The business logic behind the "Little 3" war: Scramble for mobile portals

Editor's note/Internet companies are doing mobile phones, mobile internet access to the competition is constantly close to the user side: The first is the portal, and then search, and then the browser, the operating system, is now a mobile phone hardware products. Traditional internet companies have not been successful in moving into the mobile world, forcing them to rethink the way they move into the mobile internet. Smartphone, closest to users.　　The scramble for users may start here.　　Lei (micro bo) and Zhou, known as China's most Internet two people, their endorsement of the Millet mobile phone and 360 special for the mobile phone in the field of positive war, but also dubbed the industry as "small 3" war. Lei enter early, play big, gamble big, the risk is also big. Zhou this time it is obviously a follow-up, and take the risk of a small way to disrupt.　　Yu, a mobile browser, faces the problem of streaming apps.　　Aside from the war of words, they are concerned about the way of thinking and choosing the business model of Internet mobile phone. Role one: The Lei: Millet gambling is "city Dream rate" June 26, Millet refinancing 216 million U.S. dollars, the valuation has reached 4 billion U.S. dollars. At the same time Lei insisted: "Millet 5 years without a listing plan, willing to gamble on the come in, not acceptable to talk about."　　"Obviously, Lei wants to gamble big.　　Millet Company was founded in April 2010, the establishment of only 2 years after the valuation of 4 billion U.S. dollars, in China has listed internet companies, after Tencent, Baidu and NetEase, this valuation is close to the traditional handset manufacturers BlackBerry (micro-blog) 4.9 billion U.S. dollar market capitalisation, equivalent to half of Nokia's market value. Lei said that the current stage of millet, relying on the "City dream rate", rather than multiples, is to see how big the dream of entrepreneurs.　　Millet was recognised by investors because it stands on the crossroads of two high-growth areas of mobile internet and smartphones. Lei thinks, the investor gives Millet handset overestimate value, with millet handset current sales relation is not big, they see is millet handset's future. HTC had the highest market capitalisation of $40 billion trillion, and Nokia had the highest market capitalisation of $200 billion trillion. Lei said, "in the mobile internet era, the market will enlarge, will be born a big company, investors believe that millet is possible."　　"In Lei view, millet including rice chat, miui operating system, millet mobile phone three core business, valuation standards should be based on internet companies." Millet just appeared, the traditional handset manufacturers did not put this grain of millet in the eye. Lei should be the first to realise that the world is changing and that the Internet model is transforming and subverting the mobile industry. But when Lei first announced the mobile phone, the emphasis on "triathlon", deliberately distinguished from Apple.　　A year ago, no one could see what Lei wanted to do, including the traditional handset makers, including the internet giants. In other people wandering around the empty, millet mobile phone sales quickly break 1 million units, 2 million, and recently broke 3 million Taiwan mark. The key to the Millet model is to use the Internet to do propaganda, using the InternetWay to do sales, the traditional handset manufacturers in marketing and channels of huge investment savings, let the user. At this point, the trend of the whole industry is becoming more and more obvious, we also seem to understand what millet is going to do. Traditional hardware vendors can't learn because they have too much baggage.　　Internet companies have also entered the mobile phone market, but most have yet to find the right feeling. According to Lei, Millet mobile phone sales break-even point of 300,000 units, from the sale of 300,000 units have started to make money, this year two business profits have been more than 10%.　　May total sales reached more than 1 billion yuan, the monthly profit has more than 100 million yuan. After the hardware product runs smoothly, Lei must consider the innovation of the business model. Lei said Millet will try to enter the mobile business market. Next millet cell phone will be built into the Millet Mall, from the sale of millet accessories and other products to start into. In addition, Millet will also start the internationalization process.　　Lei has told the China Business News reporter that the international market will rely on local operators to carry out the cooperation, not in a hurry to sell themselves through the form of electricity. I have to say that Millet did create a business miracle in the short term. But the next competition is increasingly brutal, because the following opponents are very strong. Some industry experts believe that millet's greatest value lies in the executive power of its team, and the future millet single from the mobile phone itself, it may fall into a melee, which will also reduce the margin to a certain extent, therefore, the business model of innovation has become the primary problem.　　Some people think that the Millet Internet attribute is not strong enough, should be based on the hardware manufacturers valuation. Chinaventure group analysis that, at present, millet Company's success factors, marketing effect to more than its software services to the meaning of products, through the software has not become a profit, so, the internet phone's profit model is far from forming.　　In the long run, the risk of millet is also very big. Role two: Challenger Zhou: 360 To change the way of living June 28, 360 special for the launch of the machine. Do not do their own hardware, and mobile phone manufacturers to cooperate, Zhou chose a quick, small risk approach to the smartphone market. "360 can not do mobile phones, but do not have to do mobile internet, I have to ensure that the wireless Internet in the end of the market has the right to speak."　　"The real purpose of Zhou is to occupy the highland of the mobile internet," he said, fearing that rival handsets, if restricted, would be a fatal blow to their future mobile internet development. Zhou decided to do the mobile phone because he saw an industry trend: hardware makers, including Nokia, HTC, BlackBerry and Motorola, are getting worse. On the contrary, Apple, Google, Amazon and other software, internet companies, mobile terminals are getting more and more hot.　　This, he argues, is a strong signal that the mobile hardware industry is bound to be changed by software and the Internet, and that the business model of the Internet is starting to subvert the traditional handset-terminal manufacturing industry. In addition, Amazon's Kindel sales in the form of negative profits, but also draw another conclusion: hardware profits will tend to zero. ItThe future will serve as a window between users and the Internet, a contact interface between users and vendors. Millet, Baidu, Alibaba (micro-bo) and other enterprises have entered the mobile phone market, so that weeks some sit not live.　　According to these giants playing in the Internet arena, each company will bundle its applications into its own mobile phone, and 360 of mobile phones are becoming less accessible. "In fact, all internet companies have a fundamental reason for mobile phones, that is, their expansion in the field of mobile Internet is not smooth." The original bundle way to the mobile end has no effect, must do a new marketing campaign. An insider told reporters. Like all internet companies, 360 into the mobile field of the road is not smooth, if you want to pre-installed into the mobile phone, the need to pay for hardware vendors, the promotion of high costs.　　But 360 entered the smartphone market with a cooperative model, and gained an opportunity to "exchange the equivalent". Some traditional handset manufacturers were hit by the impact of millet, they also want to try the way the Internet, but they can not give up the original channel.　　By working with 360, they started experimenting with the way the internet began to expand. 360 and hardware manufacturers are mutually beneficial or equivalent exchange. 360 in the role of cooperation is to do low-cost Internet marketing, to their nearly 400 million users to promote cost-effective 360 special machine, to help hardware manufacturers to do up sales.　　In exchange, 360 of the software and applications will be pre-installed into the hardware product to achieve higher user coverage. "The mobile phone and the internet two industries collide, there will be some major subversive changes, in the process I do not want to be a bystander, I want to be a catalyst." "In this cooperation, 360 do not sign, do not participate in the sales chain, do not do their own electricity, not from the hardware to earn a penny." "The trend has been clear, but the millet drive is too weak." We're going to do it together, and I don't think we or other Internet companies have the ability to solve all the problems of hardware, supply chain, inventory, quality of production, and more.　　"Zhou said. But he thinks the business model will continue to evolve over the next 35 years. He predicts that mobile phones, as an Internet terminal, will be cheaper and cheaper, and that even one day there may be a free delivery, with revenue coming from a variety of applications operating income. And the way that 360 is done today is to build an ecological chain through extensive cooperation.　　Attract more hardware vendors, but also attract more application developers, 360 can slowly become a similar role of virtual operators, hardware manufacturers face the future is not a dead end, but by changing the business model for a living. Zhou saw the trend, but did not quite clear how to achieve it in a step-by-step manner. The current cooperation is only the beginning, Zhou that can not wait, "groping while doing." His risk is that 360 special machine can hit?　　The advantages and disadvantages of internet marketing coexist, positive and negative news will be magnified-the start is crucial. Role three: Spectator Yu: The Battle of the Gates in the Apple app model, there is a voice in the industry that browsers will be replaced by apps.　　UC is one of the first companies in China to enter the mobile internet, although it has the world's largest mobile browser users, but also have to face the future choice of the road. The scramble for mobile internet portals has been moving forward, with many internet companies making their own handsets and integrating applications directly into their phones. In the face of more and more fierce competition, UC excellent view of the company Yu to the entrance has its own understanding: "Many companies say they are the entrance, said that they are platform." I think the user goes to a lot of places is the entrance, because there are roads where there are junctions.　　According to this theory, portals, searches, and even input methods can be portals. Then the entrance of the competition is the flow of competition, where many people are the best entrance. In another perspective, at different stages, where users are in strong demand, which place will become a new entry or a more favorable entrance. Therefore the competition of the entrance must follow the user's demand change. "Smartphone demand is clearly on the rise, the potential is 1 billion scale, which is why many internet companies do mobile phones."　　"Yu said. But Yu has not been tempted by the 1 billion-size smartphone market, and has not considered making the choice: "Where the entrance is a problem, but whether you can control the entrance is another problem."　　Yu that, as long as the UC browser can be installed into all corporate mobile phones on it, do not need to do it yourself. June 26, UC excellent view of the company officially released its game open platform strategy, and redefine the browser. "Today, we will redefine the meaning of the browser." UC Browser is not a simple mobile internet tool software, but a mobile Internet portal service platform. Yu that Netscape did not survive, and now Microsoft's IE market share is declining, because they are positioning software. "Software company browsers are bound to drop, and internet companies ' browsers will rise." "Yu that the Internet browser is different from stand-alone software, but a service model to reflect the platform."　　Entrepreneurship for more than 8 years, UC Browser has slowly formed four business systems: Information Services platform, application distribution platform, mobile social platform, mobile gaming platform, for users, terminals, operators and content providers to build an open, mobile Internet portal platform. In the face of fierce and brutal internet competition, it is easy to get rid of competitors ' attention prematurely. Yu told the China Business newspaper Reporter: "The longer the diving time is better, such as UC in the game business has been lurking for more than 3 years." "At the end of 2008, UC started the game business attempt; 2009, set up UC game channel, provide game download; 2010 acquisition of mobile phone game portal Nine, UC game channel and nine independent operation; May 2011, Dual-line operation, and began operating the first mobile phone games.　　Today, with the rapid development of the game business, the UC game open platform's strategic formation is also clearer. Currently，The UC gaming open platform has become the second largest mobile Internet game distribution platform in China, after Tencent, both in terms of user numbers and revenue.