What’s Behind the Bloody Phone Competition?

Mobile phone world is a Big Wheel, so difficult to predict the final ending. Maybe today’s leader is tomorrow’s loser; and a relatively low brand can also draw worldwide attention.

Recently, in this field, three events raise global consumers and manufacturers’ eyebrows. The first and most important is Microsoft bought Nokia with a $7 billion, ending 148 years of ownership. Look back a few years ago, Nokia, the king of mobile phone, still praised itself of flags around every corner of world. But after just a nap, what await Nokia is the change of leadership and decline of territory. I think constant warning and forecast is the lesson.

Second: Japanese electronic industry see blow again-Panasonic existing smartphone market. Yesterday, the company’s president declared Panasonic would transform from a consumer gadget maker to a supplier for other businesses because of continuous revenue loss.

Due to the competition from Apple and Samsung-like manufacturers, Panasonic Electronic, once the second-largest handset maker in Japan, stepped the same road of NEC (Japan-based largest phone supplier), losing confidence to its local consumers. Looking into the factor, of course, the lack of innovative products is a significant contributor. However, I think most industry sources would paste Japanese failure seen in many electronics companies to its management mode, an outdated stumbling block. An obvious example: it is reported that most heads in divisions of Japanese companies are Japanese. Image, how Japanese can know more than a Chinese about China’s market, consumers, policy…

It seems that Apple’s development prove the idea in the first paragraph. Only five years of prosperity (from 2007 to 2012), Apple falls into trouble. As a new strategy, Apple will introduce iPhone 5C to mid- and low-end market in September, an eye-catching product causing a lot of guess. Generally, the pricing ranges from RMB 2000-4000. Temporarily, let’s position it at RMB 3000, almost equaling the monthly paying of a worker.

Personally, in terms of this price, I cast doubt on its possible performance. For current mid- or low-end market (usually 1000 yuan), 3000 yuan is much higher. The introduction of 798-Hongmi by Xiaomi with high-end configuration is larger challenge and rival. Of course, the iPhone 5C may help Apple expand market shares, but the gap between dream and reality will show out soon.