight for unpaid meetings, and work injuries are unreported.
• The advocacy group also said that student interns work busy periods, with some working 100 overtime hours per month, far exceeding the legal limit of 36 overtime hours monthly.
• Foxconn found “evidence that the use of dispatch workers and the number of hours of overtime work carried out by employees, which we have confirmed was always voluntary, was not consistent with company guidelines,” Bloomberg reported.

Context: CLW published the report ahead of Apple’s iPhone release which will take place Tuesday morning in the US. Foxconn hires thousands of temporary staff every year during key moments of the year to meet demand.

• Foxconn’s labor standards have been under scrutiny for many years, which then extends to the tech companies that buy from the Taiwanese manufacturer.
• In 2011, an explosion in a Foxconn factory in Chengdu serving Apple, Samsung, and Microsoft led to three deaths and 15 injuries. The next year, pictures of suicide-prevention nets in a Guangdong plant went viral.

Apple mistakenly transferred payouts totaling around seven times what was due to some of its Chinese app developers as a result of a recent issue experienced by its partner, Deutsche Bank, according to a screenshot of an email sent by the iPhone maker circulating on microblogging platform Weibo.

News of the error began appearing on social media Wednesday, with several Chinese developers posting that their July earnings from Apple’s App Store were paid out at significantly higher rates, multiplied by a factor of around seven times.

Why it matters: As of June, the number of Chinese developers for Apple’s App Store has topped 2.2 million and global sales exceeded RMB 200 billion since the product’s launch in 2010, according to the Xinhua News Agency, citing Isabel Ge Mahe, Apple’s vice president and managing director of Greater China.

• Some developers speculated that Apple may have mistakenly paid in US dollars instead of Chinese yuan without converting the currency. The US dollar and the Chinese yuan exchange rate was 1.00 to 7.15 on Thursday.

Apple did not immediately respond to a request from TechNode on Thursday.

Details: Apple said in the email posted to Weibo that Deutsche Bank is reprocessing a payment of the developer’s July earnings, which may result in two sets of payments being paid, one of which was issued in error.

• Zou Zhenlu, the developer of an SMS spam-blocking app called “Xiongmao Chi Duanxin,” or “Panda Eats Messages” (our translation), confirmed to TechNode that he had received an SMS on Wednesday morning alerting him that the payment was received. He saw that the amount was several times higher than what he was expecting.
•  The developer of a goal-tracking app called “My Goals,” Zhang Zhong, told TechNode that he also received an inflated July payment from Apple, and he went to the bank and refunded the first payment on Thursday after receiving the email.
• “If this is the case, your bank will contact you to approve a return of the incorrectly issued payment. We appreciate your assistance in correcting this issue by approving your bank’s request and we apologize for any inconvenience this may have caused,” the email said.
• It’s unknown how many developers’ payouts were affected by the issue and whether developers outside China were involved.

“I thought [the higher payment] was because sales of my app surged, so I logged into my developer’s console where I found the amount of US dollars I received was exactly the same as the amount of RMB I should receive. I talked to some of my developer friends and found that many of them have received seven times their payment amount, not just me.”

—Zou Zhenlu, app developer (our translation)

Context: The payments to developers are generated from app sales, in-app purchases, subscriptions, sponsorships, and advertising after taking a 30% commission.

Gionee, the Chinese smartphone maker which declared bankruptcy in December, has launched two smartphones in a bid to repay debts numbering in the billions of RMB.

Why it matters: Founded in 2002, Shenzhen-based Gionee was once one of China’s largest mobile phone makers. The company accounted for 4.7% of China’s mobile phone market in 2012 and had expanded to India, Southeast Asia, and Africa before it went bankrupt.

• Whether sales from the new smartphones could potentially repay Gionee’s massive debt totaling RMB 17.3 billion (around $2.4 billion) is unknown.

Details: The two handsets, the Gionee M11 and M11s, have been granted their network access certificates from the Telecommunication Equipment Certification Center of the Ministry of Industry and Information Technology on August 29, its website (in Chinese) shows.

• Gionee said on its WeChat official account on Monday that the two devices will go on sale, without mentioning prices or dates.
• The temporary revival of Gionee’s smartphone business was orchestrated by Lu Guanghui, the company’s second-largest shareholder, with the goal of repaying the company’s debts, according to Chinese media outlet Jiemian citing a person familiar with the matter.
• The handsets will be manufactured and sold by Xiaolajiao, a Shenzhen-based equipment manufacturer, because Gionee’s plants have been shut down, said the person, and Xiaolajiao will pay Gionee RMB 10 (around $1.4) for every device sold.

Context: In December, nearly 20 creditors filed a bankruptcy liquidation application to the Shenzhen Intermediate People’s Court against Gionee after months of talks with the smartphone maker failed to produce funds for repayments.

• The court said in April that 372 creditors claimed Gionee accrued debts totaling RMB 17.3 billion, and appointed a debt administrator which announced a repayment scheme based on liquidating Gionee’s assets.
• Prior to these two new phones, Gionee’s last smartphone model was the F205L, which went on sale in January 2018.

While almost all major handset makers present in China are busy with landmark product launches as the 5G era fast approaches, for one major vendor, the new technology’s advent represents a defining moment in its struggle to return as a major player in the industry.

The South Korean giant may sell more smartphones than anyone else globally, but in China, Samsung is little more than a bit player. The company made up less than 1% of the country’s total handset shipments in the second quarter with only 800,000 devices sold, market research firm Counterpoint found.

This is in sharp contrast to its performance in the country just a few years ago. In its glory days of 2013, Samsung led. It controlled nearly one-fifth of the rapidly expanding market and the companies devices became synonymous with high-end handsets among Chinese users.

The company’s China market share has now hovered around 1% for seven consecutive quarters.

Samsung’s decline coincided with the emergence of native smartphone players such as Huawei and Xiaomi, bringing fierce competition to the market. Consumers’ preferences in the country are also increasingly affected by political agendas. The company has been unable to maintain its position in the Chinese market, and experts maintain that there exists only a small possibility that it can return to its former glory.

The Note 7 fires

“The mishandling of its Galaxy Note 7’s recall in China marked the beginning of Samsung’s demise in China,” said Will Wong, an analyst at market research firm IDC, referring to the numerous reports of devices catching fire in 2016.

First launched in late summer 2016, the 5.7-inch, stylus-toting high-end model was considered a strong competitor to Apple’s iPhone 7.

Within weeks of the device’s August launch, Samsung’s consumers around the world reported that phones were catching fire and some had even exploded. The incidents led to Samsung suspending sales on September 2 and commencing a global recall.

The recall involved 10 countries including the United States, South Korea, and Australia, but China, where the device went on sale on August 26, was not included. Samsung explained the decision stating at the time that Note 7 handsets sold in the country used different battery suppliers and did not pose any safety risks.

Samsung doubled down on this claim despite a claim (in Chinese) on September 18 that a Note 7 had “exploded” in a user’s hand. Samsung attributed the incident to “external heating.”

The statement didn’t include a recall for the country, and over the following weeks, there were more than 20 reports of Note 7 explosions in China in the coming weeks. Samsung finally announced a China recall on October 11.

In the minds of Chinese consumers, the eventual recall may have come too late. State broadcaster CCTV said in a documentary special (in Chinese) the next day that Samsung’s handling of the incident constituted “bullying” of Chinese consumers and a “violation” of their rights.

“It caused serious damage to its brand image in China, especially when it faced fierce challenges from other smartphone vendors,” Wong said.

Diplomatic dispute

The Note 7 recall incident also coincided with a wave of anti-South Korea sentiments felt across China in the second half of 2016 after the former agreed to deploy an American missile defense system despite claims from China that it could be used to spy on its territory.

In July 2016, South Korea and America announced plans to deploy the so-called Terminal High-Altitude Area Defense system, or Thaad, to better protect South Korea and US troops in the region.

The plan faced stiff opposition from the Chinese government. Apart from diplomatic protests, Chinese state media also urged a boycott of South Korean products.

While the main target of the boycott was Lotte, a South Korean supermarket chain that provided land for the Thaad deployment, it also spread to a wide range of products and services associated with the country including group tourism trips, kimchi, Korean barbecue, and Samsung phones.

The yearlong dispute between South Korea and China ended in October 2017 when the two nations agreed to cast aside tensions over Thaad and move on with economic cooperation. But the impact of the dispute among consumers didn’t fade away so quickly.

Samsung’s smartphone market share in China fell from 5.5% to around 1% in 2017, and it has not been able to recover its position since then. 

“When consumers are able to choose between domestic and foreign products, they often prefer domestic ones, and the tendency becomes more noticeable when their societies are perceived as under threat from the outside,” said Yu Jinmao, a professor at Jiangsu University.

“Samsung’s market performance in China was certainly affected by the dispute between China and South Korea, and this is in line with the downward demand trend for South Korean products such as cosmetics,” he said.

A gloomy future

Ever since the end of 2017, Samsung has repeatedly stated that it aims to return as a major player in China. And recently, the company has laid a bet on 5G.

“We are back!“ was the message from  Kwon Gyehyun, president of Samsung Electronics China, at the launch event for the A8s handset at the end of last year. However, Kwon’s enthusiasm has not translated into major growth in sales in the country and market share continued to stagnate in the first half.

The firm more recently has turned to 5G-ready devices. Last month, Samsung launched its first 5G-enabled smartphone, the Galaxy Note 10+ 5G, on the Chinese market.

“The Note10 + 5G is the beginning, our goal is to get more advantages in the Chinese 5G market,”said Kwon at the lastest product unveiling. “We have invested almost all of our resources in 5G, and we hope that will help us to regain our market position.”

The new handset, priced at RMB 7,999 (around $1,118), is RMB 1,800 more expensive than Huawei’s equivalent 5G model. “One of the advantages Samsung has is that Chinese consumers still regard it as a premium brand, and it has a long history of operating in China,” said Wong.

The efforts made to maintain Samsung’s high-end image appears a wise choice. The company has a share of around 6% in terms of phones priced above RMB 4,000, according to data from Sino-Market Research. 

“These efforts may leave Samsung with only a fraction of China’s smartphone market, but there still exists a small possibility that it could return to the top five vendors in the country,” he said.

Singapore-based cryptocurrency exchange Huobi announced on Tuesday that it is moving into the blockchain phone space with the launch of an Android-based mobile phone, the “Acute Angle,” made by Whole Network, a blockchain project partly funded by the company’s venture capital arm, Huobi Capital.

Why it matters: While blockchain phones are still a niche product that likely appeals primarily to cryptocurrency traders, the entry of large companies into the space including Samsung, HTC, and China Telecom along with smaller players including Swiss-based startup Sirin Labs, indicates that this could change.

• The prospect of combining next-gen mobile broadband and blockchain is increasingly appealing to phone makers and telecommunication providers around the world, including those in China. With 5G, blockchains can increase node participation and decentralization, reduce block times, and drive on-chain scalability, among other benefits.

“As the industry develops and as innovations like 5G become increasingly integrated into our telecommunications systems, we believe more and more crypto communities will want to trade and transact from mobile devices.”

—Livio Weng, Huobi Global CEO, said in a statement to Coindesk.

Details: The new Android-based blockchain phone is already available in China, but Huobi plans to officially launch on September 11, the same day as the launch of Whole Network’s NODE token.

• The device is priced at $515, significantly lower than the competition’s. Rival Sirin Labs’s blockchain phone “Finney” is priced around $1,000.
• The phone, which can be purchased with Huobi’s native token, includes built-in crypto trading-friendly features like a push notification function to alert users of market conditions and a crypto wallet app. The device also includes an optional plug-in cold wallet, which is stored on a platform that is not connected to the internet for security purposes.
• Acute Angle is the first in an upcoming lineup of blockchain-based phones from Whole Network, according to Huobi, which will have 5G capability.
• Whole Network’s NODE token will be the sixth to list on Huobi Prime, Huobi’s initial exchange offering (IEO) platform.

What to expect: Huobi plans to launch the blockchain phone in Southeast Asia in the fourth quarter. It also has plans to bring it to Europe and the US in the future, the company said, though it did not specify a timeline.

Context: Founded in 2013, Huobi quickly attracted a horde of Chinese retail investors and at one point was the largest cryptocurrency exchange in China by trading volume. China’s tightened grip on cryptocurrency activities in 2017 drove the exchange to the more crypto-friendly Singapore.

• Chinese state-owned telecommunications company China Telecom has expressed interest in developing blockchain-enabled 5G SIM cards. The company’s research arm released a white paper (in Chinese) about its plans last week.

Chinese smartphone maker Xiaomi announced on Tuesday a plan to repurchase up to HKD 12 billion (around $1.5 billion) worth of stock in an effort to halt a dramatic decline in share value, which have fallen nearly 50% from its July 2018 initial public offering price.

Why it matters: The growth prospects of the Beijing-based company have been dented by a slowing global smartphone market as its efforts to reinvent as an internet company rather than a hardware manufacturer has struggled to take hold.

• Worldwide smartphone shipments dropped 2.3% year over year in the second quarter in the seventh consecutive quarter of decline, according to market research firm IDC.
• Hong Kong-listed Xiaomi’s share prices have dropped by nearly a third so far this year despite reporting two consecutive quarters of strong revenue growth.

Details: The board of directors believes that a share repurchase will broadcast the company’s confidence in its own business outlook and prospects, and will benefit the company as well as its shareholders, said Xiaomi in a statement (in Chinese) filed to the Stock Exchange of Hong Kong on Tuesday.

• Shares of the company climbed nearly 7% following the announcement.
• The board will also consider further share repurchases depending on market conditions, said the company.

Context: Xiaomi chairman and CEO Lei Jun, as well as chief financial officer Chew Shou Zi, had pledged earlier this year that they wouldn’t sell their Xiaomi shares for another year to stabilize its stock price.

• Last month, Xiaomi co-founder and president Lin Bin sold 41 million shares of the company with a value of HK$373 million over three straight days in a week. He later made a public promise that he will not dispose of any of his stockholding in the company over the next year, in hopes of restoring market confidence in Xiaomi.

Huawei could delay sales of its upcoming Mate 30 flagship smartphone overseas due to its lack of Google services amid the US trade ban, the South China Morning Post reported citing people familiar with the matter as saying.

Why it matters: Prospects for Huawei’s smartphone business remain uncertain under the cloud of US sanctions on the world’s second-largest handset seller.

• Google confirmed it won’t allow Huawei to install its apps and services on the new handsets as the temporary US government reprieve doesn’t apply to new products.
• Europe is Huawei’s most important smartphone market outside of China, but its smartphone sales from the region slid 16% in the second quarter compared with the same period a year earlier, according to research firm Canalys.

INSIGHTS: Supply chain body blow: Huawei’s reliance on US tech, charted

Details: The 5G-enabled handset will continue to run on the Android operating system, but it won’t have access to Google services along with apps such as Google Play and Google Maps, said the report. The planned delay is not final and any further action by the US government may affect Huawei’s decision on the release.

• Huawei will sharpen its focus on selling the new Mate 30 to consumers in its home market, where Google services and apps are not widely used, according to the report.
• “The open Android operating system and the ecosystem around it are still our first choice,” Huawei said in a statement sent to the South China Morning Post. “Please stay tuned for our new products.”

Huawei is pushing forward with the launch of a new flagship smartphone in Europe even though Google apps and services may not be on offer, Reuters reported on Thursday, citing company executives.

Why it matters: The new 5G-capable Mate 30 is Huawei’s first flagship handset launch since the US government placed it on a trade blacklist in May. The new smartphone will not feature HarmonyOS, Huawei’s self-developed mobile operating system,  signaling that the world’s second-largest smartphone maker is not yet ready to break with Google.

• Huawei can access the open-source version of Android without violating the US sanctions, but it barred from purchasing a license from Google to install popular apps such as YouTube and Google Maps on its phones.
• It launched HarmonyOS earlier this month saying that while it is possible to install HarmonyOS on phones, the company has no plans to do so at present.
• “No consumers in Europe would want a phone without Google services,” Tiago Alves, vice president of Asia Pacific at Aptoide, a Portugal-based Android app store, told TechNode in a June interview.

Details: Huawei is set to unveil the Mate 30 line for phones on September 18 in Munich, Germany, according Reuters citing a source familiar with the matter, though it is unclear when the devices will go on sale.

• Google, for the first time, confirmed that it cannot sell the license required to install its apps and services to Huawei due to the US ban.
• A temporary reprieve from the US government last week does not apply to new products such as the Mate 30, according to the Google spokesperson.
• Google declined to reveal whether it had applied for a license to resume supplies to Huawei, though it said before that it wants to continue businesses with the Chinese company.

“Our new phones will still be based on Android…We want to maintain one standard, one ecosystem, one technology.”

—Vincent Pang, senior vice president and board director at Huawei

Context: Huawei smartphone sales in Europe tumbled 16% year on year in the second quarter, though it retained its position as the second-largest smartphone vendor in Europe with 8.5 million units shipped during the period ended June 30.

• Huawei’s CEO of consumer business Richard Yu said in January that the company would overtake Samsung and become the world’s largest smartphone vendor by 2020.
• In June, Huawei announced that it had given up on fulfilling this ambition because of the US sanctions following a Bloomberg report saying that the company was preparing for a 40% to 60% decline in international smartphone shipments.

China’s search giant Baidu has surpassed Google as the world’s second-largest smart speaker seller during the second quarter after its sales surged 3,700% annually to 4.5 million units, according to a new report from research firm Canalys.

Why it matters: In the two years since smart speakers first debuted in the domestic market, it has evolved from a niche gadget into one of the most popular electronic devices in Chinese households.

• The popularity of the device has raised major Chinese technology companies such as Baidu, Alibaba, and Xiaomi to top-ranked spots in the global smart speaker market.
• China’s smart speaker market growth has outstripped other countries. Shipments reached 12.6 million units in the second quarter, more than twice that of the US with 6.1 million units, said the report.

Details: The global smart speaker market grew 55.4% year on year in the second quarter to reach 26.1 million shipments, said the report.

• Amazon continued to lead the market with 6.6 million units shipped in the quarter, while Google fell to third place with 4.3 million units.
• Other top players include China’s Alibaba and Xiaomi, with 4.1 million and 2.8 million units shipped during the quarter, respectively.
• Canalys attributed Baidu’s growth to the popularity of its smart displays, the smart speaker with screens that accounted for 45% of the products it shipped.

“Local network operators’ interests on the device category soared recently. This bodes well for Baidu as it faces little competition in the smart display category, allowing the company to dominate in the operator channel.”

—Cynthia Chen, Canalys research analyst

Context: The growth of the Chinese smart speaker market has been a result of a price war between these Chinese vendors that slashed the average price for the gadget to below $20.

• Baidu entered the market in November 2017 when it launched its Raven H smart speaker priced at RMB 1,699 (around $237.4), nearly 10 times more expensive than Alibaba and Xiaomi’s offerings at the time.
• The product failed to gain a foothold in the Chinese market. It was reported that Baidu only manufactured 10,000 Raven H smart speakers in sharp contrast to the several million units sold by both Xiaomi and Alibaba.
• It unveiled its Little Fish smart speaker brand in March 2018, which sold for as low as RMB 89 (around $13).

Apple is testing advanced screens from leading Chinese display maker BOE for iPhones next year, as the United States tech giant attempts to cut costs and reduce reliance on South Korea’s Samsung, the Nikkei Asian Review reported on Wednesday.

Why it matters: If Apple chooses BOE’s screens, the Chinese state-owned company could begin to challenge Samsung’s supremacy in the display panel sector.

• The sector has been propped by Beijing with billions of dollars of state and public funds over the past decade.
• The global display panel market is expected to rise from last year’s $25.5 billion to more than $30 billion this year, according to IDTechEx Research.
• However, BOE is still vulnerable to a potential clampdown from the US, possibly restricting supplies of crucial materials from Corning, 3M and Applied Materials, said the report.

Details: Apple is “aggressively testing” BOE’s flexible organic light-emitting diode, or OLED, displays, and will decide by the end of this year whether to take BOE on as a supplier of this single most expensive component, said sources quoted by Nikkei.

• Apple is currently testing BOE’s flexible OLED displays from the company’s facility in the southeastern Chinese city Chengdu, said the sources.
• BOE is also building another facility in Sichuan Province, which would be allocated to Apple if it places orders, they said.

Context: An OLED display is the most expensive component on the iPhone. It accounts for nearly 30% of the total cost of the iPhone X released in 2017 and was sourced from Samsung.

• BOE-made OLED displays could be 20% cheaper than Samsung’s products, said Nikkei, citing a source familiar with the matter.
• BOE was founded in 1993 in Beijing as a military and defense supplier and has become a major recipient of Chinese government’s grants and subsidies. The company received over RMB 2 billion (around $283 million) in subsidies last year, said the report.

NTT Docomo said Tuesday it will again accept orders for Huawei’s P30 Pro handsets after it delayed the launch of the phone following the United States export blacklisting of the Chinese telecommunications equipment maker in May, according to state-run news agency Xinhua.

Why it matters: Docomo is the third major Japanese carrier, including SoftBank and KDDI, to have resumed sales of Huawei phones.

• SoftBank said in May that it did not feel confident enough to sell the Huawei device to consumers since it was not able to grasp the situation surrounding the US restrictions on Huawei.
• The US trade blacklist bars exports of American components and technology to Huawei, which include the popular Android mobile operating system used on Huawei phones.
• The Docomo announcement came after the US Commerce Department gave Huawei another 90-day reprieve allowing suppliers to sell to the company on Monday.

No matter how long the reprieve, Huawei still has no alternatives to US tech

Details: Docomo said it will resume taking orders for Huawei P30 Pro smartphone starting Wednesday. The device is scheduled to go on sale in Japan in September.

• “We had been examining the impact of the U.S. trade restrictions on Huawei and have confirmed that our customers can safely use Huawei products at this stage,” said a Docomo spokesperson on Tuesday.
• SoftBank and KDDI started selling Huawei P30 lite smartphones on August 8 with both companies promising that the phones would have full access to Android services and apps provided by Google.