Huawei's annual flagship smartphone P10/P10 Plus is officially released in China. Compared with the previous generation, the Plus version has entered the 5000 yuan file for the first time. This demonstrates Huawei's determination to continue to impact the high-end market, but it also shows that Huawei's terminal is currently eager for profit. .
In response, Huawei CEO Cheng Chengdong said in an exclusive interview with Tencent Technology and other media that the P10 price is higher than the previous generation, not only the cost increase, but also the performance improvement. "Storage starts directly from 64GB, cuts off the 32GB version, and the Plus version is 6GB of memory, so the price is similar. In addition, the overall performance experience such as taking pictures is also much better."
According to a report by Strategy AnalyTIcs, Apple accounts for 80% of the $53.7 billion in operating profit generated by the global smartphone market. Last year, Huawei Mobile completed 139 million shipments worldwide. Although it maintained its scale advantage, it faced a profit challenge.
At the beginning of this year, Yu Chengdong once said that in the past year, MarkeTIng, channel and retail cost investment have grown too fast, the investment effect can not be fully explicit in the short term, and the overall cost has increased significantly. This year, Huawei will control the scale and aim to improve profits.
Raising prices is a straightforward approach. At present, the ASP (average sales unit price) of Huawei mobile phones has increased from 176 US dollars in 2014 to 213 US dollars in 2015, and then increased to 218 US dollars in 2016, close to Samsung's 220 US dollars, while Apple's iPhone is as high as 694 US dollars.
Industry analysts pointed out that on the other hand, it is increasing the proportion of mid-to-high-end product shipments under the benign growth of scale. In 2016 shipments, Huawei claimed to account for 55% of mid-to-high-end products. It is understood that the average price range of this part of the product is concentrated between 2,500 and 4,000 yuan, the main models are concentrated in the two series of P, Mate.
Obviously, compared with the Apple iPhone, Huawei's gap is still very large, but it also means that the profit margin is also very large.
Therefore, on the P10/P10 Plus, Huawei continues to deepen its cooperation with Leica and enhance its brand premium. Compared with the previous generation, the P10 rear main lens is a 12-megapixel color + 20 megapixel black and white Leica dual-lens lens. The Plus version also introduces a Summilux Leica high-end lens with a large aperture of F1.8; it is worth mentioning that The P10/P10 Plus also features a Leica lens on the front.
It is understood that Huawei's P9/P9 Plus has exceeded 10 million sales in eight months, and it has accumulated more than 12 million units. For the P10/P10 Plus, Yu Chengdong revealed that the goal is naturally to break through 10 million, or even higher.
From the perspective of the global market, Huawei hopes to continue to erode Samsung in the European market to expand its high-end share, which is particularly prominent in 2016.
According to research firm IDC, in the first quarter of 2016, Huawei’s mobile phone sales in Finland were 10 times that of Apple. In October 2016, Huawei's mobile phone quickly surpassed Samsung and won the top spot in the Finnish market share. Overall, Huawei's mobile phone market share in Europe doubled from January to September 2016, reaching 12.2%. Sales ranked first in Portugal and the Netherlands, and second in Italy, Poland, Hungary and Spain. The gap with Samsung is constantly shrinking.
Yu Chengdong said that Huawei's key market this year is still Europe, China, Japan and other markets. For the current hot Indian market, Huawei is not very valued.
India has replaced the United States as the world's second-largest smartphone market, and some organizations predict that this year will be one of the three mobile phones in India with a population of 1.3 billion.
Because it is the stage of popularization of smart phones, it is also doomed that the consumption power of Indian smartphones is generally not high. Last year, the cheapest entry-level smartphone was only 251 rupees (about 4 US dollars, equivalent to about 24 yuan).
Overall, low-priced models dominated the price-sensitive Indian mobile phone market, and this trend is difficult to reverse in the near future. Among them, the smartphone market, which has a mid-end price between $110 and $200, has the largest share. For Huawei, which is pursuing profits, India is clearly not focused.
“India is an open market. We are still exploring and accumulating experience. This requires a process. Because Huawei is a company with technological innovation, India is not our high-end market. The first market is China, Japan, Europe. Waiting for the high-end market." Yu Chengdong said. At present, the share of domestic mobile phones in the Indian market is close to 50%.
In addition to the above, cloud services, which have always been low-key and are internally expected by Yu Chengdong to increase profits, have begun to show results. At the launch of this P10/P10 Plus, Yu Chengdong used a lot of space to introduce Huawei's cloud services.
It is understood that Huawei's terminal cloud service is mainly for Huawei mobile phone users to provide software, applications and other business units to enhance user experience, and mobile phone product lines, MBB product lines (smart hardware products, etc.), software engineering department (EMUI) sales market services The Department together constitutes Huawei Consumer BG.
At present, Huawei's terminal cloud services have reached 210 million mobile users worldwide. The cumulative number of users in Huawei's application market has reached 600 million, and the number of application downloads has reached 45 billion, a year-on-year increase of 157%. The number of developers reached 220,000, an increase of 82% year-on-year, and partners received a share of 2.8 billion.
According to Su Jie, president of Huawei's consumer business cloud service, this year, the cloud service department will specifically provide 200 million yuan to encourage developers, and focus on opening up overseas markets in the region.
Since the launch of the iPhone smartphone in 2007, Apple has generated $1 trillion in revenue from iOS-related products. Although Android currently surpasses Apple in terms of application scale, it still lags behind Apple in terms of experience and revenue, and most of it is still free.
Judging from the situation of Tencent Technology, Huawei's application market is one of the few platforms for launching paid applications in the Android platform, mainly based on tools and educational applications. It is reported that the department completed its profit target last year, and the specific amount of Su Jie did not disclose.
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