Reborn Entrepreneurial Giant

Honor 5 released, Honor once again proved itself!

News of media exaggeration appeared in Internet news all over the world. Honor went on sale a month after the release of the IPhone, avoiding Apple's peak publicity period.

Although the two companies are competitors, they are very restrained from each other.

The 16G version of Honor 5 is priced at $649, the 64G version is $749, and the note version is $799 and $899, which is $50 higher than the $849 price of the IPhone5 high-end 64G version. Bar IPhone ah!

However, Honor released two mobile phones at the same time. What does this represent? In particular, the system chips are exactly the same, and there are differences in screens, cameras, memory chips, etc. Why?

There is no doubt that Honor's product strategy has changed, which has long been expected by the outside world, but it is unexpected that this day will come so violently. From the previous high-quality hits, to now the speed of product iteration has been accelerated.

The domestic prices of several mobile phones are 4599/4999/5599/5999 respectively. Compared with the lowest price of IPhone 5 in China at 5288, Honor is definitely a conscientious enterprise. You must know that in the United States, the price does not include tax. The price includes 17% VAT. Honor is equivalent to giving consumers more choices in mobile phones of the same quality.

One week after the release of Honor 5, the four mobile phones sold 6 million units worldwide, surpassing the 5 million units of IPhone 5, achieving another "victory".

Soon there will be comparisons and evaluations of Honor and Apple mobile phones on the Internet, which is almost the standard equipment for technology UP owners, and they will be compared from all angles.

This kind of video is actually nothing to watch, and it must have its own winners and losers. Today, no one denies the innovative ability of Honor. Reverse insertion has a transmission speed of 25 to 35MB/s, and the actual measurement of Honor’s Type-C interface has reached 50 MB/S. It is said that the speed between the next generation PC and mobile phone can reach or even exceed 100m/s.

The USB3.0 standard has not been released. Honor’s Type-C is self-developed based on the design standard announced in November 2008. It could have been faster, but considering the cost and actual use experience, it gave up this attractive choice.

Ordinary consumers can't understand complicated parameters, but it is very intuitive to know whether the speed is fast or slow. Using an Honor mobile phone to connect to a computer can have a faster transmission speed, and the effect of using it with an Honor notebook is better.

This may be differentiated competition. Honor notebooks have opened up this unfamiliar market with the advertising slogan of 10 seconds to boot and 10 hours of battery life. Now it is the turn of Honor mobile phones to establish a competitive advantage through the Type-C interface.

"Why can't Apple's IPhone do it?" Some consumers questioned whether Apple will be replaced by Honor?

Tim Cook explained that faster speeds have no practical significance, and was quickly slapped in the face: Does the mobile computer file transfer speed make sense? How can it be!

Some people also guess some reasons, such as cost, USB2.0 has a longer history, USB3.0 has just come out, and various patents have not expired, so you have to pay for it if you want to use it.

To put it bluntly, behind all the progress of the Honor 5 mobile phone is the ability to play a role.

"If the profit of an IPhone is close to 200 US dollars, our profit of a mobile phone is only about 100 US dollars." Chen Jingqiu, the chief financial officer, reminded Sanjay Jia, who had just returned to China, not to be too optimistic at the company meeting.

The pricing of Honor mobile phones is basically the cost of materials multiplied by 3, and then adjusted according to competing products in the market. It can be up or down, and the minimum cannot be less than twice the cost of materials. Out of a thousand yuan machine.

As for the iPhone, the material cost may be multiplied by 4, and it will never be lower than 3. Chen Jingqiu's statement is a bit exaggerated, but it can't be wrong, after all, IPhone also has an IOS AppStore.

"Do we also have advantages? KMS has advantages in the Chinese market." Sanjay Jia

Qu Li needs Glory to have a ruthless crooked nut, and also needs a flexible crooked nut to coordinate in the middle, so there is the current pattern. Sanjay Jha's optimism is understandable, but he himself is a pessimist.

Although Chrysanthemum Factory in the domestic market uses Honor’s KMS service and app store on high-end machines, it is still developing self-developed chips at the same time, and may not be aware of the role of software for the time being. Fortunately, OPPO and VIVO worked steadily and cooperated quite well, and Qu Li tried to cooperate as much as possible.

"Tianming, how did you persuade them to add the KMS service to their mobile phones?" Sanjay Jia didn't know much about this, and he always felt a little weird, and the threat shouldn't have a great effect.

"We purchase a large number of equipment every year. The previous special equipment can still be used now, but we have already eliminated it. It is a pity to scrap it. It is financially unreasonable to give it to supply chain companies, so we have created a supply chain alliance. , to increase the general ratio of internal equipment, our foundry companies can use our equipment to produce mobile phones for manufacturers using KMS services." Someone explained to Sanjayja

"So what do you think?"

"They have their own factories."

The real situation is more complicated, but there is no need to go into details. The OV blue and green factories are self-built factories. Many mobile phone companies in Pengcheng have their own factories. Their alliance will not affect Qualcomm, Google, and more is a cooperative one. The nature is basically an honorable contribution, and it may not be possible in the future. If it is really necessary to pay unilaterally, it will definitely not last long.

"Will we indirectly enhance their competitiveness in this way?"

"But it's hard for us to lower the price of the product below $300."

The price of the Honor Mate series is higher than that of Find, but even the initial price of WP mobile phones in the Find series is around 3,000 yuan.

"WP phones with Qualcomm chips will drop to $350 next year..."

Their discussion this time is to re-determine the price range of several series of products. The digital series is definitely the most expensive. The highest price of the Qualcomm series cannot exceed US$800. The Find series does not launch a note version, and the highest price does not exceed US$700.

If the price reduction of old phones is included, Honor’s product line will cover the range of 300 to 900 US dollars, which is basically more than 2,000 yuan for soft sister coins. In the domestic market, mobile phone sales in this price range accounted for only 37% in 2015, and it seems to have exceeded 50% later.

But as far as 2012 is concerned, the sales of smartphones below 2,000 yuan accounted for about 80% of the domestic market share, which forced Honor to sell 1,999 yuan of ming brand mobile phones online for 1,999 yuan, and will launch 999 yuan next year. machine.

There was still controversy within Honor about giving up the sale of mobile phones below 2,000 yuan. After this meeting, it was confirmed, but there was still a small tail. The baseband chip needs continuous investment. If it is not packaged with the chip, the future development prospect is very bright. Hard to say. Can Honor's own sales balance the cost of baseband development and ensure a competitive advantage?

In any case, the release of Honor 5 and the hot sales in the first week made the capital market recognize Honor again.