Enterprise

Xiaomi’s IPO performs poorly in stock market on first day [Update: It’s doing better now]

Could hamper its performance this year

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It’s a bad time to invest in China. After the escalating feud between ZTE and the US, more Chinese companies are feeling the brunt of tense Sino-American relations.

Presently, Chinese phone maker Xiaomi has made a lackluster debut on the stock market. Expecting a valuation of over US$ 100 billion, the company has punched in only US$ 54 billion in valuation, making only US$ 4.7 billion in the IPO.

As for individual stocks, Xiaomi opened to a tepid HK$ 16, much less than their expected HK$ 17.

Prior to the debut, controversies have mired the Chinese market. Just from the company’s perspective, Xiaomi has notoriously expanded their product lineup to include the divisive lifestyle market, most of which have not seen overwhelmingly positive returns yet.

Additionally, ZTE’s troubles with the American government have signaled that Chinese products still aren’t welcome in the West. So far, the issue has affected sales of other Chinese companies including Xiaomi and Huawei, despite their popularity in other countries. Of note, both companies still top the charts all over the world.

Regardless, Xiaomi CEO Lei Jun remains confident that their disappointing IPO is only a minor setback to their overall plans. More importantly, he cites that Xiaomi’s goal of maintaining only a five percent profit is still on track.

However, the IPO trouble will undoubtedly cause speed bumps with the company’s plans to expand to the US later this year.

Update (7/10/2018): After the tumultuous debut, Xiaomi’s stocks showed signs of life the day after. During afternoon trading, the shares’ value rocketed up by 9 percent. As a result, their price increased by as much as HK$ 18.56, well above the company’s expectations.

The jump came as Xiaomi announced its inclusion into the Hang Seng Composite Index. The move allows investors from mainland China to invest in Xiaomi’s stocks. Arguably, Chinese investors show more interest toward the company’s future compared to other foreign investors looking at the political issues in the US.

Xiaomi had already decided on the inclusion in the past. However, the company opted to postpone the move in favor of the Hong Kong debut.

SEE ALSO: Xiaomi Mi Mix 3 live images leak showing no chin, no notch

Enterprise

Lazada’s 11.11 concludes with record-breaking sales

E-commerce is growing in the Philippines

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Lazada just had a blast with its 11.11 sale. This year’s sale sets new records for the online store company, with over 11 million deals from local and international brands sold to customers in the Philippines.

Lazada tallied one million sold items within the first hour of the 11.11 sale. One million users also shopped for various items on the website. By the end of the sale event, Lazada shoppers spent a total of 205 million minutes shopping on Lazada. That’s equivalent to watching a marathon of harry Potter for 187,000 times. Filipinos also proved to be shopping-savvy, collecting up to PhP 170 million worth of vouchers during the sale. One person’s shopping cart even amounted to a whopping PhP 1.2 million.

Bigger league of millionaire sellers

Dealers and sellers also set a record for increasing the membership of Lazada’s millionaire-seller league. The league, where sellers past a million peso sale mark earn membership, gained 1,140 new sellers because of the 11.11 sale.

Top brands in the 11.11 sale include Xiaomi for mobile category; CooCaa for home appliance; Pampers for mother’s care; Hydro Flask for general merchandise; Maybelline for health and beauty; and American Tourister for fashion.

This year’s 11.11 sale proves that e-commerce is booming the country. Globally, e-commerce is growing steadily, with China’s Singles’ Day event this year crossing the US$ 38 billion mark for total sales.

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Enterprise

Huawei might get a third extension in the US

Despite US promises to stop extensions

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When will Trump’s obsession with Huawei end? For more than two years, the US government has wandered into an on-and-off relationship with Chinese companies, especially Huawei and ZTE. Currently, the Chinese corporate world is suffering a massive ban on American soil.

Huawei, the ban’s main target, operates purely through a temporary extension granted by the US government. Unfortunately, the license runs out in a few days on November 18, US time. Even then, the current one is already the second extension since May’s definitive ban. In fact, the government already talked about ceasing the extensions altogether.

However, if their previous “promises” are anything to go by, even this particular promise was made on shaky ground. First reported by Politico, the government is expected to extend Huawei’s extension a third time. Unlike the previous 90-day extensions, however, the upcoming one will extend the company’s license by six months.

Though surprising, a third extension likely stems from the government’s recent headway with a more permanent deal. As such, the Trump administration will gain much more by keeping Huawei as a bargaining chip during the deal’s negotiations.

Still, this is getting tedious. For months, both the US and China have been in a relentless tug-of-war for Huawei’s right to operate. However, despite all the news, the issue hasn’t seen a definitive conclusion. Huawei is still in the same mire that it’s been in since May. Who knows when it will end?

SEE ALSO: Taiwan suspends sale of three Huawei phones

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Enterprise

Apple: Students with Chromebooks ‘are not going to succeed’

Wants you to buy the MacBook Pro instead

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Are you buying the new MacBook Pro? Apple’s new 16-inch notebook is a powerful device built for heavy-duty use. If you’re a student today, a new MacBook is surely an asset, especially if you do heavy design work. In fact, Apple itself is advertising the device as the best option for academic life.

In a recent interview with Cnet, Apple’s marketing head Phil Schiller waxed poetic about the company’s continued dominance in academic institutions and creative industries. “College students’ [use] is dominated by Macs,” Schiller said. “In the majority of creative fields — writers, video editors, music creators and programmers — I think that’s an area that’s super strong.”

In fact, a quick trip to the nearest private college confirms this fact. Macs are super popular. “We just have great customers who love the Mac,” Schiller said.

Of course, the computing world isn’t populated by just Apple. Windows is still a capable alternative for a huge chunk of the world. Apple isn’t happy with Windows’ continued presence.

“The PC world is a world of sameness,” said Schiller. “You have commodity hardware [and] a generic operating system that has to work on a lot of stuff, so it doesn’t work great on any one thing.”

True enough, Apple’s devices are catered more for creative purposes. However, Schiller’s rant goes further. The marketing boss goes off against Google’s Chromebooks, lambasting them as the poorest option for students.

“You need to have these cutting-edge learning tools to help kids really achieve their best results,” Schiller said. “Yet Chromebooks don’t do that. Chromebooks have gotten to the classroom because, frankly, they’re cheap testing tools for required testing. If all you want to do is test kids, well, maybe a cheap notebook will do that. But they’re not going to succeed.”

Schiller’s follow-up tweet doesn’t do much to save face. “We discussed giving kids and teachers the content, curriculum and tools they need to learn, explore and grow. Not just to take a test,” he tweeted. Like the original interview, the tweet touts Apple’s superiority in bringing out success, despite their astronomical prices. To Apple, owning a MacBook is a requirement to be successful.

Schiller’s opinion is a strong statement against Google’s popular notebook. The Chromebook is still a massively affordable and massively flexible option for markets of all sizes. Despite the division losing strength, Schiller’s statement goes against all PCs, as well.

SEE ALSO: Apple sets another record this year

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