Richard Yu, chief executive of Huawei's consumer business group, said the company wants to outstrip Apple and Samsung within five years.
Senior executive of Huawei, China's largest smartphone company by shipments and the global No. 3 player, said Friday that major domestic rival Xiaomi will be "out of the game" soon and that his company aims to overpower Apple and Samsung Electronics within five years.
The bold comments by Richard Yu, chief executive of Huawei's consumer business group, which is responsible for overseeing the company's smartphone operations, come at a time when the manufacturer is enjoying solid growth at home and abroad. In contrast, sources say Xiaomi's shipments are expected to fall for the first time ever year on year in 2016.
"Xiaomi is no longer competitive and will soon be out of the game," Yu told the Nikkei Asian Review on the sidelines of the Converge tech conference host by The Wall Street Journal and founders in Hong Kong on Friday.
"In the past, Xiaomi was popular because they are good at marketing," Yu said. "However, they are lagging behind in product design and technologies. That's not sustainable."
Xiaomi dominated China's smartphone market in 2015, snagging a 15% share and shipping about 65 million handsets domestically, according to numbers from research company International Data Corp. Xiaomi said it shipped more than 70 million phones globally last year, although that fell short of its initial target of 80 million to 100 million.
Xiaomi's domestic share slipped to 9% in the January-March period, putting the company at No. 5, behind Huawei, Oppo, vivo and Apple, according to IDC.
One source said total shipments of Xiaomi handset by by FIH Mobile, a Hong Kong-listed subsidiary of Taiwanese manufacturing powerhouse Hon Hai Precision Industry, also known as Foxconn, would be down by 40% on the year in 2016, compared with a previous estimate of a 10% drop. FIH Mobile and Taiwan's Inventec Group have an equal share of Xiaomi's assembly orders.
A Xiaomi spokeswoman would not comment on Yu's statement but described the possible fall in shipments as "baseless rumors," saying demand for her company's smartphones is "very strong."
"We are continuing to work on increasing production to meet the demand for our products," she said.
In stark contrast, Yu said Huawei's shipments grew 60% on the year in the first quarter of 2016, at a time when global demand for smartphones is softening.
"We see quick growth in China, fast growth in Europe, strong growth in emerging markets, and we will catch up in the U.S. and Japan," Yu said.
FIH Mobile is building a new facility in the western Chinese province of Guizhou to churn out entry-level and mid-tier smartphones for Huawei, sources told the Nikkei Asian Review.
Huawei was the world's No. 3 smartphone maker in 2015, with a market share of more than 7%, according to IDC. That is up from less than 5% in 2013. According to IDC, only three smartphone makers shipped more than 100 million units globally last year: Samsung, Apple and Huawei.
For the first three months of 2016, Huawei overtook Xiaomi as the No. 1 smartphone brand in China, controlling 16% of the market, according to IDC.
Huawei's Yu said his company's ambitions do not stop with China, and that it aims to surpass Apple and Samsung eventually.
"We want to be the world's No.1 in smartphones in five years," the executive said, adding that Huawei wants to control 25% of the global market within that period.
Yu attributed the company's success to its heavy investment in technology relative to its peers. Huawei's research and development spending was around $9.2 billion in 2015, outmatching some $8 billion Apple spent last year.
The executive said Huawei's chip unit, Hisilicon Technology, is teaming up with Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker and a major supplier of Apple's core processors, and is using TSMC's advanced 16-nanometer technology, which is found in Apple's iPhone 6s and 6s Plus phones.
"Huawei's own Kirin-series chips can overpower Apple's mobile chips," Yu said. "When our competitors could not provide further innovation, that gave us a good chance to rise.
I am not talking about who could lower the price, but I am talking about who could deliver the most advanced innovations that no one has seen in the market."
Apple did not immediately reply to a request to comment on Yu's claim.
Huawei's latest flagship product, the P9, is the world's first dual-camera smartphone and uses the renowned Leica lens technology and TSMC's most advanced chip technology, which Apple also uses. Its price tag starts at 4000 yuan ($609), compared with $689 for an entry-level iPhone 6s. Yu said Huawei has an exclusive partnership with Leica for the next five years.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.
African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).
AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.
The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.
The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.
To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”
Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.
The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.
“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.
“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.
The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.
About the World Economic Forum Annual Meeting 2023
The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,
Electricity generation in Botswana during the third quarter of 2022 declined by 15.8%, following operational challenges at Botswana Power Corporation’ Morupule B power plant, according to Statistics Botswana Index of Electricity Generation (IEG) released last week.
The index shows that local electricity generation decreased by 148,243 MWH from 937,597 MWH during the second quarter of 2022 to 789,354 MWH during the third of quarter of 2022.
This decrease, according to the index, was mainly attributed to a decline in power supply realized at Morupule B power station. The index shows that as a result of low power supply from the plant, imported electricity during the third quarter of 2022 increased by 76.3 percent (123,831 MWH), from 162,340 MWH during the second quarter of 2022 to 286,171 MWH during the current quarter and Statistics Botswana added that the increase was necessitated by the need to augment the shortfall in generated electricity.
In the index Statistics Botswana stated that Eskom was the main source of imported electricity at 42.0 percent of total electricity imports. “The Southern African Power Pool (SAPP) accounted for 38.4 percent, while the remaining 10.1, 9.1 and 0.5 percent were sourced from Electricidade de Mozambique (EDM), Cross-border electricity markets and the Zambia Electricity Supply Corporation Limited (ZESCO), respectively. Cross-border electricity markets are arrangements whereby towns and villages along the border are supplied with electricity from neighbouring countries such as Namibia and Zambia.”
The government owned statistics entity stated that distributed electricity decreased by 2.2 percent (24,412 MWH), from 1,099,937 MWH during the second quarter of 2022 to 1,075,525 MWH during the third quarter of 2022. The entity noted that electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 85.2 percent during the third quarter in 2022 and added that this gives a decline of 11.8 percentage points. “The quarter-on-quarter comparison shows that the contribution of electricity generated to electricity distributed decreased by 11.8 percentage points compared to the 85.2 percent contribution during the second quarter of 2022.”
Statistics Botswana meanwhile stated that the year-on-year analysis shows some improvement in local electricity generation. Recent figures from entity show that the physical volume of electricity generated increased by 36.3 percent (210,319 MWH), from 579, 036 MWH during the third quarter of 2021 to 789,354 MWH during the current quarter. According to Statistics Botswana electricity generated locally contributed 73.4 percent to electricity distributed during the third quarter of 2022, compared to a contribution of 57.7 percent during the same quarter in 2021. This gives an increase of 15.7 percentage points.
The entity noted that trends also show an increase in physical volume of electricity distributed from 2013 to the third quarter of 2022, thereby indicating that there are ongoing efforts to meet the domestic demand for power. “There has been a gradual increase of distributed electricity from the first quarter of 2013 to the third quarter of 2022, even though there are fluctuations. The year-on-year perspective shows that the amount of distributed electricity increased by 7.2 percent (71,787 MHW), from 1,003,738 MWH during the third quarter of 2021 to 1,075,525 MWH during the current quarter.”
The statistics entity noted that year-on-year analysis show that during the third quarter of 2022, the physical volume of imported electricity decreased by 32.6 percent (138,532 MWH), from 424,703 MWH during the third quarter of 2021 to 286,171 MWH during the third quarter of 2022. “There is a downward trend in the physical volume of imported electricity from the first quarter of 2013 to the third quarter of 2022. The downward trend indicates the country’s continued effort to generate adequate electricity to meet domestic demand, hence the decreased reliance on electricity imports.”