Top of the Great Era

Chapter 1933 The form of Internet mobile phones

The wave of smart phones has already risen, and the domestic market will be the cruelest and most intense place in the field of smart phone competition.In the past few years, Astar has been doing well in China, and it is the largest Android mobile phone brand. It is estimated that this year's sales may exceed 100 billion US dollars!
However, that is only the overseas market.

Even Zhou Buqi doesn't have that much confidence in what Asda can develop in China.

The domestic mobile phone manufacturing industry is too competitive.

There are many reasons.

From a technical point of view, there are mainly two reasons.

First, the technical content of mobile phone manufacturing is not high, and the threshold for entry is very low.For mobile phone manufacturers, there is no need to study any chips, sensors, panels, or cameras, they just buy them directly from the supply chain, and then process and assemble them.

The second is the field of operating systems.

The operating systems of Android mobile phones in foreign countries are basically the same. In fact, there is not that big difference between buying Samsung or LG, Motorola or Sony.

Especially after the hardware products are highly homogeneous, the gap between different brands of mobile phones is getting smaller and smaller.

Because Jobs's ambitions are too great, he only has so little money in his hand, and there are too many businesses in the layout. From mobile phones, TVs to cars, there are too many subsidies that need to be "given" in advance.The later "withdrawal" has not yet been withdrawn, the company's cash flow is broken, and it will die if it cannot sustain it.

For example, an Apple supply chain manufacturer in China was found to be falsified by Apple, and this supply chain manufacturer with a market value of tens of billions immediately faced bankruptcy.

LeEco TV and LeEco mobile phones have high configurations, but the prices are very low, not to make money from consumers on hardware products, but to create profits for LeEco in subsequent use after consumers buy the products.

The supply chain is afraid to supply.

It means that the income of TV manufacturers is very small.

What a new gadget is a smartphone, and how much money is it? !

At that time, Mi 1 will be released at a very shocking price that can be called a devastating blow to the industry.Asda is also considered a mobile phone giant now, and it has also planned the domestic market since last year.

You can make money from software services, and hardware becomes a tool... and you can continue to compete with others through self-lowering prices. The entire industry is collectively lowering prices, and the competition will be unprecedentedly fierce.

No way, then you can't grab it with both hands.

Giving up profits at the hardware level, this gives Xiaomi phones a great deal of room for price cuts!
For mobile phones with the same configuration, the market price of "China Cool Union" mobile phones is 3500-4000 yuan, and the price of Mi 1 is 1999 yuan... directly bargain for half of the price!
Such a price advantage will bring extremely strong competitiveness.

This is so imaginative!

Before the mobile phone business grew, Xiaomi focused all its energy on mobile phones.

Then by providing these users with follow-up software services to generate continuous profits.

Apple makes money by making a lot of money at the hardware level, and after selling mobile phones to users, it continues to make money from consumers through the software level.

His innovative mobile phone strategy is the fundamental reason why Xiaomi, as a little-known small company, defeated the rapid rise of a large number of large manufacturers such as "China Cool Union".

Zhou Buqi said with a smile: "Yes, the Internet is now a big killer, and it will cause a devastating blow to many traditional industries that are ruthless. In my opinion, the mobile phone industry is also a traditional industry. Japanese companies such as Sony, Panasonic, and Sharp It’s all gone, and so are Nokia, Motorola, Siemens, and Philips.”

Counting "knowledge" as "unknown" will have a great advantage in the negotiation process.Xiaomi is a company founded by Lei Jun, who considers himself a "knowledgeable" party.

When Astar first started making mobile phones, Ziweixing endorsed it, so the supply chain believed in Astar and was willing to provide Astar with a large "debt line" to supply Astar.

So this model is very unfriendly to small companies.

Lei Jun is a person who came out of the Internet industry and the software industry. He makes Internet mobile phones, not hardware mobile phones. He positions Xiaomi as an Internet company, not a mobile phone company.

This is a kind of binding and constraint on the supply chain, and no fraudulent deceit is allowed, and qualified accessories must be provided.Once the fraud is done... Sorry, the order is cancelled, and the debt is cancelled.

On this point, LeTV has done even more extreme.

The impact of the millet model is not limited to the traditional mobile phone manufacturers such as "China Cool Union", Astar will also be affected.

Then, Zhou Buqi was really "fooled", and said proudly: "Okay, how many years have we known each other? I won't forget either."

Lei Jun was outspoken.

This is related to the business logic of some electronic product industries.

Zhou Buqi said embarrassingly: "Among the spare parts of a smartphone, the most important thing is the processor and the panel, right? This... the domestic supply chain system cannot solve it for the time being."

After all, selling hardware products is only a one-time service. After the product is sold, it loses the ability to continue to make money in the future.

Therefore, it becomes an important thing to optimize the interface performance of the Android system.

If the purchase frequency is too low, it means that the shipment of TV sets is too small.

Zhou Buqi and Zhou Shaoning remained calm, and patiently listened to Lei Jun's introduction to Xiaomi, as well as his own credibility assurance and product competitiveness.

Left hand hardware, right hand software, both hands must be grasped, both hands must be hard.

For example, Internet TV, just one advertisement on startup, the annual revenue brought to the manufacturer can far exceed the room for price concessions brought to users when the product is sold.

It's much better than when foreigners were called foreign guests in China and enjoyed many preferential treatment beyond nationals. The Friendship Store only allowed foreigners to enter and did not allow Chinese people to enter.

Volunteer to give up one!
They no longer pursue making money on the hardware products of the mobile phone itself like traditional mobile phone manufacturers, and voluntarily give up profits at the hardware level, but pursue longer-term benefits on software services.

This set of "give first, take later" Internet strategy directly beats the traditional industry to the ground.

In case the goods were lent to Xiaomi, but Xiaomi’s mobile phones could not be sold, they would be thrown into their hands... At that time, Xiaomi would go bankrupt and not pay the supply chain money, and the supply chain would have to bear huge losses for it.

If LeTV has tens of billions of cash flow in its account, maybe it can really run this whole model.

Anyway, Boss Zhou has to pay attention to his face. As long as he agrees, even if he doesn't sign the contract, it's not easy for him to go back on his current status.

Suppliers will suffer huge losses.

Zhou Buqi waved his hand, showing his trust in Lei Jun, "I support your entrepreneurship not only because of my trust in you, but also because of my judgment on the current global economic situation."

I plan to fool around first.

Take it one step at a time and take your time.

In fact, it is fooling.

Coolpad can't do it, it's over.

This is the core element of Xiaomi's success, not hunger marketing.

This is actually an inevitable situation in the current stage of domestic economic development.

Lei Jun was a little funny, knowing that this guy likes to go online, "So big?"

So Apple's ability to make money is super strong.

So Lei Jun was very cautious.

This is a small company. Although Lei Jun has already taken office as the chairman of Jinshan Group, there is no relationship between Jinshan and Xiaomi. Can Jinshan endorse Xiaomi?

Lei Jun nodded, "Well, Internet mobile phones are now the biggest outlet in the mobile phone business... I heard that Baidu and Ali are also entering the market."

For example, Xiaomi, they want to make mobile phones. In fact, they don’t need too much money in the account. They just need to convince the supply chain, and then get the goods in the form of “debt”.

After experiencing a short-term trough, Huawei quickly adjusted its strategy and rose again, becoming a mobile phone giant in the new era; Lenovo directly lost its domestic market, but fortunately, it sold well in overseas markets; ZTE was unsatisfactory and has lost its It is recognized by consumers at home and abroad, but with the promotion of the state, it can sell mobile phones to some besieged countries, and live well before being fined a huge sum of money.

In fact, Apple is the originator of this Internet software and hardware model innovation.

It is to get the goods first and pay later.

The provision of "software services" is different. After consumers buy the TV home, it becomes a long-term and effective platform channel for pushing advertisements to consumers!

First of all, the money must be returned to foreign suppliers such as Sharp and Qualcomm. If there is any surplus, the money will be distributed to domestic suppliers.This is not only a contract requirement, but also the general environment of the current economic development situation.

Internet mobile phones have defeated traditional mobile phone manufacturers, and Internet TV has defeated traditional TV manufacturers. They are basically similar strategies.You can sell the TV to consumers at a price lower than the cost price, and the manufacturer will make a small loss first, it doesn't matter!
First rely on the extremely low price to attract consumers!
After consumers buy the TV home, the manufacturer will find a way to earn back the profits of the hardware products in the subsequent process of providing software services to consumers.

Xiaomi's press conference was held in the middle of this month.

Hearing his tone, Lei Jun felt that there was some drama and was very happy, "Of course, we have cooperated quite a lot over the years, and every time is very pleasant, whether it is UC or YY."

Lei Jun is very self-aware. If Xiaomi wants to compare with Apple, it is really too presumptuous.Now Xiaomi can’t even compare with China Cool Union, Jinli, and Meizu in China.

Lei Jun is different, he is really down-to-earth and relies on his own strength to do it. He is a real entrepreneur. His level is much higher, and he is very mature in making Xiaomi.

This is too deceitful!

As everyone knows, he is the "unknown" party in front of the prophet Zhou Buqi.

Zhou Buqi smiled and said, "Just tell me, what do you want?"

After all, Jobs is a lucky person, and his business skills are still lacking.

"I found Sharp for the panel, so I don't need to worry too much about it. The processor needs to be connected with Qualcomm, and it's not too difficult. These are foreign companies. The real difficulty is domestic."

For example, a real estate company has a debt of 2 trillion yuan, and it is still not enough to pay for the debt... The first thing to pay off is the overseas debt, followed by the government debt, then the national prefix debt, then the private enterprise debt, and finally It is the debt of the common people.

As everyone knows, Zhou Buqi already knows the Xiaomi model like the back of his hand.

Together with Zhou Shaoning, Zhou Buqi met Lei Jun in the capital. He wanted to ask Boss Zhou for help to provide some support for Xiaomi at the level of the supply chain.

However, when communicating face to face, Lei Jun was still a little apprehensive and had reservations about the Xiaomi model.

Obviously, Lei Jun is the leader in this field.

From a businessman's point of view, Zhou Buqi also didn't like Lei Jun's game.

LeTV didn't do it.

Attention should be paid to international influence, and social trust should be established for the continuous attraction of foreign investment and the establishment of cooperation with foreign businessmen.

You must know that TV sets are not fast-moving consumer goods. Consumers will only buy new TV sets under very few and specific circumstances.

The situation in China is different. Since Google withdrew from the mainland market last year, it means that domestic Android phone users cannot enjoy Google's series of services like foreign countries.

This is a sustainable earning power, which can obtain a steady stream of income.

That's actually pretty good.

Lei Jun was somewhat embarrassed.

After earning money, Xiaomi will take the money to pay back the money owed to the supply chain.

After getting the goods, spend a little money to assemble them in the foundry and sell them in the market.

When the entire mobile phone industry was immersed in it and made a lot of money, a guy who didn't follow the rules suddenly appeared and completely overturned the industry.

Zhou Shaoning simply explained, "Foreign companies have the priority in the repayment of supply chain payments, so the risk is lower and it is easier to reach cooperation. The difficulty is with domestic supply chain manufacturers."

If Xiaomi wants to make money, it does not want to make money through the products of Xiaomi mobile phones itself, but to "dump" Xiaomi mobile phones into the market at ultra-low prices to gain a large number of users.

This is very uncomfortable. Xiaomi has become a shit-bomber in the industry and is hated by colleagues. The public relations copywriting of major companies is as if they have been discussed, and they are constantly criticizing Xiaomi.

"Supply!"

The application market on top of the operating system can flourish; the combination of system optimization and application services can also become a business... That is to say, domestic mobile phones can have more profit channels than foreign mobile phones, and can be sold more Make money from the software level.

In other words, I failed to join Xiaomi and had to sell assets to pay back the money.

So be in "debt".

The entire business process is considered complete.

If you don't make money yourself, you still have to let everyone accompany you to not make money. It's so immoral!
"China Cool Union" collapsed directly.

Whether it is making computers or mobile phones, or making refrigerators or TVs, the cooperation between manufacturers and supply chains is not a model of paying with one hand and delivering with the other.

This leads to Xiaomi's reputation not being high enough.

It seems that the supply chain is at a disadvantage here, but there is no way, because the information is not equal in this process.Mobile phone manufacturers do not know whether each batch of goods provided by the supply side can meet the standard.

Millet will not work.

"Ok?"

Zhou Buqi was slightly taken aback.

Zhou Shaoning added, "Baidu and Alibaba Cloud seem to be launching Internet mobile phones. Now the situation in the industry has become vigorous. Even companies like Meizu that used to make MP3 players have begun to transform into smart phones. Even many mobile phone manufacturers that make counterfeit phones Also come to make a smartphone.”

Lei Jun sighed, "Yes, compared to those companies, Xiaomi is just a small studio, and its competitiveness is indeed much lower."

(End of this chapter)