Smart phone battle season, the charm of the fate of the family

The Charm clan Zang "comeback"! To put it another way, Zang changed the location of the office while also dramatically changing the company's business strategy: the introduction of external capital to strengthen the company. At present, Zang in the Charm forum that has received a lot of investment intentions, "even including Gree and other giants." Today is the latest news that the charm and gree are already in contact. Another potential investor is ZTE. However, I think that although the charm has just announced the financing intention, there are a lot of potential investors, but ultimately can not determine the fate of the family.

Why does the charm of the family finance?

Zang's argument is, "We are not the most shortage of money, and do not need investors too much interference in corporate strategy, the initial financing is purely to open the Employee stock option system, attract more talent to invest more in the development of more to share more to create a greater victory in the door." It is not too late to dawned better product concept and operation development. “

The charm of senior vice president, well-known friends Linan in the knowledge of the answer is an annotation. He also stressed that the Phantom's cash flow was fine. The introduction of external investment three purposes: 1, equity incentives to attract and retain talent; 2, marketing, "Shout out"; 3, strategic investment, resource complementarity.

In combination with the development of these years, we can draw a conclusion: the most lack of the charm is not money, but the lack of money.

In the past the charm of the family to do the product of the practice so that there is no shortage of money. Eat full and gradually grow, can be described as "small rich is Ann". Now, if the charm does not take money big, do not strengthen marketing, not attract talent, will only be marginalized, especially in the smartphone market dividend is losing.

Why do we have to be bigger and stronger? Smartphone battle season comes and the product is no longer king

2003-2006 is the first cycle of the family, MP3 market prosperity, the charm of the family by M3 and other products to play a world.

2007-2011 is the second cycle of the enchantment. The 2007 iphone was born, and the Google organization OHA Alliance developed Android as the smart-phone watershed. Zang abandoned the already fading MP3 market and entered smartphones.

Its first smartphone M8 chose Windows CE, a system that had been in decline in 2009, when it was discontinued in 2010. January 1, 2011, with an Android 2.3 M9 open and sell, J.wong has said M9 monthly shipments of more than 100,000 units, which was a good result.

M9 is the base of the Android market for the Charm clan. M8 and M9 is the product ability to capture fans, to achieve success. The early days of the market to fight the experience of the struggle to create innovation. However, the market in the medium term is more to fight the operation, spell the market, price, spell resources.

The strength of Huawei, Lenovo, ZTE and other have joined the OHA, "China Cool Alliance" pattern was already in formation. They have capital, industry chain resources, operators and offline channels, but also operational capabilities.

Millet halfway to kill. August 2011 Millet 1 Released, after the millet is like sitting on the helicopter, 2013 shipments have been close to 20 million, is 4-5 times the charm of the family. Millet and the charm of the family has overlapping target customers and the same strategy, they have the relationship between the long, it can be said that millet is on the charm of the family up. If there is no lei halfway to kill, and Mingzhu on the bet may be Zang, the Spring Festival evening advertisement is the Charm clan. I am afraid this is also the root of Zang and Lei estrangement.

The difference is that Millet is better at marketing-although Lei said Millet do not do marketing, product that is marketing. Didn't the charm of the past be the "product of the King"? Zang's dawned may include a point: products do well, but also to "shout out." If you don't shout out loudly, who will notice you?

In addition to the need for force marketing, the charm of the family need to help themselves bigger, sales do up, product line rich, from smartphones upgraded to hardware companies, because "attack the best defense."

This is China's smart phone battle season. Huawei, ZTE, Lenovo and other giants with Glory, Nubia and other independent brand sniper millet. has been the world's third global smartphone sales association, through the acquisition of Moto tightly embrace Google in the Android camp to form a unique advantage, continue to accelerate the pace of internationalization, to the first impact. In the international giants and the domestic "China Cool Union Rice" five major brands left only 30% of the share, 100 million shipments, and is still being compressed.

Meanwhile, the smartphone market dividend is disappearing. Growth has peaked, and Baidu's mobile report shows that more than half of new handsets are now needed to replace mobile phones.

Watching others fight and rob the site so lively, ambitious and very worried about the Zang will not stand idly by? Moreover, under the chaos, no one is safe.

Can the value of the Phantom be referred to as millet?

Last August, Millet announced the completion of a new round of financing, the valuation of 10 billion of dollars. Today, 5 months later, valuations have changed, but they should still be at level 10 billion. The target of the family's financing is 1 billion yuan. So how much is the Phantom's valuation?

According to Linan said monthly shipments of 30.4 million units calculation, the Phantom 2013 shipments of about 3.6 million-4.8 million. Millet last year shipments of 20 million units, about 4-5 times the charm of the family.

Because it is an Internet-mode handset and a fan economy, the number of users is a vital measure of their value. Because it is closely related to the sales of new products, the application of distribution capabilities.

December 2013 Millet MIUI Global user number exceeded 30 million.

How much is the Phantom's stock cell phone? 2011, the main pin M9, according to Zang said, monthly shipments of 100,000 units, the year shipments of about 1.2 million. 2012 main models for MX and M9, shipments of about 2 million units. Last year up to 4.8 million, according to this estimate the charm of the current stock of up to 8 million units (M8 is win CE, not statistics, loss, change machine also does not count), about One-fourth of the MIUI.

Therefore, whether from the growth or the stock, the Phantom handset sales are about 1/4 of the millet. So is it possible for the enchantment to get a 2.5 billion dollar (10 billion/4) valuation? Smart-phone market valuations can not only look at stock and shipments. Lenovo bought a few days ago Moto as an example, its 2013 main model MotoX shipments only 500,000, but Lenovo to buy it but spent 2.9 billion of dollars. It has 2000 patents, brands and trademarks, 3,500 employees, the world's more than 50 operators channels.

1, Millet brand Premium. Through the "internet phone" to make millet into stars, models and even a phenomenon, as well as the resulting social resources, such as media coverage, government relations. This aspect of the family and I am afraid not a few times the gap.

2. The pure Internet mode of millet. The Demon family Wired under the channel, also wired under the experience shop. This is its offline resources, but the converse is also a drag, the line under the Internet is all the companies want to transform the network channel pain. It depends on what the investor thinks.

3, millet "hardware Company" characteristics. Millet is not a smartphone company, but a hardware company. There are televisions, there are boxes, there are routers, there are ... This brings about a completely different space for development. The Phantom is likely to expand after financing, but at the moment he has only a mobile phone that can be valued by smartphones.

The conclusion is that the valuation of the Phantom is bound to be less than 2.5 billion dollars. The low number depends on how the investors and the charm of both sides of the mill. However, millet at this time instead of helping the charm clan, just like Ali achievement jingdong valuation.

may wish to use Zang "1 billion yuan financing target" to guess

Zang has made clear that the financing target is 1 billion yuan. We might as well speculate on the Phantom's valuation with the share of investors.

According to Linan, the charm family will introduce "some strategic investment." "The process of introducing capital must also imply a process of learning and repetition, with sufficient capital and patience on the part of the family." At the same time, the charm family is also strengthening professionals in this field. If you wish to letters me. "

This shows that the Charm clan is forming its investment team, Linan is following chairman Zang, CEO Bai Yongxiang after three hands, very likely to the investment business, Zang personality is not suitable for negotiation.

At the same time, this also shows that the charm of this financing is only the beginning, will also introduce multiple rounds, multi-party financing, the ultimate goal must be listed. Ali, Baidu and other giants before the strategic investment, accounting for shares ranging from 10% to 62%, Baidu often seek to hold, other companies more than 50% very rare.

At present, the Zang 100% shareholding, according to its character, is unlikely to be a large number of shares to finance, at least he has to hold (far more than 51%), but also need a portion of executive equity and staff options pool, assuming that is 10%. If according to Linan said, the family of many rounds of financing, this time more impossible to take out 39% so much, I estimate the charm of this time to take out the equity should be under 20%.

1 billion the amount of financing, if the share of 10%, the charm of 10 billion yuan, 16.49 U.S. dollars, if 20%, the Phantom valuation 5 billion yuan, 8.245 U.S. dollars. Perhaps, in this interval. And the previous reference Millet's 2.5 billion dollars also opened the gap.

Who is on his way to Zhuhai?

Zang has said, received a lot of investment intentions.

Gree is located in Zhuhai, happened to Mingzhu and Lei have a TV game, Mingzhu to practice practiced is not impossible. Home Internet is a trend, smart home needs a mobile phone such a control hub, the charm accumulated online ability and fan marketing, but also the lack of gree.

ZTE is facing a downturn. The Chinese Cool Alliance pattern has been broken, Huawei and Lenovo momentum is fierce, cool and ZTE need to try to recover the gap, while avoiding being overtaken by millet. Investing in a company more like Millet is a shortcut.

The recent purchase desire to increase the association naturally will not miss this business, at least can bidding or training it? Bought Moto, bought IBM server business, and then take out 1 billion to make up their own is not impossible. Huawei has its glory, ZTE has Nubia, and Lenovo lacks an internet brand. PC strategy for its mobile phone business development, there are good, but also bad.

The Internet tyrants, who have always loved to join the fun, will not miss it.

Baidu many times last year, a large number of strategic investment in the phone, has begun to layout hardware, 1 billion yuan for Baidu is nothing. Ali has always liked strategic investment, the IPO needs more pieces, the hardware field is currently blank, will naturally contact, and, Ali will worry about being Tencent voted to do? Tencent and Millet had also spread the gossip, Tun, perhaps responsible for investment in the early to Zhuhai.

The only certainty that this is unlikely to have an investment intention is lei, millet, and Lei investment UC. Lei and UC He Xiaopeng have had contact with Zang before, what happened later everybody knows.

Who can with the charm clan come together, let the person look forward to, have the benefit game, also want to see predestination. Zang may be more interested in the latter, if he is still emotional treatment, I have a bit of rational analysis can be ignored. Millet is very successful, but "millet success" brush all over the circle of friends, the invasion of Science and technology blog, or a little sad. If the charm of the family can really be bigger and stronger through financing, the market will have more vitality. The Phantom product is really great, it can have more users.