What is the picture behind the bloody killing of millet?

Today, "Double 11", in addition to the expected Taobao all day sales miracle, the biggest is to see the bloody killing of millet. First, in 9th issued a notice, double 11 will start Millet 4 Special Edition, the price is 1799 yuan, memory is 2GB, support 4G network, and is a white version, it has 5 time for users to buy. Then, and still hold the pipa half cover of the announcement of the mysterious big strokes, red Meter series including red rice, red meter note, mobile phone straight 100 yuan, of which the red meter 4G God price 599. Double 11 day, millet + red rice total stock volume of millions of units, especially the red rice can be a full range of days sufficient supply, domineering full. If expected, millet will be on the double 11 on the day of the sale of more than 1 billion of the astonishing results.

has been based on 699 low prices to dominate the low-end mobile phone market, almost too low can no longer red rice unexpectedly and lower prices, 599 yuan of the reverse Tenjin price, it is to wash the low end of the market rhythm, which also let other mobile phone manufacturers live? Millet, this is to catch a ban on killing ah? However, for Millet's ultimate big strokes, two Lang feel not suddenly, also not exciting. No matter what the sales results today, this is actually a "kill 10,000, since the loss of 8,000" of the losses of the behavior, even if millet reached the target, this is not a "winner" game. Why do you say that?

One, red rice is a strategic product

Red Rice is August 2013 12 launched the strategic products, according to millet, red rice mobile phone is a rich product line, try to diversify the mobile phone, 799 yuan low price, the use of QQ space booking method, so that its one of the market access to the incredible attention and hot holds, By the end of July, Red Rice has created 18 million sales. And red rice, this year March launched the Red meter note is eye-catching, according to Lei, Red meter Note is more, just 7 months time to break through tens of millions of sales. The sheer number of numbers shows how fanatical fans are about the hunger and thirst of the red-Rice series. Therefore, the red rice as the ultimate big strokes, Lei is absolutely confident.

However, the red rice can only be regarded as a strategic product of millet, its birth mission is to stimulate the millet 3 mobile phone may face the market weakness, but also in the low-end mobile phone market to kill a way out. It is a killer product used by millet companies to make up for low-end markets while countering Huawei's glory 3c and other friends. It is also the millet company in order to stabilize upstream supply chain relationship, through the production of climbing, diluted cost to obtain profit-oriented products.

If Millet 3, 4 did not do open purchase because the upstream capacity is limited, then the Red Rice series of sales logic is obviously naked "hunger marketing", the Red Meter series is absolutely open to purchase, the larger the order, the more the shipment, the lower the cost, the greater the profit, red Rice has no conservative production needs. Only so, all along, we will still face the embarrassment of snapping up red rice, in the final analysis is that the red rice is not for the pure "shipments" and raw, but millet all-round adjustment of the layout of the strategic products.

Second, the last low price carnival

If the above logic is true, millet Company's ultimate big recruit desire why is very obvious.

First, domestic mobile phones in the low-end market competition is more and more bloody, in the thousand-yuan range, there are Huawei, ZTE, Cool, and other mobile phone manufacturers of the concerted efforts to combat the increasingly harsh living environment, and in the low-end market competition, in addition to the brand, red rice hardware price autonomy and channels, etc. are not dominant, and then the situation has not been optimistic, Red Rice is a strategic weakening.

Second, the capacity of the double 11 can bring the maximum flow and consumption power, red Rice series reduced by 100, to 599 yuan price crazy jilt, can be absolute price advantage to clean up inventory, after all, double A consumer is directed at the cheap, red rice such a price than the glory of playing 4 of 699, To the supremacy of absolute dominance of the smart phone market, can be said to be invincible, no one can enemy. For red Rice, the goal of 500,000 and even 1 million is possible, and this is a great opportunity to dump inventory. (Of course this, millet will not admit)

Third, the final low price carnival, through this large volume, many people think, red rice market space in the end how big, sell this wave, millet company will also sell the red Rice after the 2 series? Obviously, it is unlikely that the red rice of the big killing a little "dead and fast" charm, in addition to cleaning up the inventory, the biggest intention is to restrain now grappling in the low-end market of the other friends, so this wave is a big price in the bottom, after the Red meter upgrade version of the series will naturally return to normal standards.

Three, no winners of the game

Through this low price carnival, we most want to know two points: first, the price of smartphones can be lower than 599 yuan? Second, millet and the Chinese cool joint of low-end machine competition will be more violent and bloody? Of course, from the consumer's point of view, the low price is not the lower limit, the mobile phone manufacturers more intense competition, let the greater, consumers are loved, but from the perspective of the industry as a whole, so there is no bottom line price is implied in the crisis.

In terms of hardware costs, the price of 599 yuan is actually in the production scale heap, 4G communication service provider subsidy cooperation and double 11 such a big promotion environment, the unified impact decision, in the so-called hardware + software + Internet service Triathlon, still have to rely on hardware to make money, Hardware free internet services to make money temporarily is only a good vision, mobile phone manufacturers actually have a lower limit on the price.

The exact cost of the red-meter phone has been a mystery, however, the cost of the red meter mobile phone, including MediaTek's MT6589 (T) main chip, 4.7-inch IPs retina panel, plus 0 components, cost about 520 yuan, and if the forecast is accurate, 599 of the price has already approximated the cost price, The likelihood of a lower probability is almost gone. Unless millet really do the hardware 0 profit by services to the vision of making money, obviously, before all this beautiful arrival, red rice can no longer reduce the price. Moreover, the red rice price in the long run on its follow-up red Rice 2 generation is extremely unfavorable, can not but say is a self-inflicted injury behavior.

In addition, the red meter of the industry price of the bottom, the entire low-end mobile phone market will have a impact? Exaggerated point said Aihongbianye, especially some weak handset manufacturers, in this crackdown, almost no survival. The rest of the pattern will be millet, Huawei, ZTE and other mobile phone manufacturers, and the fight between millet and the Chinese cool in the low-end market disputes, in fact, are just appearances, behind the battlefield is the entire strength of the competition, in the low-end market who strong who weak on the overall competitive pattern will not be too big, After all, the real impact of their market position is not just low-end products, the overall product line of the overall strength of the competition is the key to determine the outcome of life and death.

Therefore, this low-cost killing is not a winner of the game, noisy lively.