On August 2, China Mobile released a high-profile "mobile smart manufacturing" independent brand, which caused a huge wave in the domestic smartphone market in full swing. If you look at the history of foreign-owned mobile phones that foreign operators have traveled, China Mobile's move is a natural one. Its purpose is to use this as a pivot to make a big cake and achieve greater "ambitions."
Profound foundation and broad prospects
Mobile phones are the closest link in the industry chain to consumers. With the rapid development of the mobile Internet, the market for smart terminals is increasingly broad. In addition to mobile phone manufacturers, foreign operators have actually begun to remember this piece of cake. Around 2005, ZTE and Huawei terminals expanded their overseas markets by producing mobile phones for North American and European operators (such as Vodafone, Orange, etc.). In the Asian market, this practice is equally common. Around 2006, Japanese operators all adopted a customized OEM model, and since May this year, three private mobile operators in Thailand have also launched their own brand mobile phones.
The data shows that operators have made a lot of money. According to the statistics of the ABI Research report, 54 million mobile operators' own brand mobile phones were launched on the market before the end of 2006. In 2006 alone, operators ’own-brand mobile phones accounted for more than 5% of the total mobile phone market, bringing operators $ 8.7 billion in revenue. In 2011, the operator's own brand mobile phone market reached more than 127 million units. This data continued to grow from 2012 to 2013.
Reducing costs, increasing profits and strong brands
Cost reduction is a factor for operators to make mobile phones. In 2006, when Huawei helped Vodafone to launch its own brand 3G smartphone, Vodafone executives revealed, "If you buy similar mobile phones from other large terminal manufacturers, the price will be between US $ 285 and US $ 380, but Huawei mobile phones are more expensive than this price. About 30% lower. "
Low-cost routes will naturally catch many customers. Orange launched an Android phone called San Francisco in September 2010 at a price of only £ 99. As an Android phone, it was very cheap and affordable at the time. The Vodafone Smart phone was launched in 2011, and the retail price at that time was 90 Euros (about 829 yuan). The profit of costs, channels and other links is given to users, and the terminal attracts and stabilizes customers. Facts have proved that these well-known foreign operators have achieved a snowball effect. The first dual-core mobile phone M601 released by China Mobile on August 2 sold bare metal for only 499 yuan, and its quad-core product M701 is also cheaper than similar products.
In the long run, China Mobile seems to be more about robbing mobile Internet portals, which is considered a more "ambitious" approach. In the first half of 2013, the mobile voice revenue of the three major domestic operators declined for the first time, but the mobile Internet access traffic of 3G networks accounted for 47.6% during the same period, and the monthly mobile Internet access traffic per household reached 212.3M. The average access traffic of users is 1.7 times. This should also be a reason why many Internet companies want to push mobile phones. According to the financial report of the three major domestic operators in the first half of the year, although some media said that "the three major operators make 400 million yuan a day", in fact, China Mobile makes 350 million yuan a day. The profits of China Unicom and China Telecom are not high. According to industry analysts, the root of the problem is that the Internet business has replaced the three major operators' voice and SMS services seriously, and the signs that telecom operators are against Internet OTT companies are gradually becoming obvious.
Compared with China Unicom and China Telecom, China Mobile has an advantage in user resources. With a 740 million user pool, you are not afraid of growth if you have a site. Pushing mobile phones is indeed a tipping point to boost data services and seize the dominance of the mobile Internet. The author thinks of the "cloud phone" case of Korean mobile communications company in 2010. In the case of cloud computing services, etc., leaping into new sources of revenue, the launch of SK Telecom and Korea Telecom ’s personalized cloud computing service phones caused great concern at the time. Now, China Mobile can also develop its own value-added services such as terminal-based NFC payment through its own brand mobile phone built-in own applications, expand its own ecological chain, and use mobile phones as an entry point to achieve a gorgeous transformation to a mobile Internet giant Far away from competitors. Accelerate the advancement of TD, and set a benchmark for the upcoming 4G terminal ... We will wait and see whether the snowball effect as expected by the author can be achieved in the future.
Only strong alliance can guarantee quality
Let's talk about mobile phone manufacturing itself. Said now, it is not difficult to make a mobile phone. The industry chain has matured for a long time. From design, chip supply, manufacturing, OS supply, etc., whether you want to make your own production or find a third-party foundry, you can better solve the supply problem. However, in the face of the uneven supply market, the author believes that on the basis of the same price, the terminal and accessories are the most important.
In this era of the brand where the terminal is king, the excellent configuration is a weapon to attract and retain customers. China Mobile naturally understands this, and has strict requirements on standard specifications, industry leadership, and partner selection for customized mobile phones, and regards it as a "fine" operation project. China Mobile M601, the first self-branded mobile phone, is a well-considered and rigorous work, running Android 4.2 system, using Marvell PXA988 dual-core A9 processor, the machine's Antutu running score is 12336, the industry known as "dual-core running score king". Many evaluation agencies said that the performance of this dual-core chip is outstanding, and it is almost at the same level as the MediaTek MT6589 quad-core processor. China Mobile technical engineers even said that the chip "has the highest processing speed among products with the same configuration."
The two mobile phones M701 / 601 launched by China Mobile have attracted a lot of attention from the two chipmakers MediaTek and Marvell. MediaTek is from Taiwan and Marvell is from Silicon Valley. They are all chip manufacturers who entered the TD market earlier, and Marvell is earlier. However, the two companies have their own focuses. MediaTek is high-profile and committed to multi-core fast-forward; Marvell is much lower-key and insists on the main cost-effective. In terms of OEM, Hisense and BYD have become new darlings, and also allow us to see the new force of the domestic OEM market.
Some people say that domestic operators' high-profile do-it-yourself-branded phones are not a serious business, and they are disrupting the already fierce mobile phone Red Sea market. But the author believes that this is not a boon for consumers. For China Mobile, existing users and channels are its biggest advantages. Why not make it bigger and stronger on this basis, besides, there are many foreign mature experiences to learn from. The author hopes that China Mobile will stand out from the blue, and also hopes that its own-brand mobile phone will change the previous OPhone model, combine with 4G network to create a multi-faceted situation, and truly fulfill its promise of "close to the needs of the public consumers."
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