Suspected of being hit by music? Skyworth profit reduced by 17%

Last night, Skyworth Digital disclosed the financial statements as of March 31, 2014. Purely from the number point of view, net profit fell by 17%. On the Skyworth earnings, there are a number of figures worth paying attention to:

1, revenue of 39.48 billion Hong Kong dollars, an increase of 4.4%. Net profit of HK $1.254 billion, down 16.5% year-on-year.

2, the annual sales of 11.35 million TV sets, less than expected. Among them, in the mainland market sales of 8.6 million units in the overseas market sales of 2.75 million units, have not reached expectations.

Peer comparison:

April 2014, Sichuan Changhong announced a quarterly report of 2014. The company's first quarter operating income of 12.531 billion yuan, down 3.53%; The net profit of the shareholders of the listed company is 9.2326 million yuan, down 93.75%;

Throughout the 2013 fiscal year, TCL Multimedia business has suffered losses.

It should be pointed out that TCL, Skyworth and Changhong are the representative home appliances enterprises. The data shows that the general decline in household electrical appliances industry is not a case, but the whole household appliances industry, the true portrayal, then, the problem in the end is where?

Cause Analysis:

Skyworth in the summary of the reasons, mentioned 2:1 non-television manufacturers into the field of television, and adopted a cut-throat price war strategy. 2 is the panel and other factors affecting the TV sales price continued to lower, resulting in a further fall in net profit.

The analysis holds that the non-TV manufacturers Here are the internet companies that the music is considered to represent. These companies, although not high in shipments, but in the market and consumer groups have a serious wait-and-see mood, so that home appliances manufacturers have to win through the price war to regain their market, but this led to the company's earnings losses.

Future trends:

The losses of traditional home appliances manufacturers are expected to continue if their business model is not adjusted in time. In fact, the internet companies that le as a representative are betting on 2 things, in the short term, betting on the role of the Internet business model in pushing prices, which directly determines the attitude of investors and ultimately determines whether their business model will continue. In the long run, it is whether this business model can be paid by consumers, that is, to make its low-cost hardware model profitable by paying for content.