The profit margin of domestic mobile phones is only 10%

"A millet mobile phone can earn 700 yuan, and that Lei Jun is really a god." Although millet mobile phone and mobile phone industry veterans all told this newspaper that this profit is impossible, but the profits of domestic mobile phones have become the focus of the industry. Internet companies have entered the domestic 1,000-unit mobile phone market, and China's mobile phone industry has once again experienced hot phenomena that have not been seen for many years. Some analysts believe that the competition in China's low-end smartphone market will become increasingly fierce, and the profit margin will also become very meager. Some data show that for the first time in eight years, domestic mobile phone sales have been “flattened” with foreign brands, but the overall profit margin is only about 10%, and it is completely impossible to compete with foreign brands.

Response: Xiaomi claimed that the profit of each mobile phone is not 700 yuan Recently, the industry rumors that millet technology has received a third round of financing, its market valuation has reached 4 billion US dollars, for which industry sources said that according to current millet sales, millet phone The profits have reached seven or eight hundred yuan each. Consumers have questioned this, after Xiaomi’s mobile phone said it did not make money on the hardware, and now such a high profit is “Flicker users”. In this regard, millet mobile phone marketing department of the relevant person told this reporter that profits are not so much outside the biography.

Liu Yang, a person in charge of traditional mobile phone manufacturers, told this reporter that Xiaomi’s sales model is through the Internet from the manufacturer directly to the user, omitting many intermediate links, so profits are a little higher than traditional mobile phone manufacturers, but the profit of each 700 yuan is This is unlikely because Internet promotion also requires cost. Liu Yang told this reporter that according to their projections, Xiaomi’s promotion cost for selling a mobile phone is about 100 yuan.

After Xiaomi, the enclosure movement of China's Internet mobile phone suddenly broke out. Baidu and Changhong released a smartphone with a price of less than 1,000 yuan. Alibaba and Haier announced that they will jointly launch a smartphone worth about 1,000 yuan. This month announced the launch of its own-brand mobile phone, and 360 also announced the upcoming special-supply machine. For a time, it seems that China's mobile phone industry has seen another blowout period since 2003. Under the impact of many Internet mobile phones, Xiaomi, which has achieved initial results by mimicking Apple's "hunger marketing," has been fully open to purchase. It not only purchases "unlimited", but also attracts users through various activities such as "feedback" and promotion.

It is understood that most of the Internet companies that join the "Machine Machine" War have claimed that the launch of mobile phones is more cost-effective than Xiaomi's mobile phones. This has created a lot of pressure on Xiaomi. However, according to media reports, Xiaomi Li, the co-founder of Xiaomi Mobile, said that Xiaomi had long prepared for full-scale purchases, not pressure from competitors. Yang Qun, a veteran in the industry, said that if the "blood sea strategy" of many domestic mobile phones was re-emerged in the same year, everyone would not improve product quality. It was just a price war. This is not a good thing for the entire mobile phone industry.

Analysis: Some domestic mobile phone companies are either "only earning money and not making money"

According to data survey agency Sino Data, the pattern of smart phones in China in April 2012 has undergone major changes. The share of domestic brands has risen by more than 5% from March. In the top five smartphones, domestic brands have 4 seats and international brands only have Samsung. , Cool, Huawei, ZTE and Lenovo's 4 share totaled more than 40%, while the overall share of domestic brands will exceed 50%. This is the first time in eight years that domestic smart phones have been "half the world" with foreign brands. However, at the same time as the sales increase, the profits of domestic mobile phones are still a big problem.

According to market research company ABI Research, in the first quarter of this year, Apple and Samsung controlled 55% of the smartphone market share, and their profits accounted for more than 90% of the total profit of the smartphone market. The Sino data shows that in April of this year, Samsung’s market share in China’s smartphone market was 22.75%, while Apple’s share was 8.52%.

According to industry insider Yang Qun, the average selling price of foreign brands is four times that of domestic brands. At present, the profits of domestic mobile phones are still difficult to compete with foreign brands. Our reporter was informed that the current domestic mobile phone brand profit margin is only about 10%, while the Internet marketing profit will be higher, but not too high, because the core things including chips, operating systems are controlled by foreign manufacturers In contrast, Apple’s gross profit margin is over 50%, and other internationally renowned manufacturers are around 30%.

In this regard, the industry analysts said that the current domestic mobile phone is still the amount to win, how Internet companies enter the mobile phone industry to ensure profit is still a top priority, and some companies only make money or drink.

Foreign brands move to Apple spoiler "stumping" the BlackBerry RIM intends to spin off the mobile phone business Apple's "spoiled" mobile phone industry, so that Nokia and RIM's two major mobile phone giants are under tremendous pressure. Yesterday, according to media reports, RIM is considering separating its mobile phone manufacturing business from the communications network business and listing it independently and even selling it. And RIM's BlackBerry was once the most popular smartphone in the world, including US President Barack Obama is a BlackBerry user. In the Chinese market, BlackBerrys, which used to be popular in the parallel market, are gradually withdrawing, and sales by operators are not satisfactory.

It is reported that Amazon and Facebook are potential buyers. In addition, RIM's communications network business may also be sold, the buyer may be Apple or Google. Another alternative is to maintain the integrity of the company but sell part of the equity to a larger technology company.

Under the "pinch attack" between Apple and the Google camp, RIM's performance fell sharply. IDC's data shows that BlackBerry's global smartphone shipments in the first quarter accounted for 6.4%, down from 13.6% in the same period of last year, and shipments fell 29.7% year-on-year. And RIM's stock price continued to fall, in 2008 the stock price has reached a high of 144.56 US dollars, and as of yesterday's close, RIM's stock price was 9.855 US dollars, the market value of only 5.17 billion US dollars.

Li Yang, an industry insider with poor performance in the Chinese market, said that after Apple and Android began ramping up, RIM is still not open, resulting in users not being able to experience rich applications.

In the Chinese market, because many BlackBerry smart phones are used refurbished machines, the quality of parallel imports is uneven. In the licensed market, it was revealed that RIM did not complete its full cooperation with China's three major operators until last year, but due to its high pricing, the current sales situation is not ideal. Due to poor performance, Xie Guorui, former president of RIM China, officially left office at the end of last year. The successor, Long Anshi, was transferred and submitted his resignation only five months after taking office this year. Li Yang said that compared with the Apple and Android camps, the BlackBerry almost completely defeated the Chinese market.

The US Court rejected Apple’s patent infringement against Motorola’s patent infringement. Apple’s Patent Warfare Loses a Second According to media reports, the US Federal Circuit’s Seventh Circuit Court of Appeal dismissed Apple’s patent infringement suit against Motorola’s Motorola’s mobile phone in Chicago. The judge finally ruled that Apple would be dismissed. Requests for bans on Motorola's mobile devices and prohibits both parties from re-prosecuting each other in the future. Some analysts believe that this ruling was a major blow for Apple. Apple had hoped to use this ruling to stifle Motorola's mobile devices, but Apple's and Google Android's patent litigation will continue.

For this ruling, neither Apple nor Motorola Mobile made any comment. Our reporter called Motorola Mobility China, and related sources said that this is a unified behavior of the headquarters and Motorola Mobile China has no more news to disclose.

In the Chinese mainland market, the current lawsuits of both parties have not affected the market sales of the products. A channel provider said that he is not aware of patent litigation between companies, and the reporter learned that sales of Samsung, Motorola and HTC phones, including Apple's mobile phone and the Android camp, have not changed much.