Saturday, February 9, 2013

Tech in Asia: Our Picks for News of the Week [Feb. 9, 2013]

techinasia news of the week

Here in the Northeastern US, I’m being buried under feet of snow, and across Asia millions of people are returning home to celebrate the spring festival holiday. But the festivities this weekend didn’t seem to affect much this week, as we found all kinds of exciting information to share. So what was the biggest news this week? Here’s what we thought:


Steven’s pick: Xiaomi Confirms April Phone Launch in Hong Kong and Taiwan

China’s Xiaomi has only been in the phone business for about a year and a half, and it sold over seven million of its two models just in 2012. That was all just in mainland China. It’s very likely that the company’s first (sort of) overseas foray will be met with similar enthusiasm by smartphone buyers.


Charlie’s pick: Rumor: Qihoo CEO in Secret Meetings with Sogou CEO Over Partnership

Sure, it’s just a rumor right now, but what a juicy rumor it is. It also probably foreshadows bigger things on the horizon as it seems Zhou Hongyi has decided to forgo his other public disagreements and focus on trying to take down Robin Li and Baidu.


Minghao’s pick: Opera: Indonesia Now World’s 2nd Largest Market for Ad Impressions

This news will not come as a surprise for many; Indonesia is up and rising in terms of its mobile penetration rate and the number of smartphone users. With one language, Bahasa Indonesia, companies can sell to more than 200 million people. No wonder Indonesia is one of the top few destinations when companies wish to expand overseas.


Minh’s pick: China: US is Hacking Us, Not the Other Way Around

I just think this hacking debacle between China and US newspapers is hilarious. It underlines China’s deep paranoia. But it’s also got a serious note to it. Eric Schmidt, in his latest book, said that China’s hacking threatens the internets that we know today, and even hinted that this may lead to a future where we’ve got separated internets packaged by different governments. On one side we’d have an internet managed by more open governments like the USA and on the other side, more closed governments like China. I think hackers like Anonymous will just keep re-opening the Internet though. “Can’t stop the signal, Mal.”


Willis’s pick: Founding Story of MOL

Malaysian company MOL has been doing some great work in Southeast Asia. But it has been under the radar across the tech blogs. Click to learn more about how MOL was founded and how it hustled to become the largest payment company in Southeast Asia.


Enricko’s pick: Photo App Picmix Goes Viral and Passes 8 Million Users

This week has been a great one for Indonesia. Not only have we highlighted PicMix’s virality which saw the app reach eight million users in nine months, but we also saw Harpoen becoming the first Indonesian startup to win WSA Mobile Content. Indonesian startups can definitely compete globally.


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How to build a kick-ass growth team

growth hacking teamHow do you build a growth team from the ground up?

“The bleeding edge today is Growth Hacking and Data Science, and it’s where analytics, statistics, computer science and marketing meet. Growth Hacking quintessentially looks for platforms that provide one to many relationships (read: one to millions), and develops smart ways to harness them quickly.

Tech companies are literally hiring rocket scientists to exploit these channels and acquire customers quickly before they get crowded and the advantage fades as they get costly or restricted. If you want hypergrowth, conventional marketing won’t get you there, because traditional marketing methods involves absolute, linear growth and not relative, exponential growth.”- Matt Barrie, Freelancer.com CEO

Freelancer.com – largest outsourcing marketplace – was founded in May 2009 and we just passed our 7 million user-base mark yesterday with over 4 million projects posted. We are also in top-300 most trafficked websites globally according to Alexa.In this post, I will share how I built our Freelancer.com growth team from ground up.

So I don’t have online marketers in my team. That’s not because I disregard their existence and importance but mainly because what we do in the company is very mathematical, scientific and calculated. Marketers mostly being mathematical neanderthals are the exact opposite.

So I have a team of twelve – comprised of product managers and data scientists.

  •  4 University Medallists/valedictorians (I used to have 6)
  • All the twelve did graduate with High Distinction / First Class Honours
  •  4 PhDs
  • Mechatronics/Robotics Engineer
  • Computer Scientist – Machine Learning Expert
  • Computer Engineer
  • Mathematician/Statistician
  • Quantum Physicist

So what are some of the traits you want?

1) They are engineers and should know how to program

All the growth hackers in my company had to go through the same intensive interview process that the normal engineers would have gone through on top of separate analytics/products interview.

Why? Well, they are different kind of breeds – hybrid of marketers and engineers as Andrew Chen would have kindly put it. I do think that they should be strategists too and hence our team plays a very critical role in the company core product strategy and decision making.

Concrete Example: AirBnB managed to automatically post on Craigslist without any API. If you are not a programmer, you would not be able to do that. Needless to say, this is how AirBnB achieved its initial growth.

Additionally, there won’t be any context switching. You don’t have to go back and forth to engineers to ship minor tweaks/fixes. Our team ship about 15-20 A/B tests a week and if we are lucky, we will get 2-3 minor improvements. So if we are to involve core engineers for those, imagine how much longer this would take.

2) Avid Tech-News Reader

To put it simply, if you don’t read hackernews or techmeme or TechCrunch or e27(if you are in Asia) or other sites alike, you shouldn’t be in the team. This is our university.

3) Hire The Best

I have one philosophy: You can’t go wrong with university medalists. At the very least, they have proven that they are very smart and willing to work hard – you can’t be graduating top of your class if you are not committed.

4) Passionate – Hungry – Driven

A smart manager always hires people smarter than him/her, the best you can afford. Look for passionate, hungry and driven team members. I’m more comfortable hiring 22 year old graduate who is smart, deeply technical, passionate, hungry who is easy to get on than veteran “outsider”. The average age of our growth team is about 23 years old.

5) Knowledge in Statistics & Data Mining

You probably don’t need the whole team to be experts in statistics and machine learning but all of them should have high level understanding of those fields like for example:

  • A/B testing and its statistical significance
  • Binary state classifier and the applications of it
  • Regression Analysis
  • etc

So the idea is to have thinkers in your team and have these data scientists to validate the ideas by series of number crunching.

You have to track basically every improvements that you push. You have to be able to quantify whatever you do have impacts on the core metrics you are trying to improve. That’s why in Freelancer.com we have thousands of graphs in the dashboard created by the team and it is available to everyone in the company because we love transparency.

Oh yeah, you will also be amazed at what insights can come from Machine Learning.

In the case of the identifying paying customers for example:
ML – Binary State Classifier e.g. Random Forest Classifier can essentially predict whether a user is going to be a paying customer or not. Even better, it can also tell you – by weighting – which attributes to tackle so that more users are paying customers.

So what kind of interviews/questions you ask in hiring?

1) Technical Engineering Questions

I will probably start them off with engineering related interviews – the normal interviews software engineers would have gone through. Algorithmic related questions are probably the emphasis here cause you want to know how they think.

2) Basic – Advanced Data Analytics Questions

Depending on hiring product managers or data scientists, you probably need to ask them basic to advanced data analytic questions such as:

- What does 95% Confidence Interval mean?
- How would you run your A/B tests if there are over 10 simultaneous tests running?
- What are Type1 & Type2 error and why is it important in data mining?
- If you can have any data from Google, what would you yearn the most for our company and why?
- What is Expected Value?
- What is curse of dimensionality in machine learning and how would you go to solve it?
- Say you have the whole log file of our website, what insights can we have from it?

3) Random General Knowledge Questions

I also like to ask general random questions as it shows how diverse and versatile they are
- What is Subprime Mortgage crisis and why did it fail in hindsight?
- What is the Big Mac Index?
- Why do you think milk powder can is cylindrical and not a box?
- How much wood would a woodchuck chuck if a woodchuck could chuck wood? or, explain in detail why a query run at the second time takes faster than the first and for bonus, how can you circumvent this to a certain extent to benchmark performance?
- What do you think of online marketplace that allows users to outsource small jobs and tasks to others in their local area e.g. taskrabbit.com, airtasker.com? What problems do you see from those businesses?

4) Case Studies

Finally, run them through some case studies preferably problems that your current team has encountered and subsequently solved.. This may include funnel optimization problem for example.

I hope you enjoyed my first of many posts to come :).

This post was first published on Willix’s blog.

The post How to build a kick-ass growth team appeared first on e27.


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5 Must-Read Tech Stories in China This Week

China tech news

The impending spring festival holiday hasn’t kept this week from being full of tech news drama. We’ve got special investigations, secret meetings, big acquisitions, and big launches. Read on for the tops in this week’s China news!


1. Qihoo’s iOS Apps Under Special Investigation by Apple

Qihoo’s apps are still gone from the app store, and one report suggests the company is being investigated by Apple for providing easy downloads of its apps for jailbroken iPhones. If you’re interested in Qihoo, stay tuned, because they’re going to show up again later on this list.

2. Monster.com’s China Dream Shattered, ChinaHR Sold at Huge Loss

And yet another big web player from the west bites the dust in China. After a pretty rocky couple of weeks, Monster’s ChinaHR subsidiary was sold to an Irish company for a small fraction of what Monster originally paid for it.

3. Xiaomi Confirms Taiwan, Hong Kong Launch in April

Xiaomi is finally going international! The handset maker will begin offering its phones in Hong Kong and Taiwan this April. This move has been rumored for quite a long time, but now it’s finally happening.

4. Rumor: Qihoo 360 CEO in Secret Meetings with Sogou Over Partnership

Is Qihoo’s Zhou Hongyi trying to start an alliance with Sogou’s Wang Xiaochuan to take down Baidu’s Robin Li? It sounds like the plot of an imperial-era drama, but it might actually be happening.

5. Huawei, ZTE, and Lenovo Among Top 5 Global Smartphone Makers

Chinese brands are beginning to dominate the global smartphone market. Not too much of a surprise considering we also learned this week that China is now producing more than 50 percent of the world’s phones.


That’s all for this week, folks! Thanks for reading. For our full spread of China coverage, you might like to subscribe to our China RSS feed.

The post 5 Must-Read Tech Stories in China This Week appeared first on Tech in Asia.


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Adding Fun to Chinese New Year, Google Puts Snake Game Doodle On Homepage

google-chinese-new-year-doodle

Today is Chinese New Year’s eve. So kids, including myself, are “forced” to do spring cleaning. It’s part of the entire Chinese New Year celebration process of shopping, cleaning, eating, gambling (just for fun), and visiting relatives. And fireworks. Of course, younger people will also be busy collecting red envelopers (stuffed with cash) from senior family members.

My friends from Taiwan texted me to try Google’s snake game doodle. It’s snake themed because this is the year of the snake in the Chinese calendar, replacing the outgoing year of the dragon. The Google doodle snake game plays a bit like the old Nokia snake game: you control the snake’s direction while grabbing items. Avoid grabbing the festive fire crackers though. You have 60 seconds to play but I don’t think you will get any rewards regardless of how many points you score. The game also comes with a traditional Chinese New Year tune, adding to the festive mood. You can try the game on Google’s Hong Kong and Taiwan homepages right now.

We’d also like to take this chance to wish all readers a very happy and prosperous Chinese New Year.

The post Adding Fun to Chinese New Year, Google Puts Snake Game Doodle On Homepage appeared first on Tech in Asia.


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Krithika Nelson quits Shopo.in, co-founder takes over as CEO are niche marketplaces in trouble?

shopoKrithika Nelson, one of the co-founders of Shopo.in, a Chennai based niche online store for handcrafted Indian product, has quit her position as the CEO of the company.

Nelson wrote on the Shopo blog that the past 3 months have been tough on her health and it doesn’t look like its going to ease out any soon.

I was recommended a lifestyle change as well as a longer medical leave. The team tried a bunch of ways we could work around this but being a co-founder and away from action was going to be hard. It is with a heavy heart today that I will be stepping down from CEO position to let the team focus on what is truly important while I take care of getting back in good health.

Theyagrajan, the other co-founder of Shopo will take over as the Chief Executive of the company. Its’ been almost seven days since her last day at Shopo.

While this could be a perfectly normal departure, we have learned from sources that the niche online handicrafts companies aren’t doing too well. Craftswilla, another niche marketplace for handicrafts isn’t doing too good we’ve heard (more on this later). There are others such as the Bangalore based Aporv and Delhi based Nethaat, are in the same business.

Question is, will online marketplaces for a niche work?

What are your thoughts?


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Pi(e) of life: Entrepreneurship and Cooking

[Edit notes: This Guest post is part of our Pi of Life series published every Saturday. The author, Ekta Dwivedi, is an ex IT professional who quit to take care of other priorities in life after working for various companies in India and abroad. Presently, she manages her  software services startup, writes a food blog and is an event planner for her community.]

icookEntrepreneurs today are the latest badshahs of the world. They are the new breed of people the whole universe is hankering after. An “idea” is what is required to turn a commoner into an entrepreneur. And then, perseverance and patience required to turn one’s idea into a commercially-viable project is what differentiates the true entrepreneurs from the wannabes. But scratch the surface and out comes oh-so-hectic taking-a-toll-on-health lifestyle. Most young people today live far away from homes and after a hard day’s work they hit a bar/restaurant to kill their hunger pangs. Though eating out has its own pleasures, if continued for a long period of time can prove hazardous to health. This is where cooking steps in.

Cooking and entrepreneurs have a lot more in common than many people would like to believe. Cooking, like entrepreneurship today has achieved gargantuan exposure but still for a majority of people it seems commonplace. To say that cooking is a stress-buster would be stating the obvious. Cooking is a highly creative art wherein you not only get to mix and match the ingredients but also play around with exotic tastes. After a long day at work nothing can be more therapeutic than cooking. Right from chopping the veggies into ‘bite-sized’ chunks, to sautéing onions to ‘mera-wala pink’, to maintaining the ideal temperature for tandoori murg’s succulence, cooking is an art akin to painting.

Cooking one’s own meal is a healthier option which apart from sitting lightly on the wallet also sits lightly on one’s body parts. Today 70% of health issues are lifestyle related. In modern times with the rise in disposable income and the media blitzkrieg on fine dining, more and more people are tempted to eat out which in turn is leading to bulging waistlines and receding hairlines.

In such a scenario putting on your apron is in your own favor. The amount of oil used in restaurants can be brought down to minimal when you are cooking yourself. Thus making your heart younger by a couple of years. The most enjoyable part of cooking is the preparation that goes into making a dish. Hitting the nearest ‘sabzi mandi’ you get to feast your eyes on the freshest seasonal stuff in the market. Haggling with the vendor over the price is a simple pleasure that has been confiscated from us by these super-market guys. The grocery stores today are flooded with plethora of “ready-to-eat” options to choose from-be it packaged or frozen food. Such products seem to be boon to people like you and me. Tempting, but is it the right choice? Spare a few minutes to read the nutrition facts on your packaged ready-made food product and looking at the sodium content, you might like to consider cooking more often.

Our predilection for fast food is a well-known fact. But do we ever bother to check what we are eating, and whether that pack of chips or maggi has what it claims it has?? No, because we do not have the time or the inclination to get into the gory details. Obfuscation indulged in by the companies do not help either. Well! Today we will provide you with some answers.

Your all time favourite “two-minute” noodle comes with high salt and empty calories. A packet of maggi has around 3 gm of salt; the recommended intake being 6gm/day, which means that half of the requirement has already been fulfilled by the time you slurp it off, not leaving much scope for other salty stuff. Not an ideal choice for people of this subcontinent who like to have their salt and eat it too.

The yummy Lays endorsed by the uber  yummilicious Saif Ali Khan has around 33% fats and very high salt content. A standard sized packet more than fills up the fat quotient for the day.

The 300 ml serving of carbonated drink which extols us to go ‘crazy’ spreading happiness has enough sugar (over 40 gm) to exceed one’s daily quota of 20 gm. After this forget the cup of tea, one should not even have fruits. Any additional sugar will make one fat.

Research shows that unhealthy fats found in dairy products like butter, cheese, milk shakes quickly make their way to the brain, where they shut off the alarm system that tells us that we’ve had enough to eat. The unhealthy fats found in some foods can leave you wanting more.

Nowadays, the tetra packs have become an easy and a convenient source of health benefit offered by fruit juices. But are these juices really healthy? As soon as a fruit is exposed to air, some sensitive nutrients get lost. Apart from lost nutrient, fruit juice is concentrated in terms of sugar so as calories. Once cold pressed, fruit juice is pasteurized which destroys a lot of the nutritional value. The additives and preservatives added for shelf-life longevity may cause carcinogenic effect on one’s body.

Being busy or not knowing how to cook do not preclude eating well, creating health and avoiding disease. Cooking also empowers you to select from a range of leafy greens which have flooded the market in winters. Throwing in crunchy nuts to provide for omega 3 fatty acids and adding eggs and chicken, highly recommended by dieticians and trainers, helps you customize your dish as per your taste and requirement.

‘We are what we eat’, so it makes sense to pay attention to what we are consuming by way of food. While cooking and even while enjoying an evening out we must be conscious of what’s on our plate. A healthy mix of proteins, carbohydrates and fats is essential in every meal. Much has already been said about the presentation of food, the visual treat that it should offer. As always the sense of smell gets side-lined. The aroma of freshly baked cookies, wafting through the house is enough to lift up one’s saddled spirits.

Few tips to start eating healthy

1. Make an effort to delete junk from your life.
2. Do your own research.
3. Be willing to learn to cook.

All you beginners out there who are wondering where to start from we also have an easy DIY recipe for you.

Go Green Sandwich

Ingredients

4 slices of whole wheat bread
2 iceberg lettuce leaves
1 cucumber
1 bell pepper/Capsicum
5-6 small florets of broccoli
Cheese Slices/Cottage Cheese (for a healthier variation)
Coriander dressing:
1 bunch of coriander leaves
10-15 cloves of garlic
2 dry red chilies
½ medium sized lemon
½ cup of Extra Virgin Olive oil
Salt and pepper to taste.

Method

Dressing

Finely chop coriander leaves.
Roast garlic and chilies in a pan till they start turning light brown.
Now crush garlic and chilies in a mortar and pestle to make a coarse paste. In a small jar, put the chopped coriander leaves, garlic and chili paste. Add lemon juice, salt and pepper to it. Now add about ½ a cup of olive oil to it. Close the jar and give a nice shake to it so that all the flavors get mixed. Your coriander dressing is ready.

Cut Cucumber, Green pepper into thin slices. Bring Broccoli florets to boil. Rinse it in cold water. Put it on the kitchen towel to drain any water. Assemble all the ingredients including cheese slice, lettuce, cucumber, green pepper, and broccoli florets on the bread. Top it with the generous serving of coriander dressing.

Your Go-Green Sandwich is ready to eat..!!

Note: If you like your cheese to be melted, just toast the bread with the cheese in the oven for a minute or less. The sandwich dressing can be stored in an airtight container in a refrigerator for about a week.

You can find more easy-to-make recipes on my blog www.icook2.blogspot.in

Let this be your 2013’s resolution to cook more and more. Subscribe to food blogs, get cookery books, buy new cooking equipment and explore the cooking trail. Don your ‘kiss- the-cook’ apron and get going. Happy Cooking!!


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DailyDose: Yandex beats Bing to become 4th largest search engine worldwide & Y Combinator applications are open

DailyDose, your everyday technology brief is here. In today’s edition: Yandex Just Passed Bing to Become 4th Largest Global Search Engine, Google’s Schmidt to sell roughly 42 percent of stake, Southeastern Asset Management to Fight Dell’s Takeover, Email hacker reveals Bush family photos and more.

Y Combinator is now accepting applications for the summer 2013 funding cycle. It will take place in Mountain View, CA from June through August 2013. More here.

Email hacker reveals Bush family photos, addresses. The secret services is investigating the hack. Read more here.

YandexYandex Just Passed Bing to Become 4th Largest Global Search Engine: The Russian search engine beat Microsoft on the number of search queries worldwide in November and December 2012. Read more here.

Doctors seek help on cancer treatment from IBM supercomputer: IBM’s Watson supercomputer has beaten expert “Jeopardy” quiz show contestants, and its predecessor defeated a world chess champion. Now, doctors hope it can help them outsmart cancer. More here.

Google’s Schmidt to sell roughly 42 percent of stake:  Google Inc Executive Chairman Eric Schmidt is selling roughly 42 percent of his stake in the Internet search company, a move that could potentially net the former chief executive a $2.51 billion windfall. More here.

Southeastern Asset Management to Fight Dell’s Takeover: One of the biggest investors in Dell said on Friday that it would oppose the company’s plans to go private, setting up a major potential roadblock for the biggest buyout since the financial crisis. Southeastern Asset Management, Dell’s largest outside shareholder, argued in a letter to the board that the $24.4 billion takeover bid was too low as Michael Dell tries to take the firm private. More here.


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Discover Manila’s best places via looloo

looloo logoThe looloo team built the app because they “wanted a ridonkulously easy way to discover places you’ll love.”

Enjoyed your meal and want to let your friends know about this new restaurant you discovered? Sure, you could call them up, or tell them about it when you see them, but we wouldn’t be living in a social media-obsessed world if that were our first reaction, now would we? Enter looloo, an iOS app that lets you explore, review, and recommend different places around Metro Manila and, soon, throughout the Philippines.

Founded by Odell Ramirez, looloo was built because, as the About Us page puts it, the team “wanted a ridonkulously easy way to discover places you’ll love.”

“We built looloo for curious and adventurous Filipinos who love the experience of trying out places and finding new favorites along the way,” Peanut Dela Cruz, who handles product marketing for looloo, told e27.

“We really like the feeling of discovering a hidden gem. Think about that first meal at your favorite restaurant, that first massage at the spa you love, and how each of those times, you immediately said to yourself, ‘Holy moley! I’m so glad I found this place!’ We want you to experience this same feeling,” she said.

How did the app end up with the name “looloo”? Peanut shared that the team had already chosen the flag as the logo, and were brainstorming to come up with a name and description for the app.

“It was kind of a coincidence that on the whiteboard, we had the flag and the infinity sign (symbolizing the infinite number of places you can discover) ending up beside each other. Put together, it looked like ‘loo’ and from the symbols alone, it meant ‘discovering an infinite number of places’.

“We settled on ‘looloo’. It’s short, but not too short. And it’s easy to say and spell,” she said.

looloo reviewPeanut noted that since looloo exclusively focuses on the Philippines, it’s a good app for those who really want to discover the different places the country has to offer. Moreover, unlike the usual practice for location-based apps, the looloo team physically mapped places in Metro Manila themselves. Of course, the tradeoff to this is that it’s slower to add places and roll out to locations outside Metro Manila, but the advantage is that you can be assured of accuracy.

“Other apps depend on third-party sources for their data, which tend to have a lot of errors. So we built ours from the ground up. And we’re improving it every day,” Peanut said.

Community building, however, is what really differentiates looloo from other similar apps.

“Most review apps allow you to review a place and that’s it. Not us. When you review a place on looloo, you can include direct recommendations to your friends who are also on looloo. They’ll then get instantly notified and the place gets added to a list they can look at the next time they head out,” Peanut shared.

This community-based approach also encourages looloo users to participate and improve the quality of the content they create, by providing an editorial structure of sorts as well as incentives for submitting. These incentives include contests and other community activities aimed at making reviewing fun for users.

“Every time someone writes a review on looloo, we show them a question that gives them an idea of what to write about their visit. If they choose to give a place a 5-star rating, they’ll see ‘Why would others love this place?’ but if they give it just one star then the question will be ‘What could’ve made this visit better?’ We think this helps in encouraging people to elaborate on their experience with a particular place,” she said.

So, want to spread the word about that great place you discovered in Metro Manila? Let looloo do the talking!

looloo is free to download on iTunes

Image Credits: looloo.com/Screenshot taken using author’s iPhone 5

The post Discover Manila’s best places via looloo appeared first on e27.


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49% Mobile Phones Sold in China in 2012 Were Smartphones

img:ce.cn

Chinese mobile phone manufacturers shipped 1.18 billion mobile phones in 2012, with an increase of 4.3%, according a report by Chinese Ministry of Industry and Information Technology (MIIT). Every one hundred Chinese own 82.6 mobile phones, 9 more than that in 2011.

Of the 260 million mobile phones sold in 2012, 49.1% are smart phones. It is estimated smartphone sales will surpass feature phones this year.

More than 100 million 3G subscribers were added in 2012 — the biggest number ever. Mobile Internet users account for 74.5%, 5.1% higher than the year before, of the total Chinese netizens, according to the MIIT report.

Local phone makers account for 70% of domestic smart phone market.

Chinese manufacturers estimatedly took about 70% of the domestic smart phone market in 2012. It is reported that most of them raised the shipment target for 2013 by 30%. It is expected competition in this sector will be intensified this year that big names like Samsung, who took over 10% a market share in 2012, will ship more low-cost devices.

Regarding smartphone the almighty gateway for obtaining mobile Internet users, a bunch of Internet companies joined in the smartphone manufacturing industry. Alibaba, Shanda and Baidu rolled out phones with customized Android systems and built-in Internet services of theirs. Netease also came up with a team to design phones. But nothing with those phones could differentiate them from others. Just don’t sell.

Xiaomi, the full-fledged smartphone company operated by a gang of veterans in Internet business, however, did well in the past year. It claimed that 1.6 billion dollar worth of Xiaomi phones were sold in 2012 that generated 200 million dollar in net profit.

Low Profit Margins

Thousand-yuan smartphone was one of the key words in 2012. Smartphone prices dropped from above three thousand yuan to below one thousand yuan. Technology advances lowered the costs that even quad-core smartphone is becoming budget phone. But that doesn’t necessarily mean more profits, for competition drove down prices and squeezed profit margins.

Xiaomi made about 13% in profit, according to the financials disclosed. Most manufacturers could make about 10% or even lower.

Mobile phone distributors lost money for the first time in years.

Chinatelling (SZ:000829), one of the biggest mobile phone distributors, made a net loss in 2012 for the first time in the past ten years after it went public. Aisidi (SZ:002416), another big player in this sector, estimated in Q3 2012 that the company would see a huge number in net loss at the end of the year.

Telecom operators and e-commerce channels grabbed their market shares and profits. To boost 3G subscriptions and make some money from hardware, the three operators, partnering with manufacturers, launched a number of customized phones at relatively low prices or accompanied with free telecom services.

It is estimated that 30 million mobile phones, 10% of the total across the country, were sold through e-commerce platforms in 2012, up from 7 million in 2010. New phone makers like Xiaomi sell every single piece of their products online.

Since manufacturers make way less than before, distributors have no way to profit from selling mobile phones any more. Some of them started selling other goods like appliances, while others shift to somewhere further. Chinatelling established a joint venture with Opera and launched a custom mobile browser in August 2012. It also plans to apply for a license for mobile virtual network operators as Chinese authorities announced to open the market this year.

Related posts:

  1. The War of Chinese Phones: Qihoo 360 Branded Phones Are Coming
  2. Umeng Data Insight Report Q2 2012: There Is One Samsung Phone in Every 4 Android Phones in China
  3. NetEase to Make Smartphones Pricing under RMB 1,000


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500 Startups Demo Day @Twitter HQ

500 Startups Demo Day was hosted at the Twitter headquarters in San Francisco.  The room was filled to capacity with entrepreneurs, investors and excitement!  It was fun to watch the fifth batch of startups graduate from the accelerator program.  The theme of the demo day was enthusiasm as many of the entrepreneurs projected their abundance of energy to the audience.  The first session included 17 pitches and the second batch included 14 pitches.   The keynote was provided by serial entrepreneur and Andreessen Horowitz general partner Chris Dixon.

Without further ado, here are some of the memorable startups from the evening (in no particular order).

Cubie: This social chat application is available on Android and iOS.  Think a more robust Draw Something combined with the way you currently text.  It has gotten a lot of attention from international users in 16 countries and is now ready to tackle the US market.

Traity: All companies talk about culture fit.  It’s one of the main factors in recruitment.  We’ve all heard about the airplane test.  Traity solves this problem by standardizing personality, trying to measure what is inside people.

Kickfolio: Promoting a new iOS app can be extremely time consuming and expensive.  With their proprietary platform, iOS developers can now upload their apps onto the web for user testing before releasing it on a mobile device.  This allows app developers to better engage with their users with interactive demos.

Compstak: Commercial real estate agents will tell you that getting lease comparables is extremely cumbersome.   Compstak solves this problem by creating a trade platform between brokers for lease comps.  This information then gets sold to private equity firms, REITS, hedge funds, etc.  The team has strong momentum as they have 99% of the data in NYC and they just launched in SF two weeks ago.

Waygo: Their first app translates Chinese characters to English without an internet connection.  Hover over the Chinese characters and get an automatic translation.  Think RedLaser for Chinese-to-English translation. 

Chewse: Given the CEO had a fever while giving her pitch, she packed a powerful presentation with her B2B marketplace for corporate meals.  Chewse simplifies group lunch/dinner catering by streamling the process online.  The company has launched in two test regions and is looking to expand nationally.

iDreamBooks: Think Rotten Tomatoes for books.  Why not just Amazon reviews?  Apparently authors are fraudulently “pumping” their own books to achiever greater sales.

Dealflicks: The Priceline of movie tickets.  Save up to 60% on movies tickets and concessions.  Per the CEO, “we get butts in movie seats”.   The company has many regional theaters signed up and is currently in discussion with some national chains.

Follow @500Startups.

Related posts:

  1. Several Taiwan Startups Make a Splash at DEMO China
  2. Shanghai Techyizu Announced its Startups Demo Day, June 18–19
  3. Five Startups Presented at TechNode TNT (Beijing) Demo Time


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Ctrip Transforms towards Mobile Internet, Has to

Ctrip has been sitting on the overlord position of online travel industry for almost a decade before year 2012. However, a string of small travel startups equipped with disruptive innovation in travel business challenged the largest Chinese OTA from many aspects, flight booking, hotel booking, travelogue, you name it.

Competition from its long-time rivals including eLong and so on was also mounting that Ctrip had to put up a fight with them via a series of price war, which incurred a dent on the company’s latest financial results, in 2012 its operating profit declined 39% on a yoy basis to about US$ 105 million.

The major problems lie in the approach and thinking method of senior management team, who are too conservative and failed at swift response to the ever-changing market situation, especially the mobile internet trend rapidly. The team is under the leadership of CEO Fan Min, who has extensive experience in traditional hotel industry but doesn’t really have Internet-thinking mindset. In 2012, Ctrip is subjected to the fierce competition from eLong, Qunar and other mobile internet product, however, Fan Min’s experience and thinking method is not helpful for Ctrip in the mobile internet oriented market situation.

A transform is vital for Ctrip at this moment, and new leadership is required as well. James Liang, one of the founding team of Ctrip, is about to come back to play the important role. James Liang is not only the co-founder of Ctrip, but also the person who brings Ctrip to great success. In 2003, James helped Ctrip to list in Nasdaq market successfully. In 2006, the market value of Ctrip was over $1 billion, exceeding Sina and Shanda. After that, James chose to move back and receive further education for a Ph.D. in demographic economics in U.S.

James pinned his hopes on changes from the following three aspects:

Firstly, Ctrip is bringing sales from offline to online. Ctrip sales network covers airports, subway and hotels around China, which used to play a significant role for the growth and development of Ctrip in the wired connection era. However, the advantage in the past now turned into a high cost which can be easily substituted by mobile devices and service. Ctrip will be downsizing offline sales team and move towards online sales to cope with the change.

Secondly, Ctrip will keep the price war ongoing, and expand low-priced products line to obtain higher sales volume and bigger market share.

Thirdly and more vitally, Ctrip will place great importance on mobile internet business. In 2012, Ctrip released five apps in cooperation with AutoNavi. In January 2013, 10% of the total income came from mobile end in the field of hotel reservation. Ctrip plans to focus on mobile business in the future.

Bearing past glory and being challenged by current issues, Ctrip has to go beyond the original business model and thinking method, and reshape the company from business structure to human resource structure, in order to adjust itself to the trend of mobile internet.

 

Related posts:

  1. Ctrip & Elong Continue Fierce Price War
  2. Ctrip Liang Jianzhang:We’re not Giving Up Commission Model
  3. Mobile Internet in 2012: Destruction and Rebirth


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China: US is Hacking Us, Not the Other Way Around

In a move that has some very interesting parallel’s to China’s attacks on Cisco following a US investigation of Huawei and ZTE, China has responded to the news of the hacking at the New York Times and the Wall Street Journal by saying that it’s actually the United States that’s doing all the hacking. In a Xinhua report that was subsequently picked up by numerous Chinese state media outlets, the National Computer Network Emergency Response Coordination Center of China (CNCERT/CC) claims that the United States is the number one perpetrator of hacks against China. From the China Daily:

In 2012, according to CNCERT, 73,286 overseas IPs were involved in hacking China’s 14.19 million IPs, among which 10.5 million received attacks from US-based servers [and there were] up to 7,370 US-based IPs (about 22.9% of all attacking IPs) [that] controlled 10,037 websites in China.

The China Daily article also says the foreign press has been “hyping” the New York Times hacking story, and that “China has become the biggest victim of Internet hacking,” a dubious assertion that it does not offer any evidence for. Even so, in this day and age, perhaps both this story and the New York Times one are a bit like reporting that the sky is blue. Everyone, it seems, is hacking everyone else all the time.

But if China is seriously threatened by overseas hacking, it ought to do more to train regular people about how to protect their data online. It ought to permit — nay, encourage — the use of security enhancing VPNs. And it ought to be keeping a much closer eye on China’s web security industry, which is a little out of control.

(via China Daily, Image source)

The post China: US is Hacking Us, Not the Other Way Around appeared first on Tech in Asia.


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