Foreign media: Although IPO is large, it is still very difficult for millet to enter the United States.

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 Foreign media: Although IPO is large, it is still very difficult for millet to enter the United States.


Picture: Lei Jun, chairman and chief executive officer of millet As one of the worlds largest mobile phone brands, millet is preparing to meet the largest IPO in several years, but it may find it still very difficult to sell its products in the United States. Many Americans may not have heard of millet. The company filed a IPO application in Hongkong on Thursday, but it has become a monster on a global scale. According to market research firm Gartner, millet is the fourth largest smartphone seller in the world, behind Samsung, apple (Apple) and HUAWEI. IPO of millet may raise $10 billion to make it worth $100 billion, becoming one of the largest IPO since Alibaba. However, the US science and technology media CNBC said recently that although millet hopes to enter the US market in the future, it may not be easy. The mobile phone market in the United States is saturated Gartner, a market research agency, said in February that global smartphone sales fell by 5.6% in the fourth quarter of 2017, suggesting that people are no longer buying or upgrading their phones as quickly as they used to. It is also the first time that mobile phone sales have declined since 2004. The United States is one of the worlds most mature smartphone markets, so major mobile phone manufacturers are looking for other places, such as Asia Pacific and Latin America, as a new growth point. On the other hand, American consumers may yearn for devices that are not from Samsung or apple, but they remain leaders of the US market. At least there is still room for competition in the US market, especially if millet can provide cheaper phones than rivals, but the company faces other obstacles. US intelligence agencies are skeptical about Chinas smart phone brands. Many US intelligence agencies have warned consumers not to buy products from Chinese smartphone makers, including HUAWEI and ZTE, and best buy and other retailers have begun to remove HUAWEI phones from store shelves. At the time, Chris Rey (ChrisWray), director of the FBI, said: we are deeply concerned about the risk of companies or entities that allow foreign governments with different values to play a role in our telecommunications field. Its hard to predict whether millet can be treated better than HUAWEI and ZTE, and after all, MotorolaMobilitys Lenovo faces similar criticism from the US government. Trade disputes between China and the United States The United States is facing a trade dispute with China, which will almost certainly increase the price of electronic products, including mobile phones imported to the United States. Trade wars can cause a lot of problems, said MoorInsights&Strategys president and founder Patrick Moorehead (PatrickMoorhead). But if the Trump administration is smart, they shouldnt stop [millet] to show that if Chinese smartphone suppliers do not pose a security risk, they will Its welcome. But even if tariffs are imposed, millet may still be highly competitive in the US. CounterpointResearch director Peter Richardson (PeterRichardson) said: millet in all markets only get a small profit margin. Lei Jun, chairman and chief executive of millet, publicly promised that after the tax on hardware products, its net profit margin will not exceed 5%. Even if the price increases due to tariff increases, millet still has a price advantage over other smart phones. It is not easy to establish a cooperative relationship between the operators For new smart phone brands, it is very difficult to establish partnerships with US carriers, including AT&T, Verizon, Sprint and T-Mobile. This is why Lenovo acquired MotorolaMobility from Google in 2014. In this deal, Lenovo pointed out that MotorolaMobilitys big business partnership and a strong presence in the United States are the two main reasons for the acquisition. Other mobile phone manufacturers, such as OnePlus, HUAWEI and Blu, have turned to smart phones such as Amazon. Even the new devices launched by celebrities in the mobile phone industry, such as the EssentialPhone of Andy Rubin, the father of Android, are sold on Sprint only by AndyRubin. CounterpointResearch director Richardson said: the US mobile phone market is firmly controlled by operators. In order to get distribution channels for operators, new mobile phone manufacturers must get the support of operators through rigorous and expensive testing process. Millet needs to be invested in this. If it only chooses to sell in the open market, its market opportunities will be severely limited. If successfully passed the operators test, it will have to master the art of supporting operators to enter the market. This is very different from the current process used by millet, although it is expanding internationally, and is rapidly adapting to different market environments. However, Moorehead, President and founder of MoorInsights&Strategy, believes that millet may actively build these relationships. He said: in view of the use of Qualcomm chipsets and the sale of operators equipment, I do not think there is too much problem with its operators. Finally, millet is not famous in the United States. Although it sells high-quality phones in other markets at low prices, American consumers still dont know much about it. Richardson said, millet is a well-known brand in China and has strong influence in other Asian markets, such as India. But this is a brand that is largely unknown in the United States. Therefore, millet needs to make considerable efforts in marketing to enhance peoples awareness and comfort. Moore hade also expressed the same view. He said: the biggest challenge for millet to enter the United States may be branding, and some people even find it hard to read its name. (small) source of this article: NetEase science and technology report editor: Wang Fengzhi _NT2541 Brand promotion Finally, millet is not famous in the United States. Although it sells high-quality phones in other markets at low prices, American consumers still dont know much about it. Moore hade also expressed the same view. He said: the biggest challenge for millet to enter the United States may be branding, and some people even find it hard to read its name. (small)