Microsoft pushes the truth behind $25 mobile phone

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Both Apple and Samsung are betting on new products to maintain their dominance of the mobile internet in the world of wearable and IoT-high-tide layout wars. Apple is expected to release the iphone 6 in September, and Samsung is rumoured to be expected to launch a Galaxy series of smart watches. But Microsoft, which has focused on Windows Phone, has "a new alternative", offering a $25 (about 154 yuan) cheap handset, targeting the markets of Africa and the Middle East. For a moment let the industry "big surprise", do not know what is the company in Microsoft's gourd what drugs to sell?

In fact, the purpose of Microsoft's move, personal feel can be from the following 4 aspects to analyze.

1. Use the Nokia function machine to open the gap in emerging markets.

Although the sales of smartphones have surpassed the function machines, it is estimated that 1 billion people worldwide do not have their own mobile devices. Each year, emerging markets can digest more than 50 million functional machines priced at $30. Emerging markets are a huge opportunity for Microsoft from the sales of Nokia 105, which sells 1 million units per week.

Since the function machine has become the necessary means to conquer emerging markets. Xiaomi, Lenovo, Huawei is already actively preparing for the war, Microsoft has Nokia in hand, it is more unlikely to cede this market. So simply use these devices as a vehicle for their cloud services. Microsoft can use these users to create Microsoft accounts by promoting Internet services such as Bing search, OneDrive cloud storage, and so on, to build the foundation of the Microsoft ecosystem. Microsoft's subsequent launch of the corresponding multifunctional mobile phones and high-end smart machines, it is more reasonable.

2, take the differentiated competitive route, avoid the face of Apple Samsung competition.

In the battle for high-end smartphones, Microsoft can only bow to Samsung and Apple. In emerging markets, global brand strength and advanced technology are not the problem, the price is the decisive factor. And home-grown rivals are priced between $100 to $300, and have most of the key features of Samsung and Apple's high-end smartphones. So the Apple and Samsung, who have been on the high-end route, can't sing.

Nokia features good quality, brand awareness and market in developing countries. After all, Microsoft spends a half-day on Nokia, and has to use value. Just want to take this advantage and Samsung, Apple to spread the differentiation of competition. The so-called "30 years Hedong, 30 years hexi," but so. Being depressed by Samsung and Apple for so long, Microsoft can find a place to breathe.

3, the allocation of intelligent machine costs, this piece of "chicken ribs" throw.

Mobile phone profits are generally in high-end machines, Nokia hundred machine to remove manufacturing costs, as well as circulation, operations, agents have earned profits, Microsoft unprofitable. Just to cater to emerging markets. How long can Microsoft hold on. Unless there is a reason for "chicken ribs".

From Nokia's previously disclosed data, the functional machine and the smart machine gross margin almost flat, both at 20% to 25%, although the result may be partly due to the poor performance of the smartphone business, but continue to promote the function of the machine, it may not be profitable, or at least not lose too much money, It can also share the cost and expertise of smartphones. Besides, it's expensive to close down a business overnight.

4. As a spare machine for saturated market.

Reports that Microsoft's small selfish desire to use the Nokia function as a saturated market for the standby machine, this reason is not optimistic about the individual. The demise of Nokia illustrates the demise and demise of low-end machines. The future of products will only become more and more intelligent. Wearable, Internet of things, AI will sweep all aspects of life, users have become accustomed to the smart machine, it is impossible to lower the low-end machine as a backup machine. More money and expectations may be pinned on smarter mobile devices. (New discoveries of science and Technology, Constantine/Wen)

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