The dilemma in front of the mobile phone company is: if you want to make a thousand yuan smart machine, you may face a loss. Even if the sales volume reaches millions, and you have a better control of the supply chain, you can only achieve meager profit, but if you do n’t If you do, you will lose market share.
It is probably not an exaggeration to describe the attitudes of various mobile phone manufacturers towards thousand-yuan smart phones in a hurry and in succession. But behind the prosperity, there is a lot of bitterness.
Over the past year, Huawei (Weibo) and ZTE have finally gained a foothold in the domestic mobile phone market with Qianyuan smartphones. ZTE can become the world's fourth largest mobile phone manufacturer in one fell swoop. Lenovo seems to have successfully turned over in the mobile phone market with its thousand-yuan smartphone. In Yang Yuanqing's words, it was Lenovo's goal that it had not achieved for many years on the feature phone, and finally did it in the smartphone market.
Coupled with the high-profile Xiaomi and Meizu, which has pushed the price of quad-core smartphones to 2,499 yuan, the thousand-yuan smartphone market is really like a sweet dish.
International manufacturers finally couldn't hold back and joined in. At the end of April, Motorola became the first international manufacturer to release a thousand-dollar smart phone. In conjunction with China Unicom (Weibo), XT390 was released. The next day, HTC also released the first thousand-dollar smart phone within 2,000 yuan. News from China Telecom (Weibo) shows that Samsung will also join the thousand yuan smart phone camp and will release two products in one go.
The thousand yuan smartphone market is really lively. But does this market really look so beautiful?
Huawei ’s first-generation thousand-yuan smart machine C8500 sold more than one million a day, and the second-generation thousand-yuan smart machine C8650 broke through million sales within 60 days. ZTE's V880 finally sold more than 8 million units.
However, speaking of Huawei ’s annual C8812 CDMA smartphone launched in conjunction with China Telecom in 2012, Yu Chengdong, chairman of Huawei ’s terminal, revealed for the first time that this product suffered severe losses. It is understood that operators will collect a batch of 799 yuan and 999 yuan mobile phones in the near future. If Huawei adopts certain quality standard devices and solutions, plus patent fees, Huawei's cost will be at least $ 20 higher than competitors. As long as Huawei does it, it will face losses.
"Operators demand low prices, and the high-quality devices and components and design architectures adopted by Huawei cause costs to be much higher than those of domestic counterparts. Others make a profit and we lose, even if the products are competitive, but painful." Yu Chengdong said.
In 2011, Huawei ’s consumer business achieved revenue of 44.62 billion yuan, an increase of 44.3%, and smartphone shipments exceeded 20 million. However, Yu Chengdong was distressed that Huawei ’s low-end smartphones cost more, and operators What if the purchase price (purchasing) causes Huawei to lose money and China is not profitable?
From this perspective, Huawei hopes to increase its popularity and enter the high-end (mobile phone market) mentality in a short period of time, which is easier to understand. ZTE's situation is similar to this, and in the domestic smartphone market has adopted a strategy similar to Huawei, a number of mobile phones sold more than one million, but it is questionable how much profit has contributed.
In 2011, ZTE ’s mobile phone business achieved revenue of 26.933 billion yuan, a year-on-year increase of 52.63%. However, JPMorgan Chase estimates that although the mobile phone business will account for one-third of ZTE ’s revenue in 2012, the net profit of this business accounted for only 8% of total net profit. In contrast, Samsung ’s telecommunications sector, including mobile phones, contributed half of Samsung ’s revenue, but contributed 73% of profits. Therefore, unlike Huawei's direct launch of high-end mobile phones, ZTE's high-end strategy is to sell mobile phones to high-end markets such as Europe and the United States for profit.
The question is, if even the cost-control "masters" like Huawei and ZTE will inevitably lose money in the domestic thousand-yuan smart phone market, how will other multinational mobile phone manufacturers join in to ensure profits?
The dilemma in front of the mobile phone company is: if you want to make a thousand yuan smart machine, you may face a loss. Even if the sales volume reaches millions, and you have a better control of the supply chain, you can only achieve meager profit. If you do, you will lose market share.
In the 3G era, the impact of operator subsidies on the terminal market is obvious. Have mobile phone manufacturers thought about it and how to choose?
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