Who is more promising, Internet or traditional mobile phone brands?

On the one hand, Huawei CEO Yu Chengdong, who is famous for his big mouth, frequently said that other small brands will die, and there will only be 2-3 brands in the future. On the other hand, the Internet brand LeTV said that mobile phone hardware will be free in the future, but in fact, the latter one should also include Xiaomi, who first proposed the concept of hardware will be free.

Lei Jun, the proponent of free Internet mobile phone, founded Xiaomi, with cost performance as the selling point. In the short period of more than three years up to the fourth quarter of 20 14, it was regarded as a miracle by the industry to beat China Kulian, the four traditional mobile phone brands. Later, Qikuo and LeTV all hoped to copy this model.

But so far, Xiaomi has not achieved the goal of subsidizing mobile phone hardware with Internet business income. Its internet business income in 20 15 years reached nearly 3.8 billion yuan, accounting for about 5% of its business income in 20 14 years. In this respect, Xiaomi is still far away from subsidizing hardware with Internet revenue.

Letv can actually be said to be a practitioner of Xiaomi's concept. After it released its mobile phone last year, it began to subsidize mobile phone hardware with Internet business income, and even obtained mobile phones for free. Take Le 1s as an example. On the day of LeTV Eco-4. 14 Hardware Free Day, users can buy Le Yuanyuan members for 67 months at the price of 1099 yuan, and get Le 1s products for free.

On the other hand, it is almost impossible for LeTV to subsidize mobile phones for free by Internet business. In 20 14, LeTV's revenue was 6.6 billion yuan, compared with Xiaomi's revenue of 74.3 billion yuan in 20 14, and Huawei's revenue of 20 billion dollars in 20 15. The gap is obvious.

Yu Chengdong, CEO of Huawei Consumer, thinks that it will be one of the remaining 2-3 mobile phone companies in the future, because Huawei has strong innovation strength and is one of the most innovative mobile phone companies in China. This statement is actually problematic.

When Xiaomi 20 1 1 launched its mobile phone, Huawei's mobile phone business revenue was $6.7 billion. Compared with Xiaomi, Huawei is a giant. However, in just three years, Xiaomi surpassed Huawei to become the largest mobile phone brand in China, and Xiaomi's revenue of 74.3 billion yuan exceeded Huawei's mobile phone/KLOC-0.2 billion US dollars. This lesson is still ringing in my ears. Did Huawei forget?

Samsung and Huawei have been pushing the same brand to surpass, with R&D investment ranking second in the world and technology industry ranking first in the world. If judged by R&D investment, Huawei cannot surpass Samsung. Huawei is hitting its own mouth!

In fact, the rapid rise of mobile phone brands in China in recent years has a lot to do with Xiaomi, a catfish. The rise of Xiaomi makes domestic mobile phones realize how to make mobile phones and how to sell them. Domestic mobile phones have learned from Xiaomi to make their own mobile phone systems, and quickly enhance their brand influence through Internet marketing, so they can quickly increase their market share in the domestic market.

In 20 14 and 20 15 years, the global market share of domestic mobile phones was close to 40% and exceeded 40%, which was related to its substantial increase in domestic market share. In terms of sales ratio, domestic mobile phones accounted for 78% and more than 80% respectively in the past two years, which proved the extreme dependence on the domestic market.

Xiaomi's success stems from its invention of a new business model, which has widely influenced domestic mobile phone brands. Huawei's success today is also related to this business model. At the same time, because it draws lessons from Samsung's business model, it can be said that it combines the characteristics of Xiaomi and Samsung.

From this point of view, it is hard to say who is more promising between Internet mobile phones and traditional mobile phone brands in the future. Huawei has already beaten Xiaomi in the global market, but it was not until the fourth quarter of last year that it barely surpassed Xiaomi by 0.8 percentage points or 654.38+0 million in the domestic market (according to IDC). It can be seen that although Huawei has its own mobile phone chip and relies on Huawei (Huawei's revenue is 60 billion US dollars, Nomura Securities estimates that Xiaomi's mobile phone business revenue is 654.38+000 billion US dollars, and Huawei's revenue is six times that of Xiaomi. This behemoth has not completely opened the gap with Xiaomi, which proves that the Xiaomi model is still very competitive.

Letv, which practices the concept of Xiaomi, released its mobile phone in April last year. Although this year's sales target is lowered to150,000, Taiwanese media reported that the information received by the industrial chain actually shows that LeTV still has the vision of expanding its sales this year to 25 million. This development speed will be faster than that of Xiaomi in those years, and it still poses a considerable threat to traditional mobile phone brands like Huawei.

GFK predicts that the growth rate of smartphone sales in China market is only 7% this year, and the China market has entered the stage of stock competition, so the growth of Internet brand sales can only snatch sales from traditional mobile phone brands.

In addition, Huawei's mobile phone sales have soared, and the glory of Internet brands has contributed. In 20 15, Huawei's mobile phone sales in the domestic market were about 63 million units, and HONOR's sales reached 40 million units. It is estimated that its domestic sales volume is around 34 million (20 15, 15%), that is,

In fact, for mobile phone companies, it is difficult to completely reject the role of business models. Even if Huawei develops into the largest telecom equipment manufacturer in the world today, it is mainly due to business innovation, that is, marketing precedes technology, so Huawei should learn from experience and lessons with an open mind, instead of arbitrarily saying who is dead and who is alive! You know, only a year and a half ago, Huawei was defeated by another Internet brand!