Lei Jun again made headlines, and he made a new word: hardware comprehensive net profit margin. In the millet 6X conference, the Lei Jun announced, millet hardware comprehensive net profit rate will never exceed 5%, if there is a part of excess, will be more than part of the return to the user. This is a quick debate: there are comments that Lei Juns remarks highlight Millets continuing price performance road, but there are comments that it is just a gimmick thrown by Lei Jun and millet. What exactly is the net profit margin of hardware is unclear. However, if 5% refers to the net profit margin, this is a huge profit for the mobile phone industry than HUAWEI OPPO and Samsung. At the conference, Lei Jun said, this decision is not understood by a lot of board members. They think the premium of Chinese product net profit 20%-30% is very normal. Why does millet dont do it. So what is the net profit margin for the mobile phone industry, which is the main business of millet? In view of the fact that HUAWEI, OPPO, vivo and other companies, which are the main competitors for millet, are not listed, we refer to some of the data published by the Market Research Institute StrategyAnalytics. In 2017, according to market research agency StrategyAnalyticss global smartphone profit in 2016, the operating profit of the global smartphone industry was about $53 billion 700 million in 2016, of which Apples operating profit was up to $44 billion 900 million, operating profit reached 32.4%, and Samsung operating profit was 8 billion 300 million dollars. In 2016, the mobile communications sector accounted for 103 trillion and 620 billion won (about 96 billion US dollars), and its operating profit margin was about 8%. In addition, the data report showed that in 2016, HUAWEI, OPPO and vivo accounted for 1.6%, 1.5% and 1.3% of the global smartphone industry profit, which was seen as a meager profit; the operating profit margin of HUAWEIs operating profit in the data report (HUAWEIs 2016 earnings data showed the companys 2016 elimination). The revenue of the fee holder is about 179 billion 800 million yuan) of about 3.2%. According to various reports, sales of OPPO and vivo exceeded or near HUAWEI in 2016, so the operating profit margins of these two companies are roughly the same as those of HUAWEI. In the first quarter of 2017, the StrategyAnalytics reported that the apple cell phone was operating at $10 billion 100 million for the quarter, with a operating profit of 30.7%, followed by Samsung, about 9.7%. The data report showed that OPPO revenue was about $5 billion 410 million in the first quarter of 2017, operating profit of $254 million, operating profit rate 4.7%, HUAWEI revenue of $6 billion 740 million, operating profit of 226 million US dollars and operating profit margin 3.35%. For the business profit margin of the mobile phone industry, a mobile phone industry said to NetEase technology, these may be only pre tax operating profit margins, such as tax factors, 5% after tax net profit rate has been close to or reached Samsung level, far exceeding the net profit rate of HUAWEI, OPPO and vivo. In this regard, the net profit margin of 5% can be a huge profit in the mobile phone industry. Therefore, a mobile phone maker, CEO, interviewed NetEase news reporters on the topic, saying that if the overall hardware of the millet can achieve a 5% profit margin, it is quite difficult in this industry because the average cell phone manufacturer is less than 5% of the profit margin. Two. What is the net profit rate of other hardware industries? Aside from the net profit of the mobile phone industry, lets take a look at the net profit margin of the household appliance industry. We inquired about the net profit of Hard Suits Inc such as Haier, Hisense and SKYWORTH. The annual report of Qingdao Haier in 2017 showed that in 2017, the total revenue of Qingdao Haier was 159 billion 254 million yuan, net profit was 6 billion 926 million yuan, and net profit rate was 4.35%. According to Haier Electrics April 25th 2018 first quarter financial report, its first quarter revenue was 20 billion 586 million yuan, net profit 850 million yuan and net profit rate 4.05%. According to the Haier report, the gross interest rate is 31.79%, the gross interest rate of the refrigerator is 32.11%, the interest rate of the kitchen and toilet is 39.76%, the wool interest rate of the washing machine is 35.58%, the purchase interest rate of the equipment department is 6.31%, the comprehensive service service of the channel and the other gross interest rate are 10.23%. According to the March 29, 2018 annual report published by Hisense electronics in March 29, 2018, the companys revenue in 2017 was 33 billion 10 million yuan, with net profit of 940 million yuan and net profit rate of 2.85%. In the gross margin part, the gross profit margin of Hisense TV is 14.18%, and the gross margin of other products is 32.01%. According to the TCL industry in 2017, the industry showed that the companys revenue in 2017 was 111 billion 577 million yuan, operating profit was 4 billion 100 million yuan, operating profit rate was 3.67%, net profit 3 billion 534 million yuan, net profit rate 3.17%. The third quarter of Lenovo 2017/2018 (fourth quarter 2017) showed that Lenovos gross profit was 13.5% for the quarter, a net loss of $289 million and a net profit of -2.23%, while in the same period of 2016, its quarterly gross profit rate was 13.1%, net profit of $98 million, and net profit margin of 0.81%. In the home appliance industry, the company that has found more than 5% of the net profit rate is GREE. According to GREEs 2017 results, the companys 2017 revenue was 148 billion 290 million yuan, the net profit was 22 billion 400 million yuan, and the net profit rate was 15.1%. However, GREEs earnings also showed that 83.22% of the companys revenue came from air conditioning, living appliances and The revenue of smart devices is only 1.55% and 1.43%. Some professionals told NetEase technology reporters that the net profit margin of 5% is a high goal for the household appliance industry, especially the television industry. Three. An inexplicable 5% hardware comprehensive profit margin According to the news summary, millet is planning to go public this year. Since the media broke up, broke the news: This is the real data of millet? According to its financing documents, the revenue of millet in 2017 was $10 billion 474 million, and millet revenue was expected to be $17 billion 600 million (111 billion 200 million yuan) in 2017; in net profit, millet lost 980 million yuan in 2015 and 913 million yuan in 2016, and is expected to be 7 billion 582 million yuan in 2017. Based on this calculation, the net profit rate of millet in 2016 and 2017 was 1.38% and 6.82% respectively. The article also revealed that in 2016, 79% of its income composition came from hardware, 21% from Internet services, the net profit rate of hardware business was only 2.8%, while net profit margins of Internet services exceeded 40%, while millet was expanding the proportion of Internet service revenue, and expected millet hardware business in 2017. The share of revenue is 68.3%, and by 2019, the income of Internet service business will exceed hardware income. Similarly, the net profit margin of the hardware business in 2017 is still 2.8% and the net profit of Internet service is still 40%. The net profit of hardware is 2 billion 167 million yuan, the net profit of service is 14 billion 100 million, the total net profit of service is 16 billion 227 million yuan, and the net profit of 7 billion 582 million yuan is 8 billion 645 million yuan gap. This is puzzling. Many industry insiders told NetEase technology reporters that it is difficult to understand the concept of comprehensive net profit margin of Xiaomi and Lei Jun. The tiger sniffed the business of the thunder army 5% and the 100% gimmick that the net profit rate of the hardware is difficult to verify. The cost itself is a very complex data, and the software input is not a cost? Is marketing cost a cost? Without knowing how to verify the data, where do ordinary consumers know? And, where can I return it, even if it can be refunded? If we really develop a refund, will the price drop? The article believes that millet is not a Great Revolution with a Great Revolution with something that has been realized in the past and is hard to verify. Since the media man Sun Yongjie in his Lei Jun calculations: millet hardware comprehensive net profit margin does not exceed 5%? It also believes that the Lei Jun stressed that 5% of the net profit margin of the hardware is three purposes: 1, to prove to the outside world that it is not a handset manufacturer that relies on mobile hardware to make a comparison with apple, HUAWEI, OV and other manufacturers; 2, let the industry keep low expectations on the profit of its mobile phone business, once it exceeds this low precondition. Instead of creating the illusion that its competitiveness is stronger than its rivals, it creates a gimmick for the increase in market value after IPO; 3, declaring a low profit margin or giving the profit to the user, it is easy to obtain the image and identity of the users interest as the first of the users mobile phone from the marketing point of view, and then promote the sales of its mobile phone and cover again at the same time. The gap between its brand recognition and its business in the high-end market. Well, its a marketing! Source: NetEase science and technology report editor: Bai Xin _NT4464 Since the media man Sun Yongjie in his Lei Jun calculations: millet hardware comprehensive net profit margin does not exceed 5%? It also believes that the Lei Jun stressed that 5% of the net profit margin of the hardware is three purposes: 1, to prove to the outside world that it is not a handset manufacturer that relies on mobile hardware to make a comparison with apple, HUAWEI, OV and other manufacturers; 2, let the industry keep low expectations on the profit of its mobile phone business, once it exceeds this low precondition. Instead of creating the illusion that its competitiveness is stronger than its rivals, it creates a gimmick for the increase in market value after IPO; 3, declaring a low profit margin or giving the profit to the user, it is easy to obtain the image and identity of the users interest as the first of the users mobile phone from the marketing point of view, and then promote the sales of its mobile phone and cover again at the same time. The gap between its brand recognition and its business in the high-end market. Well, its a marketing!