At the beginning Luo Yonghao once said that making mobile phones does not actually make money. The main reason for making mobile phones is to make friends.
So, can you make money by making mobile phones?
According to data from the global mobile phone market in the second quarter of 2021, in terms of sales, after years of accumulation and development of domestic mobile phones, the sales of these mobile phone brands are very close to 50% of global mobile phone sales.
But in terms of profits, the profits of many domestic mobile phone brands, such as Huawei+Xiaomi+OPPO, account for 12% of the profits of the global mobile phone industry. The company that earns the most profits is Apple Inc. in the United States, and its profits account for 75% of the entire industry. In other words, the same makes money in the mobile phone industry. The profit-making ability of the mobile phone brand , apple and far exceeds that of domestic brands and other mobile phone brands in the world. Compared with Apple, the profitability of domestic mobile phones is much lower.
The reason why domestic mobile phone sales are high and profits are poor is that domestic mobile phone brands follow the route of small profits but quick turnover. That is to say, "win by quantity". Of course, now we have achieved large quantity, but the goal of winning has not yet been achieved.
So, let’s continue to return to this topic. Why do domestic mobile phones have a large volume but small profits?
The perspective we consider here is from the perspective of an enterprise. The purpose of an enterprise is to make profits. Profit means the highest profit, profit = selling price - cost.
In terms of cost,
many things in domestic brand mobile phones are not yours, and it doesn’t matter if they are not yours. After all, many things in Apple’s mobile phones are not yours either. The key thing is that many core things of domestic brands, as the saying goes, the most profitable things, are not their own. For example: the chip (the brain of the mobile phone) of domestic mobile phones is Qualcomm and MediaTek , both of which are American technology companies; the screen is Samsung , and most domestic and foreign mobile phones are Samsung. The screen; the lens is Sony , Zeiss , Leica . I have heard the names of these companies. I have forgotten which country they are from, but they are not Chinese companies.
To put it simply, today's domestic brands, except for Huawei, Xiaomi, OPPO and other mobile phone brands, all use other people's products (the system is also the Android system of Google company ). The most profitable things about mobile phones are the above-mentioned things. Domestic brands have to pay foreign companies to use these things. They also have to pay patent fees when using systems and software. Basically, the money earned by these domestic mobile phone brands is "hard-earned money." ", for example: the publicity fee + the hard work fee of selling and renting equipment. From this point of view, does it sound like migrant workers in the mobile phone industry?
Apple's costs are very small. The core and most profitable chips + systems are all developed by itself, and these are also the most profitable. Even if Apple needs to use other companies’ screens, patents, etc., Apple’s orders are large and large, and it has a high degree of initiative in bargaining on kits. It is both trenchant and horizontal.
In terms of price,
I don’t need to explain it, but everyone knows that the price of Apple mobile phones is the highest. After reading the results, let’s talk about why? Simply put, Apple phones are unique.
What do the people who consume the most mobile phones and those who pursue fashion the most, what do they need most? Just unique. It just so happens that Apple’s A-series chips are the most unique in the world. It is obvious to everyone that the chips in Apple mobile phones outperform all other chips except Apple’s. With such an advantage, wouldn’t the high price be silly? This kind of advantage cannot be learned by others. Who wouldn’t buy such a high-end product? (I’m not bragging, it’s very objective. People who buy Huawei now are also pursuing Huawei’s uniqueness. For example: Hongmeng system).
On the other hand, although Apple's competitors have different brands, they all use Qualcomm and MediaTek chips and Android systems. What advantages does this have over comparison? No? If you buy different brands, you can hardly see the difference. Also because there is no core technology, major domestic manufacturers have introduced features such as fast charging, large battery, photography, and folding screens. The purpose is to differentiate from other brands and protect one-third of an acre of land (leeks).
If we talk about it from a system perspective, not to mention that Android system lagging is a problem that cannot be solved. This makes Apple systems always popular among mobile phone users.
Huawei, which is now being suppressed, was the first to realize this and had the technology to do it, so it stood out. Although the current situation is not optimistic, the potential for competition is huge. From this point, we can also explain why the price of Huawei's new phones is now high. Because of its competitive advantage, Huawei has left the market vacated by Apple, and also because other domestic brands do not have this advantage.
Then do domestic brands have no chance?
I think there is still a chance. In fact, I very much agree with the method of encircling the cities from the countryside and winning by quantity. But now, other domestic brands except Huawei obviously do not have enough technical and financial capabilities to compete with Apple for jobs. If you can make money now, there will be more opportunities later. The most anticipated area of
is the field of domestic chips, because domestic mobile phone manufacturers all need a domestic chip, and this is what the United States least wants to see. Although, most people think it is difficult for domestic chips to reach the 5nm or 7nm process. But all roads lead to Rome. As long as chip technology reaches a certain level, it will not be difficult for domestic mobile phone manufacturers. Many manufacturers, such as Xiaomi and vivo, are already preparing to develop self-developed chips.
With the changes in the general environment, it is only a matter of time before Chinese mobile phone manufacturers rise, and the future is worth looking forward to. What do you think of it? Welcome to like, follow, and retweet!
