Alibaba invests in Konka and the Internet of Things

22/01/2019

About 47 million internet TV sets will be sold in China this year

The expansion of technologies such as 5G and the growing power of computer data is revolutionizing the way we interact with the same technology. One of the fields of application of the new technology is that of the Internet of Things, whereby all the home objects are connected to each other. Alibaba Group Holding, which wants to expand its presence in the Internet of Things, has taken a minority stake in the Konka Group‘s intelligent television group.
Yang Jungang, the general manager of the subsidiary, told Yicai Global that Alibaba bought 3 percent of KKTV from the Shenzhen Konka. “There’s a lot to do to achieve smart TVs, and more partners are necessary,” Yang said. “Alibaba has ideas about smart homes”. However, it is not the first investment of Alibaba in the field of IoT. Alibaba, based in Hangzhou, has already invested in the smart TV business of Haier Group and launched its Tmall Box Internet TV and Tmall Genie speakers.

The IoT field is expanding, and about 47 million internet TV sets will be sold in China this year, according to Yang.

For its part, Alibaba will provide Konka with constant value services, including a content engine based on the Youku Tudou online video platform, interactive technologies from the Alibaba Damo Academy artificial intelligence laboratory, as well as Alibaba’s new retail infrastructure for the marketing. “”KKTV can surely gain 30 percent more in terms of operating income than last year” added Yang.
This year KKTV will sell up to a million TV on the Internet. The 64-gigabyte 55-inch sets cost less than CNY 3.000 (442.60 USD). KKTV has cut the prices of its hardware in order to involve more users with its software services in which revenue streams can be formed. The founder of Xiaomi “Lei Jun proposed a less than 5 percent margin on Xiaomi’s hardware, while we offer lower than zero percent on ours” Yang said.

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