Nokia May Plan to Regain the Power by Counting on the Chinese Market

On 27 April Nokia announced it would enlarge the research group located in Beijing China. And it also decided that Beijing would become the main research base of S30 and S40, which will help Nokia to carry out of the development strategy of providing equipment for the next one billion people to be able to access the Internet. At the same time Beijing will become the main base for developing phones with Windows Phone 7 OS for Chinese and global customers.

In the rapidly changing phone market those decisions are significant.

In the process of 2G to 3G Nokia reacted slowly and didn’t keep abreast of the times. And now it has been surpassed by Apple. However Nokia realized that it must achieve something in the Chinese market, or else it would have no chances to regain the market power. And there are many reasons for Nokia to attach the importance on the Chinese market.

Chinese customers have deep feelings for the Nokia brands. For the most of the ordinary cell phone customers Nokia produces the best phones and it has the strongest brand. Compared to other producers Nokia has a great advantage in Chinese market.

At present China has almost 9000 million people who have cell phone and China has just crossed the threshold of 3G. In the coming three years about 5000 million people would change their phones to the smart phones. Chinese market takes an important role in the Nokia developing strategy.

In China the era of 3G has just begun and we aren’t sure who would win the final battle.

Sohu CEO: The New Round Internet Bubble Is Closing

So many internet companies get listed in America at the same period. And the internet industry worries about a new round internet bubble.

On 25 April Sohu published it first quarter result and its CEO Charles Zhang said in the interview that: “China concept stocks are sizzling now, which is like the internet bubble period in 1999. And any internet companies could go listed in America and get a high market value in that time.” Charles Zhang, who experienced the dotcom bubble in 1999, worries that the new round internet bubble with the China concept stocks as the main force is approaching.

The most of the internet companies in China are seen as Chinese story plus America model. For example Youku.com is seen as Youtube.com in China and renren.com as Facebook. Charles Zhang said that: “Now the capital market is just like that of in 1999. At that time Wall Street adopted the concept of the internet enthusiastically. And now the Wall Street has fantasies about China concept stocks.

He also added that the bubbles have one thing in common that investors emphasize on the concept but not of the fundamentals. And the price/earnings ratio is a good index. It is not a normal phenomenon that many internet companies have a high market value but with low price/earnings ratio. In his view the crazy capital bubble has influenced the normal development of the internet market.

Charles Zhang said that people liked uncertainty that could provide us with imagination. And people would believe that it is bubble only when the bubble bursts.

Yes I believe it is a new round dotcom bubble. The burst of the bubble is just a matter of time.

The Chinese Internet Development Model: C2C

The first sight you see C2C you may think it means the customer to customer e-business. But here I want to talk about it’s another meaning: Copy to China. If you search this term on Google you will get 2240 million search results. And the first result is about its definition on Wikipedia.

We can use this term to describe the Chinese internet development model. Especially in the IT industry and internet industry no matter big companies or small businesses all copy the business models from America. The coping varies. Some companies copy the look and design of the websites. And some copy the business model.

And there are many examples of copying to China. After Google bought Youtube.com at a price of 1.5 billion dollars there was a video service sites rush in China. Many websites like Youtube.com were built such as Youku.com and Tudou.com. Even they had to invest a lot of time on the site without revenue. And when SNS such as Facebook.com became popular many sites like Facebook.com appeared in the Chinese internet industry such as renren.com, which now is planning its IPO in America. And it is the same situation when micro blog becomes hot. There is only one Twitter, but there are more than 10 websites in China that provide micro blog services.

And companies in China copy just when they see the websites in America has made a great achievement and profit. They tried to sell the websites or got listed in America. Also the series of Chinese dotcom IPOs in America arouse the debate of the new internet bubble. And even some columnist wrote that China was exporting the dotcom bubble.

Yes in the process of developing we should learn from others but just by copying we have no future. Can the Chinese internet and IT industries change the “Copying to China” model to more innovation?

Nokia Empire Becomes Uncle Nokia

On the city wall the warlords’ banners keep changing. Motorola reigned supreme in the age of analog signals. And Nokia was dominant in the 2G era. And now in the era of 3G Apple iPhone exceeds them all. The first season finical report showed that the revenue of Apple iPhone has exceeded Nokia. And at the beginning of this month the Nokia market share value has been exceeded by HTC. Although Apple and HTC can’t be bracketed with Nokia in the aspects of market share, sales and the richness of product series, there is no much time left for Nokia to make the change.

iPhone is the most profitable phone. It tells us many things if we compare the Apple finical report with that of Nokia. The revenue of the iPhone was 12.3 billion US dollars and Nokia was 10.3 billion US dollars. And in the same three months Apple sold 18.7 million iPhones and Nokia sold 108.5 phones. And the average price of iPhone is 660 dollars and the Nokia is about 94.6 US dollars. And Nokia sold many kinds of phones and Apple only sold iPhone at the same time.

So iPhone is the most profitable phone now. Even the phones of HTC and RIM aren’t at the same level. But the CEO of Nokia said that their worst enemy is smart phone with Android OS.

Now many people call Nokia as Uncle Nokia on the net. It shows that Nokia lacks of innovation and follows the beaten path of conventionality. But still Nokia has the largest number of users. And it has announced cooperation with Microsoft. And Windows Phone 7 will become the main smart phone platform for Nokia. Whether Nokia can take surprise to us, only time tells.

Growing Pains: More and More Companies Plan to Transfer Their Factories out of China

China is known as the world factory because of the labor force advantage. But the situation is changing gradually. Many companies plan to transfer their factories to Vietnam and other Southeast Asia countries.

In Dongguan, the most famous Chinese city with a large concentration of labor-intensive factories, many companies consider that they should move their factories to Vietnam where the labor cost is now lower than China. In an industrial zone of Dongguan the road is empty and the roadside business such as shops and the net cafés are at a low stand.

Dongguan has been trying to boost industrial upgrade. But the outmigration of factories has had Dongguan faced with dilemmas. On one side the government worries that the outmigration of factories many lead to manufacturer industry hollowing-out, on the other side it want to seize this opportunity to boost industrial upgrade.

In any case against the background of Chinese RMB rate revaluation and the difficulty of recruitment industry shift is an inevitable choice for Chinese export-oriented enterprises. Also the Sino-ASEAN Free Trade Area operation and zero tariffs make many factories in Dongguan consider about the industry shift.

However it would be a slow process because of the low capacity of Southeast Asia countries to receive the industry shift from China. And also we doubt that if China can become the source of creation and innovation like Japan or America.

Don’t Take Your Phone When You Take Part in the Party

During friends’ gatherings when the food is brought onto the table, everyone takes their phones and takes the pictures of the foods. Then they will upload the pictures onto their micro blogs. And they don’t want to talk face to face but they feel good to share things via micro blogs. It is strange.

With the popularity of many kinds of SNS and iPhone, iPad modern people become more and more addicted and dependent on the online social life and entertainment, which even lead to the degeneration of the ability of interpersonal communication etiquette. And many people think that the thumb movement makes us rude. So many people advocate that we should not take our phones when we take part in the party.

“Add one more achievement to the digital revolution: It has made it fashionable to be rude.” David Carr wrote. You can imagine the situation or you have experienced this situation. You talk to somebody, but he or she is just looking into a phone. You aren’t sure if he is listening to you. You think he or she is rude, but it is also rude to tell him or her to listen to you.

Just imagine the society in which everyone don’t talk with each other face to face or eye to eye but they all carry with a phone to communicate with each other. Maybe one day human’s ability to speak will degenerate. It is terrible.