40 billion Millet: Do not forget beginner, side must always

More than 40 billion dollar value of the millet equivalent to 2 Sony (market capitalisation 19.5 billion), 3 Lenovo (market value 15.6 billion), the world's most valuable unlisted technology company's Halo is really bright blind people, contact Lei before put words: 2015 millet mobile phones to do 100 million, revenue 16 billion, Domestic mobile phone's peak battle is in full swing.

The smartphone camp has always been clear-cut, closed Apple a solo show, open Android but occasionally staged Huashan sword, 2010 into the smartphone industry, Samsung is only later, but with two years Unified lake, and even in IPhone5S was criticized for a time to stand on the top of fashion, but 2014 years , the transport of Samsung suddenly stopped growing, mobile phone profits fell back to three years ago, the reason, in addition to Iphone6 in the high-end market pressure, of course, thanks to domestic mobile phones.

Experienced the baptism of Huaqiang north and the hustle and bustle of MediaTek MTK, China's smartphone brand matrix suddenly exerting force, in addition to Apple and Samsung finally have a confident and strong competition group, but who would sit three-look two, leader of the King of the Wind?

Financing ability: Not the more the better

The valuation of unlisted companies of course has a scientific formula, but more just reflects how the capital market, how obsessed crazy! In such a good year, the Creation Circle is a story, there are feelings, there are themes, there is a burst point, there are opportunities for eloquence.

Take millet, for example, November 2011, a round of financing only 90 million U.S. dollars, valued 1 billion U.S. dollars, when Millet 1 just sold on the creation of a half-day booking 300,000 of the myth, enjoy the innovative company's overvalued value; June 2012, Millet completed 216 million of dollars in financing, valuation somersault 4 times times to 4 billion U.S. dollars, betting on the Chinese Internet companies the concept of high growth. September 2013, the Millet marathon into a hundred meters sprint, valuation breakthrough 10 billion dollars, the miracle to this year by the 40 billion valuation refresh.

Millet three years in a row every year to finance, doubling the pace of the reversal of the day if the rhythm to maintain, China's fourth largest internet company has undoubtedly been born, this internet myth will certainly make a lot of conscientious doer unhappy. One of them is Lenovo. In the eyes of Samsung, the only Apple in the context of Lenovo, there will be a place for millet is quite unexpected, but Yang only admitted that Millet is a good textbook, do not recognize Millet is a good model, but also not as opponents.

The millet is not happy with the association, of course, I'm afraid there is still no time to shed the cottage skin still in Huaqiang north of domestic mobile phone originator, they think impassability is like millet such surface without core competitiveness of the company why so valuable? In fact, for the VCs, millet at least three points back to the ticket:

1, the founding team of Millet! Whether it is the Liu of the morning Hing Venture or GGV Capital Donshau are very appreciative of this team can play good spell, the definition of a successful team can have many kinds: technology Daniel, the prophet of innovation, marketing genius are all in it, but if a team is full of Dudangyimian cattle, but also very united, that is the ideal state.

2, there are ringing products! 2014 Q3 18 million shipments are really not covered.

3, can create cash flow! MIUI 50 million users, live in more than 90%, the surrounding hardware has become scale, although the ability to squeeze ARPU can not be the same as Apple, but also enough to create Chi cash flow.

The continued growth of ultra-high valuations is both a force and a pressure on millet, forcing companies to expand their product lines more aggressively to provide more capital-level stories and themes, and millet has no time to stop to sum up and Lei, and his team can only continue to soar in the constant euphoria.

Lenovo and Huawei's problem with Millet is exactly two extremes, they are respectable Chinese companies, but they have too many tags, the past is too brilliant, the success of the burden of the successful people who doubt that they can graft the new gene in the internet age, Yang on millet and internet companies specious, To say also Sue's praise is actually this kind of mentality refraction. However, Liu, in his logical thinking to offer "Peach", Legend of the Internet mobile phone is also rampant, the Chinese oldest technology company is coming from the last touch of the sun of the sunset in Zhongguancun, it certainly does not need any capital myth, its mission is to let millet and its investors wake up from the miracle.

How to view market share and shipments

The smartphone market has been unusually volatile in recent years, and the trend is becoming more pronounced. 2014 Q3, Samsung 78.1 million shipments and 23.8% of the market share although still in the first place, but the maintenance of three years of growth has been halved, compared to 2013 Q3, shipments of a huge drop of 8.2%, has been able to feel the chill of the market. Apple's shipments are maintained at 39.3 million units, up 16.1%, with a small fine-tuning of market share, largely limited by capacity, and no one underestimates Iphone6 's competitiveness.

The growth of millet unexpectedly reached 211.3%, to 17.3 million units of the shipment of 16.9 million of Lenovo's top three, the market share from last year's 2.1% to 5.3%. Lenovo is gratified that, in the swift completion of the acquisition of Motorola has been finalized, temporarily saved the tan, but behind the digital game, who can not ignore the rapid rise of millet, recall 2014 Q1, Lenovo also to 7.5% to maintain the top of domestic mobile phones, At that time, Millet just put cool faction and ZTE underfoot.

In the brand strategy, Millet pursuit of Apple boutique tactics than Lenovo-stick Samsung Machine Sea tactics more effective, Lei clone Apple's rhythm on time the single flagship model allows Millet users to have a more stable and growing ARPU, and it is also the reason that Huawei and HTC, which are in pursuit of the three Serie A lineup, return to high-end strategies.

But with Lenovo, Huawei as a mature industry as the backing of the handset manufacturers, still rely on the overvalued value of millet to maintain the absolute growth of shipments has its own significance, it is doomed to millet will not give up red rice such a low-end machine, and the existence of red rice will make millet in the direction of high value-added brands may appear iphone5c such strategic mistakes. Huawei and Lenovo can use huge subsidies targeted to combat millet products, and not lack of money, millet frequently financing and issuing debt, indicating that lei to the impending cold has been alarmed.

Revenue and profit is a double-edged sword

On the surface, the vast majority of domestic handset manufacturers maintain high revenue growth in the paper, 2014, the Millet revenue estimated at 12 billion U.S. dollars, 2015 target is 16 billion U.S. dollars, Lenovo last year revenue for 40 billion U.S. dollars, this year to break through 50 billion is not a problem, Yang's vision is 100 billion, Of course, this size is not only from the mobile phone business.

Huawei in the volume of revenue can directly PK Lenovo, mobile phone shipments of the order of magnitude is also impressive; HTC's patent sequelae have not healed, shipments have been on the right track, the phantom sales are insignificant, at least sustained growth, only the old man's hammer can only talk about feelings.

All domestic mobile phone's common focus is to spell revenue, marketing, spell cash flow, and temporarily also with the profit insulation, in the millet in the good news, the only missing is profit. The fact that Apple and Samsung Monopolize Smart-phone profits has never changed, no matter how homemade handsets are, and only LG, which can make a profit. Perhaps, who can become the first large-scale profit of domestic mobile phone is the most meaningful.

If the hammer phone can be realized in T2, I am very optimistic about its profitability, Lao Luo is at least the first dares to say "I want to make money" in such a complex world, even if the feelings of camouflage is more humane than the position of the fans, I do not know whether the old Luo Yu Yong Koja.

Marketing + Content-driven branding?

In the foreseeable future, this will be the domestic mobile phone competition is one of the most intense area.

Millet by marketing to pull the brand strategy to 4 has reached the pole, not to replicate, unsustainable, non-renewable, the future can only turn to innovation, Lei strategy is to use more and more investment to millet to inject more reserve resources to establish technical and industrial barriers. Chen to join Millet has become a fact, but in the overall brand strategy while operating content platform positioning is intriguing, TV + box is the largest in the mobile phone outside the hardware products, Rejunke involved the last is the biggest screen of ambition self-evident. Portal veteran Chen can in the SARFT even the ban, the Thunder and the United States Shadow Association named the background, for Millet to explore a license + Copyright success shortcut?

In the battle for the supremacy of domestic mobile phones, Lenovo's role is important and awkward abnormal, it's internet mobile phone hair toughness is imminent, but the focus is still never stop mergers and acquisitions, the success of the motorcycle, and BlackBerry gossip constantly, gu Lenovo in addition to obtain a patent amulet, has bought no purchase, the rest can only be integrated. Huawei's problem is positioning, how to manage potential energy, hardware technology and the Internet to promote integration.

As for marketing, the situation of millet alone is bound to be broken, Yang in China's senior executives in the internal communication meeting has stressed that Lenovo's business model to be recreated, including special mention of social media indicators marketing (interactive marketing), But he still points out that through advertising and opinion leaders the message is not the most advanced way, Lenovo "should be from existing users to learn nutrition, to understand their expectations of the next generation of products."

Because of the lack of more information, the so-called young marketing how to practice, we are still confused. In fact, this superficial sexy smartphone "tan war" implies different values, different strategic views of the two dimensions:

1, challenge Samsung mobile phone shipments of the Battle of Kings;

2, to shake Apple's brand, technology and innovation war;

Where to go, we might as well wait and watch the millet led, the card division of the wonderful group of drama.