Facebook has set up a subsidiary in China to build an “innovation hub” focused on helping local developers and entrepreneurs to innovate and grow, the media reported.
Facebook’s application for the China subsidiary in the Zhejiang province was approved on July 18, CNBC reported on Tuesday citing a filing with the country’s National Enterprise Credit Information Publicity System.
“We are interested in setting up an innovation hub in Zhejiang to support Chinese developers, innovators and start-ups,” a Facebook spokesperson was quoted as saying.
According to a report in Mashable, the subsidiary is entirely owned by Facebook, meaning it did not have to partner with popular Chinese social media sites Weibo or WeChat to get approval.
Facebook has similar hubs in other countries including India, France and Brazil.
As China strictly censors foreign social media and search engines, Facebook’s website remains banned in the country. Contents from Google and Twitter also remain blocked in the country.
Be honest and ask yourself: Would you buy a smartphone that neither supports Android operating system and Google apps nor comes pre-installed with Facebook, WhatsApp and Instagram? This is the scenario which Huawei (and its sub-brand Honor) smartphones stare at in the near future – and an imminent fall if the issue does not get resolved in the next one-two quarters.
Although the Chinese communications giant aims to launch its own operating system called “Hongmeng” to replace the Android OS on its smartphones but ‘abhi Dilli door hai’ as the OS has to see the light of the day and then users’ approval, which is the most critical part.
The absence of apps like Facebook or WhatsApp that truly define user experiences is a double whammy for Huawei.
Currently the second largest smartphone player in the world (powered by stupendous growth in non-US regions like Europe and Asia), Huawei has sensed the tough road ahead. A recent report in Nikkei Asian Review claimed that Huawei has “downgraded its forecast for total smartphone shipments in the second half of 2019 by about 20 per cent to 30 per cent from the previous estimate”.
According to Navkendar Singh, Research Director, Devices and Ecosystem, India and South Asia, IDC, almost half of Huawei’s smartphone volumes come from outside China with its wide smartphone portfolio which runs on Android with Google Mobile Services (GMS) – a collection of Google applications and application programming interfaces (APIs) that help support functionality across devices.
“China has its own ecosystem of apps which are hugely popular but only in China. Outside it, almost all popular Android apps are from Google or from US-based companies. These apps are the heart of experience of any smartphone user these days,” Singh told IANS.
“Without these apps present on its own OS, it will be very very tough for Huawei to pull in demand for its phones running on its own OS,” he added.
Sandwiched between the ongoing US-China trade war, Chinese telecom equipment major Huawei is frantically looking to salvage its prestige and fast cover the lost ground.
The company is also looking at the Indian smartphone market which has touched 450 million smartphone users and has a great potential to grow.
“In India, they have never been really able to scale up to be a major player. But considering the growth potential in India, the decision by Google and Facebook has put a spanner in the Huawei’s possible aggressive plans for the country as the next growth market in next two-three years outside of China,” Singh told IANS.
Huawei pipped Apple as the second largest smartphone seller in the first quarter of 2019 after Samsung. It clocked 17 per cent market share in the global smartphone market, according to Counterpoint Research.
The Chinese tech giant, meanwhile, has denied reports that it has cut down smartphone manufacturing.
The company, however, is reassessing its target to become the world’s top-selling smartphone vendor by 2020, after the US trade ban was put in place.
On May 15, US President Donald Trump effectively banned Huawei with a national security order.
Huawei has filed a motion in a US court challenging the constitutionality of the US President Donald Trump’s order to ban it.