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Audio tech supplier to Rolls Royce and Xiaomi secures another $13.2M in funding

As autonomous driving eventually transforms cars from transportation devices to mobile theaters or conference rooms we will need better audio inside them. And we’ve already seen that VCs like Andreessen Horowitz say “audio is the future.”

So it’s interesting that Swedish sound pioneer Dirac has completed a new $13.2 million round of financing led by current investors. Previous investors included Swedish Angel network Club Network Investments, Erik Ejerhed and Staffan Persson.

Dirac makes sophisticated audio technology for customers including BMW, OnePlus, Rolls Royce, Volvo and Xiaomi .

Its platform is used by those firms for everything from capture to playback — regardless of device size or form factor.

“As consumer devices decrease in size and expand in complexity, digital signal processing is the key to unlocking their full audio potential and creating premium sound experiences,” says Dirac CEO Mathias Johansson. “With this new funding, we can take our approach to digitizing sound systems even further — creating more intelligent and adaptive audio processing solutions that establish new standards in both audio playback and capture across a variety of applications.”

Dirac has now appointed former Harman International executive Armin Prommersberger as CTO and opened a Copenhagen Research Development Center.

Johansson says new 5G networks are set to create new use-cases for current and emerging technologies, including audio.

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Sub-brands are the new weapon in China’s smartphone war

One of China’s top smartphone brands Vivo appears to have joined its fellows Oppo, Huawei and Xiaomi in setting up a new sub-brand as a softening market and heightened competition at home drive players to venture upon their original reach.

A new smartphone brand called iQoo made its debut on Weibo, China’s answer to Twitter, on Tuesday by greeting in English: “Hello, this is iQoo.” It also playfully encouraged people to guess how its name is pronounced, as the spelling doesn’t resonate with either Chinese or English speakers. Vivo immediately reposted iQoo’s message, calling iQoo a “new friend.”

Vivo has not further revealed its ties with iQoo, although the latter’s Weibo account is verified under Vivo’s corporate name. TechCrunch has contacted Vivo and will update the story when we have more information.

vivo iqoo

Screenshot of iQoo’s first Weibo post

Sub-brands have become a popular tactic for Chinese smartphone makers to lure new demographics without undermining and muddling their existing brand reputation. As the third-ranked player by shipments in 2018 according to research firm Counterpoint, Vivo is the only one in China’s top five smartphone companies without a subsidiary brand.

“Sub-brands can help fill the gap in parent companies,” Counterpoint’s research director James Yan told TechCrunch. “I think iQoo is a brand born for the gaming market, the online sales channel, or young consumers, similar to what Honor did to Huawei.”

Huawei cemented its top spot with solid growth in shipments last year by playing a two-pronged strategy. Its sub-brand Honor has its eyes on the mid-range and Huawei stays at the top end. Vivo’s sibling Oppo, which falls under the same electronics manufacturing outfit BBK, came up with an exclusively online brand Realme in 2018 to go after Xiaomi’s Redmi in India’s burgeoning smartphone market. Xiaomi pressed on by launching Poco for India’s high-tier market. To further solidify its multi-faceted approach, Redmi shed the Xiaomi branding in January to start operating as an independent brand focusing on cost efficiency.

These moves arrived as years of breakneck growth in China’s smartphone space comes to an end. Overall smartphone sales contracted 11 percent in 2018 according to Counterpoint, as users become more pragmatic and less likely to upgrade their handsets. Local players reacted swiftly by going global and introducing headline-grabbing features like Xiaomi’s folding screen and Honor’s pole-punch display, putting a squeeze on global players Apple and Samsung. In 2018, Huawei shored up a 25 percent market share to take the crown. Trailing behind was Oppo, Vivo, Xiaomi and Apple . Samsung plunged 67 percnet to take seventh place.

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The state of the foldable

You’d be forgiven for being cynical. I’ve been seeing foldable display concepts for as long as I’ve been attending tech trade shows (which, quite frankly, is longer than I care to mention). Big names like Samsung and LG have been pumping countless R&D dollars into the technology in hopes of being first to next step in the evolution of the smart phone form factor.

The concept is nothing new, of course. The flip phone pre-dates the ubiquitous smartphone slab by decades. And a number of companies have tried to cheat the system. 2017’s Axon M was one of the more memorable attempts in recent memory — though that device amounted to little more than two screens jammed together on a hinge.

It bold and brash, but more than anything it was completely silly with an execution that left a lot to be desired. In my review, I called it “a fascinating mess.” But hey, ZTE deserves at least some credit for a run of products that attempted — with varying degrees of success — to buck the trend of samey smartphones.

There are plenty of reasons to be pessimistic about the state of technology in 2019, but I humbly offer you a beacon of light. This is the year smartphones become fun again. With their back to the corner, facing flagging sales, smartphone makers are taking leaps. Hell, it’s still January, and we’ve already caught a glimpse of what’s to compete.

At the front of the charger are foldables. That seems to be the term we’ve settled on for now — and it suits the category just fine. What convertibles were to the laptop category, foldables are to phones. True foldables require the display itself to do the folding, so devices can ostensibly transform from a one-handed smartphone to a larger tablet.

The Axon M didn’t fit the description for a number of reason, not the least of which was the gap between the two displays, which, quite frankly, made for a pretty crappy movie viewing experience, among others.

The first real foldable we’ve seen was a surprise contender. If the name “Royole” meant anything to you, prior to the Flex Pai, it was probably followed by the phrase “with cheese.” From the moment we first saw grainy footage of the handset, it was clear that being first and being best are rarely one and the same. “Folding screens are here,” I wrote at the time, “and they look crappy.”

I got some time with an updated version of the handset about a month later in China, and reappraised my initial impressions a bit. Even still, the Flex Pai didn’t and doesn’t strike me as much more than a little known company’s push bid to make a name for itself simply by being first.

Romain spent a bit more time with the device at CES, and appears to have come to similar conclusions. Royole does get credit for actually making the device a reality — even if it’s one that’s more developer focused than consumer. That does, of course, speak to a broader issue around usability.

It was a cause Google was happy to take up in November, when the company announced Android support for foldable displays. Like the notch before it, Google was attempting to get out ahead of the looming trend.

We just announced support for foldables at #AndroidDevSummit, a new form factor coming next year from Android partners.

Android apps run seamlessly as the device folds, achieving this form factor’s chief feature: screen continuity. pic.twitter.com/NAfOmCOY26

— Android Developers (@AndroidDev) November 7, 2018

Here’s how Android VP Dave Burke described the category at the time, “You can think of the device as both a phone and a tablet, Broadly, there are two variants — two-screen devices and one-screen devices. When folded, it looks like a phone, fitting in your pocket or purse. The defining feature for this form factor is something we call screen continuity.”

It’s going to be fascinating to see if the industry coalesces around a single form factor here. The Flex Pai is one of the simpler ones — essentially operating like a sheet of paper that (somewhat awkwardly) folds in half so you can slip it in your pocket.

The same day that Google announced Android support, Samsung (briefly) showed off its own version of the technology. In the whooping 45 seconds the company devoted to it during a its two-hour keynote, we caught a glimpse of what looks to be an early prototype. Here, the device sports a display on the outside and unfolds to reveal a larger display within.

The “Infinity Flex Display” appeared at first glance to be more sophisticated than Royole’s — but “glance” is really the operative word here. It was a big, blocky prototype that we’ll be hearing more about at Unpacked next month.

Excited to share this video of a special Xiaomi smartphone from our President and Co-founder Bin Lin. It is the world’s first ever double folding phone — that’s pretty cool, isn’t it? #xiaomi #foldingphone #technology pic.twitter.com/iBj0n3vIbW

— Wang Xiang (@XiangW_) January 23, 2019

Earlier this week, meanwhile, Xiaomi debuted what’s since come to be regarded as the most advanced of the bunch, but like Samsung, we only got a glimpse. And here it was in a much more controlled environment of a short, pre-recorded clip and extremely low resolution. That said, “the world’s first ever double folding phone” looks like a thing out of a sci-fi film.

The company, telling, tossed around the word “prototype” quite liberally there.

And then there’s Huawei. Mobile Chief Richard Yu highlight plans to announce a 5G folding phone at Mobile World Congress next month. As ever, details are scarce. Same goes for Motorola’s Razer, a $1,500 folding throwback, which is firmly in the rumor stages.

If that price point gives you pause, well, get used to it. The Flex Pai is already available at $1,300, and most other handsets are appear on track to hit roughly the same price point, making the latest iPhone and Samsung Galaxy devices look like a downright bargain.

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Xiaomi teases a double-folding smartphone… ohhai digital triptych!

China’s Xiaomi has become the latest smartphone maker to tease a folding smartphone, dropping the below video clip of its president and co-founder, Bin Lin, fondling the device on social media today.

The twist is the tablet does not have a single center parting but rather two folds that divide it into three panels, with Xiaomi claiming in a tweet: “It is the world’s first ever double folding phone.”

The video shows Bin contemplating a tablet-sized touchscreen device before quickly turning it on its side, taking it into landscape orientation, where he performs the party trick — folding two panels of screen, one at each side, back behind the tablet to form a slightly chunky looking phablet.

Excited to share this video of a special Xiaomi smartphone from our President and Co-founder Bin Lin . It is the world’s first ever double folding phone — that’s pretty cool, isn’t it? #xiaomi #foldingphone #technology pic.twitter.com/iBj0n3vIbW

— Wang Xiang (@XiangW_) January 23, 2019

The video is edited so it cuts from front view to back at the moment of the fold so the actual folding action is not seen from the front. But from the back the two folded wings go dark after being folded.

When the video cuts back to the front there’s a slight spinning of the screen, as the software appears to grapple momentarily with the new form factor, before it stablizes in portrait orientation.

The phablet form of the device resembles the bezel-less “infinity display” design of a handset like the 2018 Samsung Galaxy S8 — albeit more squat looking than the tall 18.5:9 aspect ratio of the S8.

Xiaomi’s tweet teaser does not include any details about how near (or indeed far off) a market launch of the device might be. We’ve reached out to the company with questions about the prototype and any launch plans.

Update: A spokesman pointed us to a post on Bin’s Weibo account where he asks his followers for feedback on the prototype, and suggests Xiaomi is still weighing up whether to bring the folding phone to market, writing: “If you like it, we will consider making a mass production machine in the future.”

He also asks for name suggestions, saying Xiaomi is toying with two: Xiaomi Dual Flex or Xiaomi MIX Flex.

“This symmetrical double-folded form perfectly combines the experience of the tablet and mobile phone, which is both practical and beautiful,” he writes [translated via Google Translate], saying building the prototype entailed “conquering a series of technical problems such as flexible folding screen technology, four-wheel drive folding shaft technology, flexible cover technology, and MIUI adaptation.”

“We made the first folding screen mobile phone, which should be the world’s first double folding mobile phone,” he adds, again taking a tentative tone vis-à-vis a potential launch time frame.

In recent months a handful of folding smartphone prototypes have been demoed by mobile makers, including a booklet-style folding slab from Samsung — trailed as incoming for years but finally teased officially last fall — which also appears to transforms into a rather chunky handset.

An invite to a February 20 Samsung launch event for the forthcoming Galaxy S10, sent out to press two weeks ago, also included a conspicuous centerfold in its graphic teaser. Ergo, a commercial launch from Samsung looks imminent.

While, at CES, a little known Chinese OEM called Royole beat others to the punch by showing off a folder in the flesh. In tablet form the Android-powered FlexPai, as the device was christened, is 7.8-inches. But once folded in half the gizmo is left with an unsightly gap between the screen pieces, bulking up the resulting smartphone.  

Xiaomi’s triptych looks to offer a more pleasing design for handling the inevitable air gap created by a folding screen by concealing the ends in the middle of the dual folded panels. Side tucks certainly look more visually pleasing.

That said, two folds could mean a higher risk of screen problems — if the folding mechanism isn’t robust enough to handle lots of bending back and forth.

It’s also far from clear whether consumers will generally take to folding phones, or snub them as fiddly and gimmicky.

In recent years smartphone design has converged around a phablet-sized touchscreen and little else. So adding any fresh mechanical complication is a bit of a risk given how smooth and hermetically sealed smartphones have otherwise become.

But a clutch of Android OEMs are going to try their luck, regardless. And with a saturated smartphone market, stalled growth and competition fiercer than ever, you can see why they’re pushing the boat out — or, well, bending the screen back — to try to stand out.

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Move over notch, the hole-punch smartphone camera is coming

First it was the notch, now the hole-punch has emerged as the latest tech for concealing selfie cameras whilst keeping our smartphones as free of bezel as possible to maximize the screen space.

This week, Samsung and Huawei both unveiled new phones that dispense with the iconic “notch” — pioneered by Apple but popularized by everyone — in favor of positioning the front-facing camera in a small “Infinity-O” hole located on the top-left side of the screen.

Dubbed hole-punch, the approach is part of Samsung’s new Galaxy A8s and Huawei’s View 20, which were unveiled hours apart on Tuesday. Huawei was first by just hours, although Samsung has been pretty public with its intention to explore a number notch alternatives, including the hole-punch, which makes sense given that it has persistently mocked Apple for the feature.

The Samsung Galaxy S8a will debut in China with a hole-punch spot for the camera [Image via Samsung]

Don’t expect to see any hole-punches just yet though.

The Samsung A8s is just for China right now, while the View 20 isn’t being fully unveiled until December 26 in China and, for global audiences, January 22 in Paris. We also don’t have a price for either, but they do represent a new trend that could become widely adopted across phones from other OEMs in 2019.

That’s certainly Samsung’s plan. The Korea firm is rolling out the hole-punch on the A8s, but it has plans to expand its adoption into other devices and series. The A8s itself is pretty mid-range, but that makes it an ideal candidate to test the potential appeal of a more subtle selfie camera since Samsung’s market share has fallen in China where local rivals have pushed it hard. It starts there, but it could yet be adopted in higher-end devices with global availability.

As for the View 20, Huawei has also been pretty global with its ambitions, except in the U.S., where it hasn’t managed to strike a carrier deal despite reports that it has been close before. The current crisis with its CFO — the daughter of the company’s founder who was arrested during a trip to Canada — is another stark reminder that Huawei’s business is unlikely to ever get a break in the U.S. market: so expect the View 20 to be a model for Europe and Asia.

Huawei previewed its View 20 with a punch-hole selfie camera lens this week [Image via Huawei]

Samsung hasn’t said a tonne about the hole-punch design, but our sister publication Engadget — which attended the View 20’s early launch event in Hong Kong — said it was mounted below the display “like a diamond” to maintain the structure.

“This hole is not a traditional hole,” Huawei told Engadget.

Huawei will no doubt also talk up the fact that its hole is 4.5mm versus an apparent 6mm from Samsung.

Small details aside, one important upcoming trend from these new devices is the birth of the “mega” megapixel smartphone camera.

The View 20 packs a whopping 48-megapixel lens for a rear camera, which is something that we’re going to see a lot more of in 2019. Xiaomi, for one, is preparing a January launch for a device that’ll have the 48-megapixel camera, according to a message on Sina Weibo from company co-founder Bin Lin. There’s no word on which camera enclosure that device will have, though.

Xiaomi teased an upcoming smartphone that’ll sport a 48-megapixel camera [Image via Bin Lin/Weibo]

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Xiaomi gobbles up selfie phone brand Meitu as revenue jumps 49%

Xiaomi is diversifying into a new range of phones as the Chinese smartphone maker announced impressive growth with its latest financials.

The company announced it will take over selfie app maker Meitu’s smartphone business to go after new demographics, particularly women, while it lodged impressive 49 percent revenue growth in Q3.

Xiaomi posted a net profit of 2.481 billion RMB ($357 million) for the quarter on total sales of 50.846 billion RMB ($7.3 billion). The bulk of that income came from smartphones sales — 35 billion RMB, $5 billion — as Xiaomi surpassed its annual target of 100 million shipments with two months of the year still to go. The majority of those phones are sold in China, but the company said that international revenue overall was up by 113 percent year-on-year.

The company has ventured into Europe this year, with its most recent launch in the U.K. this month, but now it is taking aim at a more diverse set of customers in the Chinese market through this tie-in with Meitu. Best known for its “beautification” selfie apps, Meitu also sells smartphones that tap its selfie brand with optimized cameras and advanced editing features.

Now Xiaomi is taking over that business through a partnership that will see Meitu paid 10 percent of the profits for all devices sold, with a minimum guaranteed fee of $10 million per year. For other smart products, its cut increases to 15 percent.

Meitu is hardly a mainstream phone brand. Its first device launched in 2013 and has sold 3.5 million units to date. Recently, the company cut back on its hardware — it has launched just one device this year compared to five last year — while the average sell price of its devices has fallen, causing it to forecast a net loss of up to 1.2 billion RMB (or $173 million) up from just 197 million RMB last year. Shifting the heavy-lifting to Xiaomi makes a lot of sense — despite its total cut of sales dropping to just 10 percent, Xiaomi has impressive reach and a sales platform that already features third-party hardware.

Back to Xiaomi, these results are its first “true” financials since the company went public through a Hong Kong IPO back in July. It posted a $2.1 billion profit in the previous quarter but a large chunk of spending and revenue was down to the listing.

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Open sourcing analysis, plus US, China and HQ2

The big news today is that — finally — we have Amazon’s selection of cities for its dual second headquarters (Northern Virginia and NYC). Then some notes on China. But first, semiconductors and open sourcing analysis.

We are experimenting with new content forms at TechCrunch. This is a rough draft of something new — provide your feedback directly to the authors: Danny at danny@techcrunch.com or Arman at Arman.Tabatabai@techcrunch.com if you like or hate something here.

Pivot: Future of semiconductors, chips, AI, etc.

Last week, I focused on SoftBank’s debt and Form D filings by startups. On Friday, I asked what I should start to analyze next. There were several feedback hotspots, but the one that popped out to me was around next-generation chips and the battle for dominance at the hardware layer.

As a software engineer, I know almost nothing about silicon (the beauty of abstraction). But it is clear that the future of all kinds of workflows will increasingly be driven by capabilities at the hardware/silicon level, particularly in future applications like artificial intelligence, machine learning, AR/VR, autonomous driving and more. Furthermore, China and other countries are spending billions to go after the leaders in this space, such as Nvidia and Intel. Startups, funding, competition, geopolitics — we’ve got it all here.

Arman and I are now diving deeper into this space. We will start to post once we have some interesting things to share, but if you have ideas, opinions, companies or investments in this space: tell us about them, as we are all ears: danny@techcrunch.com and Arman.tabatabai@techcrunch.com.

Open-source analysis at TechCrunch

Since I launched this daily “column” last week, I have included the text near the top that “We are experimenting with new content forms at TechCrunch.” One of those forms is what might be called open-source journalism. Definitions are fuzzy, but I take it to mean working “in the open” — allowing you, the audience of this column, to engage in not just feedback around finalized and published posts, but to actually affect the entire process of analysis, from sourcing and ideation to data science and writing.

I am thankful to work at a publication like TechCrunch where my readers are often working in the exact sectors that I am writing about. When I wrote about Form Ds last week, a number of startup attorneys reached out with their own thoughts and analysis, and also explained key aspects of how the law is changing around SEC disclosure for startups. That’s really powerful, and I want to apply it to as many fields as possible.

This thesis is ultimately intentional — now I have to operationalize it. There aren’t good tools (yet!) that I know of that allow for easy sharing of data and notes that don’t rely on a hacked-together set of Google Docs and GitHub. But I’m exploring the stack, and will publish more things publicly as we have them.

Amazon HQ2 — the future of corporate relations with cities

Amazon’s long process for selecting an HQ2 is finally over, and the official answer is two: Northern Virginia and NYC. Tons of words have been spilled about the search, and I am sure even more analysis will strike today about what put those two locations over the top.

To me, the key for mayors is to start using these reverse searches (where a company seeks a city and not vice versa) as leverage to actually get resources to fund infrastructure and other critical services.

This is a theme that I discussed about a year ago:

Take Boston’s bid for GE’s new headquarters. Yes, the city offered property tax rebates of about $25 million , but GE’s move also pushed the state to fund a variety of infrastructure improvements, including the Northern Avenue bridge and new bike lanes. That bridge adds a critical path for vehicles and pedestrians in Boston’s central business district, yet has gone unfunded for years.

Ideally, governments could debate, vote, and then fund these sorts of infrastructure projects and community improvements. The reality is that without a time-sensitive forcing function like a reverse RFP process, there is little hope that cities and states will make progress on these sorts of projects. The debates can literally go on forever in American democracy.

So if you are a mayor or economic planning official, use these processes as tools to get stuff done. Use the allure of new jobs and tax revenues to spur infrastructure spending and get a rezoning through a recalcitrant city council. Use that “prosperity bomb” to upgrade old parts of the urban landscape and prepare the city for the future. A healthier, more humane city can be just around the corner.

Take DC. The city has seen one of the best-run Metro systems deteriorate to abysmal levels over the past few years due to a complete dumpster fire of organizational design (the DC transit agency WMATA is funded by inconsistent revenue sources that ensure it will never be sustainable). Here is an opportunity to use Amazon’s announcement to get the tax framework and operations figured out to ensure that real estate, transportation and other critical urban infrastructure are designed effectively.

China’s mobile internationalization

Timothy Allen/Getty Images

Talking about second headquarters, the technology industry clearly has separated into poles, one based around the United States and the other based around China. Two articles I read recently gave good insights of the benefits and challenges for China in this world.

The first is from Sam Byford writing at The Verge, who investigates the native OS options that Chinese consumers receive from companies like Xiaomi, Huawei, Oppo and others. The headline is much more shrill than the text, so don’t let that frighten you.

Byford provides an overview of the lineage of Chinese mobile OSes, and also notes that what might look like design gaffes in Western consumer eyes might be critical needs for Chinese buyers:

But what is true today is that not all Chinese phone software is bad. And when it is bad from a Western perspective, it’s often bad for very different reasons than the bad Android skins of the past. Yes, many of these phones make similar mistakes with overbearing UI decisions — hello, Huawei — and yes, it’s easy to mock some designs for their obvious thrall to iOS. But these are phones created in a very different context to Android devices as we’ve previously understood them.

The article is perhaps a tad long for what it is, but Byford’s key viewpoint should be repeated as a mantra by any person connected to the technology sector today: “The Chinese phone market is a spiraling behemoth of innovation and audacity, unlike anything we’ve ever seen. If you want to be on board with the already exciting hardware, it’s worth trying to understand the software.”

Of course, while China may be a huge country, its leading technology companies do want to globalize and expand their user bases outside of the Middle Kingdom’s borders. That may well be a challenging proposition.

Writing at Factor Daily, Shadma Shaikh dives into the failure of WeChat to break into the Indian market. The product lessons learned by WeChat’s owner Tencent could be applied to any Silicon Valley company — cultural knowledge and appropriate product design are key to entering overseas markets.

Shaikh gives a couple of examples:

Another design feature in the app allowed users to look up and send add-friend requests to WeChat users nearby. During initial onboarding when users were just checking app’s features, many would tap the “people nearby” feature, which would switch on location sharing by default – including with strangers. Once location sharing with strangers was switched on, it wasn’t very intuitive to turn it off.

“Women used to get a lot of unwarranted messages from men, which was a major turn off and many of them left the platform,” Gupta says. “China probably didn’t have this stalking problem.”

And

In China, where the internet was cheaper than in India in 2012, sending video files of, say, 4 MB was not a challenge. WhatsApp compresses a 5 MB photo to 40 kilobytes. WeChat did not compress the files and took many minutes and data to send and receive media files.

Internationalization will never be easy, but the lessons that Silicon Valley has slowly learned over the past two decades will need to be learned again by Chinese companies if they want to export their software to other countries.

Reading Docket

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Xiaomi opts for sliding camera and no notch for new bezel-less Mi Mix phone

Xiaomi has announced the newest version of its bezel-less Mi Mix family, and it doesn’t sport a notch like its Mi 8 flagship. Indeed, unlike the Mi 8 — which I called one of Xiaomi’s most brazen Apple clones — there’s a lot more to get excited about.

The Mi Mix 3 was unveiled at an event in Beijing and, like its predecessor, Xiaomi boasts that it offers a full front screen. Rather than opting for the near-industry standard notch, Xiaomi has developed a slider that houses its front-facing camera. Vivo and Oppo have done similar using a motorized approach, but Xiaomi’s is magnetic while it can also be programmed for functions such as answering calls.

That array gives it a claimed 93.4 percent screen-to-body ratio and a full 6.4-inch 1080p AMOLED display. The slider, by the way, is good for 300,000 cycles, according to Xiaomi’s lab testing.

The device itself follows the much-lauded Mi Mix aesthetic with a Snapdragon 845 processor and up to 10GB in RAM (!) in the highest-end model. Xiaomi puts plenty of emphasis on cameras. The Mi Mix 3 includes four of them: a 24-megapixel front camera paired with a two-megapixel sensor and on the back, like the Mi 8, a dual camera array with two 12-megapixel cameras.

Xiaomi has also snuck an ‘AI button’ on the left side of the phone, a first for the company. That awakens its Xiao Ai voice assistant, but since it only supports Chinese don’t expect to see that on worldwide models.

The 10GB version — made in partnership with Palace Museum, located at the Forbidden City where the device was launched — also packs 256GB of onboard storage and is priced at RMB 4,999, or $720. That’s in addition to a ceramic design that Xiaomi says is inspired by the museum… better that than a fruity-sounding U.S. company.

That’s the special model, and the more affordable options include 6GB + 128GB for RMB 3,299 ($475), 8GB +128G for RMB 3,599 ($520) and 8GB + 256GB for RMB 3,999 ($575). The company also plans to introduce a 5G version in Europe sometime early next year.

Xiaomi said the phones will go on sale in China from 1 November, there’s no word on international availability or pricing right now.

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Huawei bags Apple’s 2nd place spot in global smartphone sales: Gartner

Another analyst has Huawei overtaking Apple in the global smartphone rankings for the second quarter this year. The latest figures from Gartner put Huawei ahead on sales to end users in Q2.

Overall, Gartner says sales of smartphones to end users grew 2% in the quarter, to reach 374 million units.

The analyst pegs the Chinese smartphone maker with a 13.3% marketshare, saying it sold ~49.8M devices in the quarter, up from 9.8% in the year before quarter — ahead of Apple, which it calculates took an 11.9% marketshare (down from 12.1% in Q2 2017), selling ~44.7M iPhones.

According to Gartner’s figures, Samsung also lost share year-over-year — declining 12.7% in the quarter.

The Galaxy smartphone maker retained its no.1 spot in the rankings, with 19.3% in Q2 (vs 22.6% in the equivalent quarter last year) and ~72.3M devices sold. Though Gartner notes it’s being squeezed by “ever-growing competition from Chinese manufacturers”, while slowing demand for its flagships are squeezing its profitability. Not a happy combination.

In recent years Huawei has been one of a handful of Chinese OEMs bucking the trend of a slowing global smartphone market. And Gartner’s data suggests Huawei’s smartphone sales grew 38.6 per cent in the second quarter.

As we noted earlier this month, when other analysts reported Huawei outstripping Apple on smartphone shipments in Q2, the handset maker has built momentum for its mid-range Honor handset brand while performing solidly at the premium end too, with devices such as the P20 Pro (albeit while copypasting Apple’s iPhone X ‘notch’ screen design in that instance.)

“Huawei continues to bring innovative features into its smartphones and expand its smartphone portfolio to cover larger consumer segments,” said research director Anshul Gupta in a statement. “Its investment into channels, brand building and positioning of the Honor devices helped drive sales. Huawei is shipping its Honor smartphones into 70 markets worldwide and is emerging as Huawei’s key growth driver.”

For Apple the quarter was a flat one (0.9% growth), though that’s to be expected given Cupertino structures its mobile release cycle around a big-bang annual smartphone refresh in the fall, ahead of the holiday quarter, rather than releasing devices throughout the year.

Even so, Gupta noted that Apple is also facing growing competition from Chinese brands, which in turn is amping up pressure on the company to innovate its handsets to keep increasingly demanding consumers happy by delivering “enhanced value” in exchange for the iPhone’s premium price.

And recent reports have suggested Apple is prepping a number of iPhone design changes for fall, including a splash of color.

“Demand for the iPhone X has started to slow down much earlier than when other new models were introduced,” he added, sounding another note of concern for Apple.

Fourth placed Chinese OEM Xiaomi is one device maker putting pressure on longer term players in the smartphone market. In Q2 Gartner reckons the company sold ~32.8M devices, carving itself an 8.8% marketshare — up from 5.8% in the year ago quarter.

The analyst’s data also shows Google’s Android operating system further extending its lead over Apple’s iOS in Q2, securing 88% market share vs 11.9% for iOS.

While the smartphone market is no longer a simple duopoly on the device maker front, with Huawei elbowing past Apple to bag the second spot in the global rankings, it remains very much the opposite story where smartphone operating systems are concerned.

And Gartner’s data now records the ‘other’ category of smartphone OSes at a 0.0% marketshare, down from 0.1% in the year ago quarter…

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Xiaomi goes after global markets with two new Android One phones

Xiaomi gave Google’s well-intentioned but somewhat-stalled Android One project a major boost last year when it unveiled its first device under the program, Mi A1. That’s now joined by not one but two sequel devices, after the Chinese phone maker unveiled the Mi A2 and Mi A2 Lite at an event in Spain today.

Xiaomi in Spain? Yes, that’s right. International growth is a major part of the Xiaomi story now that it is a listed business, and Spain is one of a handful of countries in Europe where Xiaomi is aiming to make its mark. These two new A2 handsets are an early push and they’ll be available in over 40 countries, including Spain, France, Italy and 11 other European markets.

Both phones run on Android One — so none of Xiaomi’s iOS-inspired MIUI Android fork — and charge via type-C USB. The 5.99-inch A2 is the more premium option, sporting a Snapdragon 660 processor and 4GB or 6GB RAM with 32GB, 64GB or 128GB in storage. There’s a 20-megapixel front camera and dual 20-megapixel and 16-megapixel cameras on the rear. On-device storage ranges between 32GB, 64GB and 128GB.

The Mi A2 Lite is the more budget option that’s powered by a lesser Snapdragon 625 processor with 3GB or 4GB RAM, and 32GB or 64GB storage options. It comes with a smaller 5.84-inch display, there’s a 12- and 5-megapixel camera array on the reverse and a front-facing five-megapixel camera.

The A2 is priced from €249 to €279 ($291-$327) based on specs. The A2 Lite will sell for €179 or €229 ($210 or $268), against based on RAM and storage selection.

The 40 market availability mirrors the A1 launch last year, but on this occasion, Xiaomi has been busy preparing the ground in a number of countries, particularly in Europe. It has been in Spain for the past year, but it also launched local operations in France and Italy in May and tied up with CK Hutchison to sell phones in other parts of the continent via its 3 telecom business. While it isn’t operational in the U.S., Xiaomi has expanded into Mexico and it has set up partnerships with local retailers in dozens of other countries.

Xiaomi has been successful with its move into India, where it one of the top smartphone sellers, but it has not yet replicated that elsewhere outside of China so far.

China is, as you’d expect, the primary revenue market but Xiaomi is increasingly less dependent on its homeland. For 2017 sales, China represented 72 percent, but it had been 94 percent and 87 percent, respectively, in 2015 and 2016.

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