Using algorithm to interpret the problem of mobile phone digital level response

The reason why a few days to find this article, because in the mobile internet era, as an old media, reading positions are naturally transferred to the mobile phone, the client, friends and microblogging basically meet the Daily news information reading. Because of this, mobile phone from a communication tool into a multi-purpose digital assistant, I used to say that mobile phone will be another wife! now, I think no one has suspected. For this reason, 1.6 billion of the world's mobile phone shipments a year to become a number of companies chasing the supermarket. And given the different numbers of consulting agencies, I use my own algorithm to interpret the problem of the digital dimension, rather than the number itself.

28 Domestic handset share under the principle

If we use the 28 principle of simple decomposition, to 1.6 billion as the benchmark (the past three years mean, including the function machine.) 2014 Smart machine about 1.2 billion, basically in line with the inverted 28 principle, the global high-end machine market for 320 million (800 U.S. dollars), is basically Apple, Samsung, Sony and other few manufacturers of the world. 256 million is the middle end machine, 1.024 billion is the low-end machine. Although some absolute, but I want to pretty. My division of the middle end machine is 500 dollars, that is, 3000 yuan. This may be different from domestic manufacturers, the domestic 3000 yuan may be high-end. Therefore, we can also see that domestic enterprises really occupy the market is 3000 yuan below the market, if also in accordance with the 28 principle to calculate, domestic enterprises accounted for up to 819.2 million parts (including functional machine), that is, the total number of domestic enterprises to produce mobile phones. More than 3000 of the market from the total can be negligible!

Analysis of this group of data, is to talk about the beginning of the article "Domestic mobile phone manufacturers Trifles: To seek the share of Word-of-mouth." The reading volume and the number of comments in this article are very high, indicating that their views resonate with many people. The core of the article is to criticize China's mobile phone companies in the end, with Apple's technology innovation to criticize China's mobile phone companies do not know in the technical level to research and development, but focus on a variety of marketing aspects, to low profit one-sided pursuit of market share and so on. I endorse the basic point of this article, which I have mentioned many times. But I think, this article still ignores a core problem, the enterprise has each family's way, you cannot all use Apple's standard to ask Chinese handset enterprise how. Because of the different starting and environment, the strategy of natural Chinese enterprises is different. In addition, any area of full competition is ultimately only a small number of players in the world, the current chaos in China's mobile phone industry is only the past three years of the short-term phenomenon of the smart machine outbreak, but also the special phenomenon of China Mobile internet outbreak, can be sure that 2015-2017 will be phased out some enterprises, reshaping the global mobile phone

Therefore, I think, "seek the share does not seek Word-of-mouth" itself is a stage pseudo proposition (of course, I am not criticizing the author of this article, and just say this proposition just see surface phenomenon, sweeping, not that Chinese enterprises do not seek word-of-mouth, not to seek profit, but accumulation is not enough, ability is not strong, not yet to that stage. The practice of individual enterprises is not the whole of China's mobile phone companies, do marketing also have the necessary difficulties (in fact, marketing is also very important, especially at this stage)! To recognize the overall situation of domestic machine, to prepare for long-term development, it is possible to realize the author mentioned both the market and word-of-mouth possibility.

20 home-made mobile phone enterprise classification

China once had hundreds of companies doing mobile phones (more than 500 at the height of the Shanzhai machine). And to the age of the intelligent machine into the elimination phase, the number of hanging, almost 100. or according to the 28 principle, have their own brand or to let media reporters remember not more than 20 (according to my personal impression, Huawei, Millet, Lenovo, Cool faction, ZTE, TCL, OPPO, VIVO, the Charm clan, Tian language, Lephone, small chili, a plus, Haier, Hisense ... I can't think of any more. So it can be said that through their own, the media and social networks, such as the voice of so many enterprises. The 20 companies ' shipments accounted for almost 80% of the shipments of domestic handsets.

Therefore, the study of China's domestic mobile phone companies to study these 20 can. According to my own understanding, these 20 enterprises can be divided into five major categories, first, the telecommunications equipment (Huawei, ZTE, Cool faction), IT equipment category (Lenovo), home appliances and derivatives (TCL, Haier, OPPO, vivo, etc.), Internet brands (millet, a plus, etc.), cottage Mountain categories (Tian language, Lephone, etc. )。

So, what do these five kinds of enterprises rely on to conquer the culture? It can be divided into the following four categories.

Technology win Category: The main means of telecommunications equipment, Huawei and ZTE as the representative, in itself is relying on the naked technical characteristics and comprehensive cost control capabilities to bo the world, so it can be said that telecommunications equipment, mobile phone enterprises in China is a technical faction. If purely from the patent point of view, Huawei, ZTE is the most. Cool is relatively weak, so it abandoned telecommunications equipment and focus on mobile phones, although there is a focus on the two compared with a big gap, and too much telecommunications thinking has restricted the development of cool.

Scale Manufacturing Category: Here is the IT category (Lenovo) and home appliances Enterprises (TCL, etc.) can be grouped into this category, such enterprises are based on large-scale manufacturing and cost control as the core. Although Lenovo and Tcl acquired more market share through internationalization strategy and mergers and acquisitions, they also gained a lot of patent reserves. But to know, rely on capital to buy technology is generally only reinforcement, the core technology is difficult to use capital acquisition (unless a large price, but the seller is not stupid, know the patent remains in the hands of the use). Lenovo's purchase of motorcycles is believed to be clear. And Tcl's acquisition of palm, etc., can only be said to be an outdated acquisition. Oppo and Vivo are like cool pies, is also out of the home appliance system focus on mobile phone field, and it is really a lot of kung fu to do many innovation and marketing, but it is very similar to HTC, the lack of core technology, more are micro-innovation, engage in characteristics, but also as a spell out a road, but the short plate is also very

Internet Mode class: This kind of should be the so-called Internet brand core competitiveness. In particular, millet will be the ability to play the Internet to the extreme, so that in the absence of much technology accumulation, relying on business models and brand marketing has achieved quite good results. This wine is also afraid of the alley deep, the core of marketing is to let the market and consumers first contact the product, and then get word-of-mouth and sustainable development. Subsequent such as Hammer, a plus and other enterprises are using these models. This is also true of so-called Internet brands, including several large companies. It's all about millet, but a lot of them are taken to the ditch.

Cottage Mountain Category: The way to win nothing but two, one is the price advantage, the second is a special channel. This is not much to say, presumably everyone is very clear about its survival model. On the whole, the cottage downhill class because of its unique competitive advantages, both in the domestic and international markets have a large market share. In a multipolar society, there is a living space.

Four common characteristics of domestic mobile phone enterprises

So what are the differences or similarities between these companies compared to what we know about international brands like Apple and Samsung?

First, mobile phone core technology is not! What is the core technology of mobile phone, simply speaking, two big engines, core chip (AP+CP) and operating system. These two years, can be in the core chip has only one Huawei, this can see my last article "from Kirin 930 to see Huawei's box strategy." Of course, not to say other unimportant, but the other is to rely on the entire industry chain to complete, for mobile phone companies, the key is to see your integration capabilities. As for the integration of the industrial chain like Apple is far away, let's save it.

Second, brand awareness is very low, and even some are not at all brand awareness. I remember an internet café told me that international brands are easy to destroy Chinese brands, and a price war is all done. On the side, it is said that Chinese corporate brands are vulnerable. Because of this, many areas of Chinese enterprise products are cost-effective in exchange for market share. For example, although millet through a variety of marketing models dozen brands, but the core or rely on cost-effective products for the premise to do. This doomed most of the domestic mobile phone profit is very thin. Also fished a so-called share unprofitable ending. At present, the real ability to work in the domestic and global brands have made a contribution to the operation of the mobile phone companies only Huawei and millet two, for example, in the 2014 Interbrand announced the world's most valuable brand TOP100 brand, Huawei became the first mainland Chinese companies on the list. But this brand awareness is only compared to other domestic companies have a high level of promotion, and international brands, there is still a big gap.

Third, innovation is basically in system optimization, design and application optimization. Another is the supply chain management of cost optimization and control capabilities. Why do you say that? In addition to the two core engines mentioned earlier, a mobile phone consists of at least 500 components. Almost all of these components are provided by dozens of or even hundreds of suppliers, as determined by the phone itself. This in fact caused the domestic handset manufacturers is a assembly plant and optimize the role of the factory (back to view the Apple, Samsung, LG, Sony and so on, more or less their own core components or the core technology, or even a lot of companies are a sales-oriented company, the product is basically to the program company and on behalf of the factory completed. Android's openness allows us to optimize the system, and more and more applications of the smart machine can make us work on application optimization, and of course design. But as the 2nd says, cost optimization and control are spelled out in a cost-effective strategy. Therefore, we can see that the above four have done a good domestic manufacturers, the brand premium nature is high, the sale of natural protection, such as Huawei, Millet, OPPO, vivo and so on. If the above four points always have so two or three points do not good, sales, brands and so on naturally do not well. We can give any one domestic manufacturer to apply these four points, the result is at a glance.

Four, the protection of intellectual property is generally not high. Why to say this, because this is precisely the cause of the number of Chinese mobile phone companies, competition confusion, one of the main reasons. Next, the sea to seek new market, will let more enterprises understand the power and importance of intellectual property protection. Previous marketing, relying on the integration of product capabilities of the company to develop to a certain stage, will be challenged in this respect. Only in the Chinese market, because of the weak protection of intellectual property, only the soil can let these enterprises grow.

Through the above four points, I would like to say that we can not use a standard to measure the Chinese mobile phone companies, or to use Apple's standards to measure the innovation of Chinese enterprises. After all, domestic mobile phone companies in today's competitive environment and the past years of the foundation has done very difficult. Despite all kinds of problems, growth has been evident to all. As for the technical breakthroughs, I still use 28 or more ideal 37 principles to explain, in the new round of competition in 2015-2017 (domestic market price war between Chinese enterprises to eat each other share, some enterprises to the international market for development difficulties, only a few enterprises can obtain greater international market development space , the company that can truly have the international market ability, the company that has some core technology truly, can break through the bottleneck of Chinese brand is also 4-6. From the current international capabilities of the company, only the "Chinese T-union" four, as for another family or two who can be shortlisted, we judge or wait and see.