Mobile Internet bubble: Rigid demand under the competition giant Dick Silk melee

Through the fire and the bubble

That day, Huaxing Capital founder Baofan ran to attend a mobile internet conference. When the meeting found people sparse, he can not help but sigh, the bubble has finally cooled. Everyone knows to sit just found, here is the original national native products show-oh, wrong venue.

How do you describe today's mobile internet industry?

When a mobile phone is viewed as a more powerful terminal than a computer screen, when the mobile Internet is seen as the greatest opportunity to create wealth after the Internet, capital, talent, innovation, and a high-stakes gamble have finally broken in. All this is similar to the madness of the internet era ten years ago.

Mobile Internet, in the final analysis is the mobile internet. When the 3G bandwidth expanded dozens of times times, when the smartphone with Apple, Android system became mainstream, when China already has more than 300 million mobile internet users, the change really began: Tencent began to leather their own lives, QQ users began to turn to micro-letter; app in China Store app downloads increased by 298% in 2011; even if you don't turn on your computer every day, you lie in your bed and use your phone to brush your tweets.

Isn't it? Around the hardware, Alibaba do mobile phones, millet do mobile phones, Baidu to do mobile phones, netease do mobile phones, even Zhou also known after six months of thinking finally made a difficult decision-to do mobile phones. Well, Luo, who also has an English training program, says he wants to be a mobile phone.

Around the application of software, the rapid popularization of intelligent terminals and wind investment in the concentration of ripening, so that many applications have not been profitable, that is, by the capital of the hot. Some innovative products are valued even more than 10 times times the real value. Just as 10 years ago the internet industry, industry changes, bubble suddenly, even "beer" also has a "beer bubble" trend.

Among the various application categories, there are only game applications and monopolistic tools that can make money, and most of the tools and life information applications are in the "profit-making yell" of the exploration state. And in the market competition intensifies, promotion costs and the giant admission and other adverse factors, many seemingly cutting-edge "star" developers are gradually fading.

Word, the 2012 China Mobile internet industry, has begun self-denial and shuffle. The first round of the shuffle.

Giant black Hole

Super Terminal's worth fighting for

May 15, 2012, Millet launched only 1499 yuan of the youth version of mobile phones, 360 companies announced mobile phone strategy, Baidu also held a conference in the afternoon, launched with the Changhong Baidu Cloud smartphone; the next morning, NetEase announced that the handset prototype has been completed, only wait for the listing; Alibaba and the day language cooperation of a variety of mobile phones have been listed, the legendary grand mobile phone is also in the brewing ... For a while, internet bosses seem to be collectively launching a huge offensive against Cross-border handsets.

The latest news is, May 18, 360 "saliva war" way to the millet fights.

Why is the phone terminal so hot? For companies that covet mobile interconnection, this is a bit of a game of cards.

"Cock Silk" melee.

360 Mobile phone main security concept, Ali mobile phone is the main network to buy advantage, Baidu Cloud mobile phone to push cloud platform concept, not only free to send 100G network disk, but also voice operation ...

This round of the war of Internet enterprises, without exception, is pegged to the millet positioning similar to the 2000 yuan below the so-called high-performance low-cost mobile phones.

such as Baidu. At the end of last year, Baidu worked with Dell to launch a high-end smartphone, but eventually because of high prices and other reasons, the market response is flat. Lesson wit. May 15, Baidu New to the low-end market-oriented smartphone, although the hardware configuration is not high: 3.5-inch screen, 3 million-megapixel camera, 650Mhz processor, but gave a low price of 899 yuan, compared to its 2011 first 3000 yuan of smart machines, the price is a good two-thirds.

In fact, low prices and the pursuit of price/performance are becoming the standard tool for Internet companies to infiltrate mobile terminals. Millet mobile phone last year to take the lead, the introduction of dual-core CPU mobile phone at the same time, offering a shock at the time of the 1999 Yuan low price, by this success to shape the outstanding brand image, access to many fans. Even a year later, in its cost-effective advantage has been dispelled a lot of today, Millet mobile phone still enjoy this dividend.

This experience has been borrowed from many later. Shanda is brewing its own brand mobile phones, the same emphasis on cost-effective and highlight the characteristics of low prices, the current disclosure of the price of 1199 yuan.

Ali is currently the most powerful Low-cost strategy players. Its Ali "Wasp" as a 3.5-inch screen dual SIM card for smartphones, in the market price of 699 Yuan also presented 500 yuan Taobao red envelopes.

Even the originator of millet, also tried to take a piece in the Low-cost market. May 15, it released a low-cost mobile "millet youth version", compared to the standard version of the Millet mobile phone, this low-cost version of the price dropped to 1500 yuan.

The latest news is that NetEase will also be killed in the low price of the regiment. It is understood that NetEase launched the basic configuration of Smartphones 4.3-inch screen, 1.5G dual-core processor, comparable to the current listing of high-end smartphones. Not only that, NetEase also to the current market cost-effective millet mobile phones, Aliyun mobile phones as the goal, known as the introduction of a higher configuration of mobile phones on the basis of the profit space to the lowest, to determine a most attractive user price. Industry insiders estimate, NetEase mobile phone pricing is expected to be below 1000 yuan.

No new big guy, but a new story.

In fact, internet companies turn to hardware, such as mobile phones, often with low margins and sometimes even losses. Yi, secretary general of China Mobile Internet Industry Alliance, is opposed to this, "Internet companies do mobile phones is a historical setback, is from a high gross margin of the industry to do a low gross profit." "Of course, Apple is an exception.

So why are internet companies landing mobile phone terminals?

Look at the Internet companies that have joined the battle group's Cross-border handsets, almost all of which have monopolized some kind of Internet service on a PC terminal. 360 Monopoly PC Antivirus software, a grand monopoly of the network literature market, Alibaba is the boss of the Consumer-to-consumer market, Baidu is the domestic search market overlord, Tencent is im.

The top priority for these internet bosses is to replicate their existing strengths to the mobile internet.

In the first quarter of this year, China surpassed the US as the world's largest smartphone consumer, media reported. China's share of the market is 22%, compared with 16% in the US. Clearly, one of the possibilities for smartphones in China is that the main Internet access device in the future is mobile phones.

Master this entrance, you have mastered a certain network market, in order to have long-term development. In other words, the Internet companies into the smartphone manufacturing is not for the hardware profit, but want to preempt the entrance and conversion rate behind.

Because of this, from the second half of 2011, China Mobile internet industry has appeared in this foreign, internet giants and hardware manufacturers to cooperate, beach mobile phone terminal mode. The core of this model is the combination of hardware and software, focusing on the user's later service profit. For example, buy 360 of the mobile phone, then users may choose to use the mobile phone 360 of the application. This to 360来 said, first is the user quantity, has the user foundation, the software embedded advertisement and so on has the bigger transformation opportunity.

Early start of the millet, its monthly camp receipts said already more than 1 billion yuan, monthly shipments of more than 500,000 units. As of the end of this year, the company's plant in Britain's millet Green Line monthly capacity will be more than 1 million units, then the annual output of millet mobile phones will reach tens of millions of units of scale.

And the Internet monopoly giants of Cross-border handsets, which have enough money to launch homemade handsets to grab the mobile market, have created their popularity and user base on their PCs to form a potential consumer base for their phones. And their monopoly on PCs has become a selling point for their phones, probably from behind.

As for many other internet companies, either the company is too small to develop mobile phones and marketing, or the size of the company is large enough, but not in any one area to accumulate a large user base. For example, Sohu, several other domestic internet giants on the mobile phone, Zhang Chaoyang is about 45 degrees angle tears.

New rules of the game

Of course, there are those who sing the loser. May 16, Innovation Factory CEO Kai-Fu Lee in his microblog asserted that most Internet companies to do mobile phones will fail.

In the view of Kai-Fu Lee, internet companies do not only because of the company's genes are different, but more important is that these enterprises just to embed their own services, the competition for mobile internet access, "not to the user demand for the mission, and to embed their own services as the goal, can not get users Word-of-mouth "It would be a criticism to be reluctant to embed the services of a competitor that the user loves."

Does this bridge have déjà vu? Yes, it has happened countless times in the traditional internet age. For example, 360 and QQ in PC terminals on the 3Q war. If these traditional internet monopoly on the mobile internet, will really be like Lee Kai-Fu said continue to hoodwink, monolithic?

Just announced to cooperate with international and domestic manufacturers to launch 360 for the mobile phone's 360 Zhou, but said the view of Kai-fu Lee "very agree." However, he argues: "So 360 do not do their own mobile phones, but the use of 360 of the Internet understanding and resources to help mobile phone manufacturers to transform the Internet model." "and Baidu has previously said frankly, and changhong cooperation of the thousand-yuan machine, mainly for the following 2000 Yuan user experience, can not be compared with the four thousand or five thousand-dollar apple mobile phone user experience."

On the other hand, internet companies to the mobile phone terminal "Grab position", has provoked the traditional terminal manufacturers of the alert heart.

At present, domestic internet companies to launch mobile phone prices from hundreds of yuan to thousands of dollars. According to the previous ZTE Executive Vice President Shiyou, thousand-yuan intelligent machine shipments need to reach 5 million units, only to achieve profitability. Internet companies choose the range of mobile phone prices are related to their own, but so obvious low-cost blood spell strategy, so that the original "low price for scale advantage" of traditional mobile phone manufacturers quite uncomfortable.

Shen Li, vice president of ZTE, said internet companies would bring more competition for prices and profits, but it is too early to say who wins, and the ultimate "remnant" will be seen in 1-2 years.

You can't stop anyone from joining the game, now the rules of the game have completely broken the concept of terminal manufacturers, a new round of competition will experience a painful process, and finally precipitated the brand, is the king.