Domestic mobile phone manufacturers want to brush aside the narrow margin woes

    
Either Applecar dvr or Samsung. Since entering the age of smart phones, the market has never been so polarized.

Data show that in the third quarter of this year, Apple and Samsung divide up the Smartphone market 106% profit over 100% because competitors such as Nokia, Motorola, its.

ZTE, Huawei's emergence in the Smartphone market, in front of the data bridge.

Face narrower profit margins, how domestic mobile phone manufacturers will break through?

"Are hard earned money"

Since domestic firms into the mobile phone industry, has relied on cheap labour advantage competition. To some extent, this is processing trade, are hard earned money.

You believed to have Apple and Samsung to take 99% of the smart phone market profits? Research firm data showed Asymco, the first quarter of this year, Apple and Samsung 99% profits in the global mobilevehicle dvr phone industry, Apple takes up a 73% profit.

Not just Asymco released similar data. Market research firm Canaccord Genuity's report shows that this year Apple and Samsung Pack a 99% profit in the first quarter, two profit percentage in the second quarter reached 108%, then reached 106% in the third quarter. Profits so high because the losses on rivals such as Nokia and Motorola.

These "shocking" digital nerve to stimulate domestic mobile phone manufacturers.

"I think 99% this figure. "ZTE Zhang Quan said," domestic mobile phone manufacturers are hard earned money selling computer similar to Zhongguancun, each machine make a handling fee of two hundred or three hundred dollars. China-made mobile phones is also making money, just a matter of earning earn less. ”

"May not be as exaggerated as 99%. But Apple and Samsung accounted for most of the profit is an indisputable fact. "Eric Wang Ying, an analyst said.

Statistics show that Apple's gross profit margin has been above 40%. At the end of April 2010, Apple in the United States sales of the iPhone gross margins per cent to 49%.

It is understood that the gross profit margin of the domestic mobile phone manufacturers about 15%.

Why profits are took by Apple and Samsung, and sales were low domestic manufacturers did not get so much profit?

"This is what we decided to position in the chain. "Chen Nian," said domestic firms since entering into the mobile phone industry, has relied on cheap labour advantage in the competition, does not have its own core technology. In a cell phone, only various patent-related costs accounted for a large piece. To some extent, this is the processing trade. ”

Chen Nian had a phone chain stores in the country as Deputy General Manager, he is now engaged in work associated with the mobile phone industry supply chain. He told reporters that in order to increase sales and expand market share in the low-end market, domestic producers in competition policy is the general price war. "Sales went up, each phone cost-sharing reduces, the space will have a price. "Mr CHAN thinks that, due to its limited conditions, domestic manufacturers mostly used this kind of competition policy, competition policy itself squeeze manufacturers ' profit margins. "Price wars hit a fierce brand has also been unable to get on. ”

Channel positioning and restricted

Operators set mining accounted for ZTE, Huawei, cool 90% per cent of all sales, operators continued tovehicle dvr depress prices and also make manufacturers limited in product pricing.

All along, the domestic mobile phone manufacturers are taking the road of low-price competition.

Subject to the channels, various factors such as brand, domestic manufacturers called on high-end machines configured to catch up with the trend, but the price is not on the international "standards".

For example, Huawei has launched a large screen in quad-core machine, price is "the people", only in 1888. ZTE, a quad-core large-published October 29 aircraft only 999 Yuan.

At present, the domestic mobile phone manufacturers follow the channels can be divided into three parts, in part relying on carrier channel, such as ZTE, Huawei, cool; part is to rely on their own channels, such as Lenovo, gionee, OPPO, part of it is online sales of manufacturers represented by millet.

Carrier channel set mining accounted for ZTE, Huawei, cool 90% per cent of all sales. "On the one hand operator can guarantee that a large amount of, on the one hand the channel cost savings. Removed many links. "Eric Wang Ying, an analyst said.

However, operators continued to depress prices and also make such as ZTE, Huawei, cool limited in product pricing. Zhang Quan said, operators, Apple and Samsung products are higher priced, then HTC, Motorola and Nokia, then followed by ZTE and Huawei. "If the price of China-made mobile phones products jobs could not bid in mining operators set and mobile phone white developed. ”

Currently, ZTE and Huawei are opening up channels other than the carrier, in addition to increasing and supermarket chains, electronic channels of cooperation, Huawei has also established its own Mall in order to increase the pricing of voice.

For manufacturers like Lenovo, gionee, OPPO, they rely more on their own channels, the product to the dealer by the dealer to go down the distribution. "Such logistics risks. Manufacturers need for their own dianqian the product to the dealer, dealers sell bad products will be returned to the manufacturer. Operator is not the same as, postharvest products into the set. "Zhang Quan said.

Wang Ying believes that brand also decided on the competition strategy of domestic mobile phone manufacturers with difficulty at high prices. "ZTE and Huawei, both before the vendor has been very low key, not directly to consumers. Weak some influence of the brand. Users purchase products not only to consider hardware configurations, and brand influence. ”

Zhang Quan was doing a survey. Surveys show that domestic mobile phone main consumer group is a monthly income of 3000-5000 people, particularly in two or three cities, Chinese mobile phone sold extremely well. While the iPhone is mainly faced by first-tier cities wealthy or young fashion crowd.

March to the high end of the market

In expansion mode of scale, reduced cost, lower prices, domestic manufacturers have narrower profit margins, so domestic manufacturers have started to the high-end mobile phone market "movement".

With friendly prices, already on the size of the domestic mobile phone manufacturers in the spoils.

Represented by ZTE and Huawei. IDC report shows that ZTE is already the world's fourth-largest mobile phone manufacturer and the world's fourth largest smartphone vendor. Huawei is also included in the top ten.

"The scale of domestic mobile phone manufacturers to pursue for a reason. Due to high competition policy can only rely on the scale to reduce costs. When the phone after sales go up, costs are spread out. Product prices can come down. "Zhang Quan said.

He cited as an example. Millet 1 price at first for 1999 amid speculation that its cost of 1800 to 1900, removal costs, one phone only earn dozens of dollars. But after the mobile phone sales up, the cost of each phone and quickly fell. If it is a cell phone opening needs 5 million Yuan, if the sales of 5 million units, is assessed to each opening on the phone costs only 1 Yuan. Similarly, keys, memory, CPU, and so is the screen bigger purchases more expensive.

"After the release of millet during the 2, millet 1 rapid price cuts. Because the scale has been up, assessed to the cost of each phone, there is room for price. Apple, Samsung's products are sold worldwide, but few price cuts, visible height of the profit of the last. car dvr"Zhang Quan said.

In fact, the domestic Smartphone by lowering the price era of speed of the feature does not have. On the East Beijing, random searches of intelligent machines are able to find a lot of less than 500, and many of these intelligent machines are launched only last year. ZTE V880 version launched last June in the domestic China Unicom, for example, the thousands of smart machines, one-day sales have exceeded 10,000 units, record sales myths. Now, on the Jingdong Mall, its price of only 299 Yuan.

Under this model, profit margin more narrowly defined, so domestic manufacturers did not meet to scale down the cost of calculating profits in turn mode.

Prior to this, such as ZTE, Huawei, Lenovo has launched its own high-end smartphones, hoping to share in the high-end market, ZTE has even set up for this purpose a new brand of Nubia to run high-end machines.

"Apple and Samsung, the two companies occupy the high end of the market's profits, which is not reasonable. "Nubia product manager Ni Fei said," we are at different stages on the same horizontal line and Samsung, Samsung share 30%, grab the 10% is not difficult. ”

Ni Fei said Nubia's first product will no longer be competing on price.

Previously, says Feng Xing, General Manager of Lenovo Group, carrier, Lenovo will return to the high-end phone market, launch high-end products in the series, to achieve higher product margins.