Thursday Tech Briefing: Qualcomm Says Apple Breached China iPhone Sales Ban

1. Tencent Music Soars on New York Debut

Shares of Tencent Music Entertainment Group, China’s largest music streaming service, jumped in their New York debut following the company’s $1.1 billion initial public offering.

The music unit of tech giant Tencent Holdings closed at $14 Wednesday on the New York Stock Exchange, up nearly 8% from the IPO price of $13.

The share price translates to a market capitalization of $23 billion for Tencent Music, which is on a par with the $23.35 billion market value of Spotify, the world’s largest music streamer. Tencent Music owns 2.5% of Spotify. (Caixin)

2. Chief of Distressed Phone-Maker Resigns as Firm’s Legal Representative

Luo Yonghao, head of one-time smartphone darling Smartisan, has stepped down as legal representative of the company.

It is widely believed that the company is experiencing a capital shortage and is laying off employees.

Wen Hongxi replaces Luo as legal representative. Luo and Wen were English teachers together years before Luo founded Smartisan. (Caixin)

3. Qualcomm Says Apple Breached China iPhone Sales Ban

Qualcomm says Apple is still selling iPhones in China, breaking a recent court order.

The chipmaker has handed in a video to the court as evidence showing iPhones being sold in China.

The Fuzhou Intermediate People’s Court ruled that Apple is infringing two Qualcomm patents and has issued injunctions against the sale of the iPhone 6S, iPhone 6S Plus, iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus and iPhone X, Qualcomm said in a statement Monday. (CNBC)

4. Bilibili Agrees to Buy NetEase Comics

Chinese streaming platform Bilibili Inc. announced Wednesday it agreed to acquire NetEase Comics, including the website, app and relevant copyrights to incorporate into Bilibili's existing comic business.

NetEase Comics, launched in Aug. 2015, has more than 20,000 comics and 40 million mobile users.

Bilibili's Shanghai-listed shares responded positively, rising 1.59% to $15.29 per share. (Caixin, link in Chinese)

5. Apple Suppliers Considering Moving iPhone Production out of China if Tariffs Hit 25%

Apple Inc.’s suppliers will consider moving iPhone production away from China if tariffs on smartphones hit 25%, but the companies have no such intention for now, even if the U.S. levies a 10% import tariff, Bloomberg reports.

China is the second largest market for Apple. In 2017, Apple sold 46 million iPhones in China as 21% of overall global sales.

Chinese companies like O-Film Tech Co, Lens One Technology and Luxshare-ICT supply Apple with touch screens, smartphone glass, and other parts. (Bloomberg)

Compiled by Ye Zhanqi