Lei: The real killer attempt of mobile internet is the electric quotient mode

Lei

March 27 Afternoon news, Millet Technology CEO Lei attended the 2012 Internet conference today, said mobile phone is the development of mobile Internet. In addition, he said, Millet is talking with Microsoft about whether to develop Windows Phone.

Lei said that Unicom chairman Chang had the feeling that they had been thinking about how to develop 3G and mobile Internet, want to killer application, suffer no results; Finally, Apple launched the iphone, the mobile Internet naturally developed. Therefore, he believes that the key to developing mobile Internet is to develop mobile phones, but also share his eyes on the three major industry trends: mobile phone computerization, industry Internet, user experience integration.

Lei that the hand opportunity to replace the PC become the most commonly used terminals. In just three years, mobile phone from the single core development to four core, so the development of mobile phone is still in Moore's Law application category, and the PC after years of development, has not been applicable to Moore's law. By implication, mobile phones still have a promising prospect.

He also revealed that Millet is trying to carry more systems, playing home virtual machines running Windows XP on a millet phone, and that millet is even communicating with Microsoft about whether to develop Windows Phone.

With the continuous transparency of the phone's hardware, lei that the gross profit margin of the handset will eventually be consistent with the PC, tending to be 10% to 15%. and control cost is not the cheaper the better, can not sacrifice the user experience, only to optimize their own way.

The topic about millet mobile phone often can arouse netizen dispute. Lei at the meeting to share the core of the operation of Millet mobile phone: Mobile Internet, including the Internet rapid iterative development model, the Internet Word-of-mouth Marketing model, E-commerce direct mode. In response to the last suspicion, Lei said, "You believe or not believe that Millet is in his own way to do the mobile phone."

The following is a transcript of Lei speech:

Lei: Respected Internet association leaders, distinguished guests, good afternoon. The organizing committee wants me to talk about mobile internet, I insist on mobile phone. I gave my speech to the organizing committee, and asked why the phone was spoken. I told a story to my colleague, not long ago there was a dinner, met the chairman of Unicom Chang, those years we have been pondering how to develop 3G and mobile Internet, think a lot of killer application, the result is not a few useful.

Finally, Apple has an iphone, and the mobile Internet is natural. He said the key to developing mobile Internet is to develop mobile phone?

So, the mobile and mobile internet is so close that I've been doing it for many years. If you do a good phone, do not see the next 5-10 years trend, do not find a good point is not cut. Because at the end of last year, I have a friend to say, I heard you do mobile phone, said that it is a person to do it? All the stories he saw were the work of the whole industry.

want to share with you, my mobile phone industry development in the future several trends and big views. There are three trends, the first is the computerization of mobile phones, which means that mobile phones will replace the PC, become the most commonly used terminals.

Related people: Lei

The second is the Internet of the entire industry. Also just now, the Chairman said, the integration of the Internet and traditional industries, how to use the Internet to make the original business better, is the Internet.

Third, we have been talking about the future development of the industry. is the software, hardware Internet services vertically integrated, because only in this way to ensure the overall user experience and service quality.

I'll start with the first trend, which is that mobile phones will replace PCs as the most commonly used terminals in the public. When I spoke about this point 5 years ago, it may seem strange to us that many people have accepted this point of view today. A year ago, the IBM inventor said the same thing, saying that PCs, like typewriters, were abandoned by the public, eventually replacing PCs with handsets. This is the whole industry in front of people a big point of view is that the mobile phone replacement pc.

Mobile phones Instead of PCs, we think in turn, how we view the Internet of mobile phones. Mobile phone industry in the Moore Law industry, the PC industry for many years, the PC has been in Moore's law failed. Handset industry leader is not Intel, is stronger arm home. Three years ago, Android's mobile phone is the most powerful is HTC out, the phone is a bomb. Two years ago Google out of the first mobile phone, the phone was a huge mess. Last August, Millet released China's first dual-core 1.5G mobile phone, and this January HTC unveiled 4 nuclear 1.5G handsets in Serana. Maybe this is the speed of development we did not see the PC.

We know how many chip factories arm comes from, if I remember correctly, only 78 in China to do the arm CPU, I believe speed will increase, and the price will be straight down. This facilitates the computing power of the entire smartphone and optimizes the cost. This is a very big driving force for the entire industry.

The second software and hardware is moderately separated. We're going to come back. Only moderately separated, it is possible to appear in the competition better for the user more valuable operating system. At this point I have also made bold attempts, the first to do as we do, based on the Android depth operating system, running on more mobile phones. I also want to let more operating system running on the millet mobile phone, is our hardware and software moderately separate. Today we support a lot of Android customization, and even the millet phone on Windows XP, we will not develop win phone with Microsoft.

Today, only the millet mobile phone clearly tell you, good, millet mobile phone display with sharp, Toshiba, Millet cell Phone battery LG Telecom, these tell you understand things. In the entire supply chain, the first class second-rate supplier spreads very much. At this point we learn from the PC industry, that is, different devices set different prices, so that each user understand what you buy is what? Make this competition more orderly.

In the past when buying mobile phones, especially high-end mobile phones, today 5,000, over one months 4,000 down, sometimes as users, they bought on the fooled. Why we can not at this cost, as we do pc, is 10% to 15 gross profit margin. Because industrial development finally is the case. So I do the original idea of millet mobile phone, can be in the initial time to do cost pricing, until the amount to a certain degree, they earn money. This is our early August last year to do the industry's top mobile phone, the cost price pricing model.

If you see this trend, you can survive at the cost price. Why do we have to hire tens of thousands of people to do mobile phones, why do hundreds of of the team can not remember the model of the phone? Company structure in the future to adapt to 15% of gross margin survival. So this is the future, who can control the cost, this cost is not to reduce user experience and quality, is to control their own optimization organizational structure, control their own costs.

So, we first started to use the entire PC industry operating rules, the mobile phone industry. So, when I look back at this trend, we first think about the whole direction of Moore's Law, which is that since the cell phone is in Moore's law, its core chip will be able to cut prices very quickly. Can you according to 15% gross margin planning organizational structure, so that you survive in this competition.

The second trend is the Internet. We only do the first step is no future, we must make full use of the Internet to improve our competitiveness. The first is the Internet's rapid iterative development model, to help us develop a common people like products. There are few people in the world who can think like Steve Jobs. What does the Internet do? We are quick to get out of the way, communicate directly with users, and make products together with users. So that's why we stick to the weekly iteration.

The weekly iterative development mode, is the earliest introduction of millet development model. Millet operating system to ease the use of a large number of peers, used the cell phone comrades know, are rice noodles to communicate with us thought. When you use this method, you will find competitiveness and strength.

So, we did such a MIUI system, relying on the user word of mouth. In 16 countries, the establishment of fan stations, half of the users from the international market, but also 0 propaganda. Google acquired 11 million of our miui, in fact MIUI is a very feverish operating system based on Android. We used the Internet Word-of-mouth marketing, when I saw some mobile phone companies, an open TV is advertising, I will be wondering if we can save the advertising fee. Because the final advertising fee is paid by the user, why we do not let users buy cheap things, I insist that good products can speak. We use the mode of social media, Word-of-mouth marketing, the cost of our marketing to the lowest, so that our products can be cheap enough.

What is a real killer attempt? Able to drop all channels in the middle, the middle cost down to zero, of course, the power of the mobile phone can not do? Remember two years ago Google in the United States tried, sold tens of thousands of mobile phones on the closing. Today may take this road to make, everybody thinks very simple, easy, why is millet the first dry? Many people think that there is no innovation? I think I can do that. You can also do something that Google can't do.

In fact, this is more complex than we imagine, we think that today's electric dealers in the advertising, price war, the entire field free shipping, are huge losses. Millet today is how can do to sell 1999 dollars on the Internet products, this product is very expensive, and basically are 35 minutes to sell 100,000 units 200 million sales revenue. Millet use their own model how to try to do mobile phones online, so sometimes I understand that innovation is a little change, creating a huge result.

Today we at least according to the top of the mobile phone to 2000 yuan, millet today this mode, to this one we used the Internet how many ways? With the Internet mode of research and development, marketing model, with the Internet, we reversed the electric business to advertise, must be very cheap, best sell only 20 yuan. No, there was a Taiwanese media interview with me about your cheap phone? I said you stop, in China 1999 dollars a mobile phone in China is definitely not a low-cost mobile phone. All we do is the top-end cell phone.

3rd, the triathlon, the Apple model has found a rule, the hardware and software, Internet services integrated together, the integration of customer experience. Where is the integration user experience? The viability of Apple's great success model. Why can't anyone think of such a simple question? Do you have any idea what the PC industry has done wrong? A few days ago with a PC industry for many years the boss to communicate, tell me a question. All of us who do PC industry assume the fact that users need cheap products. So everyone in the supply chain makes cheap products and it's really cheap to be together, but nobody likes this product.

In such a complex industrial chain, if you do high-end alone, it is useless. Because the whole product quality is the integration of the composition, so this is the key to Apple, Apple is the desire to create the overall high user experience. So at this point, is also millet hope to explore. For example, many people say that because the mobile phone power is a complex problem, a lot of application software to write the program, careless special power consumption, and sometimes users complain about millet power consumption, so the pursuit of hardware and software, in fact, there are a lot of work to do, how to help developers in the millet cell phone Together to create a user standby capacity is stronger than the mobile phone.

So, the millet mobile phone is actually we see these three major trends. These three trends are reviewed, is the mobile phone will replace the PC, become the most commonly used terminals, in fact, this point will have a lot of extended products, I think we tell you a little bit in the future, through this idea will have any ideas and changes, including millet mobile phone on the road there are many changes.

Second, the entire industry to integrate the Internet, because with the Internet we have the opportunity to make millet mobile phones. The third software and hardware integration, vertical integration, in order to ensure user experience integrity. We use this kind of thinking to do millet mobile phone.

At the end of last year we released a week later, Morgan (002588, shares bar) out of a report, Millet mobile phone in all domestic brands in the row of the first, in the Baidu index all brands inside, millet in the top 5, domestic brand first. Taobao index inside the millet mobile phone many days in a row with the first.

Second, in the past, our first 5 rounds of sales figures, the last March 17 35 minutes retail 100,000 mobile phones, these sales are already over 1 million sales. The entire mobile phone's peers are actually very surprised by the number.

Finally want to say, we millet in the road, in doing innovative things, there will be so imperfect place, want to invite friends here, media friends more support, more understanding, more encouragement.

Thank you.