Domestic intelligent machine profits survey: high-end hardware costs thousand rmb only


Introduction: In the era of smart phones, international giants to grab more than 90% of the profits of mobile phones. The maturity of the domestic mobile phone industry chain, two people a phone will be able to set up a mobile phone company, the low-end Android smartphone materials cost less than 400rmb, but over-reliance on the supply chain platform easily lead to a lack of core competitiveness.

The message of June 29, the LEI (microblogging)who has insisted that the millet phone hardware does not make money finally relented, said the the millet phone in mass production to 300,000 units began has a profit. There are people in the industry, Artesyn Technologies, the hardware cost of a mobile phone is very transparent, as long as the millet phone to dismantle, can accurately estimate the cost of materials.
But how hot both at home and fried, a frustrating reality is that from a global perspective, the profits of the smart phones are still concentrated in the hands of several international big-name manufacturers.
Wireless market research firm Canaccord Genuity analyst Mike Walkley said the first quarter of this year, Samsung and Apple accounted for 99% of the global smart phone handset profits. Apple’s profit is double that of Samsung.
Mike also said that Google (microblogging), completed the acquisition of Motorola’s mobile, but even RIM, Sony, Nokia, HTC, together, still difficult to shake the great advantages of the Apple and Samsung mobile phone profits. But a replacement under the flagship model in Samsung and Apple, these vendors through OEM might be able to get a slight profit upgrade.
The data of the market research firm Gartner show, Apple’s 2011 operating margin reached 35%, while others are below 15%. For domestic companies, a high-level of the Yulong Coolpad, the profit margins of brand mobile phone in about 20%, but profit margins have been declining.
Mobile phone sales from the point of view, Apple is in 2011 the world’s largest smartphone manufacturers throughout the year for the 89 million mobile phones sold, followed by Samsung with 87 million units.
If only to see the mobile phone sales from ZTE and Huawei which just formally enter the smart phone from 2011, by virtue of the operator of the channel, also entered the top 10 of the smartphone sales.
For a smart phone, the biggest cost is the motherboard, screen and memory. The chip maker, as the upper reaches of the smart phone company, the competition between them is very intense. Qualcomm’s advantage is obvious in the 3G era. Qualcomm is the rule-makers, and production of 3G handsets, the company must pay first use of fees to him, and every production of a cell phone need to pay a license fee.
From a market share point of view, high-pass, the highest 24%. Texas Instruments, and MediaTek, Habitat second, three to 12% and 9% respectively.
Mainstream manufacturers cell phone data icon
Compared to the international market, domestic smart phone market competition is equally intense, and very sophisticated supply chain, the two people one phone call can set up a mobile phone company. Produce a material cost of the Android smartphone can be done below 400 yuan, if the proper cost control, material cost of the high-end smart phones are only the thousand or so.
Bears strong TTG, chairman of the mobile phone industry veteran told Artesyn Technologies, mobile phones sold in the country can be divided into four categories, respectively, for the international brands, domestic brands, formal brand and unlicensed vendors, then the two types of companies can often o produce a very low price smart phone. And because of the same quality of eliminating the need for the company’s management fees, market fees, and sometimes a phone, the ex-factory price of the phone measure a difference of more than 20%.
But very many factors that affect the cost of a mobile phone, different vendors have different prices, purchases will also affect material prices, as well as chip makers licensing fees and other expenses.
The high-level of a mobile phone integrators simplely analyse he cost structure of the domestic mobile phone:
The price difference of the main chip is very large, from a few dollars to tens of dollars ranging from; screen price is the same large relationship to the quality, if we adopt the screen, 3.5-5-inch screen of the first-tier suppliers, the price of 30-40 dollars; the phone memory if done 4G 512RAM, the price of about $ 11; cell phone camera if you want to do 8 million pixels, the price may be as high as $ 20. Other such as mobile phone shell and foundry costs are relatively low.
Also can not ignore the production of WCDMA handsets, Qualcomm licensing fees, usually mobile phone manufacturers need pay a license fee one-time, then to be divided into high-pass of about 4.8% per the wholesale or retail price of mobile phones. However, if the mobile phone has big production, Qualcomm also in rebate.
For small mobile phone manufacturers, it is difficult to talk with chip companies, cell phone screen production companies, mobile phone memory company.let alone produce a model of the phone have to pay tens or even hundreds of million of chipspatent licensing fees, which to them is a significant cost.
So was born a company specializing in the mobile phone supply chain them to the bulk purchase of mobile phone chips and other small mobile phone manufacturers can focus on the purchase of materials from them. The small mobile phone manufacturers to help them save costs, and supply chain companies as a bulk purchaser, the upstream company’s rebate is the main source of income.
According to industry sources, the company in Shenzhen, a dozen, Shenzhen Eternal Asia, which is made of a listed company, a number of international brands from his purchases of materials.
Due to limited mobile core material suppliers, and the existence of the supply chain platform, the material cost of the phone is actually very transparent. Only need to know the bill of materials and suppliers, you can immediately know the material cost of a mobile phone.
Because of the supply chain platform company produces mobile phones very simple. Just contact the supply chain platform, contact a mobile phone design companies, contact a foundry, their homes will be able production of mobile phones. The first single 2000 will be able to single, if the market feedback is good, you can continue to add single.
Core competitive power missing
However, if all the vendors from the supply chain platform for procurement of stores, then produced the phone does not have its own characteristics. For the pursuit of competitiveness of the brand’s mobile phone company, it is important to be different from the others, which can be both hardware and software to achieve.
An industry source said, the international mobile phone manufacturers in order to prevent the cottage and to imitate, the most commonly used is a mobile phone with the screen and the appearance of different specifications. This means he needs a cell phone screen manufacturers, cell phone case manufacturers alone for its production of mold. This regard, the cost of the phone, but at the same time will often enter into priority agreements, which also avoids competition.
The domestic mobile phone manufacturers to obtain formal licenses hundreds, they imitate, but expertise in computing costs. Imitate a mobile phone also need to re-open mode to do this is clearly not in line with their costs, often six months or even later, the mold can be non-exclusive use when large quantities of imitation.
On the domestic mobile phone manufacturers, in addition to first-tier suppliers, other do not have scale advantages.If the material is the centralized procurement and the material itself is the product of mass production, the cost of the lowest; and if a separate mold or separate purchases of materials according to their mobile phone sales, it is difficult to generate economies of scale driving down the cost of a one-time inputs.
In fact, the era of single fighting the mobile phone hardware cost is over. The value of the brand have become increasingly prominent. This is also reasons for the success of the millet mobile phones. ZTE and Huawei can get carrier subsidies, that is, most non-domestic first-line brand mobile phone is difficult to do.
Through the supply chain platform to lower mobile cost of materials, but most mobile phone manufacturers can only get a certain degree of success in specific markets. If there is no brand, there is no channel advantage, after all, can not scale, it is difficult to enter the higher profit margins in the high-end mobile phone market.

This technology news is from China Electronics manufacturer.

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