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Imitation Doesn’t Lead to Differentiation

September 8, 2015

Insightful article by Eva Dou, for the WSJ, titled Rivals Try to Reinvent Xiaomi Business Model. I think the use of the word “reinvent” is almost meant to be ironic; you won’t find any hint of reinvention from the executives that Dou interviewed. Some nuggets:

In a hint of how quickly Lenovo has worked to develop a Xiaomi rival, Mr. Chang said his team was still figuring out what the [Lenovo brand] name ZUK stands for.

and

One morning this summer, hundreds of young engineers at Wingtech in blue cubicles and humming research stations were busy designing and testing smartphones for clients. Large clients such as Xiaomi and Huawei were cloistered into private rooms, to avoid secrets leaking to rivals. But testing equipment was shared, cutting costs for all the brands.

After reading these passages, what do you think the odds are that any one company’s business model or product will be different than the others’? Low. One alternative path forward: caring about consumers and the technology it takes to build better product experiences. Don’t recall if the executives interviewed used any variation of either word? They didn’t. And that leads us to the prediction:

IHS iSuppli China Research head Kevin Wang said […] “A lot of these smartphone players are probably going to die.”

Basically, some Chinese OEMs hope imitation can lead to differentiation. It won’t.

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Filed Under: Android, China, Huawei, Innovation, Leadership, Lenovo, Xiaomi

Saturday Assorted Links

August 29, 2015

1. On Amazon’s Plans for a Low Cost Smartphone

At one point, the company planned a stripped-down Fire phone, but Amazon has stretched out its timeline for smartphone development indefinitely, people familiar with the matter said.

2. You can download Cortana for your Android device right now – here’s how Just interesting to see Microsoft’s cross-platform strategy evolve.

3. Xiaomi Will Launch In Africa In Sept Through Distributor

4. Xiaomi to release two chipsets for in-house use next year Focus appears to be cost. See my prior related post.

5. Huawei brings online smartphone brand Honor to Europe “Handsets would be mainly promoted and sold on-line […].”

6. Revealed: the first hydrogen-powered battery that will charge your Apple iPhone for a week Note: most small companies use an iPhone to demonstrate their capability. Primarily because it makes the invention look ready for prime time. And — as you can see — it increases the odds of generating a click-bait headline. Plus, yes, they’re hoping someone at Apple notices and sees “how well it fits in”, so to speak. Or that another potential acquirer thinks “Oh – I wouldn’t want Apple to buy them”.

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Filed Under: Amazon, Assorted Links, Distribution, Huawei, Intelligent Assistance, Microsoft, Power, Processors, Smartphones, Xiaomi

Sunday Assorted Links

August 9, 2015

Still digging out from vacation. Lot of interesting developments.

1. Huawei, Xiaomi to hike adoption of in-house-developed smartphone APs. I think they’re focused on reducing their component costs, and on diversifying or securing supply, rather than on any sort of performance boost. An interesting excerpt, however:

Xiaomi and Huawei’s strategy is expected to directly impact AP providers such as MediaTek and Qualcomm. Within the global top-5 smartphone vendors, Apple, Samsung, Huawei, Xiaomi and LG, which together contribute over 60% of worldwide shipments, four of them have already adopted in-house developed APs or have been aggressively increasing their adoption, which could seriously damage independent ARM-AP suppliers as well as x86-based solution supplier Intel.

Note, however, that Leadcore, the AP manufacturer working win Xiaomi claims that “Xiaomi wants its own custom-designed processors to differentiate its products and control its destiny“. I think that’s a bunch of marketing spin, and the “differentiation” is really a cost focus.

2. Microsoft Launches ‘Translator’ Free Apple Watch App. I haven’t tried it yet. In principle, sounds like a good idea; a good fit with the fact that a smartwatch is, in my view, essentially a tool. And it’s not surprising that Microsoft has a team(s) working to quickly deliver apps for Apple Watch.

3. Big Android Makers Will Now Push Monthly Security Updates. … because there’s something magical and comforting about the nice, round 30-day number?

4. Michael Lopp (Rands in Repose): “Busy is a bug, not a feature.” I suppose it depends on the role. I agree that for a leader to be continuously busy, or “too busy”, is not a good sign. Though it is more complicated than that (“war time” vs. “peace time”, etc.). Michael is now at Pinterest. Another interesting part:

“It’s gonna sound like I’m lazy but I swear I’m not lazy,” he says. “My job is to get myself out of a job. I’m aggressively pushing things I think I could be really good at and should actually maybe own to someone else who’s gonna get a ‘B’ at it. But they’re gonna get the opportunity to go do that [and continue to learn in the process]. My job is to — it sounds like I just want to sit here and drink coffee and talk about bread — but it’s about pushing it down, so these things, which naturally come to me [go to others in the company].”

5. Smartphones are hurting our children – but the real culprit is bad parenting. The headline says it all.

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Filed Under: Android, Assorted Links, Huawei, Leadership, Microsoft, Processors, Security & Privacy, Smartphones, Smartwatches, Xiaomi

Google, Huawei Discuss China App Store

July 14, 2015

Sam Byford, for The Verge, incorporating information from the original source, The Information:

The relationship between Google and Huawei could be mutually beneficial beyond the phone’s co-development. The Information claims that talks are in progress for Huawei to help Google bring a mobile app store to China, where government regulations have restricted the search giant from conducting much business of note.

Will this be effective? Call me skeptical. (That’s not a knock on Google, by the way. I respect its choice to stay out of China.)

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Filed Under: Android, Apps, China, Google, Huawei

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