Millet is now the world's third-largest mobile phone manufacturers

Absrtact: All along, Millet has declared its troika: mobile (Hardware), MIUI (software), rice Chat (Internet service) The most important and most valuable is the Internet service, hardware has never been the main force. Lei told a very beautiful story,

All along, Millet has declared its troika: mobile (Hardware), MIUI (software), rice Chat (Internet services) The most important and most valuable is the Internet service, hardware has never been the main force. Lei told a very beautiful story, "mobile phone hardware does not make money, relying on late internet business and value-added services to make money."

However, for the four-Year-old has been pioneering millet, still is only a vision.

Millet is currently preparing a new round of financing, valued at more than 40 billion dollars. Perhaps there was an "inadvertent disclosure" of investment institutions in the financing negotiations, and the Wall Street Journal got very accurate data on the millet performance:

The net profit for 2013 was 3.46 billion yuan (about 566 million U.S. dollars), while net profit in 2012 was 1.88 billion yuan, up by 84%. The same period of revenue for 27 billion yuan, also doubled a lot.

The paper also predicts that Millet's net profit this year will grow by 75%. Meanwhile, only Apple and Samsung remain profitable in the smartphone industry, and other players, including HTC, Sony, Motorola and Nokia, are struggling to make ends meet.

The document discloses details of the composition of millet's income generation. 2013 Millet up to 94% of the revenue from mobile phone sales (hardware), and services such as hand-travel accounted for only 1%. According to the Millet Miui team before 36 Krypton revealed information, millet three stores of the monthly water is about 100 million yuan. It is therefore not difficult to infer that the net profit on this part of the income in the past year should not exceed 100 million dollars.

A spokeswoman for Millet declined to comment.

So why can millet use low-cost mobile phone to get high profits? The most likely reason is its efficient and low-cost Internet marketing strategy. Analysts believe that millet marketing not only increased the user stickiness, but also to help them save a lot of marketing expenses. Millet 2013 sales and marketing costs of 876 million yuan, accounting for about 3.2% of total revenue, 2012 sales and marketing costs of 416 million yuan, accounting for about 3.9% of the revenue.

Millet is now the world's third-largest handset manufacturer, and has maintained the highest growth rate in TOP5 handset manufacturers. and millet Internet services, such as MIUI, rice chat and Millet Application Mall, mainly to enhance the user experience and enhance user stickiness. As for pay!? Chinese users, especially the millet handset audience, should not have the habit of paying for products other than hardware.