Yesterday, China’s mobile phone industry was really crazy. Not only did four mobile phone manufacturers including Yijia and Xiaomi release new products on the same day, but Meizu also disclosed its financing information one month ago. “Headline†is no longer exclusive to the entertainment industry.
In the face of competition from mobile phone manufacturers, industry upstream and downstream companies are applauding this industry feast. But for consumers, they don't seem to be impressed because they already have too many choices.
According to GfK China data, in the first half of this year, there were 245 brands and 971 different models of smartphones were released, and a total of 4,240 smartphones were sold.
In fact, this number is still increasing. In the market, while emerging brands such as IPlus and IUNI have emerged, traditional mobile phone manufacturers such as Huawei and Coolpad have also developed some product lines independently.
However, in this hot market, there seems to be a voice that quietly reminds us that the bubble is about to break out.
The issuance of 4G licenses allows mobile phone manufacturers to promote 4G terminal products more aggressively. Manufacturers such as Huawei and ZTE have already launched 4G products in overseas markets very early. However, they were once subject to policy factors in China and can only launch 3G products. With the acquisition of 4G licenses by the three major telecom operators, the resolution of the “birth permit†will open up new market space. Radicals such as OPPO have announced a full-line transformation of 4G products in June.
However, this is not a good thing. For manufacturers, the currently available 4G chip solutions are still limited. Qualcomm is a big one, although it does not monopolize the market, but for users who have been educated in the 3G era, the chip is still an important factor in their choice of mobile phones. Therefore, whether it is possible to get upstream support is the key to whether terminal manufacturers can quickly introduce new products.
Taking Xiaomi as an example, the release of Mi 4, Lei Jun only claimed to use the Xiaolong 800 series processor, but did not tell consumers the specific model. The reason for this is that Xiaomi failed to get the Qualcomm chip first in order to meet its cost-effective positioning. What Xiaomi can do is to wait for chip makers to achieve mass production, which will reduce the price of the chip to an acceptable price.
Analysts said that if four or five chip makers can provide products that meet the needs of mobile phone manufacturers, the cost will be further reduced, and more mobile phone manufacturers will enter the market.
According to the product roadmap, products from chip makers such as MediaTek and Intel are gradually mass-producing.
On the other hand, the channel advantages of operators are gradually weakening, and mobile phone manufacturers are turning to Internet channels.
The promotional mode of long-term charging for mobile phones will be changed. This is because after the three major telecom operators "business tax collection changed to value-added tax increase" (referred to as "camp reform"), the original mobile phone as a "gifts" will be sold and will be subject to VAT at market prices. In addition, terminal subsidies have also caused agency channels to defraud subsidies in the form of “disassemble†and “nursingâ€.
Therefore, under this series of opportunities, telecom operators have gradually canceled the delivery of mobile phones, and switched to users to purchase mobile phones to receive credit subsidies, and the sales model will also be mainly to bare-metal sales and contract-based transformation. Facing the adjustment of the three basic telecom operators, the downstream terminals of the industrial chain will face a new round of reshuffle in the second half of this year.
Huawei, Coolpad and other manufacturers have proposed independent e-commerce brands, which seems to ease the pressure on the operator channel, but in fact, the traffic-based Internet channel is still a test for mobile phone manufacturers. In order to stand on the Internet channel, mobile phone manufacturers must invest a lot of marketing expenses in exchange for advertising clicks and marketing recommendations. Adapting to new channels and models to form brand appeal will obviously take time.
In fact, from the perspective of the entire mobile phone industry ecosystem, the market is not optimistic. Although there are several reasons for the market to continue to grow, overall, the space left by the Chinese market for mobile phone manufacturers is decreasing.
In this market, which has already accelerated the elimination of the rhythm, the frequency of users buying new machines is obviously accelerating. At the same time, users' loyalty to the brand is not high. Relevant data shows that in addition to Apple's leading edge of up to 75.4%, other Android camp phones are not higher than 30%. What's more, there have been reports from several analysts that the mobile phone market is near saturation.
Yan Lanxin, IDC research manager, said that in the smartphone market in 2014, under the conditions of slower growth in numbers and closer hardware specifications, manufacturers will be more active and enthusiastic than the past.
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