The test for domestic mobile phones has begun, this time closed.

Editor’s note: This article is from WeChat public account “The World of Magic Iron” (ID: jiangpeiyu0916) , author : Magic Iron.

Strategy:

1. Huawei was encouraged by the explosion of Mate 7 and released Mate S in 2015. It boldly impacted the high-end market above 4,000. The highest price was similar to iPhone. As a result, it failed to beat Samsung and kick Apple, but suffered a fiasco in the market. .

2. Domestic mobile phones have chosen the same growth path as Japanese cars without exception, first attracting market attention through cost-effectiveness, completing capital accumulation through small profits and long sales, and impacting the high-end market after rising operating strength.

3. After 50 years of struggle, among many Japanese automakers, only Toyota has made a difference in luxury cars, but it has not shaken the industry status of Mercedes-Benz, BMW, Audi and other established luxury car manufacturers.

The following is the text:

As of March 10th, among the first-tier domestic mobile phone manufacturers, only Huawei has not released a flagship mobile phone in 2020. But if there are no surprises or surprises, Huawei’s upcoming P40 retail price will also start at 5,000. In fact, starting from 2019, domestic flagship mobile phones have already chosen price increases in unison.

The most active price increase is Xiaomi. The high-end version of Xiaomi 10 Pro sells for 6000, which sets the price record of Xiaomi’s flagship for many years. However, with the OPPO Find X2 high-end version setting a record of 7000, Xiaomi’s flagship is forced to show a “price-performance ratio”. From the price point of view, Xiaomi’s high price is the same as the Samsung S10 starting price, OPPO Find X2 high price is the same as the Samsung S20 starting price.

Lei Jun still seems inadequate for the pace of price increase. He said on social media: “Xiaomi brand mobile phones have put down the price restrictions, at all costs in pursuit of the ultimate experience, and go all out to hit the high-end market.”

Xiaomi OPPO price forces Samsung to chase Apple, impact high-end, how to break free of Japanese car style?

In terms of pricing, domestic mobile phones may never be so close to high-end dreams, but in the market, it is another scene.

01 Collective low profit for domestic mobile phones

The reason why domestic mobile phones are eager to impact the high-end market is related to the long-term burden of 15% industry profit pressure.

Since the domestic mobile phone seized the 4G exchange bonus in 2014 and ushered in a big explosion, it has not shaken off its fate: it has made sales but has not made much profit. The profit distribution of the entire smart phone industry shows a “two-eight law” trend. According to data from market research agency Strategy Analytics, the operating profit of the global smartphone industry in 2016 was approximately $ 53.7 billion, of which Apple’s operating profit was as high as $ 44.9 billion and Samsung’s operating profit was $ 8.3 billion.

That is to say, Apple alone took 83.61% of the operating profit of the entire industry, Samsung received 15.46% of the profit, and the proportion of industry profits grabbed by all domestic mobile phones did not exceed 1%. The survey data may not be accurate, but the small collective profit of domestic mobile phones is an indisputable fact.

In addition, the market research company Counterpoint released the top ten best-selling mobile phones in the world in 2019. Only domestic OPPO A5 is on the list. The starting price of this phone is not more than 800 yuan. On the list, there is also only one domestic mobile phone on the list-Xiaomi 5A, the price does not exceed 700 yuan.

Most of the shipments come from the reality of low-end models, which has thinned the profits made by domestic mobile phones, because in any market, most low-end products can’t escape the fate of profit making.

In fact, if you analyze it a little, you can see that the reason why Apple Corps can capture most of the industry’s profits is that its high-end market has a lot of explosions and it has a certain relationship every year. In Counterpoint’s list of the top ten best-selling mobile phones in the world, there are six Apple products on the list, including the three generations of old, middle and young, covering the mid- to high-end and ultra-high-end markets of 3,000 to 10,000 yuan.

It can be said that the lack of global explosives in the high-end market has become the biggest worry for the growth of domestic mobile phones, and the profit as thin as a blade has affected the sustainable development of domestic mobile phones. It is precisely because the reality is compelling that since 2018, domestic mobile phones have to hit the high-end market one after another.

More importantly, from the current situation, domestic mobile phones also have favorable conditions for impacting the high-end market.

02 Apple and Samsung have conceded less than 7,000 markets

Domestic mobile phones enter the high-end market, and the first obstacle is price.

Since the iPhone officially entered the Chinese mainland market on December 23, 2013, until the release of the iPhone 7 in 2016, the flagship starting price has been between 5288 and 5388. At that time, domestic mobile phones had been living below the 3,000 yuan range. In the meantime, Huawei was encouraged by the popularity of Mate 7 and released Mate S in 2015, which boldly impacted the high-end market above 4000, the highest price and iPhoneThey are almost the same, and overlap the price range of Samsung flagship S series and Note series.

But due to the limited brand influence, coupled with obvious shortcomings in the product design including the battery, Mate S failed to beat Samsung and kick Apple, but suffered a fiasco in the market. Recognizing the embarrassing reality that domestic flagship phones are still constrained by cost-effectiveness, Huawei picked up its inflated ambitions. The Mate 8 released by the Mate S three months later quickly slipped to the price of 3,000 yuan, keeping a considerable distance from the iPhone.

It can be said that Apple and Samsung, two veteran rivals, have become the biggest obstacle for domestic mobile phones to enter the high-end market.

But in 2018, the situation changed. Apple released a new flagship product, the iPhone X, with a starting price of 8388 yuan. With the iPhone8 series ID design, it has long lost its lethality in the market below 6,000 yuan. Domestic mobile phones took the opportunity, OPPO revives the flagship Find series that has disappeared for many years, launches Find X, the price reaches up to 6000, vivo’s new flagship NEX is up to 5000. Huawei’s steps are even greater, splitting the flagship Mate series into the standard and Pro versions, and the Pro version successfully entered the price range of 6,000 to 7,000.

Xiaomi OPPO price forces Samsung to chase Apple, impact high-end, how to break free from Japanese car style?

By 2020, the market situation will develop towards a direction that is more conducive to domestic mobile phones. Samsung has completely lost in the Chinese market. The flagship S20 has a starting price of 7,000, which is equivalent to automatically giving up the market below 7,000. Apple’s flagship iPhone sticks to the market of 8,000 or more. The market of 8,000 or less is mainly through the over-flag flagship and cheap iPhone XR. / 11 fills. However, the over-flag flagship and iPhone XR / 11 short board are obvious, lagging behind the domestic flagship in terms of camera optical zoom and ID design, and the lack of 5G network, making it far ahead of all 5G domestic flagship mobile phones. No big picture.

The result is that Lei Jun set the starting price of Xiaomi 10 Pro to a maximum of 6,000, and the highest price of OPPO Find X2 Pro reached 7,000. If there is no accident, the highest price of Huawei P40 Pro will be released on March 26. It will also reach about 7,000.

Even though the price of domestic flagship mobile phones is no longer close to the past, it still looks cost-effective in the face of Apple and Samsung’s flagship mobile phones. It can be said that Apple and Samsung ’s flagship mobile phones are forced to give up market space due to brand image and profit margin pressure.Good opportunity for domestic flagship mobile phones to stop.

03 桎梏 of Japanese car mode

Now, domestic mobile phones have entered the high-end market, and they continue to capture high-end prices, but how to truly stand still is a real challenge in front of Huawei, OPPO, Xiaomi and vivo.

The way domestic mobile phones enter the high-end market is actually in the same vein as the development model of Japanese auto brands.

In the initial internationalization process, Japanese auto companies that were born around the 1940s faced the problems of insufficient brand, capital, and technology accumulation compared with German cars and American cars, so they chose to start with low-end cars. Entering the international market, mainly through research, imitation, purchase technology and other methods to complete research and development, and then use the advantages of production and low prices to sell small profits but sell more slowly, and then complete the accumulation of capital, technology, brand, etc., and then market transformation, impacting the high-end market.

After 50 years of struggle, among many Japanese automakers, only Toyota has made a difference in luxury cars, but it has not shaken the industry position of old luxury car manufacturers such as Mercedes-Benz, BMW, and Audi. It is difficult to cross the low-end to Obstacles to high-end transformation are evidence of the rampantness of this model.

At present, domestic mobile phones have chosen the same growth path as Japanese cars without exception, first attracting market attention through cost performance, completing capital accumulation through small profits and long sales, and impacting the high-end market after rising operating strength. However, this mode of playing from low to high poses the problem that once a low-end, low-priced brand image is formed, it will be difficult to transform, because the market’s impression of the brand and its products has become deeply entrenched. Because of this, Lei Jun was in a dilemma over the pricing of Xiaomi Mi. The price was close to 4,000, afraid that rice noodles would not be accepted. The price below 3,000 was not conducive to impacting the high-end market. Finally, it was set at 3,000. As a result, the high-end impact still failed.

Tear off the price-performance tag is becoming the top priority for Xiaomi to enter the high-end mobile phone market. This is also the reason why Lei Jun was anxious to use “abandon the price limit” when netizens said that Xiaomi 10 showed value for money among domestic flagship mobile phones. Similarly, OPPO chose to give its flagship a price close to that of Samsung ’s flagship mobile phone, and also to draw a clear line with the word “cost-effectiveness” and intend to step out of the Japanese car model.

It is easy to set a high-end price, but it is not easy to build a high-end brand. It requires not only the ultimate product experience, but also the precipitation of time and the precise shaping of brand tone.

The big test for domestic mobile phones has begun.

04 Do you still have a chance for domestic mobile phones in the market of 10,000 yuan?

At present, the main battlefield price of domestic mobile phones entering the high-end market is below 7,000. For ultra-high-end 10,000 yuan market, is there any chance for domestic mobile phones?

The market of 10,000 yuan has always been controlled by Apple. This year, Samsung entered the new product S20 Ultra, and the results are unknown.But Korean media and analysts are not optimistic about this feat of Samsung phones. Tianfeng International analyst Guo Mingqi previously believed that the Samsung S20 has fewer innovations, reducing its sales by 10% to 20% compared to the S10. The Korea Herald recently reported that after the release of the Samsung S20, as of February 26, sales during the same period fell by 50% compared to the S10, and one of the reasons for the decline was the excessive pricing to discourage some currency holders.

S20 is still like this, the more expensive S20 Ultra can be imagined.

In fact, if you analyze it a little, you will find that under the same operating system, it is difficult for Android to build differentiated selling points based on only the hardware parameters. The selling points of Samsung S20 Ultra include a 100-megapixel camera and 10x optical zoom. The selling points of 2K resolution + 120Hz high refresh rate screen have already appeared on domestic mobile phones, which makes Samsung’s future of entering the 10,000 yuan market by S20 Ultra uncertain.

Xiaomi OPPO price forces Samsung to chase Apple, impact high-end, how to break free of Japanese car style?

Maybe someone will say that Huawei’s foldable screen phone Mate X / Xs is priced at over 15,000 yuan, but the demand exceeds supply, can it prove that Huawei’s success in impacting the 10,000 yuan market? My personal opinion is that the sales of Mate X / Xs is not large, and it is not a phenomenal explosion, and there is a bonus point for sympathetic consumption. At present, for Huawei, Mate X / Xs is still a brand that promotes the brand. Product, not profit.

However, we should also see that Huawei ’s Mate X / Xs attempts show that as long as domestic mobile phone innovations are in place, domestic users are still willing to pay for 10,000 yuan mobile phones, but with the current development of domestic mobile phones, the 10,000 yuan market is still a Long-term goals, opportunities in the future, below 7,000 is the actual opportunity.

In short, entering the high-end market is an adult ceremony test that domestic mobile phones such as “Hua Mi OV” have to go through and must go through. After passing the level, they can enter another growth space. Of course, it depends on who can surrender first Excellent answer sheet.