Stir-fried eco-phone makers hard to conceal innovation

When smart phones reached the critical point in the competition of hardware configuration, through the "Internet +" Dongfeng, manufacturers began to replace guns and ammunition, raised the "ecological" banner. Recently, LeTV, TCL Communication, Meizu, ZTE and other vendors have continued to build "ecosphere." The industry pointed out that the mobile phone manufacturers have their brains to cherish the ecological magic, and the impetuosity is obvious. This move is to some extent concealing the reality that mobile phone innovation is weak.

"Out of play without playing with ecology"

Not long ago, after the founder Jia Yueting shelled the apple and made a handful, LeTV finally launched three super mobile phones and called "the first ecological mobile phone brand." At the press conference, Jia Yueting was full of confidence. He said that no company in the world (like LeTV) can have a closed-loop “home system” that can achieve the collection, production, transmission, distribution, and playback of audio and video. Within the ecosystem, LeTV’s reach extends to smart phones, televisions, and the film and television industry.

It has to be said that LeTV is the representative of the term “ecology”. This is evident from the large fluctuations in its share price in the capital market. In fact, in addition to LeTV, other manufacturers have also begun to play ecology. Not long ago, the TCL Group emphasized its smart + Internet dual-strategy, opening up all aspects of smart phones, home appliances, multimedia content, and wearables, and building its own open ecosystem.

In addition, Xiaomi is also a big player in ecology. Lei Jun, chairman and chief executive, has thrown a series of actions to expand investment in Xiaomi's product line and increase investment in start-ups and mergers and acquisitions. In addition, traditional mobile phone companies such as “China Kuaidi” also generally regard the Internet of Things as a direction during the process of transformation, and they want to integrate upstream and downstream to build an ecological environment.

"This year, you don't play with the ecology!" an industry observer sighed. "Ecology is almost overused. Even some startups release smart bracelets, smart watches, etc. With the ecological banner in mind, the purpose of doing so is not difficult to understand, and it is easier to get the favor of the capital market."

Business model choice puzzle

Although manufacturers are "obsessed with" constructing ecology, the cruel reality is that ecology is not something that you would like to build. Many companies do not even understand what ecology is, they first hit a gimmick and the market is extremely impetuous.

In simple terms, ecosystems, often referred to as ecological chains or closed loops, refer to the ability of manufacturers to integrate their upstream and downstream industrial chains, or to control a certain core chain in the industry chain and have a higher right to speak, which is reflected in actual operations. It is the competition card position and the beach layout.

While creating an eco-system at the same time, manufacturers should be conscious of the ways in which future business models may be established, whether they make money from hardware or make money from software and services.

Taking Apple as an example, closed iOS is currently a relatively healthy ecosystem. Its role is to stick to iPhone, iPad and other user groups, and hardware and software complement each other. However, from the perspective of Apple's revenue structure, iPhone, iPad and other hardware products are still the main force, and the iOS ecosystem's profit to Apple is roughly calculated to be about 10%.

Samsung, the oldest friend of Apple, originally wanted to copy the Apple model and launched the Tizen system. However, the actual market reaction was that this system had a negative effect on improving the stickiness of users and even played a counter role.

The other typical model of ecological construction is Amazon. When Amazon introduced a small-sized tablet, it competed with Apple for a price war. It temporarily occupied a place with zero profit + content service charging mode, but then the flat-panel market became saturated. The strategic failure of smart phones has caused Amazon's ecosystem to suffer setbacks.

Disguise brand premium ability short board

Judging from the current domestic market, most manufacturers adopt the diametrically opposed ecological construction method of Apple, that is, the pursuit of high cost-effective hardware, the role of hardware can only be interpreted using the "ecological layout."

Industry figures pointed out that many domestic manufacturers follow suit in the name of “ecology”, which is actually shifting the eyes of consumers and investors, and concealing the brand premium ability and shortcomings of product innovation.

At present, the smart phone market is already a Red Sea, and product homogeneity is serious. Participating parties refresh the bottom line again and again in the price war. Most manufacturers often fall into the embarrassing situation of not increasing revenue or even losing money, brand image and influence. With limited force, it is difficult for the high-end market to break through. Therefore, ecology is a frontier and ecological concepts are used to earn attention.

More importantly, several elements of the successful establishment of the ecosystem can be summed up as a large body of users, closed loops of software and hardware and services, and control over the right to speak. Not only do they need huge financial strength, but they also have the ability to integrate. Even if the big players in the eco-economy, Xiaomi and Leshi, can win, it is hard to say.