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<keyword id="74266" type="ORGANIZATION" weightage="20" keywordseo="apple-inc">Apple Inc</keyword>.’s primary iPhone assembler in India is scouting for about 100 acres of land in Bangalore to expand its facilities according to reports. <keyword id="4019708" type="ORGANIZATION" weightage="20" keywordseo="wistron-corp">Wistron Corp</keyword>. executives toured the city last week and have reportedly shortlisted a few parcels including one plot close to the airport. The Taiwanese manufacturer, which began making the iPhone SE in India this year, may use the facilities to supply other brands too. <keyword id="6354427" type="ORGANIZATION" weightage="20" keywordseo="apple">Apple</keyword> has been a minor player in India, the world’s fastest growing smartphone market, largely because its phones are more expensive than those of rivals such as <keyword id="123226" type="ORGANIZATION" weightage="20" keywordseo="samsung-electronics-co">Samsung Electronics Co</keyword>. and Xiaomi Corp. Apple Chief Executive Officer <keyword id="191843" type="PERSON" weightage="20" keywordseo="tim-cook">Tim Cook</keyword> made his first trip to the country last year, meeting Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="narendra-modi">Narendra Modi</keyword> and expressing hopes for an expanded presence. On Apple’s earnings call last week, Cook said the company has “ great momentum in India, where revenue doubled year over year.” He said he’s confident the company can gain ground, but it will take work on many fronts. “It’s building stores. It’s building channels. It’s building markets. It’s building the developer ecosystem,” he said. “It’s having the right product lineup for the market. And I feel like we’re making good progress there and are gaining understanding of the market, but we still have a long way to go.” Apple’s devices are particularly expensive in India because the government levies tariffs on devices manufactured outside the country. That comes on top of prices that start at $999 for the new iPhone X. Its manufacturing in India has been limited to small volumes of the SE, a lower-end smartphone. Apple has been locked in negotiations with the federal government for about a year over expanding manufacturing facilities and opening its own retail stores. The two sides have been meeting regularly to consider the Cupertino-based phonemaker’s demands, which include exemption from duties on capital equipment, removal of customs duty barriers and the ability to import used iPhones to refurbish and export.

Apple supplier might be planning India expansion as iPhone demand rises

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>Xiaomi is often referred to as the "Apple of China," and not just because of the similarities some of its products bear to the Cupertino company's. Like Apple, the red-hot Chinese startup has been able to instill an almost rabid loyalty in its fans.<a href="http://www.wsj.com/articles/to-lift-brand-xiaomi-fosters-phone-fan-club-1428345473">The Wall Street Journal reports on one particularly unusual way the company maintains its devoted userbase</a>: By throwing them parties in exclusive nightclubs.These parties, for a few hundred fans at a time, are held every few weeks across China in only the "flashiest nightclubs." The lucky few chosen to attend are the "VIP guest[s] of Xiaomi corp," a reward for their support for the company."What is the secret to the Xiaomi brand?" <a href="http://blog.btrax.com/en/2014/09/22/xiaomi-the-fan-economy-and-word-of-mouth-marketing/">asks co-founder Wanqiang Li.</a> "My answer is customer participation. Xiaomi isn't selling a product, but the desire to be a part of something." <a href="http://www.businessinsider.com/xiaomi-the-apple-of-china-really-is-like-apple-2015-1">Industry analyst Ben Thompson says that</a> what Xiaomi is ultimately selling isn't electronics - it's a "lifestyle."This support isn't just the product of heavy marketing - it's smart marketing. <a href="http://uk.businessinsider.com/xiaomis-secret-weapon-its-fans-2015-1">According to a report from Bernstein Research, Xiaomi spends just 3.2 percent of its revenue on sales and marketing expenses</a>, compared to eight percent from competitor Samsung. Alongside the parties, <a href="http://uk.businessinsider.com/xiaomis-secret-weapon-its-fans-2015-1">the company also holds festivals</a>, engages heavily with "mi-fans" (as they call themselves) on social media, and offers discounts to particularly devoted supporters.The strategy clearly works: <a href="http://www.forbes.com/sites/parmyolson/2014/12/29/xiaomi-raises-1-1-billion-at-45-billion-valuation/">With a $45 billion valuation</a>, it's the worlds most startup, despite being just five years old. And in February, <a href="http://uk.businessinsider.com/xiaomi-samsung-china-market-share-idc-2015-2">it overtook Samsung as China's biggest smartphone seller</a>.Xiaomi pursues a very different business model to Apple, selling high-spec smartphones for low prices. The average price of Android devices are dropping around the globe - <a href="http://uk.businessinsider.com/android-iphone-price-disparity-increase-2015-2">but Xiaomi handsets retail for even less than that average</a>. And despite this, reviews suggest that <a href="http://uk.businessinsider.com/xiaomi-mi-note-cnet-review-2015-1">its products may actually be technically superior to Apple's</a>.<a href="http://uk.businessinsider.com/xiaomi-us-europe-market-arrival-2015-1">Xiaomi executive Hugo Barra says the company doesn't intend to move into Western markets for</a> "a few years." But the market in China is growing rapidly, and <a href="http://uk.businessinsider.com/apple-retail-boss-angela-ahrendts-has-a-big-plan-for-apple-stores-in-china-2015-1">Apple is doubling down on its retail presence in the country</a>. Following the runaway success of the iPhone 6 and 6 Plus, the Cupertino company needs to find new avenues for significant growth.This is why Xiaomi's success is a big deal: For perhaps the first time, an Android manufacturer has been able to develop both a incredibly devoted fan base, and a line of products that can go toe-to-toe with the iPhone. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/smoking-meat-china-ban-air-video-2015-2">China banned smoking meat on the street because of air pollution, but people do it anyway</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="g4ZXY4czrf2tMT-hUUluvjgizxX1IMap" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

Apple's biggest rival in China throws its fans parties in expensive nightclubs

<ul class="summary-list"><li><a target="_blank" class="" href="https://www.businessinsider.com/apple">Apple</a> fell out of the top five smartphone shippers in China in Q2, The Wall Street Journal reported.</li><li>Competitors like Vivo, Huawei, and Xiaomi are seeing increased shipments and demand, reports said.</li></ul>Apple is still struggling to gain a strong foothold in China.According to reports from Canalys and International Data Corp viewed by <a target="_blank" class="" href="https://www.wsj.com/business/apples-iphone-lost-more-ground-in-china-in-second-quarter-48196991">The Wall Street Journal</a>, the iPhone maker fell out of the top five smartphone shippers in China during its second quarter. Another report by Counterpoint Research said that Apple's market share by sales decreased.Meanwhile, competitors like Vivo, Huawei, and Xiaomi are seeing shipments increase, and demand for Chinese-made smartphones is on the rise, according to those same reports.<a target="_blank" class="" href="https://www.businessinsider.com/tim-cook-gets-real-about-china-2024-5">Apple's market share by sales</a> in the second quarter was 15.5%, down almost 2% from the same time in 2023, according to the Counterpoint report viewed by the Journal. Still, smartphone shipments are on the rise even if Apple isn't seeing increases.In May, it appeared that <a target="_blank" class="" href="https://www.businessinsider.com/apple-iphone-china-shipments-tech-stocks-smartphone-market-ai-shopping-2024-7">Apple was gaining ground</a> as shipments in China surged, but the overall quarter yielded less optimistic results.Apple's most recent earnings report that came out in May showed that Greater China accounted for 18% of its $91 billion revenue last quarter — an 8% decline from a year ago.Apple will for sure have to answer questions about the Chinese market during its next earnings call on August 1.

Apple just got another iPhone China warning ahead of results

AP Photo/Kin CheungApple's iPhone sales in China have taken a major hit.<ul class="summary-list"><li>Apple's manufacturing partners are looking to diversify their production to locations outside of China, such as India, Vietnam, and Indonesia.</li><li>The trade war and the coronavirus pandemic sparked concern about the company relying on one country for the majority of its production.</li><li>However, the ease and efficiency of basing manufacturing in China will be difficult for companies to ignore.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Apple's supply chains could be rewoven as key manufacturers for the company consider relocating and diversifying centers of production outside China as the coronavirus rattles supply chains, <a href="https://www.bloomberg.com/news/articles/2020-03-27/iphone-makers-look-beyond-china-in-supply-chain-rethink?utm_source=twitter&amp;utm_content=business&amp;cmpid=socialflow-twitter-business&amp;utm_medium=social&amp;utm_campaign=socialflow-organic">according to a report by Bloomberg</a>.Wistron Corp. could transition half of its production capacity into countries beyond China in the next year, the report said. Other Apple partners such as Hon Hai Precision Industry Co. (also known as Foxconn), Inventec Corp., and <a href="https://bi.slack.com/archives/DT7TE0KRC/p1585319234003200"></a>Pegatron Corp., are also considering reorganizing their supply chains.The potential to reorient manufacturing locations was ushered in as the trade war between China and the US erupted and is becoming an increasingly serious consideration as the coronavirus ravages supply chains and the global economy, according to Bloomberg. Both the plight of the trade war and the coronavirus epidemic reveal the risks of relying on one country to manufacture a product.Wistron Corp. already produces some iPhone technology in India as well as Vietnam and Mexico and is saving $1 billion to continue spreading its manufacturing efforts elsewhere, <a href="https://www.bloomberg.com/news/articles/2020-03-27/iphone-makers-look-beyond-china-in-supply-chain-rethink">the report said</a>. Producers such as Pegatron are also looking to expand into Vietnam and India: Pegatron is already branching out to Indonesia and hopes to expand in Taiwan as well.The same goes for smaller manufacturers with partnerships outside of Apple, such as Meiloon Industrial Co., a speaker producer for Harman International Industries and Xiaomi Corp."We're talking about adjusting some knobs, not some sort of wholesale, fundamental change," Apple CEO Tim Cook said in late February the company wasn't making any sudden changes because of the coronavirus shake-up, according to Bloomberg. Moving production outside of China is not a simple process for companies because of the ease China offers, including a large market base, skilled workers, productive distribution systems, and a closely-knit network of suppliers. But for some companies, the inconvenience of diversifying manufacturing is worth avoiding the risk of putting production in one country.<a href="https://store.businessinsider.com/collections/pro/products/payments-commerce-briefing-subscription?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_subscription&amp;itm_content=iphone&amp;itm_campaign=payments-commerce-briefing-subscription-2"></a> <h3>NOW WATCH: <a href="https://www.businessinsider.com/bidets-better-than-using-just-toilet-paper-2019-9">Why bidets are better than buying countless rolls of toilet paper</a></h3>

Coronavirus is pushing Apple's iPhone makers to find new manufacturing frontiers outside of China

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Etienne Oliveau/Getty ImagesLei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp talks to journalists before the 2nd plenary session of the National People's Congress on March 9, 2016 in Beijing, China.</div></div></div>The "Apple of China" is in serious trouble.Sales of smartphones from Xiaomi, a once-red-hot Chinese hardware startup touted as the country's answer to Apple, dropped in China a whopping 38% in the second quarter of 2016 year-on-year, <a href="http://www.idc.com/getdoc.jsp?containerId=prCHE41676816">according to new data from research firm IDC</a>.Xiaomi did not immediately respond to a request for comment.Xiaomi's phones are not yet available in Western markets - but it has developed a buzzy reputation in the tech press.The company launched in 2010, and enjoyed meteoric growth: By the end of 2014, <a href="http://www.wsj.com/articles/xiaomi-becomes-worlds-most-valuable-tech-startup-1419843430">it was the officially the world's most valuable technology startup</a>, with a private valuation of more than $46 billion. (<a href="http://uk.businessinsider.com/most-valuable-startups-march-2016-2016-3?r=US&amp;IR=T">It has since been dethroned of that title by Uber</a>.)Specialising in cheap, high-quality smartphones, it had grown off the back of an unusually passionate fan base, which it was careful to cultivate. It liberally borrowed from Apple's playbook, including charismatic CEO keynote speeches. There is also a booming market in China for smartphones.The company set an ambitious target for 2015: Sell 100 million smartphones. But by July, as sales began to slow, it started to become clear that it just wouldn't happen.It ultimately sold "over 70 million," according to a company representative.<div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Jason LeeSome of Xiaomi's phones are very similar to Apple's, and Apple design guru Jony Ive has even accused the company of "theft," a charge it denies.</div></div></div><a href="http://fortune.com/2016/05/23/xiaomi-revenues-flat-2015/">Earlier this year, Fortune reported that all-in-all, Xiaomi's revenue's barely grew in 2015</a>. It pulled in 78 billion yuan ($11.9 billion) for the year, up 5% on 74.3 billion yuan ($11.3 billion) in 2014, but well short of a 100 billion yuan target for the year.Now, <a href="http://www.idc.com/getdoc.jsp?containerId=prCHE41676816">the latest figures from IDC suggest that Xiaomi isn't just standing still</a> - it's actually in freefall.It's worth noting that Xiaomi sells other products - from water-purifiers to hoverboards. But smartphones still make up the lion's share of the company's bottom line, with just 5%of its revenues in 2015 coming from over products, <a href="http://fortune.com/2016/05/23/xiaomi-revenues-flat-2015/">according to Fortune</a>.In Q2 of 2016, Xiaomi sold an estimated 10.5 million smartphones in China, down from 17.1 million a year prior. That's a drop of 38.4%.Meanwhile, rivals Oppo and Vivo have skyrocketed, enjoying year-on-year growth rates of 124.1% and 74.7%.<div class="KonaFilter image-container display-table"><div><div class="image on-image">IDC</div></div></div>What's behind Xiaomi's implosion? A slowing in growth, at least, was inevitable: In previous years, the company was perfectly positioned to take advantage of the rapid growth in China's smartphone market.This has now dropped off - but the Chinese market is still growing, 4.6% in Q2 year-on-year.IDC points to a failure of marketing as the cause.Xiaomi previously spent very little on marketing, <a href="http://www.businessinsider.com/xiaomi-vp-hugo-barra-at-mobile-world-congress-2015-2015-3">and was proud of it</a> - relying on word-of-mouth and user hype to spread word of its products. But this tactic is no longer viable: Competitors Vivo and Oppo are spending heavily, including using "brand ambassadors" to promote their smartphones, and without any concrete ways to differentiate its products, Xiaomi has been forced to follow suit."In the past, Xiaomi started the trend of selling its phones online and other vendors soon followed suit and created their own online brand. After vendors witnessed OPPO's success with its R9, they also started riding on the trend of hiring celebrity endorsers to represent their brand and appeal more to the young crowd,"IDC analyst Xiaohan Tay said."Hiring celebrity endorsers may help increase numbers in the short-term, but this alone may not be sufficient to drive numbers in the long run. As there is very little differentiation across products to warrant significant brand loyalty, vendors must constantly think out of the box to get people hyped up about their products."Xiaomi was once the head of the pack. Now it's playing catch-up - and losing. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/lenses-can-distort-appearance-photos-camera-science-focal-length-hitchcock-2016-8">How different camera lenses affect how you appear in photos</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="5xcWY0NTE67sqfmyYhKmTRRkNX5dO3dF" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

The Chinese answer to Apple is falling apart

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">Etienne Oliveau/Getty ImagesLei Jun, Chairman and CEO of Xiaomi Technology and Chairman of Kingsoft Corp talks to journalists before the 2nd plenary session of the National People's Congress on March 9, 2016 in Beijing, China.</div></div></div>Xiaomi was once the <a href="http://www.wsj.com/articles/xiaomi-becomes-worlds-most-valuable-tech-startup-1419843430">most valuable tech startup in the world</a>. Now it's flatlining.The Chinese smartphone and electronics company's revenues barely grew in 2015, <a href="http://fortune.com/2016/05/23/xiaomi-revenues-flat-2015/">according to a new report from Fortune</a>, as it struggles to grow its business globally amidst a slowdown in the Chinese smartphone market.Xiaomi launched in 2010, and has enjoyed meteoric growth: By the end of 2014, <a href="http://www.wsj.com/articles/xiaomi-becomes-worlds-most-valuable-tech-startup-1419843430">it was the officially the world's most valuable technology startup</a>, with a private valuation of more than $46 billion. (It has since been eclipsed by Uber, and is currently #2.)Specialising in cheap, high-quality smartphones, it grew off the back of an unusually passionate fanbase, which it was careful to cultivate; liberal borrowing from Apple's playbook, including charismatic CEO keynotes; and a booming market in China for smartphones.The company set itself an ambitious target for 2015: Sell 100 million smartphones. But by July 2015, as sales began to slow, it started to become clear that <a href="http://www.businessinsider.com/45-billion-smartphone-startup-xiaomi-hits-a-wall-2015-7">it just wouldn't happen</a>.Ultimately, it sold "over 70 million," according to a company spokesperson.<a href="http://fortune.com/2016/05/23/xiaomi-revenues-flat-2015/">Fortune's Scott Cendrowski now has the scoop on Xiaomi's alleged revenue figures</a>, and they don't make pleasant reading for the company.<ul><li>Overall revenue for 2015 was 78 billion yuan ($11.9 billion), up 5% on 74.3 billion yuan ($11.3 billion) in 2014, well short of a 100 billion yuan target for the year.</li><li>Internet services revenue missed its target by an even wider margin - $560 million versus $1 billion predicted.</li></ul>A Xiaomi spokesperson told Business Insider: "We are not able to comment on the revenue figure mentioned. What we have shared is that we sold over 70 million smartphones in 2015 despite the shrinking of the overall China smartphone market."After years of double-digit growth, China's smartphone market has now significantly cooled. In 2015, 434 million devices shipped, <a href="https://www.idc.com/getdoc.jsp?containerId=prAP41028416">according to IDC</a> - just 2.5% year-on-year growth. Xiaomi has launched elsewhere in other territories around the world, including in Latin America - but so far it has been unable to replicate the same runaway success that its home market was.Xiaomi's days as a rising star of the tech world may now be behind it: With its global ambitions muted by lack of growth, it's now just another phone company. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/spacex-rocket-landing-history-again-never-before-seen-footage-2016-5">Watch never-before-seen footage of SpaceX's most impressive rocket landing to date</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NwdnNmMzE6s6VMzEUnQgXjFF6TgwTNmK" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

China's hottest startup is flatlining

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Pablo Cuadra/Getty ImagesVans shoes</div></div></div><ul><li><a href="https://markets.businessinsider.com/stocks/vfc-stock">VF Corp.</a>, the apparel company behind Vans shoes and the North Face, released third-quarter results that beat on both the top and bottom lines.</li><li>The company raised its full-year earnings and revenue forecasts.</li><li>Shares spiked more than 11% on the news.</li><li><a href="https://markets.businessinsider.com/stocks/vfc-stock">Watch VF Corporation trade live</a>.</li></ul><a href="https://markets.businessinsider.com/stocks/vfc-stock">VF Corp.</a>, the apparel company behind Vans shoes and the North Face, reported third-quarter results Friday morning that beat on both the top and bottom lines and raised its full-year outlook, sending shares up more than 11%.The company reported adjusted earnings of $1.43 a share on revenue of $3.91 billion, beating the $1.32 and $3.75 billion that analysts surveyed by Bloomberg were expecting. VF says its active-brand segment saw a 16% jump in revenue, bolstered by a 25% increase in sales of its Vans brand. After the strong quarter, VF raised its full-year adjusted-earnings forecast to $3.73 a share and its 2019 revenue outlook to at least $13.8 billion. Analysts were expecting full-year earnings and revenue of $3.70 and $13.76 billion respectively."VF's third quarter results were fueled by strong growth in our largest brands and balanced growth across the core dimensions of our portfolio," said Steve Rendle, chairman, president and CEO."Based on the strength of our third quarter performance and the growth trajectory we see for the remainder of fiscal 2019, we are again increasing our full year outlook, including an additional $45 million of growth-focused investments aimed at accelerating growth and value creation into fiscal year 2020. We remain sharply focused on executing our integrated growth strategy and transforming VF into a purpose-led, performance-driven enterprise committed to delivering superior returns to shareholders."VF shares were up 2.7% this year through Thursday, trading at $73.26 a share. <div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="https://markets.businessinsider.com/stocks/vfc-stock">Markets Insider</a></div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/apple-airpods-review-vs-xiaomi-airdots-2019-1">We compared Apple's $159 AirPods to Xiaomi's $30 AirDots and the winner was clear</a></h3> <div> </div> </div>

The maker of Vans shoes and the North Face is soaring after beating on earnings and guidance

<ul class="summary-list"><li><keyword id="6356116" type="UNKNOWN" weightage="60" keywordseo="LG">LG</keyword> announced Monday that it would be closing its mobile business unit.</li><li>The decision shows how difficult it is to challenge market leaders <keyword id="6354427" type="ORGANIZATION" weightage="60" keywordseo="apple">Apple</keyword> and <keyword id="10591" type="CITY" weightage="60" keywordseo="Samsung">Samsung</keyword>.</li><li>Samsung established itself as an early challenger to Apple, setting it up for long-term success.</li></ul>LG is officially bowing out of the smartphone market.The South Korean tech giant <a href="https://www.lg.com/us/press-release/lg-to-close-mobile-phone-business-worldwide">announced</a> on Monday that it was exiting the "highly competitive" smartphone business by closing its mobile unit, which signaled the end of an era for a company that was once a top-tier handset maker.Its decision underscores how difficult it is to compete with industry giants like Samsung and Apple, particularly in the US, which is part of the <a href="https://www.gartner.com/en/newsroom/press-releases/2021-02-03-gartner-says-worldwide-smartphone-sales-to-grow-11-percent-in-2021">third-largest smartphone market</a>.LG was once among the top five smartphone makers. But it failed to stand its ground as Samsung and Apple dominated the US market and companies like Huawei and Xiaomi snatched up market share abroad.Together, Apple and Samsung account for 81% of the US smartphone market, with Apple accounting for 65% and Samsung responsible for 16% as of the fourth quarter of 2020, according to <a href="https://www.counterpointresearch.com/us-market-smartphone-share/">Counterpoint Research</a>. LG, meanwhile, came in third with just 9% of the market, and Samsung and Apple were the only two smartphone companies to show growth in the US during the fourth quarter of 2020.Worldwide, Apple took the No. 1 spot in the fourth quarter of 2020 with 23.4% of the market, while Samsung came in second with 19.1%, according to <a href="https://www.idc.com/getdoc.jsp?containerId=prUS47410621">the International Data Corp</a>.Samsung and LG are longtime rivals in the electronics and home-appliances industries, but there's one critical advantage the former has that the latter lacks when it comes to <keyword id="6354775" type="TECHNOLOGY" weightage="60" keywordseo="Smartphones">smartphones</keyword>. Samsung established its phones as the primary competitors to the iPhone when the smartphone market was still fairly young in 2012. Back then, it had a blockbuster hit on its hands with the Galaxy S3, which overtook the iPhone 4S to become the best-selling smartphone in 2012, according to <a href="https://www.businesswire.com/news/home/20121108005702/en/Strategy-Analytics-Samsung-Galaxy-S3-Becomes-Worlds-Best-Selling-Smartphone-Model-in-Q3-2012">Strategy Analytics</a>.The Galaxy S3's successful launch helped shape a narrative that the smartphone market had become a two-horse race between Apple and Samsung. It fueled headlines in outlets like <a href="https://www.nytimes.com/2013/02/11/technology/samsung-challenges-apples-cool-factor.html">The New York Times</a>, <a href="https://www.vanityfair.com/news/business/2014/06/apple-samsung-smartphone-patent-war">Vanity Fair</a>, and <a href="https://www.theguardian.com/technology/2013/jan/25/apple-samsung-won-smartphone-wars">The Guardian</a> declaring the two tech giants as the winners of what had become the biggest shift in computing in recent history. No <keyword id="6355645" type="UNKNOWN" weightage="60" keywordseo="Android">Android</keyword> phone maker had anything that came close to the popularity of the Galaxy S3 at the time. It put Samsung's Galaxy S series on the map, setting it up to be the iPhone's main competitor for years to come.And other Android phone makers simply couldn't keep up, despite being more innovative in some ways. For example, tech critics praised <keyword id="16129" type="CITY" weightage="60" keywordseo="HTC">HTC</keyword> in 2013 for its eye-catching <a href="https://www.cnet.com/reviews/htc-one-review/">One M7 phone</a>, which outpaced every Android phone on the market in terms of build quality and design. But it <a href="https://techcrunch.com/2019/01/04/the-hurt-thus-continues/">never had the sales</a> to match those accolades, and HTC <a href="https://www.businessinsider.com/google-completed-1-billion-dollar-acquisition-of-htc-smartphone-business-2018-1">sold a chunk of its smartphone business to Google</a> in 2018.<keyword id="11148" type="CITY" weightage="60" keywordseo="Motorola">Motorola</keyword>'s original Moto X from 2013 was also ahead of its time with hands-free voice controls that preceded the Amazon Echo and was well-received by reviewers. But <keyword id="6355629" type="DEFINITION" weightage="60" keywordseo="google">Google</keyword> sold off Motorola's mobile unit to Lenovo 2014, and the PC giant has <a href="https://www.wsj.com/articles/lenovo-thought-it-knew-how-to-fix-tarnished-brandsthen-it-bought-motorola-1484586006">struggled to boost its presence</a> in the smartphone market. Even Google, which operates Android, has had a hard time breaking into the smartphone business. It pivoted to selling less-expensive Pixel smartphones <a href="https://www.theverge.com/2019/4/29/18523162/google-pixel-3a-sales-lead-up-announcement-smartphone-competition">after it had trouble selling</a> high-end phones designed to compete with the iPhone and Samsung's Galaxy S line. LG took a similar path. It was ahead of competitors in some ways, such as its decision to bring <a href="https://www.businessinsider.com/samsung-galaxy-s10-isnt-first-phone-with-ultrawide-camera-2019-3">cameras with a wider field of view</a> to its smartphones years before Apple and Samsung did. But its smartphone division incurred losses totaling $4.5 billion over six years, which resulted in the decision to shut down the unit after Bloomberg reported the electronics maker <a href="https://www.bloomberg.com/news/articles/2021-03-21/lg-electronics-may-close-down-mobile-phone-business-donga">failed to find a buyer</a>. LG will instead focus on areas like smart-home devices, electric-vehicle components, robotics, and artificial intelligence. Of course, the success of Samsung and Apple is just one element that's influenced the market for mobile phones, albeit a big one. Popular Chinese brands that have stood out for their more accessible price points, like Huawei, Xiaomi, Oppo, and OnePlus, also rose in popularity about the time LG's market share began slipping around 2015, Gartner data provided to Insider indicated.Still, Samsung and Apple have been comfortably at the top of the smartphone market for years, and LG is just the latest casualty.

The smartphone market is a 2-horse race between Apple and Samsung, and LG is the latest casualty

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZY1NK3QV&amp;SMLS=1&amp;RW=1399&amp;RH=843#/SearchResult&amp;VBID=2C0BXZY1NK3QV&amp;SMLS=1&amp;RW=1399&amp;RH=843&amp;PN=4&amp;POPUPPN=185&amp;POPUPIID=2C04080B6SQOM">Reuters/Bobby Yip/Files</a></div></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/iphone">iPhones</a> will soon be made in India through Apple's top manufacturing partner, Taiwanese electronics maker <a href="https://www.businessinsider.com/category/foxconn">Foxconn</a>.</li><li><a href="https://www.businessinsider.com/category/apple">Apple</a>'s cheaper iPhone models (SE and 6S) are already made in India, but this is the first time newer models, like the X family, will be produced there.</li><li>This may be part of Apple's efforts to move production out of Foxconn's plants in China, amidst the contentious US-China <a href="https://www.businessinsider.com/category/trade-war">trade war</a>.</li><li>To be able to produce iPhones, Foxconn's expanded manufacturing plant will cost $356 million and add as many as 25,000 jobs.</li></ul>Apple Inc will begin assembling its top-end iPhones in India through the local unit of Foxconn as early as 2019, the first time the Taiwanese contract manufacturer will have made the product in the country, according to a source familiar with the matter.Importantly, Foxconn will be assembling the most expensive models, such as devices in the flagship iPhone X family, the source said, potentially taking Apple's business in India to a new level.The work will take place at Foxconn's plant in Sriperumbudur town in the southern state of Tamil Nadu, said the source, who is not authorized to speak to the media and so declined to be named.Foxconn, which already makes phones for Xiaomi Corp in India, will invest 25 billion Indian rupees ($356 million) to expand the plant, including investment in iPhone production, Tamil Nadu's Industries Minister M C Sampath told Reuters.The investment may create as many as 25,000 jobs, he added.Another source also said Foxconn planned to assemble iPhones in India, in a move that could help both it and Apple to limit the impact of a trade war between the United States and China.The Hindu newspaper first reported on Dec. 24 that the Foxconn plant would begin manufacturing various models of the iPhone. Reuters is first to report the size of the investment and the kind of phones to be assembled.Apple spokeswoman Trudy Muller declined to comment. Foxconn said it did not comment on matters related to current or potential customers, or any of their products.Read more: <a href="https://www.businessinsider.com/foxconn-cutting-costs-latest-warning-sign-for-apple-2018-11">Foxconn is slashing costs ahead of a 'difficult' year - and it's the latest warning sign for Apple</a><h2>Lower-end phones</h2>Until now, Cupertino, California-based Apple has only assembled the lower-cost SE and 6S models in India through Wistron Corp's local unit in the Bengaluru technology hub.Its sales in India have also been focused on lower-end phones - more than half of its sales volume is driven by models older than the iPhone 8, launched last year, according to technology research firm Counterpoint.Apple launched the pricey iPhone X last year but has cut production of that phone, according to industry analysts, since it began selling the newer versions, iPhone XS and XR, globally this year.Still, it could potentially get Foxconn to make the older iPhone X version in India where it sells cheaper models in a bid to get a bigger share of the world's fastest growing major mobile phone market.Full details of Apple's deal with Foxconn are not yet clear and could change.It is not known if any of the iPhone assembly is being moved from existing Foxconn factories in China and elsewhere. It is also unclear whether the production will be confined to assembly or include any component production in India.<h2>Looking beyond China</h2>For Apple, widening assembly beyond China is critical to mitigate the risks of the Sino-U.S. trade war.Foxconn, the world's biggest electronics contract manufacturer, is considering setting up a factory in Vietnam, Vietnamese state media reported this month. If that goes ahead, it will be one of the biggest recent steps by a major company to secure an additional production base outside of China.Foxconn has previously admitted the China-U.S. trade spat was its biggest challenge and that its senior executives were making plans to counter the impact."Widening iPhone manufacturing in India through Foxconn will allow Apple to hedge the risk of any new U.S. trade policies," said Navkendar Singh, an associate research director at International Data Corporation.Indian taxes on import of devices and components have also heightened Apple's headache in a market where it has only a 1 percent share by smartphone shipments.Making more phones locally will help Apple save costly duties and boost Prime Minister Narendra Modi's flagship drive to make India a manufacturing hub, Singh said.Apple shocked investors last month with a lower-than-expected sales forecast for the Christmas quarter that jolted parts suppliers across the world.Foxconn has previously expressed concern over demand for Apple's flagship devices. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/iphone-switch-android-google-pixel-3-xl-apple-2018-11">I'm a diehard iPhone user who switched to Android for a week - here's what I loved and hated about the Google Pixel 3 XL</a></h3> <div> </div> </div>

Apple's top manufacturer Foxconn will start making higher-end iPhones in India, moving production out of China amidst trade war

<div class="image-container display-table float_right"><div><div class="image">REUTERS/Kim Kyung-Hoon <keyword id="6354427" type="CITY" weightage="60" keywordseo="Apple">Apple</keyword> Inc. CEO Tim Cook (R) and China Mobile's Chairman Xi Guohua (L) with iPhones pose with a customer at an event celebrating the launch of Apple's iPhone on China Mobile's network at a China Mobile shop in Beijing January 17, 2014. Apple Inc is finally launching its iPhone on China Mobile Ltd's vast network on Friday, opening the door to the world's largest carrier's 763 million subscribers and giving its China sales a short-term jolt. </div></div></div>BEIJING (Reuters) - Apple Inc is finally launching its iPhone on China Mobile Ltd's vast network on Friday, opening the door to the world's largest carrier's 763 million subscribers and giving its China sales a short-term jolt.
Underlining how much the launch means for Apple, Chief Executive Tim Cook was on hand as the carrier's flagship store opened in Beijing's financial district.
With China Mobile Chairman Xi Guohua alongside, Cook gifted signed iPhones to a handful of customers and posed for pictures.
The long-awaited deal could trigger a limited turnaround for Apple, whose fortunes have wavered in China in the face of stiff competition from market-leader Samsung Electronics Co Ltd and up-and-coming local rival Xiaomi Tech.
Samsung had a 21 percent share of China's smartphone market in the third quarter of 2013, with Apple trailing in fifth place with just 6 percent, according to research firm Canalys.
But the arrival of the iPhone could be a double-edged sword for China Mobile, with some analysts predicting a costly subsidy war as rival carriers compete to lure customers.
"I don't see a price war coming where Apple is engaged in the war, but I do think you're going to see a subsidy war coming," said Michael Clendenin, managing director of Shanghai-based RedTech Advisors.
"China Mobile, if they're not making their targets on sales for these phones, they're going to increase the subsidies... It's like airlines: the other guys will fall like dominoes, so China Unicom will do it and China Telecom will do it."
China Mobile's iPhone sales are expected to reach 12 million in its 2014 fiscal year, but its subsidies will leap 57 percent to 42.4 billion yuan ($7 billion), up from 27 billion yuan in its fiscal year 2013, wrote Cynthia Meng, a Jefferies analyst, in a December note.
For the basic 16GB iPhone 5S, with no subscriber contract, China Mobile is charging 5,288 yuan ($870), the same as on Apple's China website. The carrier is charging 4,488 yuan ($740) for a basic iPhone 5C, again the same price as on Apple's China site.
China Unicom Hong Kong Ltd and China Telecom Corp Ltd slashed their iPhone prices by as much as 1,288 yuan ($210) following the announcement that a deal had been struck between Apple and China Mobile. The pair have also offered a range of cut-price deals on contracts.
These offerings and the launch of the iPhone on China Mobile come in the weeks running up to Chinese New Year, when people traditionally exchange gifts of money in red envelopes and retail sales jump.
<h3>SALES CANNIBALISATION</h3>
After taking years to hammer out a deal with China Mobile, Apple's sales in China should get a short, sharp boost as subscribers make the most of the double-whammy of the iPhone's arrival and the rollout of high-speed 4G mobile networks.
Reservations for iPhones had already hit 1.3 million on Wednesday, according to a China Mobile spokeswoman, although Reuters checks showed that there were multiple registrations using fake ID numbers.
But the rewards are expected to be short-lived for the Cupertino, California-based company, which faces a deeper problem in China of having fallen out of favor with consumers who are increasingly opting for domestic offerings.
Another issue is the thriving grey market for iPhones, where users can buy handsets typically smuggled from Hong Kong and then sign up for a China Mobile contract. China Mobile already has 45 million iPhone users inChina, according to a company spokeswoman.
"You need to consider the cannibalization for sales to China Unicom, China Telecom and the grey market, so even though there's an addition from China Mobile it will also impact sales from other channels as well," said CKLu, a Taiwan-based analyst with Gartner.
"If we really want to see the expansion of sales we'll have to wait for the next version of the iPhone. If China Mobile gets first launch and their subsidies are attractive people will probably rush to the iPhone that China Mobile can provide."
($1 = 6.0557 Chinese yuan)
(Additional reporting by Adam Rose; Editing by Alex Richardson and Kenneth Maxwell)

Apple China Mobile Launch Could Spark A Costly Subsidy War

<div class="image-container float_right" style="width:480px"><div class="image">Chris Hondros/ Getty Images</div></div>SAN FRANCISCO/HONG KONG (Reuters) - A sharp drop in <keyword id="6354427" type="CITY" weightage="60" keywordseo="Apple">Apple</keyword> Inc's China revenue in April-June underscores the challenges it faces in its second-largest market as the technology gap with cheaper local rivals narrows and as Samsung Electronics keeps up a steady stream of new models across all price ranges.
While investors marked up Apple shares as the company sold more of its iPhones than expected, the stock rally may prove short-lived as demand for its products fades in China. Analysts predict Apple will lose market share in the world's leading smartphone sector.
"There's some cannibalization of Apple's market share from competitive mid-tier models that cost a lot less and perform as well, from vendors such as Xiaomi and Vivo," said Huang Leping, an analyst at Nomura in Hong Kong, referring to rival Chinese models.
Salespeople at several electronics shops in Hong Kong said South Korea's Samsung was a bigger hit with consumers as it offers more products. Some display counters didn't carry any Apple devices.
"Samsung products have enjoyed greater sales than Apple as many mainland (Chinese) tourists tend to buy Samsung due to a greater variety of models with a wider price range," said a saleswoman at a Hong Kong computer centre. "That's why we stock more Samsung products."
SLIPPING DOWN
In the first quarter of this year, Apple ranked top in Hong Kong with 46 percent market share in smartphones, though that was down from 54 percent in the last quarter of 2012, according to market research firm Canalys.
Even without releasing a new product, Apple sold 31.2 million iPhones in its fiscal third quarter, around a fifth more than analysts had predicted. But revenue from all Apple products in Greater China, which includes Hong Kong and Taiwan, slumped 43 percent from the previous quarter and was down 14 percent from a year earlier - worrying in a region where smartphone penetration is still low.
Greater China accounted for 13 percent of Apple's sales, or $5 billion, in April-June - down from nearly 19 percent in the previous quarter. Hong Kong was a particularly weak spot. "It's not totally clear exactly why that occurred," CEO Tim Cook said on a conference call with analysts.
"In the past three months, the number of mainland Chinese consumers of Apple products dropped about 50 percent," said Sunny Tang, a salesperson at another Hong Kong electronics store that sells Apple products. "Android (Google's operating system in many Samsung phones) is much better than Apple, and in that period Samsung released at least five phones and tablets."
Nicole Peng Luping at Canalys said: "China is a very diverse market so you need to have very diverse products to serve different levels of customers - and that's the weakness for Apple."
HEATING UP
In the first quarter, Apple ranked 5th in China with 9.7 percent market share, well behind leader Samsung with 17.7 percent, and lagging, among others, Lenovo Group Ltd and Huawei Technologies, which said on Wednesday it was on track to hit 10 percent revenue growth this year.
Nomura's Huang expects Apple's China market share to slip 1-2 percentage points in the coming quarters as the novelty of the iPhone 5 fades and as new buyers opt for cheaper smartphones.
The global battle for mobile supremacy is not just between Apple and Samsung. Huawei and ZTE Corp are growing across their Chinese home base, and South Korea's LG Electronics said on Wednesday it sold a record 12.1 million smartphones in April-June, more than double its year-ago sales.
As high-end smartphone sales hit a plateau, the $2 trillion industry - telecom carriers, handset makers and content providers - is buckling up for a bumpier ride as growth shifts to emerging markets, primarily in Asia.
Even excluding China, Apple's revenue in Asia Pacific fell 35 percent quarter-on-quarter.
CEO Cook, who has seen Apple stock fall by more than a fifth so far this year, blamed China's slowing economic growth, but said he remained bullish on that market. The "economy clearly doesn't help us, nor others," he told analysts.
He said, however, that the revenue numbers don't tell the whole story. Apple books revenue when it sells to resellers, who then sell the products to consumers. Sales to consumers - or sell-through - slipped just 4 percent in Greater China from a year ago. By that same measure, mainland Chinese sell-through sales actually rose 5 percent year-on-year, though that was a deceleration in growth, Cook said.
WEB TRAFFIC
Beyond the Asia weakness, Apple's sales of its iPad - the device that catapulted tablet computing into the mainstream - underperformed. Apple shipped 14.6 million tablets in April-June, some way below rough estimates.
Some investors argue that Apple's hold on a market it created is likely to slip as rival smartphone makers as well as Google and Amazon.com Inc pile in, but Cook noted that usage data shows the iPad still commands a dominant share of Web traffic.
"iPad accounts for 84 percent of the Web traffic from tablets," he said. "So if there are lots of other tablets selling, I don't know what they are being used for."
Given the pressures and increasing competition, Apple's stock rally should not be seen as proof that concerns over its outlook have abated, some analysts said. "It's nice to see a bit of a beat for a change," said Hudson Square Research analyst Daniel Ernst. But "earnings are still down year over year."
"It's going to take a new product introduction before we see earnings turn positive."
(Additional reporting by Edwin Chan in SAN FRANCISCO; Yimou Lee, Brian Yap and Lavinia Mo in HONG KONG; Writing by Anne Marie Roantree; Editing by Ian Geoghegan)

Apple Shouldn't Be Mystified About Why Its China Sales Collapsed - Competitors Are Offering More For Less

<ul><li>The pandemic and the ensuing lockdown has changed our lives, perhaps forever. It has brought about many behavioural changes among consumers. While some were temporary, there are many that will perhaps become permanent.</li><li>People discovered the many conveniences of <keyword id="1245953" type="General" weightage="20" keywordseo="ott" source="Orion">OTT</keyword> platforms during the last 2 years and the sector is only expected to grow from here.</li><li>Baskar Subramanian, Co-founder and CEO, <keyword id="751982" type="General" weightage="20" keywordseo="Amagi" source="Orion">Amagi</keyword> writes why OTT is getting consumer love and why the streaming media is here to stay. </li></ul>The pandemic and the subsequent lockdowns completely transformed our entertainment experience. From 'Let's go for a good movie', we moved to 'What should we watch on <keyword id="128682" type="General" weightage="20" keywordseo="netflix" source="Orion">Netflix</keyword>?'. Movie premiers and live sporting events like IPL and others have moved to OTT. For example, Netflix released the Kangana Ranaut starrer Thalaivi and Zee5 released Bob Biswas starring Amitabh Bachchan exclusively on OTT platforms. Homegrown web series like The Family Man, Sacred Games, Aarya, Special Ops, Aashram, Mirzapur and more undoubtedly elevated the popularity of OTT platforms among the tech-savvy millennials and Gen Z population who had embraced OTT over Cable TV or DTH subscriptions even before the onset of the pandemic. Post the pandemic, however, the trend has only increased, fuelled by the many conveniences that OTT offers over traditional broadcast. With streaming TV, the fight for the remote is laid to rest. Every person in a household can watch their favorite shows on their personal devices. Content can be viewed even while travelling, and consumers are spoilt for choice with languages, content variety, and on-demand viewing. Consumers have made their preferences clear - more people are cutting the cord, shifting from paid TV subscriptions to internet-based streaming services. Boston Consulting Group predicts that the OTT content market is at an inflection point in India and is likely to reach a market size of $5 billion by 2023. From just two OTT platform providers in 2012 to about 40 players at present, the OTT revolution has come a long way in India. Estimates from Phando Corp suggest that monthly active users (MAUs) for India’s OTT video sector have grown at a blistering rate of 300% since 2019 to reach 680 million in 2021, with rural and tier 2 &amp; 3 cities consumption reaching an 80% share. West Versus India Several factors including the widespread availability of broadband infrastructure, the ubiquity of mobile phones and other connected portable devices, and quest for personalised experiences have spurred the adoption of OTT consumption in the Western world. At the same time, technology investments, the emergence of new apps, features, and independent platforms for OTT content have also been growth drivers. Tech companies such as Amazon, Facebook, Apple, YouTube, connected device providers such as Samsung, Xiaomi, LG, and studios such Disney, MGM, Paramount, Sony are among the major corporations who have entered the OTT space, giving a plethora of programming choices to the consumers in the West. The growth in OTT platforms combined with the subsequent content boom has seen vernacular content from different regions gaining international popularity. South Korean dystopian drama broke all records by becoming the most watched content on Netflix by netizens around the world. Similarly, Indian dramas such as Sacred Games and Delhi Crime were viewed and enjoyed by a global audience. As a result, all eyes are now firmly set on opportunities in emerging economies, specifically in the Indian subcontinent, with major players from the west entering the foray with attractive subscription offers, and diverse content catalogues. Some have chosen to collaborate with or acquire local brands to establish a firmer foothold in the region. For example, with the launch of Disney Plus in the US back in 2019, the streaming service promptly expanded to many other countries, including India. However, instead of getting a dedicated app for Indian users, the company acquired the Hotstar streaming platform and soon rebranded to Disney+ Hotstar. The coming together of Disney and Star TV Network (20th Century Fox) attracted tens of millions of subscribers in India and provided them access to a premium catalogue of content from Disney and Star TV. One of the challenges in India is the ability to monetize online content. Research suggests that the Advertising-led Video on Demand (AVOD) model is far more popular than Subscription-led video on demand (SVOD) models given the reluctance of viewers in India to pay for online content. While about 60% of total video viewing in India happens on YouTube, Netflix has 40 Mn monthly active users. Disney Plus Hotstar too has reached the critical mass with its freemium model, well-supported by relevant collaborations, such as sports (read cricket), which drives volume. Also, a KPMG study reveals that, unlike the West, only 10% of viewers access OTT platforms for watching original content. Rather, OTT is used primarily for the convenience of anytime and personal viewing of movies, music, sports or to catch-up with TV content. Driving OTT Growth in India As a country with a population of 1.23 billion, India is the next big market for OTT platforms. Some of the growth drivers for OTT players in India, based on the precedent from the West include: ● Investments in Content Video streaming services are expected to spend around ₹1,920 crore to create original content for India in 2021, driven in part by the sharp rise in audiences during the 2020 lockdown. The platforms will further increase spends, including on sports, to ₹30,000 crore, during 2021-25, according to the latest FICCI-EY media and entertainment industry report. Around 500 original titles are likely to be released in 2021 across platforms, as opposed to 385 titles in 2019 and 220 in 2020. The investment in original content makes sense given that viewers are learning to pay for the content they consume, especially original content. In 2020, 29 million subscribers paid for 53 million OTT video subscriptions (not counting subscriptions bundled along with data plans), a figure that is estimated to increase to 39 million subscribers for 71 million subscriptions in 2021. Netflix has more than 40 originals scheduled for 2021 and is expanding its slate by nearly three times compared to 2020. Amazon Prime Video has 50 local originals in various stages of development and 30 in various stages of production. Demand for original content will likely double by 2023 compared to 2019 levels. ● Content – the New Battlefield for Viewers Increasing number of consumers from tier-2 and tier-3 cities have spurred the production of regional content. Alt Balaji has seen a change after the pandemic. Before the pandemic, the top 8 cities in India contributed to 70% of their total audience; post-April 2020, 60% of the traffic is from other tier-2 and tier-3 cities. Old favourite shows are being re-aired on OTT platforms, while investments in new content production continue. Recently Amazon announced the acquisition of MGM, for $8.45 billion, giving it access to MGM’s library of 4000 film titles and 17,000 TV shows. We have witnessed the emergence of a wide variety of content including Indian content since India has a diverse market with over a dozen languages that are widely spoken across the country. OTT players are shifting their focus towards localisation of their platforms, to be able to connect with the Indian users, be it in terms of regional languages, geography and user experience etc. India already has about 40 OTT players and 10 music streaming apps in existence catering to various entertainment and media demands. This has opened the doors for OTT platforms to promote regional and hyperlocal content. In fact, a leading OTT player recently released 11 shows during the lockdown- all locally curated shows. The share of regional language consumption on OTT platforms is expected to cross 50% of total time spent by 2025, easing past Hindi at 45%. ● Government Regulations The Ministry of Information and Broadcasting (MIB) has, in the past year, stressed the need for some form of regulation of OTT Platforms to streamline the sector. In this regard, the MIB recently notified the Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules 2021. The new rules require OTT platforms to set up a robust three-tier grievance redressal mechanism. The first level will comprise regulation by the OTT Platform itself through a grievance officer. The second level will be an institutional self-regulatory body formed by publishers of content and their associations. This self-regulatory body will comprise industry experts headed by a retired Supreme Court/ High Court judge /eminent personality in the relevant field. At the third level is an inter-department committee constituted by the MIB that will provide oversight and hear appeals for decisions taken at level two or if a complaint is referred to the inter-department committee by MIB. Regulation might help improve the quality of content in the future. ● The Future of OTT - New Applications and Content Innovations There is no doubt that the future of <keyword id="6357922" type="General" weightage="20" keywordseo="television" source="Orion">television</keyword> is OTT, and the industry is at a nascent stage. Content is the force that defines the direction of evolution in the industry. New applications such as learning, education and fitness are being explored. Pricewaterhouse Coopers reported that in 2018, more than 40% of new internet users in the world were children. Edtech platforms like Byjus and Unacademy use the OTT streaming approach for education. Similarly, possible applications for learning management in corporations are being explored. While fitness was never considered an activity that could be done remotely, the pandemic saw this notion change. According to a Bobble.AI report, besides video conferencing apps and websites, fitness applications such as Lose Weight, Cure.fit, recorded a 104.53% rise in daily active users. Video streaming platforms are also creating content to cater to this trend. Disney+ Hotstar has partnered with Brilliant Wellness, to introduce content from its fitness experts, yoga, and spiritual gurus. -- India’s large population and relatively young age demographics make the business environment dynamic and interesting. Digital savvy young consumers in India are spread over a wide geography and have a vast range of preferences, languages and appreciate multi-cultural entertainment. As content and technology come together to create a solution that caters to this unique business environment, OTT and streaming media are here to stay.

How India is ‘Cutting the Cord’ to drive an OTT revolution

This is the second in a series of articles analysing the impact of 5G mobile technology on people's everyday lives. In Hangzhou, capital of eastern China's Zhejiang province and one of the country's major technology hubs, evidence of the city's smart infrastructure can be gleaned from how its public services function. Police officers are notified of major car accidents soon after they happen, traffic lights automatically adjust to changes in the volume of vehicles on the road, and in emergencies, fire trucks and ambulances are not stopped by a single red light until they arrive at the scene. Those advances are enabled by Hangzhou's City Brain project, a cloud computing and artificial intelligence-driven urban traffic-management system. It covers a total area of 420 square kilometres, which is about the size of seven Manhattans - referring to the most densely populated of the five boroughs of New York City. When 5G mobile services start to roll out worldwide from next year, smart cities such as Hangzhou are expected to get smarter as the next-generation wireless technology helps industries realise the full potential of the internet of things (IoT). "From 2G to 3G to 4G, all of them serve people," said Cui Kai, a Beijing-based IoT analyst with technology research firm IDC. "But 5G, from the beginning of its infrastructure design, has the internet of things in mind." IoT envisions a self-configuring, adaptive and complex network that interconnects physical objects, each containing embedded technology to communicate, gather data and interact with mobile applications or other networks. The stakes are high for industries around the world, as global spending on IoT is forecast to exceed US$1 trillion in 2022, up from an estimated US$745 billion this year, according to IDC. It said adoption of IoT was happening across industries, in governments and in consumers' daily lives. Data generated by connected devices is now helping companies run more efficiently and gain insight into business processes, while consumers' access to data is changing how they are informed about the status of households, vehicles and family members, as well as their own health and fitness. "The next chapter of IoT is just beginning, as we see a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world," said Carrie MacGillivray, vice-president for IoT and mobility at IDC, in a recent report. That shift is likely to become apparent as 5G networks are rolled out around the world. With peak data rates up to 20 times faster than 4G, 5G will serve as "the connective tissue" for IoT, autonomous cars, smart cities and new mobile applications - providing the backbone for the industrial internet, according to a Deloitte report. On the consumer side, 5G smartphone users will be able to send high-resolution 4K video within a few seconds, and both video games and apps based on augmented and virtual reality technologies will be seamless. The 5G networks will also be able to support the growing number of connected devices globally, from fitness-tracking watches to internet-linked televisions and smart speakers at home. The International Telecommunications Union, the United Nations agency overseeing development of the "IMT 2020" global standard for 5G, said the new wireless technology would support 1 million connected devices per square kilometre; 1 millisecond latency (representing the nearly instant time a packet of data takes to get from one point to another); greater efficiency in terms of power and use of radio spectrum; and a peak data download rate of up to 20 gigabits per second. <a href="https://www.scmp.com/tech/big-tech/article/3006582/power-change-world-heres-why-us-and-china-are-fighting-over-our-5g">With the power to change the world, here's why the US and China are fighting over our 5G future</a> The agency works in tandem with the 3rd Generation Partnership Project, an international collaboration of seven telecoms standard development organisations, which has approved the much-anticipated global technology specifications for 5G. That has kicked off work on initial deployments this year by some of the world's largest telecoms network operators. At the crux of many IoT applications is latency. For a YouTube viewer, it means the delay between clicking the play button and the moment when the video starts streaming. 5G networks will provide better latency than the average 50 milliseconds on 4G networks, enabling IoT applications that require near instantaneous data transmission such as remote surgery. In March, China conducted its first remote surgery using robots with the support of a 5G network deployed by telecoms operator China Mobile and supplied by Huawei Technologies, according to state media. During the three-hour procedure, a surgeon implanted a neurostimulator device into the brain of a Parkinson's disease patient in Beijing with the aid of robotic arms, which were remotely controlled about 3,000km away. Remote surgeries are widely expected to enable more doctors to help their colleagues at smaller institutions or in disaster areas. Low latency is also key to the smooth operation of autonomous vehicles. Sensors in a self-driving car gather information - from road conditions and nearby obstacles to traffic accidents along the way - and send the data to the car's on-board computer or to a cloud computing platform to make instant decisions. Seamless machine-to-machine communication would also be an important asset in military operations. A group of soldiers, for example, can wear smart wristwatches to know each other's location and vital signs as they operate in a tropical forest, for example, where satellite communications do not work. While 4G now allows up to 100 devices to talk with each other simultaneously within a radius of 500 meters, 5G can handle a lot more devices using the same communications protocol, according to Wilson Chow, a telecoms analyst with PwC China. <a href="https://www.scmp.com/tech/gear/article/2189069/chinas-tech-moguls-bet-5g-help-lift-economy-amid-increased-security">China's tech moguls bet on 5G to help lift economy amid increased security scrutiny in the West</a> 5G's ability to handle massive amounts of data in ultra-fast speed also comes to play in industrial manufacturing and supply chains. While robots have already taken over the assembly lines in car assembly plants, 5G will allow someone sitting at headquarters to monitor the operations of dozens of factories in different cities in real time. That would be made possible by chips installed in fast-moving machinery, such as robotic arms and conveyor belts. In February, Swedish telecoms equipment maker Ericsson and China Unicom unveiled their 5G-powered <keyword id="24019" type="PERSON" weightage="20" keywordseo="automation">automation</keyword> project at the Port of Qingdao in the eastern coastal province of Shandong. The initiative aims to slash 70 per cent of labour costs in one of the world's busiest container terminals. "In the future, manufacturing plants and retailers can achieve efficiency with improved workflows because every data point will be gathered, processed and analysed in real time," said Chow. For consumers, 5G is expected to broaden the use of smart home devices like voice-activated speakers and other advanced internet-linked appliances. The <keyword id="35145" type="DOMAIN" weightage="20" keywordseo="global-market">global market</keyword> for smart electric household appliances, for example, is projected to reach 1.5 billion units by 2020 when commercial 5G networks are online, according to data from analytics firm Dun &amp; Bradstreet. Such a trend will help grow the number of so-called smart homes to about 300 million worldwide by 2022, according to an estimate by ABI Research. <a href="https://www.scmp.com/tech/gear/article/3004743/us-catches-china-5g-readiness-race-heats-ultra-fast-mobile-networks">US catches up with China in 5G readiness as race heats up for ultra-fast mobile networks</a> Technology giants like Amazon.com, Google, Apple and China's Xiaomi Corp have already ratcheted up their efforts to churn out more smart devices, including speakers, vacuum cleaners and rice cookers, remotely controlled via smartphone apps or voice assistants. With 5G, uniform network connectivity and even energy savings would be realised as these devices are linked to the internet. "Previously, you needed to think about how much data you could send between devices and the cloud," said Werner Vogels, chief technology officer at Amazon, in an interview last month. "With 5G, companies will no longer be constrained. Every device, even your clock on the wall, could become internet connected." In China, which has the world's biggest internet population and largest smartphone market, the benefits of IoT adoption are expected to become widespread as 5G data consumption is encouraged by the government and telecoms operators, according to PwC's Chow. That would help take Hangzhou's City Brain, a project backed by e-commerce giant Alibaba Group Holding, to the next level. Alibaba is the parent company of the South China Morning Post. With 5G networks, Hangzhou's City Brain will be able to process greater amounts of data gathered from a range of IoT units, including lamp posts, manhole covers and electricity meters. The advanced mobile infrastructure would enable sensors to be deployed in underground pipes to find water leakage. "Every asset can be connected through the internet," said IDC's Cui. "The key question is what's the value of getting more data." <a href="https://www.scmp.com/tech/enterprises/article/2168665/made-china-2025-5g-offers-worlds-biggest-mobile-market-chance-seize">'Made in China 2025': How 5G could put China in charge of the wireless backbone and ahead of the pack</a> Still, more smart data-gathering systems mean increased security concerns. Under Chinese laws, internet companies operating in the country are required to store user data at local servers - and allow authorities to inspect those assets when deemed necessary. China has an estimated 200 million surveillance cameras, which amounts to about one camera for every seven people. The combination of 5G and IoT resources could turn a smart electricity meter into a real-time surveillance tool to tell whether someone is at home or not. "You can imagine after 5G is rolled out, China would like to make the whole country a smart country," said PwC's Chow. Additional reporting by Zen Soo This article originally appeared on the <a href="http://www.scmp.com">South China Morning Post (SCMP)</a>, the leading news media reporting on China and Asia. For more stories, please download our <a href="https://go.onelink.me/3586748601?pid=3rdpartycontentexchange">mobile app</a>, follow us on <a href="https://twitter.com/scmpnews">Twitter</a>, and like us on <a href="https://www.facebook.com/scmp">Facebook</a>.

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