Software becomes a lifeline to the Internet industry

With the development of the domestic internet industry, the traditional hardware development profit space is not as good as before, more and more Internet merchants turn to do software, software become a new era of Internet industry lifeline.

Rely on hardware to make less money, through application services, advertising for profit

Starting with Lei's millet phone, internet companies are stepping into the river of smartphones. Aliyun, Baidu, the two internet giants have already dabbled in them, Qihoo 360 and Shanda mobile phone will also be listed this month, the latest news is that Tencent, NetEase, Renren will also be under the river wet shoes. So many internet companies are involved in the mobile phone industry, what do they rely on to make money?

Baidu by Search 360 rely on application

China Mobile Terminal Company A person to "it times" reporter said, although millet launched a 1499-yuan low with millet youth version of the mobile phone, but from the overall cost, millet can be directly from the mobile phone to make money. And the rest of the Internet companies launched the smartphone, are basically positioned in the scope of the thousand-yuan machine. Most Internet companies are involved in smart-phone mode, the first to persuade mobile phone manufacturers to lower profits or even 0 of profit supply, it is best to pull the operator to use the prepaid phone to the way to subsidize. Internet companies use their resources--traffic and advertising--to share revenue with handset makers and operators.

The most typical example is Baidu. According to Baidu Mobile Cloud Business Department deputy general Manager Yue introduced, its latest Baidu Cloud mobile phone, is the cooperation with Changhong, by Foxconn Foundry, built its own intelligent terminal platform, the price is 899 yuan, go changhong entity sales channels and sales channels. Yue also to the reporter revealed that changhong Baidu Cloud mobile phone will be the first of China Unicom underwriting 1 million units.

Yue said that Baidu does not rely on selling software to make money, but to provide free to partners. "Baidu has a sophisticated business model in mobile Internet and is divided into partners through mobile search." ”

In fact, Baidu has increased its investment in mobile Internet as early as 2009, and CEO Robin Li personally captured the tribute work and set up a special mobile internet division in 2010, which now has a scale of over 1000 people. However, the "2011 China Wireless Search Market Report," published by the Analysys think-tank, showed that Baidu accounted for 34.9% of the search volume in China's Wireless search site in 2011, and that the gap between the market share of nearly 80% per cent on the PC side was significant.

Baidu in addition to the main search, in the Baidu Cloud Intelligent Terminal Platform also provides 100G of cloud storage space for users to save data. The same main cloud concept is also aliyun. Ali Cloud computing President Jian has explained to the IT Times reporter that cloud computing, cloud storage and cloud applications are the most prominent features of Aliyun handsets. He said "everyone has been accustomed to buy movie tickets on the internet, lottery, water, electricity, coal and other payment methods, the future of Aliyun mobile phones can be achieved." ”

Qihoo 360 and Shanda is the main application mode, Qihoo 360 CEO Zhou said that in its mobile phone with Huawei, built-in 360 of a range of mobile applications, such as mobile browser, mobile security products to do the basis for mobile search, mobile advertising, mobile games and so on to bring the opportunity to become a cash.

The Grand application layout is broader, its Wei Feng network, android Network, Grand Wireless and grand literature, there are "you", "Ink Weather", "adventure", "All", "Cut off", "The Cloud Book Bookstore", "WiFi Universal Key" and a series of mobile phone applications.

Profit outlook is not optimistic

However, China Mobile terminal company Personage said, Internet enterprises do mobile phones exist product line layout, after-sale, product use stability and so on. And Kai-Fu Lee also said on Weibo, simply to bind their own services and launch mobile phones, will limit the choice of users, not optimistic about the majority of Internet companies to enter the mobile phone industry prospects. Ma Jihua, a senior telecom analyst at the scene, also issued his own concerns, "large internet companies with the advantage of the money in a single, regardless of name geometry, its essence is still highly homogeneous products." ”

In fact, "Software + hardware + services" and other models in the smartphone market is already the industry consensus, but even the best Apple, its app store far ahead of peers, but its contribution to Apple is still much less than the iphone, ipad and other hardware products.