Millet drives Mobile Hardware free

At the beginning of 2014, Lei announced that the price of red rice mobile phone prices from the original shock of 799 to a more shocking 699. Lei has said that the millet mobile phone has triathlon: "Software + hardware + Internet service." Regarding "Internet service", Lei mainly emphasizes e-commerce, BOM (BOM) pricing. He said: "Our entire product BOM price is very expensive, especially two years ago I just entered this industry, is a thief your thief expensive, expensive mess." But at that time I was thinking about the ticket, I will be with the BOM product pricing, BOM is how much money, I will set how much money. We know that the BOM is not the real cost, as well as the cost of research and development, mold and so on there are a lot of costs, we all ignore. BOM pricing is actually free mode, in fact all the money is the supplier's money, not my money. Because I think as long as there is enough, Moore's law exists in this phase of the smartphone industry. Every quarter has a certain price reduction, through this price reduction, I believe that millet can earn money, so at that time I was determined to price according to the BOM. "BOM pricing, and then use the price of each quarter to make money, through the implementation of the BOM, super shocking price for millet brought cheap and practical word-of-mouth, and therefore circled into a large number of MIUI users." Of course, this model is easy to learn, millet this model has been seen by the industry. But Millet is not afraid, in December 2013 Millet released data, now MIUI monthly flow income of 35 million yuan. This means that MIUI has slowly filled with energy, decided to take the next one, it seems millet to start in 2014, the "Hardware Free" program. "Hardware free" does not mean 0 prices, but that every quarter, or even each month to adjust the price, close to real time to closely follow the BOM price sales, now millet has such strength. Predictably, 2014 is likely to be the worst year for China's smartphone market.