Why are mobile phone manufacturers starting to build TVs?

 Why are mobile phone manufacturers starting to build TVs?

However, after the disturbance of the new forces and the tenacious struggle of the old forces, there are few winners in the TV market. After the survival of the fittest, only a few mobile phone manufacturers and traditional TV manufacturers remain two opposing forces. While oppo, after Xiaomi and Huawei, has entered the TV circuit, it is bound to draw a clear line from the martyrs in terms of concept and action.

Oppo Zhimei Life Conference product exhibition oppo

TV industry enters stage 2.0

The TV industry is a dull market which is even older than PC. It has been firmly controlled by Chinese, Japanese and Korean manufacturers for nearly 100 years. It was not until the mobile Internet era that the Internet manufacturers represented by LETV appeared that the pattern and competition situation had some looseness.

In May 2013, letvx60 and letvs40 were launched for the first time by letvx60. As a flagship product, letvx60 is manufactured by Foxconn. It is equipped with high-throughput processor and Google Android 4.0 system. It is 60 inches in size, and its price is only 6999 yuan. Jia Yueting called this the most powerful hardware monster and won a good start. It was officially opened in July and sold out in LETV mall in less than an hour, becoming the domestic monthly sales champion.

But three years later, the living room war of LETV came to an end due to the fracture of the capital chain of LETVs mobile phone business, which affected other business lines. This year, with LETVs delisting, LETVs model, which once caused a stir in the market, has drawn a terminator.

Looking back on LETVs business model of platform + content + terminal + application, it is nothing more than the integration of hardware and software. In terms of hardware, processors and screens are used to benchmark traditional manufacturers. In terms of software, it includes not only the TV system supporting on-demand, live broadcast and rotation, but also the integration of the copyright of a large number of films and TV plays. And its profit mainly comes from hardware gross profit and income of content, advertisement, Appstore and so on.

LETVs success lies in that it has promoted the transformation of traditional TV manufacturers and launched Internet TV sub brands, such as Skyworths Kukai and TCLs Thunderbird. But the failure lies in the violation of some basic laws of Commerce, especially in the late stage of strategic deviation, from the integration of software and hardware to the mode of service and content payment, and hardware free, which has become the last straw to overwhelm camel.

Just after LETV entered the silent period, the domestic TV industry passively ushered in the node of the second round of reform, the IOT brought by 5g and the third wave of artificial intelligence.

In the AI + IOT era, smart TV has entered the 2.0 stage, and Xiaomi has also become a representative of the 2.0 stage. Compared with LETVs radical route, Xiaomi is more stable. Since 2013, Xiaomi has invested and incubated IOT equipment. This year, Lei Jun, CEO of Xiaomi, once again established the strategy of mobile phone as the core and aiot ecological layout, and the intelligent life built by aiot penetrated into more scenes.

The biggest difference between the smart TV 2.0 stage represented by Xiaomi and the 1.0 stage is the intelligent interaction between aiot and AI.

Smart hardware manufacturers have begun to set foot in TV, mainly focusing on the large screen ecology in family scenes and the multi scene cross screen ecology combined with mobile phones. This attempt not only considers hardware profits, but also empowers the home IOT industry. IDC analyst pan Xuefei told geek Park, compared with traditional TV manufacturers, the advantages of mobile phone manufacturers lie in cross screen collaboration and intelligent interaction.

Therefore, oppo and other new mobile phone manufacturers entering the TV market are also aiming at the aiot ecosystem. However, compared with Xiaomis earlier admission and Huaweis advantages in terms of brand and technology, what opportunities do oppos have?

The oppos had to build TVs.

On the one hand, with the increasingly saturated smart phone market, the replacement rate of smart phone market has decreased. In the post Moores law era, the iteration and update of mobile phone technology become slower, and the smartphone industry faces the ceiling in terms of sales volume and innovation. According to IDC data, the global smartphone market will continue to shrink by about 2.3% in 2020.

On the other hand, in the 5g era, mobile phone manufacturers have entered the field of aiot smart home. With diversified layout, they will not be able to get around the TV layout.

Liang Zhenpeng, an industry insider in the household appliance industry, told geek park that an offline exclusive store only sells mobile phones. Compared with selling multiple products, Pingxiao (the turnover of area output per ping) and the total turnover are different. The biggest advantage of oppo and other mobile phone manufacturers in making TV is that they can improve the platform efficiency. Oppo attaches great importance to offline physical sales stores. It is reasonable for oppo to follow up Huawei and Xiaomi and launch TV.

For example, after the sound volume of LETV TV declined, Xiaomi TV quickly filled the gap in the internet intelligent TV market. After several years of development, it became the head manufacturer of domestic mobile phone manufacturers as TV. Data from ovicloud in the first half of 2020 show that the volume of TV delivery of millet is the first in China, ranking first in six consecutive quarters. According to Q2 financial report of 2020 disclosed by Xiaomi, the smart equipment of Xiaomi under aiot strategy increased 38.3% year-on-year. In addition, in terms of the efficiency of the products, the efficiency of the offline retail store of millet has reached about 270000 / year, which is second to apple.

But its tasteless to eat, but a pity to abandon.. Entering the TV industry is contrary to the general trend of aiot, and it is more embarrassing to enter the TV industry.

Oppo smart TV S1 product diagram oppo

In addition, the main cost of the television industry is LCD panels. Today, the price war is becoming more and more fierce. Some people in the industry have jokingly said that TV manufacturers mainly work for panel manufacturers. Guotai Junan data shows that the panel, as the core component of TV, accounts for about 50% to 60% of the cost of TV.

Therefore, the TV industry is more difficult and dangerous than the mobile phone industry. If mobile phone manufacturers want to break through the traditional TV market, they need more obvious advantages. But what is the actual situation?

TV can generate high gross profit in the production, manufacturing and processing sectors, and has its own industrial chain value. Generally, mobile phone manufacturers do not have their own factories, but through third-party OEM production, the supply chain of production is likely to have problems. Said Liang Zhenpeng.

In other words, although the current gross profit rate of the TV industry is not high, the mobile phone manufacturers will incur costs of coordination and profit distribution when entrusting the third-party OEM assembly plant to produce TV, which is slightly larger than that of TV manufacturers with fixed production lines.

In terms of content operation, TV manufacturers must cooperate with Internet TV integrated broadcast control platform operators. It is difficult for mobile phone manufacturers to distance themselves from traditional TV manufacturers in terms of TV content.

Even in the content resources linkage, integration and other aspects, traditional TV manufacturers have more advantages. After being baptized by the Internet thinking of LETV, Fengfeng and other Internet TV companies, the domestic traditional TV manufacturers have imitated and learned to launch Internet sub brands, which have penetrated and bound up with bat and other Internet companies in content and capital.

For example, Tencent and iqiyi invested in Skyworths Kukai and Alibaba invested in kangjiayi square; Skyworths Kukai and TCL Thunderbirds content turnover have increased by 50% in recent years. Today, the boundary between traditional TV manufacturers and Internet TV manufacturers is increasingly blurred.

Of course, this does not mean that the mobile phone manufacturers who entered the oppo late have no chance at all. The mobile phone manufacturers may need to find new ways, such as the linkage between mobile phones and TV, large screen entertainment games, AI intelligent interaction and other dimensions.

For oppos, when the cake in the original market is completely divided, the first mover advantage in entering the new market no longer exists, and the fear of hand and foot restricts the development. Facing the aiot market, mobile phone manufacturers should not only seize the opportunity to touch the market, but also avoid AI intelligent interaction and large screen entertainment from becoming pseudo demand and gimmick.

Source: geek Park Author: Sisi, editor in charge: Mao Xinsi_ NBJS11624