Traditional manufacturers seek export under the pressure of profit

Absrtact: Qihoo 360 President Zhou (Weibo) not long ago announced on Weibo that 360 companies will enter the mobile phone industry news, once set off the industry's uproar, the sound of praise are heard. When the news came out, Zhou to the matter to say also Hugh. Until the Huawei side

Qihoo 360 President Zhou (Weibo) not long ago on Weibo announced 360 companies will enter the mobile phone industry news, once set off the industry's uproar, the sound of praise are heard.

When the news came out, Zhou to the matter "to say also Hugh." Zhou until Huawei announced plans to launch a smartphone message with Qihoo 360.

Yesterday (May 14), Qihoo 360 launched a media conference on smartphone issues, announcing some details of 360 custom handsets. Zhou also detailed its foray into the mobile phone industry in the original intention, and said 360 customized mobile phone in high price, and "mainstream machine must be higher than millet."

Traditional manufacturers seek export under the pressure of profit

In the context of the trend of smartphone trends, which business model is "kingly", Zhou said he had thought a lot about it.

"From the United States, pure mobile hardware will not be able to do it on sale," he said. "At yesterday's media conversation, he gave an example of Amazon selling tablets, which, through the Internet, turned from a one-time selling hardware to a long service charge," he said. Zhou that 3-5 years later, this will become a mobile phone industry development trend.

Want to find a good profit in the low price space, became the current domestic handset manufacturer's problem. "The smartphone market has become a ' sea of blood ' and hardware profits are plummeting. "Zhang, the chief executive of the media, said in an interview with the Daily economic news.

The data showed that in the first quarter of 2012, the IPhone and Samsung handsets accounted for 32.3% of the total market share, but seized 99% of the market's profits. In the same period, Samsung mobile phone shipments of the market share of 23.5%, access to global mobile phone profit of 26%.

There is a point of view that the main push of domestic operators of the thousand-yuan intelligent machine has been close to the cost of the bottom line. Although HTC has launched a 1999-yuan mobile phone, but its China president Ningweiguang said that to ensure user experience, HTC Research and development and production can not achieve 1000 yuan price level, the introduction of nearly 2000 yuan mobile phone has been counted as the lowest end.

"Traditional mobile phone manufacturers through the price war, we are reducing the ability to adapt." "Zhou that this is the current traditional handset manufacturers seek to integrate with the Internet, the main reason.

Shift from hardware to service

It is understood that in the traditional mobile phone sales mode, channel, intermediate distribution will take away 40% of the profit. Through the Electronic business platform to compress the channel cost, which in Zhou seems to be the Internet model and handset manufacturers to combine a big advantage. He revealed that 360 of mobile phone sales have been "greeted" by major electric dealers, "All electric Shangdou from me to buy traffic." It's not very difficult to talk to electricity. In addition, the flat marketing of the Internet, will also promote the promotion of mobile phone products to save costs.

The most Zhou 祎 bullish is the business model of Internet, which is similar to Amazon, no longer selling hardware, but through the built-in value-added services to earn profits. It is this model that allows him to seek 360 with the handset manufacturer's binding point.

"These vendors are technically good, but they lack the experience and the genes to do internet handsets." "Zhou that 360 of the Internet gene can help handset manufacturers in the mobile phone industry chain of Internet."

In his view, Qihoo 360 Hundreds of millions of users can help mobile phone manufacturers to accurately find users, can save a lot of marketing costs, but also save channel costs through the electricity business. 360 Customized mobile phone low-cost space from this.

This is more like 360 in the PC Internet era, the continuation of the free mode: The terminal manufacturer to provide "hardware 0 profit" or "close to the cost price" of the custom mobile phones, from 360 to provide users, and then through the flow of cash into revenue. From this perspective, 360 do not make their own mobile phones, but the handset manufacturers and 360 users to build a bridge between.

"I didn't think about making phone money, I just thought the software would have 3,601 seats." "Zhou 360 of the revenue from the mobile phone business, that is, 360 of mobile products, such as the flow of traffic into the built-in fees." This part of the profit, 360 will and cooperation of handset manufacturers to share.

Up to now, 360 in mobile phone applications have a number of layouts, of which the highest installed capacity is the security tool "360 Mobile Guardian" and Android system beautification tool "360 mobile desktop." In addition, the download tool "360 mobile phone assistant" and the mobile browser and other imported products.

Mainstream machines must be higher than millet

For the above model brought about by the decline in the cost of manufacturers, Zhou said, also requires manufacturers to maintain a meager profit at the same time, the cost of the mobile phone to carry up.

"At present, many smartphones are too expensive, and the performance of the thousand-yuan Intelligent machine configuration is low, users of high-performance high configuration but low-cost smart phones higher demand." "Zhou revealed that the 360 customized mobile phone is not located in the thousand-yuan intelligent machine, but the mainstream high-end intelligent 3000~4000 yuan, but the price of" only sell to 1999 Yuan ", and try to ensure that the cost price of 1800 yuan.

He even gave a simple 360 customized mobile phone configuration of the bottom line: 4 inches above the screen, CPU 1GHZ, mobile phone camera better. For journalists to compare it with rival Millet, he bluntly 360 mobile phone configuration "Mainstream machine must be higher than millet", the price is flat or lower than the latter.

Yu, CEO and Terminal company chairman of Huawei Consumer Business group, has confirmed that Huawei plans to launch a smartphone with Qihoo 360. But in the face of the daily economic news on the progress of the cooperation, Zhou said the inconvenience, 360 of the first mobile phone launch also did not give a timetable.

However, he revealed that he contacted a lot of mobile phone manufacturers for half a year. For the choice of cooperation manufacturers, Zhou Blunt shipments is an important reference indicator, "the annual shipments of at least 5 million ~ 10 million."