News Topic: Cellphones
Recently, some netizens jokingly said that the cellphone market has evolved from the initial 'Warring States Seven Heroes' to the 'Romance of the Three Kingdoms,' and now it has become a 'two-man show' between Apple and Samsung. This is the current smartphone market. Undoubtedly, in terms of profit, Apple's iPhone is the undisputed 'king of money-making.' Although Apple's phone sales only account for 9% of the entire industry, the profit reaches about 75%. In terms of market share, Samsung is also not to be underestimated. Meanwhile, the former 'Warring States Seven Heroes' are experiencing their respective embarrassments.
HTC: The Embarrassment of Product Positioning
In the domestic smartphone market, apart from Apple's iPhone, whether it's Samsung, Motorola, or Nokia, they all have mid- and low-priced products, whereas HTC's official prices usually exceed 3,000 yuan. HTC China President Ren Weiguang once stated that this is a deliberate strategy by HTC.
HTC's first-quarter 2012 financial report revealed that its profits dropped 70% year-on-year for the quarter. In the fourth quarter of last year, flagship models such as Apple's iPhone 4S, Samsung GALAXY NOTE, and Motorola RAZR were released in succession, but HTC was unable to present a product that could compete directly, and sales revenue plummeted. At this year's MWC, HTC officially launched its flagship series HTC One, quickly becoming a highlight of the exhibition. The series was officially released on April 17, and its camera functions and deeply developed multimedia features received much praise. However, is relying solely on the One series enough to regain the high-end market?
According to Gartner's fourth-quarter 2011 China smartphone market share report, Samsung ranked first with a 24.3% market share that quarter, followed by Nokia, Huawei, ZTE, and Apple in second to fifth places, with HTC ranking further behind. Besides Apple, Samsung, Huawei, and ZTE's Android product lines all have mid- and low-priced models, and Nokia also has many mid- and low-end Symbian models supporting its sales.
As a result, with this year's first quarter sounding a profit alarm, HTC, positioned in the mid-to-high-end segment, is in a very awkward position. Analysts point out that for HTC, besides countering competitors in the high-end product segment, it is necessary to moderately launch lower-priced products and strengthen cooperation with carriers.
It is clear that HTC CEO Zhou Yongming has already considered this.Previously, HTC teamed up with China Unicom to launch the first carrier-exclusive budget smartphone, the new Desire V, seeking a larger market.
Motorola: The Awkwardness of Status
Last August, Google acquired Motorola Mobility for $12.5 billion. Among the 'three Android musketeers,' Motorola suddenly became Google's 'own child.' Google could finally justify using about 17,000 patents owned by Motorola Mobility. On the surface, this seemed like a 'win-win' deal. But in reality, Motorola Mobility, 'living under someone else's roof,' is not well regarded externally and faces an 'identity awkwardness.'
Many analysts point out that in fact, Google is mainly 'interested in' Motorola Mobility's patents and can use Motorola's technology to optimize Google's Android system. Moreover, since Motorola's performance in Europe and Asia has been poor, Google might also consider stopping financial support. The supposed 'collaboration' between the two companies seems more like a 'beautiful vision,' while Motorola Mobility has become Google's 'patent warehouse' and 'laboratory.' However, if Google 'favors' Motorola too much, other brands using the Android system, such as HTC and Samsung, might feel 'jealous.'
In fact, Google and Motorola are not aligned in many respects: Google has always focused on internet and software development, leveraging massive databases for its products; Motorola, on the other hand, comes from hardware manufacturing and is transitioning toward electronic products applicable to the transportation sector and physical store marketing models.
Google claims it will allow Motorola to develop independently, but some investors believe that since certain business areas of Motorola compete with other Google partners or do not align with Google's core business goals, Google may consider divesting those parts. Last month, there were even rumors that Google might sell Motorola to Huawei. In response, an internal Huawei source said the 'possibility is low.'
Sony Ericsson: The Awkwardness of Missing the Opportunity
Newly established Sony Mobile is rapidly expanding its product lineup. At a recent launch event, Sony released five new products at once, showing a clear intent to launch a heavy assault strategy. Can this effort by Sony Mobile help Japanese phones carve out a space in the market?It is reported that Sony's TV business, which originally accounted for more than 20% of its revenue, dropped to around 10% in the first quarter of this year. In Sony's new organizational structure, digital imaging, gaming, and mobile business have been positioned as core pillars of its electronics business. It should be noted that Sony's accumulated brand, content, and the newly proposed four-screen integration over the years will add considerable value to its smartphone products.
However, Sony's predicament comes from having missed the golden era to acquire Sony Ericsson. Sony's glory in the hardware era has gradually faded, and it did not seize the opportunity. Smartphones emphasize technology and innovation, and Sony hopes to merge phones with its traditional strengths such as music and other entertainment projects. But in reality, it offers nothing particularly special and is fully replaceable.
At present, Sony cannot challenge Apple or Samsung in the high-end segment; and in terms of price, its products are much more expensive than those from domestic manufacturers represented by 'Zhonghua Cool Union.' Moreover, after the acquisition, how Sony Mobile will integrate into Sony Group, and how to effectively utilize Sony's brand, content, and channel advantages, are problems it will face and need to handle carefully in the future.
In addition, analysts from Analysys International, Liu Jian and Wang Ying, both stated that although Sony acquired Sony Ericsson with considerable resources, it still has not specifically told users why they should use Sony, or what unique features Sony smartphones can bring. Currently, this has not been made clear, and its consumer demographics have not been clearly defined, which is also why Sony cannot penetrate the market with distinctive features.
Nokia: The Awkward All-or-Nothing Bet
When Nokia abandoned Symbian and embraced Windows Phone, many were willing to believe that this was a historic moment for Nokia to regain its dominance in high-end smartphones.
Over the past year, Nokia launched four WP phones, receiving considerable praise. In the first quarter of this year, Nokia Lumia series phones sold 2 million units globally, but still fell far short of expectations, and Nokia CEO Elop admitted it was 'disappointing.'
Nokia recently released its financial report for the first quarter of the 2012 fiscal year, showing a 29% year-on-year decline in sales and a net loss of 929 million euros (approximately 7.7 billion RMB).Subsequently, there were reports that Elop had announced a price reduction for the Lumia series products to compete against the company's main rivals in emerging markets. However, Elop did not disclose details regarding the specific extent and timing of the price cuts.
For Nokia, which has bet everything on this, there is no way out. In fact, Nokia and WP have become a community that shares both glory and loss. Nokia needs WP to regain its former strength, and WP needs Nokia to quickly expand its market.
Given the current difficult situation, Nokia has not given up on "self-rescue." CEO Elop has launched two major strategies: first, to introduce multi-tiered products to initiate a "price war" in order to stimulate sales in emerging markets like China; second, to continue restructuring the sales department. According to reports, Nokia will also launch smartphones at different price levels to attract consumers with different needs.
In addition, Zhao Kelin, Executive Vice President responsible for sales at Nokia, will leave on June 30, and this position will be eliminated from Nokia. Zhao currently serves as the head of Nokia's sales, managing four major regions worldwide, including Asia-Pacific, Europe, and the Americas. The so-called management structure adjustment refers to the elimination of this position after Zhao's departure, with the heads of the four major regions reporting directly to the global president. When he was responsible for Nokia's business in China, he personally built Nokia's much-praised distribution system, and during his tenure, Nokia became the undisputed leader in the Chinese market.
Xin Kuai Bao
*Content of this post sourced from: cnBeat*
