China

China’s oldest animation studio sues Apple over improper downloads

Apple's legal woes in the 1.33 billion people market of China have worsened as Shanghai Animation Film Studio filed a lawsuit over the allegedly improper iTunes downloads. The studio asserts that Apple's been illegally selling its content and is seeking north of half a million dollars in damages. Shanghai Animation is China's first and oldest animation studios and their complaint alleges in no ambiguous terms that Apple blatantly stole their content without paying any royalty at all.

Note that Apple doesn't offer movies on the Chinese iTunes Store so the issue is thought to involve App Store apps which bundle the studio's movies. Apparently, Apple made available as much as 110 unlicensed Shanghai Animation titles for download via the App Store back in July 2012. The suit was reportedly filed with the Beijing No. 2 Intermediate People's Court, which has allegedly accepted the case.

So what's going on here? Did Apple intentionally steal and pirate someone else's content through its content store?

Apple reportedly cutting iPad mini shipments next quarter, new model coming?

There's a new report out of China this morning, claiming that Apple is cutting shipments of its iPad mini next month. The cut is said to be a 20% reduction, with steeper cuts likely happening in the latter part of the second quarter.

While the folks on Wall Street will probably try to spin this into an 'Apple is doomed' story, despite the fact that there's evidence that the mini is selling very well, the consensus seems to be that it's preparing to launch a new model...

Apple defends Siri in Shanghai courtroom

http://www.youtube.com/watch?v=Ku0H10_G1X4

China may soon become a top source of legal headaches, as well as market opportunities. Wednesday, the iPhone maker begins a defense of its Siri software against a Chinese company's claim the voice-activated personal assistant violates its 2004 patent. Zhizhen Network Technology Co. filed its lawsuit against Apple last summer and today the two firms meet for a pre-trial hearing in a Shanghai court.

According to Zhizhen, its "Xiao i Robot" software was patented before Apple developed Siri in 2007 and unveiled as part of the iPhone 4S in 2011. The Shanghai-based firm is asking the court to halt Apple making and selling products using Siri, a voice-activated personal assistant feature available on newer iPhones and iPads...

China Mobile announces major LTE push ahead of rumored iPhone launch

China Mobile announced today that it's going to be spending a staggering $7 billion on its LTE network this year, setting the stage for what could be a late iPhone 5 launch. The carrier's current network standard doesn't properly support the popular popular handset.

In fact, China Mobile—the largest wireless provider in the world by subscriber base—is one of the few remaining major carriers in the world that doesn't offer Apple's smartphone. But recent chatter indicates that there's a good chance that could change this year...

This is China’s iPhone 5S

http://www.youtube.com/watch?v=82Xj-cfjuGU

With the iPhone 5S reportedly a few months away, ardent copycat vendors in Shenzen, China took it upon themselves to come up with an iPhone 5S of their own. Meet the GooPhone i5S, a total rip-off based on Android Jelly Bean 4.1.2 which sells for just $149 contract-free.

Now, imagine if Apple actually made a sub-$200 budget iPhone - or offered a $149 off-contract iPhone 5 for that matter (its cheapest contract-free handset is the $450 iPhone 4). GooPhone's cheap iPhone lookalike - and I'm using the term loosely here - goes on sale tomorrow and the first 1,000 buyers will pay only $99 for it...

Samsung leads Apple, Lenovo in China smartphone market

An interesting report on what smartphone brand is leading in China leaked over the weekend. It's interesting because most market updates are distributed far and wide. Instead, the South Korean news agency Yonhap published a private report indicating that country's Samsung leads Apple and others in the huge mobile marketplace.

According to the Strategy Analytics report obtained by Yonhap, Samsung is the number one brand in China with 17.7 percent of the market during 2012. Intriguingly, Samsung's rise coincides with a plummeting Nokia, which previously held the top spot...

Apple trailed 2012 tablet shipments in India – that is, if you counted phablets

Many observers view India as the next China. There is huge potential waiting for the smart device player able to offer India's mobile consumers a low-cost, prepaid product. In just the latest example of analysts scrambling for data to define the market, new research coming from India suggests an explosion of tablet sales - until you dig into the details.

According to India-based CyberMedia Research, tablet shipments in the world's second largest market rose to 3.11 million units by the end of 2012. Demand was particularly on fire during the last two quarters with around 1 million tablets shipping. Although Apple was reported in third-place behind Samsung and an Indian manufacturer, there's a question of whether researchers counted tablets or a cross category of smartphones nicknamed 'phablets'...

Apple said to be using Qualcomm Snapdragon SoC in upcoming budget iPhone

If Bloomberg, The Wall Street Journal, and oh, I don't know, about a dozen other outlets are to be believed, Apple is going to introduce a lower-cost iPhone this year. It's said to feature a hybrid metal/plastic shell, and retail for less than $300.

Outside of those few details, though, we know very little about the handset. But a new report out of China this morning allegedly has new intel on the device, claiming it will use a Qualcomm-made SoC and go into production next month...

Apple suppliers hit 99% compliance for working hour limits in January

About this time last year, Apple was dealing with a wealth of bad press over the working conditions at its Asian suppliers. The New York Times painted a particularly bleak picture of the situation, with underpaid, underaged, overworked employees.

Since then, the company has really stepped up its game in supplier responsibility. The companies who used underage workers have been cut, workers have received pay raises, and as of January, 99% of them came in under the 60-hour work week limit...

Barclays: budget iPhone and China Mobile-compatible iPhone 5S due in August

Per a rumor out of China, Apple won't release a new iPhone at its upcoming summer developer conference. Instead, Tim Cook & Co. are thought to be targeting an August 2013 launch for both the iPhone 5S, a specs upgrade, and an inexpensive iPhone model, aimed at emerging markets that sell mostly unsubsidized handsets. And for the first time, the next iPhone will be Apple's first truly world phone capable of supporting a bunch of flavors of fourth-generation Long-Term Evolution (LTE) radio technology, including China Mobile-compatible TD-SCDMA network...

Analyst warns Apple could be headed for rough two years

If you thought Apple had already been through a rough period, just wait. That's the message from one Wall Street analyst who predicts the iPhone maker is "facing a very rough two-year period."

Although Apple's chief executive Tim Cook spent Wednesday defending his company's horde of cash, those concerns could evaporate as Apple spends billions to prop up slowing iPhone sales and works to improve demand in emerging markets.

Apple could see capital expenditures double, according to Jeffries' analyst Peter Misek, forecasting billions in payments for supplier upgrades, emerging-market payment plans and expensive technology updates all while iPhone sales plunge...

Here’s your math behind a budget iPhone

After meeting with Apple CFO Peter Oppenheimer recently, Morgan Stanley analyst Katy Huberty issued a report proclaiming so-called budget iPhone a no-brainer. Huberty joins what is now a growing list of analysts calling for such a device so Apple could better target emerging markets where cash-strapped folks mostly buy unlocked sub-$200 handsets - unlike the United States where carriers subsidize smartphones handsomely.

Thanks to these generous subsidies, US consumers don't pay full price for the hardware - provided they agree to a long-term service agreement, of course. Now, with the penetration level for the iPhone approaching a limit in the high-end segment, the untapped low-end represents an estimated $135 billion opportunity.

Even with Apple's margins peaking, an iPhone mini - as the media dubbed it - should triple Apple's addressable market in China and add nearly $2.4 billion to its handset business...