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China economy weighs on consumer tech spending
By Glenn CHAPMAN
Las Vegas (AFP) Jan 5, 2016


Huawei targets premium segment with new phone, watch
Las Vegas (AFP) Jan 5, 2016 - Chinese electronics giant Huawei took aim Tuesday at the premium segment dominated by Apple, unveiling a new large-screen smartphone along with a tablet and luxury smartwatch.

As it unveiled its latest flagship smartphone called the Mate 8 at the Consumer Electronics Show, Huawei said it sees a path to becoming the number two global vendor in the sector -- a spot now held by US-based Apple.

"Every year, every month, we are increasing our market share," said Huawei consumer devices chief Richard Yu.

"Within a few years we believe we can be number two."

At CES, Huawei announced the launch of its premium flagship phone claiming better performance and battery life than rivals made by Apple and Samsung.

With a six-inch display, it still has a smaller overall footprint than similar smartphones, said Kevin Ho, who heads Huawei's handset operations.

The Mate 8 will launch in 30 countries -- but not the United States -- starting at 599 euros ($650), in line with flagship models from Apple and Samsung.

The first wave of markets where the Mate 8 will be launched are in Europe, Latin America, the Middle East and Asia.

Ho said the new device has a battery life of more than two days. It has a fingerprint identification system for payments, improved camera audio and microphone technology.

Huawei designed its own chipset for the device, ensuring it stays cool despite high performance, Ho said.

"High performance does not always mean hot," he said.

Huawei boosted its global smartphone market share to 7.7 percent in the third quarter behind Samsung and Apple, according to research firm Gartner.

It has taken a leading position in China ahead of Samsung, but its US offerings have been limited until its recent agreement to produce a Nexus phone for Google.

Yu said Huawei's total consumer device revenues grew 70 precent in 2015 to more than $20 billion as it shipped 108 million handsets.

He added that Huawei has in the past few years boosted its global brand awareness and trust from consumers. Huawei's image was tarnished several years ago amid concerns over its ties to the Chinese government.

"We regained trust from consumers," Yu said.

Huawei also unveiled a 10-inch tablet which appears to be designed as a rival to the iPad.

The MediaPad M210 will be sold in the US and more than two dozen other markets starting at $349.

The company also unveiled two new versions of its smartwatch -- called Jewel and Elegant -- which appear aimed at the luxury segment occupied by Apple Watch.

Aimed at women, the two new models start at $499 and $599. The Jewel is made in collaboration with Swarovski and features the European company's diamond-emulating glass stones known as Zirconia circling the face.

Spending on personal tech gadgets is taking a hit from the economic slowdown in China and the strong US dollar, researchers from the Consumer Technology Association said Monday.

The CTA forecast that $950 billion will be spent globally on consumer electronics this year in a two percent drop from the $969 billion spent last year, while the number of actual units shipped will see little change.

"We are seeing pretty flat demand while we wait for new innovations to reach consumers," CTA senior director of market research Steve Koenig said as the premier Consumer Electronics Show prepared to get under way in Las Vegas.

Koenig cautioned that technology spending comparisons were "challenged" by a very strong dollar and prices dropping on market mainstays such as smartphones and tablets.

"We really see the global economy starting to get back on track as we wrestle with a range of issues," Koenig said.

"I think the biggest thing we are starting to come to grips with is the normalization of the slowdown in China."

- Technology triumvirate -

Smartphones and tablet computers were expected to account for 46 percent of the money spent this year on consumer electronics, but new categories such as "wearables," drones and virtual reality gear should be making their presence felt in the market, according to Koenig.

When mobile computers such as laptops are included with smartphones and tablets,the share of sales in the year was predicted to be 58 percent or some $551 billion.

"Over half a trillion US dollars," Koenig said of the forecast. "I give you technology's triumvirate: laptops, smartphones and tablets."

He wondered aloud regarding the potential for tablets to be squeezed out by large-screen smartphones and portable computers such as the Lenovo Yoga, which are designed with screens that can be removed and used as touch-controled tablets.

Smartphone shipments were predicted to cool a bit this year, growing about eight percent to 1.4 billion devices.

Smartphone adoption is being pushed by progressively lower prices, which is especially important in markets such as China, Africa, and the Middle East where high-end handsets are out of reach for many people.

- Rise of 'wearables' -

Meanwhile, the overall category of wearable computers that includes smart watches should continue its "meteoric rise" and there will be "no shortage"of wearable computing gadgets on the CES show floor that officially opens on Wednesday, according to Koenig.

Emerging markets were seen as continuing to be central to growth in the consumer electronics market, with India becoming a driving force as China shifts to lower, steady growth after a long run of booming expansion.

"Even a small slowdown in China can have really big knock-down effects around the world," Koenig said of the chilling effect it has had on other regions, especially those where exporting commodities is important.

"Most companies are going to start looking increasingly to India as the new place for double-digit growth year over year."

LCD televisions remain "the king of screens" with sizes trending up. One in every five televisions sold this year was expected to be 50 inches, measured diagonally, or more and feature ultra high-definition 4K resolution.

Televisions were likely, once again, to be stars on show floor at CES, but new talent in the form of drones, robots, 3D printers, and virtual reality, along with smart cars and homes were expected to grab attention and momentum.

"Make no mistake, innovation is really reshaping the global technology industry," Koenig said.


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