Commentary on the popularity of China's operators' channel changes and the popularity of 3G

Benefiting from the reduction of costs and operators' efforts to vigorously expand the low-end 1,000-yuan mobile phones, the Chinese smart phone market will continue to grow, and the development momentum will exceed that of the United States, or this year it will become the world's largest smartphone market. In this context, operators began to change their terminal policies to respond to the advent of the popularity of 3G smart phones. According to reports, China Mobile will vigorously promote the development of open channels in the second half of the year and increase the cooperation with the state-owned commercial companies to promote the sales of TD terminals. This is one of the important changes in China Mobile's terminal channel adjustment in the near future. At the same time, operators began to make adjustments to overwhelmed terminal subsidies.

2G/3G conversion speeds up, thousands of smart machines become motivated

Data from the Ministry of Industry and Information Technology shows that as of the end of July, China’s cumulative 3G users reached 184 million, and the 3G penetration rate exceeded 17%. The mobile Internet industry has a user base that has grown rapidly. At the same time, the mobile phone has become the first major Internet access method, indicating that the consumption habits of consumers through the mobile smart terminals are gradually formed, which further accelerates the popularization of smart phones.

IDC recently released a report that China's smart phone shipments this year (26.5%) will exceed the United States (17.8%), becoming the world's first smart phone shipments of the national market. As the demand for low-priced and high-end models is very strong, the growth rate of smartphones in China's tertiary cities will be accelerated.

The rapid development of the Chinese smart phone market is inseparable from the efforts of all parties in the industry chain to push thousands of smart phones. According to the report of Ai Media, in the second quarter of this year, mobile phone sales between 1001 and 2,000 yuan in the Chinese smartphone market accounted for 45.8%, and mobile phones under 1,000 yuan accounted for 23.3%. The main consumer groups of smart phones are rapidly moving from high-end groups. Low-end crowd transfer. He Shiyou, executive vice president of ZTE Corporation, believes that in the 2G era, the proportion of users using thousands of terminals accounted for nearly 70%. Obviously, in the 3G era, a large number of smart terminals with such prices are also needed to meet user needs.

As a result, the 1,000-yuan smart machine has become a key driver for the migration of 2G users to 3G and has become the focus of operators and handset manufacturers. Smartphones within a thousand dollars are particularly valued by operators. Both China Unicom and China Telecom are using 3G smart phones under 600 yuan as the top priority for terminal development. China Mobile has also joined the war situation. At present, the mainstream mobile phone manufacturers at home and abroad all use the thousand yuan smart machine as the main position. In the fierce price war and multi-core "arms race", dual-core mobile phones are also about to enter the ranks of thousands of aircraft. In addition, the continuous decline in the price of smart phones is inseparable from the participation of upstream chip makers. In addition to MediaTek and Spreadtrum, chip giant Qualcomm is also bullish on the smartphone market for 1,000 yuan smartphones and below, and launched the QRD platform last year.

Operator Terminal Policy Channel Transformation

The trend toward parity and acceleration of the popularity of smartphones places new demands on operator terminal channels. Collective mining + terminal subsidy mode has made great contributions in the promotion stage of smart phones, not only has become China Telecom and China Unicom in the 3G era is the only way to turn over, but also become a sharp tool for mobile phone manufacturers to quickly open the market. However, with the growth of smart phone sales, on the one hand, the huge terminal subsidies make operators overwhelmed. In the first half of the financial report, China Mobile, China Telecom and China Unicom’s terminal subsidies reached 12 billion yuan, 11.5 billion yuan, and 3.52 billion yuan respectively. On the other hand, due to the continuous decline in the terminal collection price, the terminal manufacturers' profits have been continuously compressed, and the policy of collecting and mining has hurt the enthusiasm of the industrial chain.

In the face of the new domestic 3G situation, operators have successively adjusted their terminal policies: they have shifted from open-minded and terminal subsidies to open channels, and accelerated the socialization process of their own channels, and terminal subsidies have also diverged.

In terms of channels, operators have made breakthroughs in relying too heavily on customized models and are striving to develop social channels and electronic channels. For example, China Mobile will launch omni-channel construction in TD terminals, and actively promote self-owned channels, social channels, physical channels, and Internet channels to emphasize the "dual-channel" development strategy and establish a low-cost, high-efficiency, flat channel system. It is reported that China Mobile will launch the second round of TD terminal tendering this year in the second half of this year, and the scale of its collection and procurement is expected to exceed the first half of the year. At the same time, it will also increase cooperation with the country's business partners. China Telecom and China Unicom (600050 stocks, prices, information, and main sales) are vigorously expanding their electronic channels. China Telecom entered the e-commerce business for two years, and in a recent list of the “Top 100 National E-commerce Companies”, its Tianyi mobile phone network became the largest mobile phone shop. In addition, China Telecom promotes the socialization of terminal operations and forms a multi-channel structure, with products entering major chain stores such as Gome, Suning, Dixon, Music, and China Post.

In terms of subsidies, operators in different development situations have made different choices: China Unicom, which has initially entered a healthy development path, has actively reduced subsidies. In the second half of this year, China Unicom’s subsidies for the 1,000 yuan 3G smartphone will be higher than ever before. 50% is reduced to 20%-30%; China Telecom is the selective subsidy for large-scale development. China Telecom’s chairman Wang Xiaochu stated that the mobile phone subsidy strategy will gradually tilt towards the thousand-yuan smart machine; while competing in 3G China Mobile, which is at a disadvantage, is going in the opposite direction. Li Yue, president of China Mobile, said that the thousand yuan smart phone is a new driving force for China Mobile’s future development. China Mobile plans to increase from 17.2 billion yuan last year to 20 billion yuan this year, most of which It is a thousand yuan 3G smart phone.

In the era of mobile Internet, the terminal is the gateway to the world.

According to the Analysys International report, the sales volume of smart phones in China in the second quarter was 38.19 million units, and the penetration rate continued to increase from 46.4% in Q1 in 2012 to 57.5% in 2012 Q2. Analyst Yan Xiaojia believes that the cutting-edge power represented by "internet mobile phones" and "thousand yuan smart phones" in the field of smart phones is accelerating possession of the mobile phone terminal market, and the "functional machine era" is gradually disappearing. When the domestic 2G users migrate to 3G, the choice of the opponent's mechanism means the choice of the operator. Therefore, the sales channel of the mobile terminal becomes the strategic point for operators to expand 3G users.

In addition to promoting the socialization of its own channels and accelerating the construction of electronic channels, cooperation with mobile channels, home appliance stores, and large-scale integrated stores has become a common choice for operators.

According to the analysis, the mobile terminal sales channels are different from the operators' traditional channel number sales social channels, and their operating systems are perfect and independent, but they are chasing but do not fully depend on the operators' remuneration. To increase cooperation with mobile retail terminals and social retail channels, operators need to start with two aspects: First, actively develop cooperative relationships and expand the depth and breadth of cooperation; Second, use cooperation to improve business sales, improve cooperation efficiency, and sell terminals. Development drives business development. Experts suggest that based on the basic conditions of the distributors, marketing capabilities, resource scarcity, etc., the mobile terminal retailers should be evaluated and cooperated in a hierarchical manner. Under the premise of overall resource constraints, priority should be given to ensuring strategic cooperation.

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