Low-end mobile phones are not profitable, and domestic mobile phones and Nokia have indicated that they will no longer get involved!
Nowadays, the price of domestic mobile phones is getting more and more expensive, the top machines are sold to 6999 yuan, and there are fewer and fewer mobile phones below 1000 yuan, even if there is a configuration, it is also a spicy chicken, the reason why they don't do low-end machines is not to make money, but the performance of a domestic mobile phone a few days ago gave a different answer.
In the past, domestic mobile phones often liked to say that low-end mobile phones did not make money, and they had to rely on high-end mobile phones to make money, so domestic mobile phones often raised their prices, and the most advanced mobile phones were even close to 20. 000 yuan, higher than Apple, to achieve the goal of surpassing Apple in terms of **, and in the high-end mobile phone market, domestic mobile phones have also made progress in 2023, and the market share has increased rapidly, which has promoted its profit growth, and a listed domestic mobile phone announced its results for the third quarter of 2023, recording a profit of 6 billion yuan and a net profit margin of 85%。
However, a few days ago, a national mobile phone brand gave a different answer, and the performance forecast announced by Transsion shows that it will achieve revenue of 62.1 billion yuan and a net profit of 54 billion yuan in 2023900 million yuan, net profit margin 88%, which is higher than the above-mentioned national mobile phone brands, while the average price of Transsion mobile phones is estimated to be more than 500 yuan, and the average price of the above-mentioned mobile phone brands is only about half.
In fact, in addition to Transsion, Nokia, which once dominated the global mobile phone market for 14 years, has also proved that low-end phones are also profitable.
In the Nokia era, mobile phones** were above 100 yuan, and due to the existence of Nokia, the ** of domestic consumers buying mobile phones was very low. At that time, the ** of domestic mobile phones was also around 200 yuan, and in such fierce competition, Nokia's net profit margin also reached about 10%.
The examples of Transsion and Nokia show that low-end mobile phones do not make money, but they have strong business capabilities, naturally small profits, and weak business capabilities, so it is difficult to make money no matter how expensive they are, which leads to national mobile phone companies to gradually reduce low-end mobile phone models for various reasons.
First of all, the competition between the chip UNISOC and MediaTek is very fierce, because they have launched a turnkey program to promote the progress of domestic mobile phones, forcing Qualcomm, the boss of mobile phone chips, to provide cost-effective solutions for domestic mobile phone companies, so the ** of mobile phones can be very low, and now the mobile phone chip industry has formed two giants, Qualcomm and MediaTek, which are moving towards the top of the chip ** to determine the ** of the mobile phone**.
Secondly, domestic mobile phones believe that low-end mobile phones have reduced the forced style of mobile phones, and there are almost no press conferences for low-end models launched by domestic mobile phones, and the annual press conferences are launched on high-end mobile phones, so mobile phone companies are also quietly reducing low-end models.
Again, the competition of domestic mobile phones is not as fierce as before, and now the domestic mobile phone brands are mainly the five major brands, which occupy most of the share of the domestic mobile phone market, they tacitly reduce the low-end mobile phones, and they try to force consumers to buy ** mobile phones through this way of not pushing low-end mobile phones.
The practice of domestic mobile phones has had an impact on the domestic mobile phone market, where mobile phone shipments are increasing day by day, with shipments falling from 300 million units to 2 million units in 20228.5 billion units, shipments will drop to 2 in 2023500 million units, with a peak of 4With 700 million units shipped almost down, forcing some consumers to choose cheap second-hand mobile phones, the second-hand mobile phone market is growing rapidly, with an annual growth rate of 30%, in stark contrast to the year-on-year decline of the national new mobile phone market.