Super Tycoon

Chapter 839: Wan Yan’s Cheap Smartphone

Cheap smartphones, this is a sharp tool to promote smartphones. In the previous life, Apple opened up the market with cheap smartphones, thus laying the foundation.

By reducing the non-popular functions of some smartphones and lowering some parameters, it is definitely possible to launch some smartphones below 2,000 yuan.

Maybe this kind of smart phone will be very stuck in a year or two, but it doesn't matter, it's just time for consumers to change to a new phone. How long do you want to use a smartphone that costs less than 2,000 yuan?

In fact, any enterprise engaged in electronic appliances hopes to turn their products into fast-moving consumer goods. For example, the oldest black-and-white TV can often be watched for more than ten years and is not bad. By color TV, lifespan has actually been reduced somewhat.

When it comes to flat-panel TVs, the lifespan is reduced again.

Major TV manufacturers are also desperately improving the picture quality and clarity, and the screen size is constantly increasing, just to let consumers upgrade.

The same is true for mobile phones, but mobile phones have another advantage, that is, communication technology is constantly improving. Now many people change their mobile phones to use 3G communication networks.

And in a few years, we will enter the 4G era, when many people still have to replace their mobile phones.

But before that, Zhang Yang hopes to let more people get in touch with smart phones and experience the convenience of smart phones, so as to abandon the old functional phones.

In fact, the price of many feature phones is not cheap, and many domestic cottage phones also have smart phones. Since counterfeit phones can do it, there is no reason why Zhiduoxing can't do it, and it happens to be able to attack competitors.

It's just that cheap mobile phones are bound to affect the market for high-end smartphones of ZDOS. When the sales volume increases, the profit margin will drop a lot, and the overall profit will also drop.

But from a long-term point of view, this is a good strategy, and it can also be used to crush Blackberry and Apple to death.

It's just that a little accident happened now, which made Duan Yongping feel that the strategy should be adjusted.

"Old Duan, why don't you want to launch cheap smartphones? Is it because Li Zekai disagrees, or is there some other reason? I remember that our research and development has been carried out a lot, and now it is terminated, and the research and development expenses are wasted."

"Chairman, because there are already cheap smartphones with the Smart Star system on the market, and they belong to Wan Yan."

"Oh? Lao Jiang is moving very fast. How much does their new mobile phone cost and how does it function?" Zhang Yang asked with a smile.

Wanyan's smartphone was able to maintain its capital last year and achieved its goal. This year's goal is to sell more than 20 million units and make a profit.

In the first quarter, only 6 million units were sold. In fact, the sales volume of mobile phones in the first half of each year is higher than that in the second half of the year. Zhang Yang was worried that Wan Yan would not be able to meet the sales target, so he held back a big move. .

"The retail price of their new smartphone is 299 US dollars, the domestic price is 2480 yuan, and the European price is 299 euros. When they announced the performance parameters and price on the official website, they attracted the attention of many consumers."

"It's officially launched today. I heard that there are consumers queuing up to buy in many places. Even during the pre-heating publicity, some consumers ordered from mobile phone stores."

"It is conservatively estimated that their smartphones will sell more than 10 million units this year. In addition, they will launch a mid-to-high-end smartphone. The old models are also cleaning up their inventory. This year's sales volume exceeds 20 million units. easy."

"We calculated that the production cost of their mobile phone is about 200 US dollars, plus the system authorization fee of about 12 US dollars for us,

There are also transportation and publicity costs, profits for distributors and retailers, etc. Their profit for a mobile phone is about 15 US dollars. "

"A net profit of about 5% is not bad. If you sell 10 million units, you will have a net profit of 150 million US dollars. Adding in the profits from other products, Wanyan's profit this year will finally be another one." It has recovered." Zhang Yang nodded in satisfaction.

In fact, before Zhang Yang's rebirth, the price of mainstream smartphones was generally between 300 and 500 US dollars. This part had the highest sales volume, the largest number of users, and the most models and brands.

There are also many under three hundred dollars, and then there are more than five hundred dollars.

The pricing of the product should not only consider its own cost, but also the market acceptance. Zhang Yang is committed to building a high-end brand of Zhiduoxing mobile phones, so he actually doesn't want to do anything under three hundred dollars.

Originally, it was to open up the market and wanted to try it out. Now that other brands have joined, he is also considering whether to temporarily give up low-end smartphones?

Zhiduoxing's low-cost mobile phones are still being produced and sold, but they are all functional phones.

"What about other brands? Do you plan to make low-end smartphones?"

"Yes, HTC plans to launch a new smartphone equipped with our smart multi-star system, priced at around US$400, and they have also successfully developed dual-camera technology."

"They only bought part of the patents of our technology, not the entire patent portfolio. It is estimated that more manufacturers will be able to do this in the future, which poses a great threat to us."

"Also, Lian Xiang plans to use the Bird brand to launch a smartphone priced at less than US$300, so as to grab more market share."

"Nokia, Samsung, Motorola, LG, and Suoai seem to have no plans to launch cheap smartphones, and they, like our current strategy, position smartphones as high-end to ensure higher profit margins. "

Many manufacturers will announce their development plans before launching new models, so that consumers can wait for their new products, and indeed many consumers are willing to wait.

"So you think, we don't need to rush to launch cheap smartphones, and it's most appropriate to maintain a mid-to-high-end brand image?" Zhang Yang asked rhetorically.

"Yes. We have led many trends in smartphones, and the price has never been cheap. Maintaining a mid-to-high-end image is very good for our profit margins."

"Rushlessly launching low-end products will make it even more difficult to increase the price in the future. People will like our brand, but after consideration, they will choose cheaper ones. And cheap ones will inevitably have weaker performance, which will also affect our brand. Brand."

Zhang Yang nodded: "But do we only have Zhiduoxing as a brand?"

Duan Yongping was stunned for a moment. Of course, the company also has other brands, such as Wenquxing, which makes educational electronic products, Sami, which produces arcade machines, and Blizzard, which produces game software.

What does the chairman mean, is to use other brands to launch low-end smartphones?

The dual-brand strategy is not bad, but it is more difficult to operate and consumes more cost and energy, but the advantage is that there is no gap in the price of the product.

"Chairman, then let's continue the research and development of cheap smartphones, and now we are trying to launch Wenquxing mobile phones in China?"

"Well, you make a decision. This is only the last resort. I still prefer to use the Zhiduoxing brand, but I support your choice."

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