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Will cost-performance become history?

After 2017 “troubled times” melee, starting from the beginning of 2017, mobile phone rivers and lakes will be agitated – sudden price increases become the first key words, vigorous channel war in full swing, layoffs, handsome news is still coming … … smart Mobile phone after 10 years of golden age, is entering a new industry turning point. The market peaked, the stock market battle more tragic, how to market pattern?

This is a worst industry, full of uncertain challenges; it is one of the best industries, full of endless imagination and opportunity.

1 why the price tide so far?

Component procurement costs rise, superimposed exchange rate impact

Mobile phone industry recently appeared an anomaly: millet, Meizu, music, Nubian and other manufacturers have raised some of the model prices.

Among them, Meizu Note5 3GB running memory version price increase of 100 yuan; red rice 4 series prices are up 100 yuan; Nubian miniS will also raise the price of 100 yuan; 360 N4S Xiao Long version also adjusted the price, And Jingdong different degree of price increases. In short, or from tens of dollars to one or two hundred dollars range, the price of the protagonist are also thousands of dollars machine

A CEO Liu Zuotu said in microblogging, 2017 mobile phone industry’s main theme is “price”. 360 will be released this week, the new machine, for the market may sell high prices rumors, 360 chairman Zhou Hongyi’s response is: “Although we are in the price, but the 360 ​​mobile phone every dollar up to be worthy of the user.”

Why is this situation? Beijing Morning News reporter learned in the interview, this round of mobile phone prices there are two main reasons: First, from the global market, starting from 2017 some raw materials prices, labor costs, electricity costs, transportation costs are increasing, the basic Second, the exchange rate changes on the cost of mobile phones also constitute a great pressure from the beginning of last year, the yuan has been depreciating, and many of the procurement of components in dollars dollars.

It is understood that the cost structure in the phone, the main chipset, display and touch module, before and after the camera, the four major storage modules are almost out of stock in the state. In particular, OLED display rally. Millet last year had met four months of supply chain shortages, and OPPO popular models R9 series of mobile phones, 7 months before listing is said to have a serious shortage of three months. The current shortage of mobile phone components has not yet alleviated the phenomenon.

A mobile phone company executives told the Beijing Morning News reporter, before the price increase in some concerns, but the user needs in the upgrade, the high demand for thousands of yuan machine demand. This is their courage to buck the price increase against the market.

IHS Technology in China, Wang Yang, director of research seems 100 yuan or very large. After all, low-end machine’s net profit can do 3% to 5% on the good. The result of price increases depends on whether the consumer pay.

More manufacturers will follow suit prices are still unknown. Mobile China Union Secretary-General Wang Yanhui pointed out that the price can only explain the brand premium is not enough. Mobile phone industry is rather special, the supply chain turmoil is a normal, a good brand for the supply chain should have a strong ability to control. In a mobile phone business executives view, price increases is precisely the beginning of this year’s competition intensified.

2 will be the history of history?

With the low-end sales of the number of road does not work

HTC executives recently put words, HTC will stop chasing in the low-end entry market mobile phone sales, instead focus on the design and sale of high-margin equipment. Coincidentally, before the Spring Festival, Luo Yonghao announced that the hammer will give up the thousand yuan machine product line: “To do this year to do high – end quality, all thousand machine the following product line all cut off, because the low – end will drag the product quality.

There are indications that “do not seek early profits, first by cost” on the practice is to give way to “sell a cell phone to make a little money,” the traditional business model. More manufacturers began to say no to the price war, to the high-end to profit.

Since last year, many manufacturers to strengthen the transformation of high-end market layout. Huawei to the 5000 + market to launch the impact, and even made million machine; OPPO, vivo rushed to the 4000 stalls; even the price tag has also been playing millet also show their own concept machine; Jin Li also launched up to 6,999 yuan high-end machine , And even 16,999 yuan luxury mobile phone.

Although the thousand yuan machine market is still can not give up the hills, but to the low price to the scale of the road has been gas.

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GfK retail monitoring data show that the first half of 2017 China’s mobile phone market in the high-end (2,500 yuan to 4,000 yuan) to become the main driving force for the growth of smart phone market. The agency is expected in 2017 China’s mobile phone market in the high-end scale will further enlarge, continue to promote the Chinese mobile phone market structure upgrade.

Wang Yang that thousands of machines will always have a market. But the thousand dollars is no longer a synonym for low-quality low-cost, cost will not disappear, after all, each price has its own user base.

ZTE terminal director Lu Qianhao that the face of rising costs of pressure, manufacturers generally have three options: the first way, by focusing on products to achieve a single product on the amount of cost to spread low cost; Second, increase the additional value, To achieve brand premium; Third, to the high-end market transfer. In his view, most of the three routes will be cross-use. But the core point is that the future of mobile terminals is the product, innovation, channels, services, industry chain, brand and other latitude of the competition. “To experience the user, to the user to word of mouth, to the word of mouth to the brand, and ultimately to achieve profits from the brand.I think this is the only way for more terminal manufacturers.

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