5G Mobile Phone Competition Heated Up: Price Falls Below 1000 Yuan, Latecomers Are Ready To Move

Wang Xi believes that 5g in the domestic market has driven up the average price in the first half of the year, which has also restrained the demand of some middle and low-end price segments. In the second half of the year, with more affordable 5g products entering the market, the demand of middle and low-end or mainstream markets is expected to be released.

In September, 5g mobile phone market began to diffuse thick smoke.

On the 1st day, ZTE mobile phone, which has kept a low profile for many years, took the lead in releasing the industry's first 5g new machine equipped with an off screen camera, but the price was only 2000 yuan + starting; realme was the first time to lower the price of 5g new machine to less than 1000 yuan, claiming to target young people represented by student groups.

The greater changes of these two brands in the near future come from the co-ordination of senior management. In June, ZTE announced the appointment of Ni Fei, the president of Nubia, as the general manager of ZTE's terminal business unit to be fully responsible for ZTE's terminal business. Nubia has been regarded as ZTE's brand in the market-oriented market segments.

As the holding company of realme, OGA holdings recently confirmed the appointment of Liu zuohu as the senior vice president of the company, fully responsible for the product planning and experience of Oujia. Its three independent brands are oppo, Yijia and realme. However, the company stressed that Liu zuohu is Yijia, and his identity as founder and CEO remains unchanged.

Objectively speaking, oppo encountered a lot of doubts because of the large decline in domestic market share in the first half of the year. ZTE has high expectations for terminal business after entering the 5g era. The collaborative decision-making among these brother brands has become more meaningful and ambitious in the current time node.

Now, from 1000 yuan to 5000 yuan, the main smartphone market, there are mobile phone brands. Where are the opportunities for latecomers? What variables does the recent adjustment mean for the market?

Mobile phone faction coordination adjustment

Since the beginning of this year, the EU Canada system seems to have made a considerable adjustment.

Oppo has taken actions such as strengthening the core position of China and adjusting the allocation of senior executives. Realme's product line adjustment is slightly in line with the pace of the new executives of the company.

In an interview with the media at the beginning of this year, the company officially introduced three product systems: through q series, X series and X Pro Series, we completed the product layout from entry to flagship in the whole price range.

Among them, realme Q aims at the mass market of 1000 yuan machines. Realme X series focuses on high-end product performance and cutting-edge technology. In the mainstream price range of 2000-3000 yuan, realme x Pro is the flagship series.

In the interview session after the press conference on September 1, Xu Qi, vice president of realme and President of global marketing, told 21st century economic reporter that during the year since realme returned to the domestic market, realme has been constantly in-depth understanding of the market. On the one hand, in order to simplify the naming more conveniently, on the other hand, combining the characteristics of different user groups and realme's own technical advantages, realme has subdivided into four systems: q series and V-series Series, X series, future flagship series.

"Q series is a surprise series to be launched mainly during 6.18 and 11.11; V series will focus on endurance; X series will focus on design with leading flagship performance; in the future, flagship will pursue cutting-edge technology. Each of the four series will occupy the market segment. Since then, 5g will be fully covered. " He pointed out.

This is to confirm that from India's start to enter the domestic market, realme is actually constantly adjusting its strategy and positioning according to the market conditions. Today, realme has basically completed the transformation from the public impression of "cost performance" to full coverage, and is able to play the next "collaborative war" with Yijia and oppo on the whole.

Xu Qi stressed that although there are three major brands under OGA, they operate independently of each other. Of course, there will also be collaborative development. For example, realme and oppo have a certain degree of synergy in the supply chain, some technologies, production resources, online sales channels, after-sales service, etc., which will effectively improve the current situation that realme is stronger than online and lightweight in China.

For the adjustment of ZTE system, sun Yanbiao, President of the first mobile phone industry research institute, analyzed to reporters that under the strength of the four domestic top brands, Nubia still has a certain survival space through subdivision game market such as red devils. Therefore, he believes that Ni Fei Trading ZTE terminal system, is expected to bring new market-oriented vitality.

In the face of the end of the market segmentation, people in the industry think that the more the market segmentation, the more likely it will be to enter the market segment.

Wang Xize, manager of IDC China research, told reporters, "the sub brand matrix of each major factory will exist for a long time, and the internal departments or responsible persons of the manufacturers will be adjusted. Most end users and consumers will not know or care about it. The purpose of the brand matrix is to cover more price segments, user groups, market segments, or to make some attempts on products without shaking the image of the main brand. Internal integration is only convenient for product planning and overall management at the supply side. "

However, there is no doubt that after the domestic intelligent machine market has entered a mature stage of development, the overall combat effect generated by the cooperation between these brands will be stronger, and the test of their flexibility is becoming more and more urgent.

Power generation during warming up period

The adjustment between brands has the determination to change from subjective level to objective environment. In the second half of this year, with the control of the new crown pneumonia epidemic and the gradual recovery of consumption enthusiasm, the brand after internal adjustment began to exert its power secretly. What is mentioned at the beginning of the article may be just a small sign.

On the 2nd, market news pointed out that oppo had begun to add a lot of orders to the supply chain end, which led to a jump in the share price of the industrial chain.

In this regard, oppo confirmed to reporters that "we are optimistic about the global mobile phone market in the second half of the year. Oppo increased the order to 110 million units, nearly doubling the growth compared with the first half of the year."

Xu Qi also pointed out in an interview that the domestic mobile phone market was affected to a certain extent in the first half of this year due to the special circumstances of this year. However, with the improvement of the general environment and economic rebound, realme also found a warming trend at the data level, especially the popularity trend of 5g has been more rapid development.

"Realme believes that with the release of 5g mobile phones within 1000 yuan, the overall progress of 5g popularization will be further accelerated. In the first half of the year, although the general environment has a certain pressure on all mobile phone manufacturers, the recovery speed has exceeded everyone's expectation. The competition in the future will be more intense, and there are also certain challenges for new brands. " He added that in the process, realme also adjusted rapidly from the middle of the year to the second half of the year in China.

Although the global epidemic situation has not been widely controlled, Xu Qi told reporters that realme achieved 25 million global sales in one year in 2019, and the global sales target of 50 million this year will not be adjusted.

Wang Xi told the 21st century economic reporter that the current rapidly sinking price of 5g mobile phones stems from the upstream manufacturers represented by MediaTek seeking more partners to accelerate their penetration into the 5g market, and then give support within their capabilities at the cost level.

"Realme has developed rapidly in overseas markets, but in the first half of the year, due to the rapid increase in the average unit price of its own products and the impact of consumer prudence under the influence of domestic epidemic situation, the overall magnitude of realme has not been further improved. Through 5g mobile phones with less than 1000 yuan, as well as more abundant offline channel coverage, it helps to enhance the brand market volume and reach more young people groups. " He pointed out.

In the context that both Xiaomi and oppo frequently show their muscles in the off screen camera technology, but have not announced commercial use, ZTE's new machine release also appears to be quite positive in the current point of time.

Wang Xi believes that ZTE has always been a manufacturer with accumulated technology and product design. "In recent years, ZTE's products need to be more clear about the positioning of the products and the image of ZTE products to consumers in the channel channel. The off screen camera is a product form that has been researched and accumulated by every company. Under the current technology and presentation effect, ZTE takes the lead in releasing mass production, which is a strategy to expand the popularity of geeks. "

However, under the action of positive adjustment of mobile phone brand, Wang Xi does not think that the overall market brand pattern will have too many changes this year. "In the first half of the year, 5g in the domestic market pushed up the average price, which also inhibited the demand of some middle and low-end price segments. In the second half of the year, with more affordable 5g products entering the market, the demand of middle and low-end or mainstream markets is expected to be released. But the overall domestic plate growth will be 9% - 10% He predicted.