Asia Pacific (APAC), Global Politics

Cross-strait News Daily Round-up for Dec. 11

Most smartphones will be cheaper than US$100 each by 2020: Gartner

Gartner (NYSE: IT) said on Dec. 11 that 78% of smartphones will cost no more than US$100 by 2020.

Gartner’s latest research and analysis said that by 2018, 78% of the world’s smartphones will be available in developing countries.

The research said that most of smartphone users in these developing countries are attracted to those smartphone models with basic functions, while the development of luxury or top-of-the-line smartphone models has reached to a bottleneck.

Gartner said that the average price of basic smartphones will be between US$25 and US$78 each by 2018. China’s brand names, meanwhile, will grow fast and occupy most of the global market.

EBay to lay off some 1,000 employees

The Wall Street Journal reported on Dec. 10 that eBay (NASDAQ: EBAY) may lay off some 1,000 employees sometime early next year.

The newspaper reported that approximately 3,000 eBay employees will be impacted by the shrinking plan, while the company is also planning to make PayPal an individual company. Wall Street Journal reported that most of those who will be laid off belong to eBay.com and StarHub.

EBay spokesman did not either confirm or deny the allegation as of press time.

CGN Power lights up Hong Kong bourse

CGN Power (HKG: 1816) shares leapt a fifth during the company’s Hong Kong debut, as investors bet that China’s attempts to cut its reliance on coal will benefit Chinese nuclear producers.

Despite of Japan’s nuclear disaster in 2011, the Chinese government continued the construction of its 28 nuclear power plants. Nomura analysts gave CGN stock a 12-month price target of HK$4.10 on Dec. 10, saying that its strong capacity growth, rising demand and government support should lift its performance.

Last month, the company stated that it wanted to double its number of plants within five years.

Wintek lays off 7,000 employees of its factory in China

Wintek (TPE: 2384), Taiwan’s touch screen maker, laid off more than 7,000 employees from its Dongguan factory on Dec. 10, as more than 200 Chinese suppliers spent the past week protesting unpaid debts of US$37.25 million as they claimed.

One of the suppliers said that Wintek had closed suddenly and that there was no way to contact the company, as all the Taiwanese mangers had run off.

Wintek reported a loss of US$320.5 million last year, and another US$100 million in the first six months of this year. The company was once a long-term supplier for Apple.