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Tencent Launches Reader to Expand Presence in E-book Market
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Tencent (TCEHY - Free Report) recently launched the new Pocket Reader II, its second-generation e-book reader in China.
It is priced at 1,099 yuan (approximately $158) and features the latest Carta 2 ink screen along with 2.5D AG process glass optical technology. The device is powered by a quad-core A53 CPU.
The Pocket Reader II is directly linked to Tencent Reading Group’s book resource library and will also allow users to import books through Bluetooth or USB while offering better support for third-party applications.
The Pocket Reader II is Tencent’s attempt to expand its footprint in the e-reader market in China. The number of people who read e-books in China have been steadily increasing and major e-reader vendors are racing to capitalize on this demand.
Notably, per statista, the number of e-book readers in China has risen 6.5% year over year to 347.8 million in 2019 so far and the figure is expected to reach 394.5 million by 2023.
Currently, both Amazon (AMZN) with Kindle X Migu and Xiaomi with iReader T6 are the noteworthy names in China’s e-reader market.
Despite the growing popularity of e-books, there has been a decline in the sale of e-readers. A major reason for this is the growing popularity of smartphones and tablets as the primary choice for readers and the lack of any significant technical developments in traditional e-readers.
However, Pocket Reader II is expected to beat this slump as it comes with features that differentiate it from the competition. Notably, the device supports 4G mobile card and data card networking, along with support for calling, text messaging and Wi-Fi networking, features, which are missing in competing products.
Tencent Hurt by Gaming Regulations in China
Tencent’s performance has been disappointing in 2019 so far. The stock is down 8% from its 52-week high price of $52.14 on Apr 10.
The decline can be attributed to low investor confidence in Honk Kong and China due to escalating U.S.-China trade war as well as increasing regulation on video games by the Chinese government.
Chinese officials have been cracking down on online games, with restrictions being placed on the total game time of minors. Moreover, all gamers, regardless of age, are prohibited from playing games that depict sexual explicitness, goriness, violence and gambling.
Notably, Tencent recently announced its first major restructuring in six years, which will lead to setting up of a new cloud and smart industries business to take on Alibaba (BABA) and increased investments in next generation technologies like AI, robotics, and quantum computing.
Long-term earnings growth rate for Applied Materials, Cirrus Logic and Fortinet is currently pegged at 8.2%, 15% and 14%, respectively.
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This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
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Tencent Launches Reader to Expand Presence in E-book Market
Tencent (TCEHY - Free Report) recently launched the new Pocket Reader II, its second-generation e-book reader in China.
It is priced at 1,099 yuan (approximately $158) and features the latest Carta 2 ink screen along with 2.5D AG process glass optical technology. The device is powered by a quad-core A53 CPU.
The Pocket Reader II is directly linked to Tencent Reading Group’s book resource library and will also allow users to import books through Bluetooth or USB while offering better support for third-party applications.
Tencent Holding Ltd. Price and Consensus
Tencent Holding Ltd. price-consensus-chart | Tencent Holding Ltd. Quote
Expansion in China
The Pocket Reader II is Tencent’s attempt to expand its footprint in the e-reader market in China. The number of people who read e-books in China have been steadily increasing and major e-reader vendors are racing to capitalize on this demand.
Notably, per statista, the number of e-book readers in China has risen 6.5% year over year to 347.8 million in 2019 so far and the figure is expected to reach 394.5 million by 2023.
Currently, both Amazon (AMZN) with Kindle X Migu and Xiaomi with iReader T6 are the noteworthy names in China’s e-reader market.
Despite the growing popularity of e-books, there has been a decline in the sale of e-readers. A major reason for this is the growing popularity of smartphones and tablets as the primary choice for readers and the lack of any significant technical developments in traditional e-readers.
However, Pocket Reader II is expected to beat this slump as it comes with features that differentiate it from the competition. Notably, the device supports 4G mobile card and data card networking, along with support for calling, text messaging and Wi-Fi networking, features, which are missing in competing products.
Tencent Hurt by Gaming Regulations in China
Tencent’s performance has been disappointing in 2019 so far. The stock is down 8% from its 52-week high price of $52.14 on Apr 10.
The decline can be attributed to low investor confidence in Honk Kong and China due to escalating U.S.-China trade war as well as increasing regulation on video games by the Chinese government.
Chinese officials have been cracking down on online games, with restrictions being placed on the total game time of minors. Moreover, all gamers, regardless of age, are prohibited from playing games that depict sexual explicitness, goriness, violence and gambling.
Notably, Tencent recently announced its first major restructuring in six years, which will lead to setting up of a new cloud and smart industries business to take on Alibaba (BABA) and increased investments in next generation technologies like AI, robotics, and quantum computing.
Zacks Rank & Stocks to Consider
Tencent currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Cirrus Logic (CRUS - Free Report) and Fortinet (FTNT - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Cirrus Logic and Fortinet is currently pegged at 8.2%, 15% and 14%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
See their latest picks free >>