Expect competition in the handset sector to intensify further this year as players launch state-of-the-art models for the fourth-generation wireless telecommunications technology.
Handset maker Coolpad Group Ltd. (02369.HK) aims to sail past Lenovo Group Ltd. (00992.HK) to be second in smartphone shipments in China and in the top five worldwide this year, according to top management. The Shenzhen-based company ranks third in China and seventh globally in smartphone shipments.
“We expect to see overseas shipments accounting for 30 percent of overall sales in five years and half of our revenue in 10 years,” Coolpad vice president and chief financial officer Jiang Chao told EJ Insight Friday. Share of overseas sales is currently just 3 percent of the company’s income.
“We will focus on expanding our coverage in the United States, Europe and India, and plan to enter new markets including Russia, Indonesia and other parts of Southeast Asia. Coolpad already has a presence in Britain, France, Germany, Greece and Taiwan,” he said.
The company is confident of meeting its target of shipping 60 million smartphones this year.
“We expect to see slower 3G smartphone shipment growth before 4G is launched this year … We will focus on selling 4G handsets in the second half and it will take up 30 percent of our total target shipments,” Jiang said.
Of this year’s shipments, 75 percent will be handsets priced below 1,000 yuan (US$162), 5 percent will be high-end devices and the rest will be in the mid-range. The company will launch cheaper handsets this year, with products priced as low as 799 yuan.
Coolpad will launch about 60 handset models this year, 70 percent of them for 4G. The company plans has allocated 300 million to 500 million yuan for capital expenditures for the period.
Power firms, banks in lead for preferred share trial
Banks and electricity firms are widely tipped as frontrunners for a trial preferred share scheme, the Shanghai Securities News reported Monday. According to a report from the China Financial Futures Exchange, the test scheme could benefit the financial sector and industries involved in mergers and acquisitions. The preferred shares will be considered as bank tier-one capital, helping lenders lower their core capital requirements. Preferred share schemes could also help power companies lower their borrowing costs, which would otherwise be high because their average debt ratios are usually around 70 to 80 percent, the report said.
Taiwan students, police clash in Yuan protest
Twenty-three students were detained and more than 30 police officers and demonstrators hospitalized early Monday after Taiwan’s antiriot police began evicting protestors from the Executive Yuan, Apple Daily reported Monday. The protestors tried to occupy the governing cabinet’s office in a show of opposition to the handling of a cross-strait services pact. Premier Jiang Yi-huah condemned what he said was illegal and violent action by the protestors, the report said. Some students have occupied the Legislative Yuan since Tuesday.
– Contact HKEJ at [email protected]