Zhou: In the Internet thinking hardware can be free

Qihoo 360, chairman of the Zhou, said today at the 2014 Forbes China Innovation summit that under the Internet's thinking, hardware is free, with a range of homemade hardware, including video and millet handsets, that will continue to be low-margin in the future. Zhou that the real big data has not come, the traditional industry will be broken by the Internet and subversion, the opportunity to do the hardware is to intelligent equipment, connected to the Internet and cloud. Five years 20 billion equipment networking today, if the phone with the millet competition, or learn what the giant to do instant messaging, I think it is someone else to seize the opportunity. The opportunity we are seizing today is likely to be an area that will only really erupt in 35 years. Zhou said. In his view, the biggest opportunity in the future lies in the intelligent, connected Internet and cloud of traditional equipment, such as home appliances, light bulbs and glasses. The so-called cloud, is the device control logic, artificial intelligence processing in the cloud, through the way of large data processing. So many traditional industries will be reshaped or transformed. Zhou that the traditional AI technology has not been much progress, and recently because of the help of large data, machine translation has made great breakthroughs in speech recognition and face recognition. If China has 1.5 handsets per person, the largest number of mobile phones in China will be 1.5 billion, and the computer may be 600 million, Zhou that the data can be determined. The future of your home every light bulb, every socket, all appliances, your eyes, watches and so on any equipment you can see is a mobile phone, the internal may be based on the Android system, using 4G or WiFi network to connect with the cloud. Zhou 祎 predicts that China should have 20 billion devices connected to the Internet within five years. These devices will produce huge amounts of data every day. The real big data age, he argues, has not yet come. Hardware devices can be free although the cloud of traditional hardware devices is a huge opportunity, the challenges follow. Zhou that the internet is now a powerful force for many industries and industries to destroy and build, and many industries have been subverted by the Internet, and many entrepreneurs now have an internet anxiety. I have also pulled a lot of unreliable small partners to do a mobile phone, and finally ended in failure. Zhou said that if you send a defective hardware, you will find that it is basically a disastrous result when the user buys the money. So the hardware I think is also a big pit. He said that the hardware industry is very small profits, the competition is extremely fierce. And the reason for the low profits of the companies with high sales is that they have not adopted the Internet model. If traditional hardware manufacturers can make their products internet and cloud, they can change the business model, break away from the traditional low profit label and enjoy the return of capital on the Internet. To adopt the Internet model, we must understand the Internet thinking freely, the user is supreme and experience is king. The internet's most fearsome weapon is free, free is also a double-edged sword, used well can help you move fast, but with bad will be free of subversion. Zhou said that by free can quickly accumulate a large number of users. He raised the valley.Example of a song (571.6,-15.82,-2.69%). Google did Android when it found that if the cost of Android phones were to be $100 or even lower, and users used Google search, maps and games within a year of using Android handsets, each user's ARPU (average per user income) was above 100 dollars, This means that the hardware is free of charge. That year in the free to suffer the biggest company called Jinshan, Jinshan chairman is Lei, so lei from this lesson, millet is a hardware free example, it now maintains very meager profit. Zhou 祎 said, red Rice came out with 699 yuan of mobile phone, millet 3 on the price. In China, a low profit or even no profit competition for hardware will be the norm. When you sell hardware, you need to cross the border when you don't make money. Zhou that, after selling TV box, must be through the program fees to make money, selling mobile phone is also through the mobile phone reading, mobile games to make money, which brings great challenges to the core competitiveness of enterprises.