The success of Qianyuan smartphones did not satisfy operators and mobile phone manufacturers. Following China Telecom's announcement to focus on the creation of a 600-yuan smartphone, China Unicom has recently expressed its commitment to the smartphone market below 700 yuan. The operator's position immediately attracted a number of mobile phone manufacturers to respond, and product prices continued to decline, which also allowed smartphones to enter the "hundred yuan era" from the "thousand yuan era".
Telecom Unicom successively exerts force
Recently, China Unicom said that it will invest 100 billion yuan to carry out 3G network transformation, and plans to launch smartphones less than 700 yuan.
Lu Yimin, general manager of China Unicom, said that at present, half of the WCDMA terminals sold in the market are customized by China Unicom. As of June 2012, China Unicom had launched more than 20 Wo 3G thousand yuan smartphones, with a total sales volume of 18 million. In the first half of this year, the total sales of WCDMA terminals in China was 34.45 million.
The data shows that at the price of 1300-1999 yuan, WCDMA smart terminals occupy 72.6% of the market share; at the price of more than 2,000 yuan, WCDMA smart terminals occupy 65.9% of the market share; at the low-end price of less than 800 yuan, WCDMA smart terminals Market share is low. Therefore, China Unicom said that it will make efforts in the lower-priced smartphone market in the future to promote the development of mobile Internet.
Earlier, China Telecom had stated that in order to continue to consolidate the leading edge of the thousand yuan machine and accelerate the popularization of 3G smartphones, it will promote smartphones below 600 yuan.
Ma Daojie, director of China Telecom Terminal Management Center, pointed out that China Telecom will not only build a thousand-yuan smart phone with continuously improved cost performance on a thousand-yuan smart phone, but also further extend its functions, performance and experience. It will also extend the price of smart phones, not only launching 3G smart phones for less than 600 yuan, but also guaranteeing the interests of partners within this price range.
Although China Mobile has not made a clear statement in this area, the high cost of TD chips has kept TD terminal prices high. Therefore, China Mobile is also more eager for TD mobile phones below 1,000 yuan. At present, some mobile phone manufacturers on the market have launched TD mobile phones with less than a thousand yuan. It is not difficult to see that operators still value the smartphone market below 1,000 yuan.
Mobile phone manufacturers have followed up
After the operators' successive "calls", mainstream mobile phone manufacturers such as Coolpad and Huawei began to respond. At present, domestic manufacturers such as Coolpad, Huawei, and ZTE have launched smartphones with a price of 600-800 yuan, and they are beginning to sell in online malls.
The reporter saw on Jingdong Mall that some low-cost smartphones have been affixed with slogans such as "Hot Sale", "Breaking Price", and "Charge". Among them, Huawei's low-cost smartphones have achieved full coverage of the three major operators, with a price range of 688-799 yuan. Coolpad has also launched many new low-cost smartphones to the market recently, covering the three 3G systems of CDMA, W-CDMA and TD-SCDMA. In Tmall Mall, the reporter found that the Coolpad model 7230 has been sold in stock at the official flagship store of Coolpad Tmall, and the price is only 629 yuan.
Some experts believe that in the mid-to-high-end market firmly controlled by Apple and Samsung, domestic manufacturers also hope to use low-price strategies to bypass the market, but there is also the danger of falling into the quagmire of homogenization. In this regard, the relevant person in charge of Coolpad Beijing said in an interview that the homogenization of Android is inevitable. Coolpad is adhering to innovation in experience and not competing on hardware. For example, Cool Cloud services, dual-pass features, etc. At the same time, it is currently actively developing mobile phones with WP operating system.
"In addition, the current mobile phone market will usher in a wave of replacements, especially in the 3-6 line urban and rural markets, smart phones are just beginning to spread. This price is just suitable for this part of the consumer population." The person said.
Sales determine profit margins
Despite the rapid development, thousands of smartphones have a common feature, that is, to take the hardware route. Relying on hardware facilities such as chips and screens with decreasing prices brings profit margins.
At the same time, some people in the industry pointed out that most of the thousands of smartphone manufacturers rely heavily on the high-subsidy strategy of the three major telecom operators. Obviously, this practice cannot be sustained. Not long ago, China Unicom has indicated that it will gradually reduce the subsidy of the thousand-dollar smartphone fee. This change in attitude will undoubtedly affect most manufacturers.
In this regard, Coolpad said that the decline in mobile phone profit margins is a problem facing the entire industry. As one of the terminal enterprises, Coolpad uses scale advantages and channel construction to gain greater profit margins, rather than the profit rate of individual products. This is also a big trend.
A person related to a mobile phone manufacturer privately disclosed to reporters that the early profits will definitely be affected, but the low price can drive the increase in sales. Once the sales volume comes up, the cost of hardware will also be reduced. "For example, the cost of a mobile phone to open a model is about 1 million yuan. If there are only 100,000 sales, it will definitely be compensated. If it reaches millions of sales, hardware manufacturers that provide chips, screens, batteries, etc. will lower their prices. Then profits will not be a problem. "
Reporter's notes
Regular army's low-cost strategy puts cottage phones on the verge of extinction
A few years ago, the unprecedented copycat phone ended up being called out by everyone because of malicious charges. Under the government's strengthened supervision, some have disappeared, and some have started to build their own brands. Although we may see a small number of cottage products appearing on the market from time to time, it is also dying.
In addition to the government's vigorous supervision, another reason not to be ignored is the availability of low-cost mobile phones in the regular army. The domestic thousand yuan mobile phone quickly became popular in just one year, and even the foreign manufacturers who had been taking the mid-to-high-end route were also dismissed. Samsung, Motorola and others also announced that they would enter the market not long ago, which gave Shanzhai mobile phones a head start.
As Analysys International analyst Sun Peilin said, in addition to the strengthening of national supervision of the market, the subsidies for brand smartphones by operators have increased the cost of cottages in a certain sense, and the strict control of brand smartphones on technical chips, etc. The cost-effectiveness of branded smartphones continues to increase, and the advantages of copycats in price and appearance innovation have been lost.
Nowadays, domestic mobile phone manufacturers have started to enter the 100-yuan mobile phone market again, which makes the cottage mobile phone that once used to hit the mountains at a low price completely no longer play. Imagine if the prices were similar, which user would choose a mobile phone with no brand or even a brand?
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