A feature phone profit less than 2.5 yuan

"Two-day holiday", after visiting a number of mobile phone stores found that when the promotion, to buy a 1,500 yuan domestic smart phone, you can give a feature phone. "The price of a feature phone is less than 50 yuan, and it is only 100,000 units, and each has a profit of 2.5 yuan. It is really difficult to do so." The person in charge of a Shenzhen handset maker complained. According to industry insiders, the popularity of smartphones has made feature phones once indefinable and become “chicken ribs”. At present, the transformation of functional machine manufacturers faces difficulties in positioning, difficult pricing, and financial pressure. MediaTek, which had made the feature phone reach its peak, is now also seeking to transform into the smart phone chip field.

A person in charge of a Shenzhen mobile phone company, who declined to be named, stated that the ex-factory price of the feature phones they have produced has already dropped to RMB 47 yuan, and eventually the retail price of the feature phones is less than RMB 100 yuan, and the price of feature phones is Only 100,000 units are profitable, and each profit is only 2.5 yuan. At the same time, it has been learned that the price of a certain domestically-made brand feature phone that had been priced at around RMB 500 three years ago is now as low as RMB 80, and its price has dropped at an alarming rate. According to the above-mentioned person in charge, the current feature phone is mainly in the rural market, and it is already unable to establish a foothold in second and third-tier cities.

It is understood that MediaTek's overall solution has drastically lowered the prices of Chinese-owned brand-name feature phones that use the company’s chips in large numbers, and has also achieved several major feature phone brands in mainland China a few years ago. Among them, very well-functioning feature phones have very distinctive features. Positioning, including men's mobile phones, women's mobile phones, camera phones, music phones and so on.

Inventory cycle is long financial pressure <br> <br> channels have said that the emergence of smart phones to the above-mentioned characteristics become almost a standard, many features mobile phone manufacturers sometimes can not find their new positioning in the smart phone era, and because the function The machines sold well, and they also branded these brands with a special function of "branding", which led to the better selling of functional mobile phone brands. Now the harder it is to transform.

At the same time, the manufacturer gets the order of the channel trader to purchase the raw material, and then produce, this makes the selling function machine must prepare in advance. According to the channel distributors, manufacturers will probably have 2 to 3 months of inventory cycle ahead of schedule, and the inventory of several large feature phone manufacturers may take half a year or even a year, resulting in inventory that occupies a large amount of funds from manufacturers, so many Functional handset manufacturers are facing financial pressure to transform. At the same time, according to the normal market pricing, smart phones should be more expensive than feature phones, but due to the current fierce competition of smart phones, and functional cell phone inventory cycle is longer, resulting in the cost of some smart phones may be a feature phone with a few months ago The cost is quite the same, and there is a dilemma between the pricing of smart phones and feature phones of the same vendor.

Many channels and vendors have stated that the transformation of feature phones is the only way. MediaTek, which provides chips for feature phones, has already been transformed.

Smart phones will also cut prices

After MediaTek transitioned, its performance began to rise again. The financial report shows that in September of this year, MediaTek’s revenue reached NT$11,208 million, a monthly increase of 19.43%, a new high for 29 months, and NT$29.47 billion in revenue in the third quarter, with a quarterly increase of 25.72%. And MediaTek expects the demand for smart phone chip shipments to continue, the total shipments of the year to see 100 million, better than the expected 95 million.

Yang Qun, a veteran in the mobile phone industry, said yesterday that it was due to Mediatek’s original launch of a large number of low-cost solutions that made the prices of Chinese mobile phones continue to decline. With the restructuring of MediaTek, many mobile phone manufacturers will inevitably enter the smart phone market. It is rumored that the Cassidy will also launch a dual-core smartphone less than RMB 1,000. It uses MediaTek chips, and the lower-priced MediaTek chips will make the market more competitive, and it is expected to push down the prices of smart phones as a whole. Domestic consumers can Experience high-end smart phones at more favorable prices.