Selling smart phones does not earn money, but rely on built-in Internet applications to make money? The Internet mobile phone program proposed by an internet tycoon was turned into reality by Xiaomi and Lei Jun. Recently, mobile phone manufacturers broke the news to reporters, said Xiaomi's red rice mobile phone due to the extremely low price, really can not make money on the hardware, but with the operator's subsidy policy, built-in recommended software and accessories to achieve nearly 20% Profit. This model may force almost all vendors to change their strategies.
Do not rely on selling each machine to earn 200 yuan?
“Now almost all manufacturers are forced to change their tactics.†In Shenzhen, a head of a mobile phone maker told reporters. Earlier, industry insiders questioned that the reason why Red Rice could take the hell price of 799 yuan was mainly because Xiaomi 2S had a lot of raw materials. The remaining raw materials were all used for red rice production. However, the person in charge of a mobile phone manufacturer who declined to be named told reporters that this was not the case. Xiaomi used the current operator subsidy policy and Lei Jun’s influence on the Internet to make profits. According to reports, in accordance with the current operator's subsidy policy for the production of TD-SCDMA standard mobile phones through open channels, an average of 100 yuan in subsidies for each TD-SCDMA handset can be obtained.
In addition, Red Rice not only has built a large number of custom software products from China Mobile, but also has a software recommendation package. "When users search in the red rice browser, they will contribute search volume to Baidu and get a share." The person told reporters that after the browser is divided into Baidu, it will divide part of the profits into red rice and become the profit of red rice. point.
The person estimates that if you add the accessories that nearly half will buy, the profit of each red rice will be close to 200 yuan. A person in charge of China Mobile also told reporters that each of them did have a profit of 200 yuan.
Millet still claims to rely on huge sales to win
“There are many companies that rely on subsidies and software to generate income. Red rice is not innovative at this point.†The head of the millet company interviewed by the reporter said that the profitability of Red Rice still relies on the huge sales volume of gradually climbing to obtain low prices. The cost will ultimately be profitable, rather than simply relying on Internet software subsidies.
The person in charge told the reporter that the method of using the pre-installed software to make money does not even make money. This method of using even the Shenzhen Huaqiang North cottage will not be innovative at all. He also said that because this is a deep cooperation with QQ space, so QQ space is the default pre-installed. However, he denied that there are other pre-installed APPs. "Because the pre-installed software will make users disgusted, we are very cautious about the factory pre-installation and will not sign ourselves for this little money."
As for the use of operator subsidies to make profits, the person in charge said that the subsidy of 100 yuan is not much. "In theory, online sales of an Unicom telecom contractor will have more subsidies than this."
"China Mobile's TD mobile phone public version of the subsidy is very complex, and even so far no one really got the subsidy." Some industry experts told reporters that China Mobile TD mobile version of the mobile phone subsidies to take the APRU value of subsidies - if a The higher the TD mobile phone APRU (average monthly consumption per household), the higher the cash returned by China Mobile. Because millet and red rice are all "fans", consumption is relatively positive, and rebates are also high. In addition, because the red rice hit the giant of China Mobile, this makes the profit sharing from software much higher.
Competitors lower prices
It is understood that Red Rice has caused a lot of shock waves since its announcement. Although there are many small and medium mobile phone manufacturers attempting to imitate Xiaomi, they lack the same influence as Lei Jun. Affected by the impact of red rice price wars, Meizu, the long-time rival of Xiaomi, recently announced that its mainstream product, the 16G Meizu MX2, will have a price reduction of 300 yuan and will be sold at 1999 yuan.
Some well-known analysts in the industry even publicly believe that Red Rice has caused an impact on individual traditional international brands. Recently, Sun Changxu, chief analyst of "International Electronic Business" and "Electronic System Design," published a micro-blog and said, "Maybe it is the red rice of 799 and finally let HTC's Wang Xuehong decide to give up the mobile phone. Now there is an open list price to sell." "Because the sender was well-known in the industry, it caused a wave of waves.
On the afternoon of Saturday, HTC officials had to issue a statement regarding HTC’s abandonment of the sale of mobile phones and publicly priced products. The rumors were "completely inaccurate." On Monday, HTC announced that it will buy back 15 million shares worth up to 145 million U.S. dollars. Some analysts believe that although large international companies can still maintain high-end product lines, the low-end and mid-tier product lines are at stake.
Do not rely on selling each machine to earn 200 yuan?
“Now almost all manufacturers are forced to change their tactics.†In Shenzhen, a head of a mobile phone maker told reporters. Earlier, industry insiders questioned that the reason why Red Rice could take the hell price of 799 yuan was mainly because Xiaomi 2S had a lot of raw materials. The remaining raw materials were all used for red rice production. However, the person in charge of a mobile phone manufacturer who declined to be named told reporters that this was not the case. Xiaomi used the current operator subsidy policy and Lei Jun’s influence on the Internet to make profits. According to reports, in accordance with the current operator's subsidy policy for the production of TD-SCDMA standard mobile phones through open channels, an average of 100 yuan in subsidies for each TD-SCDMA handset can be obtained.
In addition, Red Rice not only has built a large number of custom software products from China Mobile, but also has a software recommendation package. "When users search in the red rice browser, they will contribute search volume to Baidu and get a share." The person told reporters that after the browser is divided into Baidu, it will divide part of the profits into red rice and become the profit of red rice. point.
The person estimates that if you add the accessories that nearly half will buy, the profit of each red rice will be close to 200 yuan. A person in charge of China Mobile also told reporters that each of them did have a profit of 200 yuan.
Millet still claims to rely on huge sales to win
“There are many companies that rely on subsidies and software to generate income. Red rice is not innovative at this point.†The head of the millet company interviewed by the reporter said that the profitability of Red Rice still relies on the huge sales volume of gradually climbing to obtain low prices. The cost will ultimately be profitable, rather than simply relying on Internet software subsidies.
The person in charge told the reporter that the method of using the pre-installed software to make money does not even make money. This method of using even the Shenzhen Huaqiang North cottage will not be innovative at all. He also said that because this is a deep cooperation with QQ space, so QQ space is the default pre-installed. However, he denied that there are other pre-installed APPs. "Because the pre-installed software will make users disgusted, we are very cautious about the factory pre-installation and will not sign ourselves for this little money."
As for the use of operator subsidies to make profits, the person in charge said that the subsidy of 100 yuan is not much. "In theory, online sales of an Unicom telecom contractor will have more subsidies than this."
"China Mobile's TD mobile phone public version of the subsidy is very complex, and even so far no one really got the subsidy." Some industry experts told reporters that China Mobile TD mobile version of the mobile phone subsidies to take the APRU value of subsidies - if a The higher the TD mobile phone APRU (average monthly consumption per household), the higher the cash returned by China Mobile. Because millet and red rice are all "fans", consumption is relatively positive, and rebates are also high. In addition, because the red rice hit the giant of China Mobile, this makes the profit sharing from software much higher.
Competitors lower prices
It is understood that Red Rice has caused a lot of shock waves since its announcement. Although there are many small and medium mobile phone manufacturers attempting to imitate Xiaomi, they lack the same influence as Lei Jun. Affected by the impact of red rice price wars, Meizu, the long-time rival of Xiaomi, recently announced that its mainstream product, the 16G Meizu MX2, will have a price reduction of 300 yuan and will be sold at 1999 yuan.
Some well-known analysts in the industry even publicly believe that Red Rice has caused an impact on individual traditional international brands. Recently, Sun Changxu, chief analyst of "International Electronic Business" and "Electronic System Design," published a micro-blog and said, "Maybe it is the red rice of 799 and finally let HTC's Wang Xuehong decide to give up the mobile phone. Now there is an open list price to sell." "Because the sender was well-known in the industry, it caused a wave of waves.
On the afternoon of Saturday, HTC officials had to issue a statement regarding HTC’s abandonment of the sale of mobile phones and publicly priced products. The rumors were "completely inaccurate." On Monday, HTC announced that it will buy back 15 million shares worth up to 145 million U.S. dollars. Some analysts believe that although large international companies can still maintain high-end product lines, the low-end and mid-tier product lines are at stake.
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