Chinese company Qihoo sends clearer picture of corporate strategy

Last week, the Chinese search engine company Qihoo and the domestic smartphone manufacturer Coolpad announced the name of their joint venture: QiKU. Shanghai-based Neil Flynn, portfolio manager of Alcuin Asset Management, says the new company has cleared doubts about its ability to compete in the smartphones business, which benefits US-listed Chinese company Qihoo. Prior to the official launching of the new company’s brand Qihoo’s CEO Zhou Hongyi had suggested that its next smartphone would be a high-end phone that would compete with the likes of the Apple iPhone and Samsung Galaxy, with a similar price of about 5,000 yuan ($806). “This was concerning because, irrespective of the quality of the phone, smartphone users pay for the brand name, and Qihoo cannot currently compete with Apple or Samsung in brand reputation terms”, says Flynn. However, Alcuin’s portfolio manager argues that the US-listed company has now dismiss such claims and its shares are actually in a very good entry level for a trade. To read more visit: (VIEW LINK)