China smart devices EQUITY: TECHNOLOGY The next mega trend for 2014 and beyond? Global Markets Research LTE, Smart Homes, 3D Vision, EV, IT nationalism, 21 May 2014 Smart TVs, 4G smartphones and more… Anchor themes Despite the macro slowdown and Industry view: hardware + service to stimulate industry upgrade saturation in major technology We believe “hardware + service” has become an important business model to product lines, we think innovation drive the development of China’s IT hardware sector. In the past two years, and policy supports are the popularity of WeChat and mobile gaming has accelerated adoption of 3G incubating a new round of smartphones in China. Since 2013, IPTV services such as LeTV have started growth, potentially benefiting to reshape China’s TV industry. Looking ahead, we believe: players well positioned in various Mobile video services will stimulate growth of 4G smartphones TMT sub-sectors. TV game deregulation will become a new driver for Smart TVs in China Nomura vs consensus Air pollution may boost demand for EV and green home appliances We analyse China's TMT industry E-commerce will create new opportunities in O2O logistics from the perspective of a broad scope throughout the vertical & Smart home hardware is ready to incubate service and reshape the industry horizontal axis, and across sub- Concerns on IT security will benefit players in nationally strategic areas like sectors. semiconductor and enterprise equipment Research analysts 3D vision may help machines to better understand the real world and innovate the way people use e-commerce and auto driving. China Technology Regulatory policies still matter Leping Huang, PhD - NIHK As well as the above, government policy will play an important role in guiding
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