The product of intelligent hardware wave is getting cheaper

　　Smart Bracelet, the representative product of the wave of intelligent hardware, has become increasingly inexpensive in Shenzhen's factories. "Now Shenzhen has a factory to overseas OEM quotation has dropped to about 7 U.S. dollars." "The last time I talked to Shogo, a beautiful tech CEO," he said.

7 U.S. dollars and less than 50 yuan, in Shenzhen electronics market for many years of the Shao is also shocked. He felt surprised and not surprised at the price of 7 dollars. He said "originally thought 6 months market will come to this step, did not expect a lot faster, very Shenzhen characteristics." According to this rhythm, a large number of 99 yuan or even lower price of the intelligent hand ring products will be to market.

To the whole intelligent hardware industry, the price of increasingly low-cost smart hand ring market outlet where? Do you have any fun? To this, through several industry personage's interview, come to a clue.

At present, hand-ring products face such a number of problems, lively behind peremptory is a "four low" industry:

1, low price, homogeneity of serious

Low price is actually a pseudo proposition, on the one hand the domestic company launched the hand ring product prices at the bottom of the fight; On the other hand, to Misfit Shine, Fitbit and Jawbone as the representative of the first camp hand ring manufacturers, the price is still hundreds of or even thousands of yuan, a big profit.

The reason for the low price is in practice, as Shogo said, the 7-dollar OEM price is only the quality of the general product. But this kind of product already has the basic function of the intelligent hand ring, such as the step function, also has built-in 3 axis gyroscope, but the homogeneity phenomenon is serious, lacks the new idea, therefore the price does not go.

2, low threshold, mixed

The other reason for the low price is the fierce competition, now the general model for the factory, from the upstream chip company to buy a program, affixed to the PCB board, open mold, and then set a silicone sleeve, the product came out. As for the technology algorithm, the chip manufacturer itself will bring a set of embedded systems, there are basic algorithms, OEM companies can do simple modification directly.

This is a typical way to make a fast-money Shenzhen factory, even if the cost of 7 of dollars, the foundry will still have 1~1.5 dollars around the foundry margin. Because the threshold is low, the result is the product is mixed.

3, low sales, acceptance is not high

Although smart devices have recently been fired very hot, but in the electronics circle in Shenzhen, and not like the time of the MTK feature machine boom. Really put the number of companies is not large, the entire circle, Shogo estimated monthly shipments in 20~30 around, is very small scale.

Why can't the trend into, Shogo said, one of the reasons is that, although now enter the threshold low, but now the smart hand ring industry is not the same as the original MTK mobile phone as mature as the complete solution, product experience and demand did not come up, the user acceptance is not high.

4, low quality, lack of fine

What's the hardest thing about being a smart bracelet? Not the technology of the product itself, the upstream chip manufacturer has already solved for you. Really difficult at 2 points:

The manufacturing process of the product. Second, the product background algorithm.

With a good reputation now misfit shine as an example, a unique design and aluminum high-precision manufacturing process, cost is very high. Background algorithm, is the biggest difference between the size of the player, Shogo said that if you want to find an international well-known companies to develop a set of algorithms, the need for millions of investment, which is clearly not the general to make quick money small companies are willing to choose the direction. Shogo says the company currently spends more on the backend algorithmic team than on the hardware itself.

At the beginning of the production of another company, its CEO Yuchinwei told me that its dedicated algorithm development team experienced six months to fix their hand ring algorithm, only this investment is also hundreds of thousands of yuan.

Because of this, the current domestic market is still lack of real "tall" smart hand ring products, the price is also difficult to pull up.

Where's the way out?

Behind the current depressed market, is brewing the smart hand ring of the second spring. From the viewpoint and practice of Shogo and Yuchinwei, the intelligent hand ring still plays, but the way out in these aspects:

1, take the overseas market

Europe and the United States market than domestic mature a lot, the user acceptance of high. If the domestic production capacity of the company, with the European and American companies docking, OEM is currently the most reliable way of profit. Shogo Company's omate intelligent table, last year shipments in 100,000 units, mainly three channels, overseas OEM Foundry, ODM and self-owned brand.

Among them, the own brand accounted for only 1/3, of which there is a large part of the sale to overseas markets, only through the kickstart such a public platform, sold more than 10,000 units, and the domestic market to add up all channels, but also only thousands of units.

2, down to the three or four-line city

Yuchinwei from the traditional tablet computer into the smart wear products market, its first generation of products have not been sold, according to he said there are about 100,000 of the estimated order volume. Channel mainly from its past accumulation of traditional state of the provincial generation of business, electric business channels, the platform of its own electric business.

One of his insights is that the smart bracelet product, in the one or two-line city, the concept has been fried, coupled with Fitbit, Jawbone, such as overseas star products, domestic product acceptance is very low, but from the feedback from the Distributor, in the 3~4 line of the city users of the intelligent hand ring acceptance than expected, especially in the price, To 399 yuan of prophase research price, accept degree already very high.

3, take the vertical high-end market

Another way is in the vertical customization of the market, the requirements of the product in the subdivision area of the function to do a good job. Niche market is characterized by the user is very accurate, the demand is stronger.

In fact, last year omate domestic sales of thousands of units, a large part of the partnership with the Baby tree Special Intelligent Watch, joined the pregnancy related detection function and reminder, this is a relatively accurate market, the same hand ring also has this demand.

The smart bracelet to be done in the recent century is another example of the vertical field, which is said to have used a variety of jewelry processing technology, and the final assembly process was done for the factory of Dio foundry. Go to the vertical market, there is another advantage is the price set high, there will be a better acceptance.

4. Internet company harvesting

The last one can really let the intelligent hand ring to the mass market is the Internet large companies, to Baidu, Millet, Tencent and other led. Internet companies because of their real demand in the access to users and smart wear equipment this Internet access and data, resulting in a new profit point, so the product itself can be in the case of lower prices, one is to ensure the quality of products, two can also be a service and background algorithm to do well. At the same time, users really enjoy the benefits.

But the Internet companies do smart hardware, not small manufacturers in Shenzhen can do, even the beautiful technology such companies also butt Internet company's single interest is not small, Shogo last year and Lei talked about, but consider to the Internet companies put in too much resources, and do not want to put eggs in a basket, finally did not pick up the millet hand ring of the single. He thinks the most appropriate, or big IT companies like Foxconn, can devote more resources to meeting the requirements of the IT vendors for product details.

According to industry insiders, Foxconn has also laid out smart wear products for many years, in the factory has set up thousands of test equipment, mainly in the data collection test.

Summary：

Overall, now the smart bracelet is entering a polarised and serious situation. Cheap products have been OEM manufacturers will cost to do the price of cabbage, within a few months will appear a large number of hundred yuan price products. The other side, in the process and background algorithm more reliable overseas boutique, but at a high price in the domestic market nuggets.

In this case, the smart hand ring is still some play, but faced with a practice of metamorphosis. To the overseas market, vertical areas, three or four-line city under the same time, to make a real boutique, so that the wearing bracelet can achieve a real jewelry class experience, rather than a cheap plastic plaything.