In contrast, BTC China has not received a notice from its bank, notes CoinDesk. Bitcoin prices are plummeting as the news emerges – the price is down to $410 right now on London-based Bitstamp.
This corroborates what we reported on 27 March. China was a huge market for bitcoin because of its facility for evading currency controls.]]>
The foundation stated that it had received 6,497 mobile phone-related complaints in 2013, a 60% growth from the previous year, and which accounted for 12.4% of the total number of complaints received by the industry.
The report revealed the top 10 mobile phone brands that received the most number of complaints, which included Xiaomi, Meizu, Huawei, ZTE, HTC, Nokia, Lenovo and Motorola.]]>
In some ways, I think China’s internet market is much more advanced than that of the US and Europe. The Internet companies there emerged a bit later than they did in the US. So they were able to learn from past practices. They also operate in a ruthlessly competitive market. Unconstrained by “how things have always been done” (always meaning back to 1999), they have pursued every opportunity they can.
As a result, China’s big Internet companies are already conglomerates with social, messaging, gaming and commerce services. These companies tend to mix and match in ways different than what we see in the US. And I imagine that companies here will start to blur things a lot more and begin to resemble the sprawling conglomerates there. Capture traffic anyway you can.]]>
Striking data points:
There were 700m active smartphones and tablets [est 500m smartphones, 200m tablets] in China at the end of 2013, and this almost doubled from 380m in Q1
High-end phones are a big market: 27% of the total active base, and 80% of those are iPhones
55% of the top 1000 apps include links to the major Chinese social platforms
20% of the top games use licensed third-party IP
App use and game use varies by how expense the phone is (unsurprising, but some good data on the details)
The Android market remains fragmented: Samsung has 24% (much lower than globally), Xiaomi is in 4th place and 'other' is a third of the market
There's a link to the report too. Expect those "other" handset makers to start exporting to the rest of the world soon. If the iPhone data is correct, it means China is by far its largest market in terms of installed base - at least 80m compared to 66m in the US. (Note that the "Android" handsets use AOSP; they're not Google-activated.) ]]>
Shipments of 4G smartphones in China are forecast to reach 72.4m units in 2014, up nearly 1,500% from just 4.6m in 2013, with the market expected to take off after the second half. It will be the first big year for 4G smartphones in only its second year in the country, up from a practically nonexistent base two years ago, IHS noted.
The 4G smartphone market in China will see unstoppable growth for the next few years, with shipments doubling to 144.1m units in 2015 and rising another 53% to 219.8m in 2016, IHS projected. ]]>
The net result of all this is that the small vendors, who collectively ship several hundred million phones a year, have to make do. If you buy a phone on the streets of Shenzhen, even a device with no obvious branding on it, you are probably getting a phone that has access to the full G-Suite. My contacts tell me that ‘cracked’ G-Suite keys are readily available in China.
So here we come to the crux of the problem. Android wants to use the Google Suite to control Android as best as they can. But corporate Google just wants billions of people to have ready access to all of Google’s offerings. The compromise in China means cracked software codes, and all the security implications that those likely entail.
One OEM told me that he had tried repeatedly to reach out to Google but got no response. I found this story very resonant, as it was exactly what they told me four years ago about Microsoft. Greenberg has posted a number of first-hand experience posts from China, all of which are worth reading.]]>
Three of HTC's materials suppliers were also indicted for allegedly helping HTC design executives make false expense claims of over NT$33m (US$1.1m).
In its indictment, the Taipei Prosecutors Office said Chien, who has been detained since 31 August, had stolen and leaked key icon designs to his would-be Chinese business partners in Beijing in June. The designs were for HTC's yet-to-be-unveiled smartphone interface. Prosecutors are claiming that all but one of the accused has confessed with a maximum jail sentence of 10 years; the report also says that two of them have been "forgiven" by the company. So how valuable were those designs exactly?]]>
In September 2013, CLW sent an investigator into Samkwang Science and Technology in Dongguan, China to work on the production line for two weeks. Producing cell phone covers, phone screens, and other parts for Samsung, the Samkwang factory employs over 5,000 workers. This investigation uncovered at least 23 ethical and legal violations, each of which is listed in the beginning of the investigative report linked below.]]>
According to the new requirements, mobile terminal manufacturers applying for handset network access permits will be required to provide information about all preloaded handset software to the MIIT for vetting. As part of the new rules, handset manufacturers are prohibited from pre-installing any software that will collect or modify user information without the expressed permission of the user. Wonder who this is aimed at.]]>
The fact that nearly 50% of Chinese iPhone owners are interested in the "Red Rice" smartphone should cause concern to all high-end smartphone vendors, especially given Xiaomi's international ambitions. Also, it is important to note that the survey only refers to Xiaomi's "Red Rice" model and not the MI3 flagship. Therefore, the actual desirability of Xiaomi's smartphones may be higher.]]>
Hidden Lynx is a sophisticated hacking group based in China and made of up of between 50 to 100 individuals, according to Symantec. The hackers provide "full service" as well as "customised" cyber-espionage attacks against corporate and government targets, claims the security firm. Its favoured tactics include compromising third-party sites frequented by individuals from targeted organisations with malicious code. That was the straw which broke the camel's back for Google.]]>
Taipei prosecutors confirmed that HTC vice president of product design Thomas Chien, research and development director Wu Chien-Hung and senior manager of design and innovation Justin Huang were arrested on Friday.
Chien and Chien-Hung remain in custody, while Huang was released on bail, prosecutors office spokesman Mou Hsin Huang said.
The executives were also accused of making false commission fee claims totaling around T$10 million ($334,200). No further details about the allegations were immediately available.]]>
Development of the smartphone operating system is being closely monitored by HTC's Chairwoman Cher Wang, who has been in discussions with Chinese government officials, said the people. The software involves deep integration with Chinese apps like the Twitter-like microblog Weibo and is slated to launch before the end of the year, they said.
…HTC's China-specific software would play into a wider Chinese government policy to encourage the development of a unique local software ecosystem to reduce reliance on Western companies. A key question: is it Android, or something else? Google strongarmed Acer over its plans last year to offer a forked Android phone in China.]]>
China-based white-box handset vendors had been active in emerging markets including China, Southeast Asia, Africa and Latin America, the sources indicated. However, as telecom carriers have gained more control and consumers become more brand-conscious amid growing demand for smartphones, China-based white-box handset vendors have seen business decline in Southeast Asia, Africa and Latin America, the sources noted.
Telecom carriers, local vendors and retail channels in those emerging markets are expected to release handset ODM orders, but they tend to avoid China-based suppliers, the sources claimed. Therefore, Taiwan-based ODMs stand a good chance of obtaining such orders.]]>
Something should have occurred to folks writing the story. Why, in the midst of a huge NSA dust-up on spying and during a time when folks were mostly focused on mobile devices, would there be an investigation on PCs from China? You'd think every investigator would be looking at American-sourced gear and services instead. To be precise, the Australian DoD denial includes the words "There is no Department of Defence ban on the Lenovo Company or their computer products; either for classified or unclassified systems." ]]>
The meeting with China Mobile Chairman Xi Guohua in Beijing was to discuss matters of cooperation, the Chinese firm told Reuters in an emailed statement. It gave no further details.]]>
Two officials from the ministry confirmed the accuracy of a South China Morning Post report. The story, which was published on Wednesday, quoted sources that if foreign companies agreed to register in the new free trade zone in Shanghai, they would be allowed to promote and sell their products on the Chinese mainland.
But before they start selling, foreign gaming companies have to seek approval for specific products from related regulators because the Chinese government wants to make sure the content is not too violent or politically sensitive, the SCMP report said.
…Because of fears of the potential harm to the physical and mental development of the young, seven Chinese ministries collectively banned the manufacture, sale and import of game consoles in China in 2000.]]>
Senior analyst Michael Inouye comments: “With many of the casual gaming segment embracing mobile devices for gaming, without a shift in strategy and pricing the Wii U will likely fail to match the success of the Wii which will impact future console shipments. If China decides to lift its ban on consoles, however, in the short term this could boost future shipments of 7th generation game consoles while minimally altering the 8th generation.” Everyone pins hopes on China, yet China never quite does what they expect.]]>
Hidden away inside the massive NSA headquarters complex at Fort Meade, Maryland, in a large suite of offices segregated from the rest of the agency, TAO is a mystery to many NSA employees.]]>
The breach appears to have been aimed at unearthing the identities of Chinese intelligence operatives in the United States who may have been under surveillance by American law enforcement agencies. The database contained the information about court orders ordering surveillance relating to those operatives. ]]>
Erik Bertman, chief of Nokia's Russian business, will oversee Nokia's sales and marketing activities in China beginning June 1, Nokia spokesman Doug Dawson said Tuesday. Mr. Bertman replaces Gustavo Eichelmann, who is leaving Nokia for personal reasons, the spokesman said.
… Nokia sold only 3.4m mobile devices in China during the first quarter of 2013 compared with 9.2m in the first three months of 2012.
Nokia's decline in China was considerable last year. In the second half 2012, sales of devices and services in Greater China fell 78% on the year and the decline for the year was 68% as the company sold 27.5m devices in the region compared with 65.8m in 2011. ]]>
PC shipments in 2012 to China amounted to 69m units, exceeding the 66m total reached by the US. Only a year earlier in 2011, the US was the leading global destination for PCs.
Beyond its large size, China's PC market exhibits distinct characteristics that set it apart from the computer trade elsewhere, possessing a vast untapped rural market and unique consumer-purchasing patterns. While desktop shipments lagged notebooks around the world, the two PC segments were on par in China in 2012, with an even 50%-50% split.
"The equal share of shipments for desktops and notebooks in China is unusual, since consumers in most regions today tend to prefer more agile mobile PCs, rather than the bulky, stationary desktops," said Peter Lin, senior analyst for compute platforms at IHS. "The relatively large percentage of desktop shipments in China is due to huge demand in the country's rural areas, which account for a major segment of the country's 1.34bn citizens. These consumers tend to prefer the desktop form factor." Total smartphone sales in China in 2012: over 210m.]]>
It's clear that the attack is targeted against Uyghur Mac users, and we have seen similar attacks in the past.
Sophos products detect the malware as OSX/Agent-AADL and Troj/DocOSXDr-B.
The obvious question people are likely to ask is... are China to blame for this attack? After all, we have seen several attacks in the past which have targeted minority groups in the country.
There's no 100% proof connecting this attack with the-powers-that-be in Beijing, but you would be a brave man to bet against it.]]>
#315isLive# Wow, Apple has so many tricks in its after-sales services. As an Apple fan, I’m hurt. You think this would be acceptable to Steve Jobs? Or to those young people who sold their kidneys [to buy iPads]? It’s really true that big chains treat customers poorly. Post around 8:20.
Ho was later updated his Weibo with a post claiming his phone had been stolen and that he hasn’t posted the previous message, but Weibo users had already noticed that he failed to delete the last sentence of the offending tweet, his instructions.]]>
The flood of inexpensive devices could hurt struggling phone makers like Nokia and might also force Samsung and Apple to offer cheaper models. “They have reached their peak,” Liang said during an interview near his office in Shenzhen, which has become a hub for electronics makers. “In [manufacturing] technique we are close to the same level. Then the only difference will be the cost and the brand.” Note that though they're Android phones, they generally don't have Google services.]]>
"While the Android system is open source, the core technology and technology roadmap is strictly controlled by Google."
The paper said Google had discriminated against some Chinese companies developing their operating systems by delaying the sharing of codes. Google had also used commercial agreements to restrain the business development of mobile devices of these companies, it added.
A Google spokesman in China declined to comment. A cloud on the Android horizon the size of a man's hand. (Thanks @rquick for the link.)]]>
Global tablet shipments are expected to grow from 120-130m units in 2012 to 180-240m in 2013 with 7-inch models to account for 45-60% of the volume. China's white-box tablet shipments are estimated at around 40-60m units in 2012, growing from 14m units in 2011.
Google's and Amazon's US$199 tablets as well as Acer's and Asustek Computer's entry-level tablets, especially Acer's NT$5,000 (US$169) Iconia B1, are all strong competitors of white-box tablets. White-box players have difficulties dropping their prices further.
Due to quality issues, white-box players usually have a higher product return rate than first-tier vendors, the sources explained. With slim gross margins, white-box players are at high risks of going bankrupt, the sources added. The "China effect" isn't made clear in analysts' figures about Android tablets, but barely any of those sold in China will be "Google Android"; they'll use AOSP (Android Open Source Platform) and local, not Google, services.]]>
The supplier, RiTeng Computer Accessory, had wrongfully dumped waste water used for cleaning processes due to suspected staff negligence, according to a Friday statement from a parent company. Couldn't be used for watering crops, killed all the shellfish. RiTeng also assembles for HP, Dell and Asus; it has had industrial accidents before, including explosions. Basically, China needs to take tough action against polluters like this.]]>
The breach was one of dozens by Anonymous over the past two years and gained relatively little media attention. But now, two years later, security researchers say the data was valuable in helping them find links between hackers and the Chinese military.
"We are fortunate to have access to the accounts disclosed from rootkit.com," the Mandiant report said.
Anonymous' disclosure of the rookit.com information included an email and IP address for the username "uglygorilla." The IP information, which identifies the location from which the user is accessing the Internet, pinned the hacker to a place close to a 12-story office tower in Shanghai that researchers believe is the headquarters of P.L.A. Unit 61398 -- cyber warriors for the Chinese military. What's the phrase for collateral damage when it's collateral but isn't damage?]]>
The job advert, which is still posted on Zhejiang University School of Computer Science and Technology’s website, shows that the Chinese military’s Unit 61398 is the employer.
This is significant because in a recent report published by US security company Mandian, the 12-story building that hosts the PLA’s ‘Unit 61398’ is identified as the location from which the PLA’s most active cyber espionage unit operates. The Chinese government has staunchly denied these accusations. According to Mandiant the address is: Datong Road 208, Pudong District, Shanghai. The Chinese government is going to find it increasingly hard to deny the existence of its hacker army. The US's NSA used to be secret too. No longer. (Thanks @tnbertelsen on Twitter for the link.)]]>
Jolla now does R&D in Hong Kong, where local and Chinese chipset vendors, handset and component makers, and retailers are part of an alliance. The partners are kicking in $270m to get Sailfish phones in the hands of Chinese consumers. While Sailfish is open source – cynics might opine that everything in China is open source – Jolla also plans to make money via licensing deals and selling its expertise to install the platform on locally made handsets.]]>
Almost none of these ["Other"] devices have any Google services on them, incidentally. Then again, it's even worse for the other Android names - HTC, Huawei, Motorola, ZTE and Lenovo. Besides "Other", only Lenovo has grown its share year-on-year.]]>
Apple recently opened new retail stores in Shenzhen, Chengdu, and Beijing, and now has eight stores in China, compared with five a year ago. Hong Kong now is home to three Apple stores from just one a year ago.
The iPhone 5 is also seeing strong demand across China, according to [Topeka Capital Markets analyst Brian] White. Unlike the iPad Mini, Apple's latest phone is available for walk-in customers as its supply has improved. But the new iPhone seems to be outshining the competition.
"After the Galaxy S3 and Galaxy Note I/II became more popular than the iPhone 4S in recent months, our discussions now indicate that the iPhone 5 has recently become the most popular high-end smartphone at the resellers that we spoke with," White said. And around it goes. (Thanks @rquick for the link.)]]>
1 Yuan - 388 Yuan /month
800 Yuan ($130) - 288 Yuan /month
1200 Yuan ($190) - 228 Yuan /month
2000 Yuan ($320) - 188 Yuan /month
388 Yuan is about £38. (Thanks @dmyke for the link.)]]>
22% of mobile PVs on Baidu use Webkit.
11% use iOS
34% use Android
So 11% use Webkit and aren't on iOS, but 34% are on Android. By extension, the other 23% are using other browsers. That means that, on these numbers, two thirds of Android phones in China (that are being used online) are not using Google's own browser. What other changes have been made, I wonder?]]>
"Vendors ramped up shipments and aggressively launched new models to meet consumer demand during the Q3 summer school vacation and the National Day holiday period," said James Yan, Senior Market Analyst for Computing Systems Research at IDC China. "A new wave of sub-US$150 smartphones with upgraded specifications, such as a 4-inch+ screen size and dual-core application processors, were especially popular." That's mainland China (as opposed to Taiwan.)]]>
Apple is requiring Chinese customers to participate in an online lottery one day in advance to buy the Wi-Fi version of the iPad Mini at its seven retail stores in China. Those selected, however, are limited to two iPad Minis each and must bring photo identification…
“Most Chinese consumers have a modest disposable income, and a lot of them are going for cheaper offerings,” [Mark]Newman [of brokers Sanford Bernstein] said. “We believe the mass market is more interested in specs rather than brand – similar to what we’ve seen for smartphones in China.”
But David Wolf, chief executive of marketing consulting firm Wolf Group Asia, said:… “This will do better than some of the naysayers suggest… Apple is going to make the iPad technology available to a market that either couldn’t afford it or couldn’t fit it into their lives.” Take your pick. (Thanks @modelportfolio2003 for the link.)]]>
Google also has accused China of slowing or blocking access to Gmail. And its mobile mapping service has fallen from popularity in part because the service is poor and has been infrequently updated while Google has been waiting for the Chinese government to approve a necessary licence.
That’s in stark contrast to Apple, which tightly controls its devices—and hasn’t battled with the Chinese government over censorship. It was able to simply remove Google Maps from its phones in China in favor of its own new map service, just as it did elsewhere around the world this year.
Chinese companies, too, are jumping in where Google can’t. Baidu has its mobile search and mapping services and has released a cloud-based service to help developers build apps for Android devices. Tencent’s chat and payment app, WeChat, has become popular. And companies like Xiaomi have developed customized versions of Android that phone owners can install on new phones after their purchase.]]>
The latest numbers come from a report issued by the state-linked China Internet Network Information Centre (CINIC) and cited by On Device Research.]]>
Lenovo Chief Executive Yang Yuanqing said recently that the company hasn't been able to generate a profit in smartphones in part because of its investment in marketing and sales. He expects the business to become profitable in China in two to three quarters, he said…
Still, some analysts are skeptical about whether Lenovo can be successful world-wide.
"The strategy of initially seeking a large market share in terms of volume, and then trying to increase margins later, rarely works," said Nicolas Baratte, CLSA's head of technology research for the Asian-Pacific region. Price competition keeps margins thin, he said. Dramatic. (Subscription required.)]]>
In order to get its operating system and, eventually, Jolla-branded phones, in front of enough Chinese, the company has partnered with the largest mobile chain retailer in the country, D.Phone. Not only will D.Phone sell Sailfish-powered phones through its 2,100 outlets; it is also part of the Sailfish Alliance, a group of software and hardware companies that will all be able to add standards and code to the open-source OS.]]>
Despite Apple's success in China, it has been losing market share to Android-based smartphones. Phones running Android mobile software claimed a 59% share of the high-end niche in the second quarter, compared with 41% a year earlier, according to Analysys. Apple sold 2.3 million handsets while Android makers sold 3.5 million in the segment, the research firm said. (Subscription required.)]]>
The replacement project targets “China169,” Cisco’s backbone network router of Wuxi node, in Jiangsu province. Analysts indicated that the product vulnerability and back door problems are the main worries of China Unicom. American goose, meet Chinese gander.]]>
Barring an unlikely accommodation with the Chinese government, we believe that Google’s only short-term option is to try and limit Android’s Chinese variations within China’s borders. The point being that Google Play gets pushed off handsets in favour of local Chinese players. However, Android as a mobile OS is fabulously successful in China. (It's also where all those v2.2 and v2.3 handsets are.) Leading to the conclusion:
Google cannot afford to let Android’s Chinese variations extend beyond China’s borders. If this happens, Google will increasingly face an either/or scenario wherein increased sales of Android come at the expense of the far more lucrative revenue streams from Google Play and Google Search.]]>
Sales of US technology products to Iran have been banned by the US government, but ZTE is understood to have sold Cisco internet routers to the company that controls the Telecommunication Company of Iran (TCI). Coming after the Huawei/ZTE criticisms by the House Intelligence Committe, this starts to look like a trend.]]>