Why did Alibaba Invest in Meizu SmartPhones ?

February 27th, 2015 Comments off

Meizu backed by AlibabaInternet Giant Alibaba has invested USD590m for a minority stake in Meizu, a Chinese smartphone manufacturer (OEM). The strategic alliance traces back to October 2014, when Meizu launched its flagship model MX4 based on Alibaba’s YunOS operating system. YunOS was launched in July 2011 and Alibaba has seen low adoption so far. The company’s strategy of cooperating with a number of white-box smartphone manufacturers has only yielded c10m cumulative users as of October. We note that China has nearly 550m smartphone users. Meizu shipped 5m phones in 2014 and is targeting 20m this year, compared to 100m unit targets for Xiaomi, Huawei and Read the Full Article

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The Mobile App Economy Touched $23 Bn in 2014

February 25th, 2015 Comments off

Total Business of Apps in 2014Based on updated data from Apple and other third parties, we now estimate that total mobile app store bookings were $22.58bn in 2014 representing 36% y/y growth. The difference is driven by slightly lower avg. bookings per device as a greater mix of newly installed smartphones came from developing markets than we had modeled. The Google Play store gained 570bps of market share, but at 37% remained well below the Apple App Store’s 63% share of total bookings. Have a look at the most important Consumer Apps vs Enterprise Apps in 2014.

Google PlayStore – We estimate that there were an avg. of 1.59bn active Android devices WW during 2014, up 58% or 586mn units y/y, with developing markets contributing 72% of incremental units. Despite this mix, we est avg Play store booking/device increased Read the Full Article

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What is StayZilla’s Business Model ?

February 18th, 2015 Comments off

StayZilla Business Model IndiaInternet has disrupted every walk of life with connectivity and computing in your hands. First, we saw how we could re-charge our pre-paid mobiles online. Now we can even book our stay in a remote place in India with Mobile App. Stayzilla provides budget hotels and alternate stay accommodation to travellers in India. Stayzilla’s key value proposition to consumers and merchants is that it acts as a concierge service provider to its customers and hotels.

Stayzilla has a total of 20k properties in its platforms, and aims to raise this to 30k by April 2015 and 50k by year-end. As of 3Q15, hotel listings formed 59% and alternate stay accounted for 41% of total listings. In terms of % room nights, hotels accounted for 66% and alternate stay accounted for 34%. The company believes it can maintain growth of 7x, YoY. Last December, it had sold room nights of 300k and crossed gross monthly booking value of USD2m by January 2015. Growth in gross bookings is over 600%, YoY.

A key issue with the business was leakage of revenues, as once Read the Full Article

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Samsung’s High End SmartPhone Plan to Combat Xiaomi

January 31st, 2015 Comments off

Samsung High End Flexible SmartPhonesSamsung’s problem in Asian countries has primarily been its inability to sufficiently differentiate its higher-end Smartphones to justify a 50%+ price premium over Xiaomi’s lower-priced offerings with similar capabilities. While Xiaomi has been smart to use a disruptive pricing tactic to create buzz for its phones.

We foresee a two-pronged solution to Samsung’s problem – 1) Samsung would elevate its high-end offerings (e.g. Galaxy S6, Note 5) through innovative new form factors that leverage Samsung’s unique flexible display technology, and 14nm AP, and 2) Samsung would Read the Full Article

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Good Demand for iPhone 6 Plus in Dec-2014 Quarter

January 27th, 2015 Comments off

iphone 6 plus demandThe iPhone 6 models started to ship on Sep 19 in 10 countries. In the Dec fiscal quarter, iPhones were made available in an additional 66 countries, including Mainland China. We think there could be upside to our Dec quarter and F15 estimates. Apple is expected to sell 67 Mn phones along with a higher phone ASP given the expected mix of 6 Plus phones. Pricing gains were the result of an increasing share of new phones, an increase in iPhone 6 Plus, and a stronger mix of upgraded phones.

Consumer Intelligence Research Partners (CIRP) surveys 500 screened US Apple buyers each quarter; the latest results are for the Sep-Dec period. The survey does not include non-US users and does not help predict unit volumes but is informative regarding the model mix and ASP trends.

The iPhone 6 and 6 Plus combined constituted 75% of total iPhone purchases, below last year’s mid-cycle reading of 5s/5c at 86% but significantly above the 50% level achieved following the launch of the iPhone 5 in 2012, a more relevant comparison in Read the Full Article

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Xiaomi Note – Enters the Premium Spec & Pricing League

January 19th, 2015 Comments off

XiaomiAs widely anticipated, Xiaomi launched a new flagship smartphone – Xiaomi Note. One of the key focus areas in spec migration is casing upgrade, showing how ultra-slim is favored among others. Other upgrades include – Processor power (Qualcomm Snapdragon 801), Improved cameras (rear: 13MP with OIS, front: 4MP with 2um), Better display resolution (5.7”, full HD), DRAM content (3GB) – which is more evolution than revolution.

For the first time, Xiaomi has priced its flagship model above Rmb2,299 vs. Rmb1,999 since Mi1. Compared with Mi4, with the late arrival of the FDD-LTE version, Xiaomi Note supports CM’s and CU’s 4G network. A CT version will be launched later.

Xiaomi shipped ~61m units in 2014, up Read the Full Article

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