ZTE needs 5G market opportunities as soon as possible.
As ZTE CEO Cheng Lixin disclosed at CES 2018, ZTE plans to launch 5G smartphones in the United States by the end of 2018 or early 2019, triggering ZTE shares to soar 6% and H-shares to soar 7% on January 16.
Since then, in the new folding dual-screen smartphones & mdash; ZTE's Axon M China conference, Cheng Lixin also said that in 2018 ZTE will be "focused on innovation" strategy and the introduction of new folding smart phones, sustained Force domestic B2C mobile phone market. The public propaganda also caused widespread concern in the market.
However, ZTE phone life is not better than. The China Business newspaper reporter found that the shipments of ZTE smartphones were 48 million units and 56 million units respectively in 2014 and 2015; ZTE Corporation did not release handset shipments in 2016, and the market research firm IDC mentioned " ; ZTE's global shipments in 2016 dropped 36.5% compared with 2015; and market consulting firm Gartner predicts that in 2017, the global shipments of ZTE smartphones will drop by 17.3% compared with that in 2016.
Bright colors mainly in overseas markets, especially since 2014, ZTE handsets in the United States market has been ranked fourth. In China, according to the official statement, ZTE handsets accounted for about 30% of domestic sales in 2014, but in 2017 only 10% of sales were in China.
ZTE mobile phone can be achieved in the era of 5G "ZTE" "China Business" reporter interviewed ZTE in writing January 24, 2018, but the relevant personage before the press said that he was "very busy at the end of the year" and could not reply to the interview. January 25, Cheng Lixin said publicly that ZTE is taking the "ACW" (that is, the United States-China America-China Worldwide-Worldwide) strategic model, based on the 5G in advance of the layout, ZTE handsets are confident in the future there As
Seize the future opportunities?
2017 can be described as a smart phone "full screen element the first year", but conscientious people will find that ZTE phone did not follow up "full screen". Why? Cheng Lixin January 17, 2018 ZTE folded dual-screen phone Axon M China conference communication links, said the big screen is just needed, but the full screen is not enough.
Cheng Lixin believes that consumers need more content on the screen more mobile phones, "full screen mobile phone" is in line with this demand was able to erupt in the market, but the consumer on the big screen of the second just need , Reflected in the multi-task, at the same time sexual operation, folding dual-screen mobile phone to meet this demand.
Public information shows that South Korea's Samsung and LG, China's Huawei and OPPO were previously explored "folding dual-screen mobile phone", Samsung even launched a prototype, LG also applied for the relevant patents, but before the market did not appear relevant Commercial products. IDC, an analyst told reporters that this is mainly because "the gap in the middle is difficult", technically not allow the folded double-screen to open at the time "a block of children's screen" display.
ZTE mobile phones in the "folded double screen" grabbed a first, in October 2017 the first release of the United States Axon M, and follow the so-called "ACW" strategy, one after another to make the product landed in China, Japan, Europe and other markets . Objectively speaking, the secret Axon M did not solve the problem of the middle gap, but ZTE aspires to "create a new category of smartphones". ZTE mobile phone market, said: "Although ZTE folding shape is not the first, but the first two years before folding mobile phone is still not commercially available when the introduction of folding mobile phone is now ripe. & rdquo;
Although ZTE for "double folding double screen" considerable value, but the outside world's feedback is very cautious. The top five global handset manufacturers in China told reporters not optimistic about Axon M's market prospects, and even predicted that "folding double-screen" may be a fake demand. Some industry analysts also said that Axon M's market performance remains to be seen.
It is worth mentioning that, ZTE has made it clear that the introduction of Axon M ZTE to show the world on the one hand the latest trend of intelligent terminals, on the other hand represents the ZTE 5G terminal for an exploration of the form. Implicit meaning, ZTE is still the most concerned about the opportunities in the 5G market.
ZTE should be the world's first layout of the 5G terminal manufacturers, at present, Apple has announced in 2018 with Intel to develop 5G handsets, Samsung, Huawei are planning to launch their respective 5G chips in 2019, while the introduction of their respective 5G handsets , OPPO also claimed to be the first to launch 5G smart phone manufacturers, only ZTE specifically shouted out by the end of 2018 or early 2019 launched 5G mobile phones in the United States.
Why ZTE so confident? Cheng Lixin January 25 said that because ZTE is "5G Pioneer", 5G aspects of technology and patent accumulation is leading.
The vicious circle of the past
ZTE 5G mobile phone layout in advance, the strategy to give up "full screen mobile phone", take the lead card "folding dual-screen mobile phone", explore the 5G terminal form, not so much 5G can bring the market opportunities, it is better to say Forcing the development status quo, so ZTE had to find the opportunity to overtake the corner in the smart phone market.
In the era of "China Cool", ZTE is one of the top four domestic mobile phone manufacturers, but in recent years has completely left behind. However, according to the data of the first half of 2017, the revenue of ZTE's 54 billion yuan is only 1/5 of that of Huawei's 2831 billion yuan. The revenue of ZTE's consumer business is 17.8 billion yuan Of the revenue scale, only equivalent to Huawei's consumer business 105.4 billion yuan 1/6.
In "China Cool Alliance", Huawei took the lead in giving up the customized mobile phone business of the carrier channel in 2011, and set up the Consumer Business BG to proceed to the consumer market. Perhaps it is the successful transformation of Huawei's Consumer BG. ZTE also set up an independently operated terminal division in early 2014 and announced the transition to consumer products operation and Internet thinking. ZTE's Zeng Xuezhong, the then executive vice president of ZTE, ;
Zeng Xuezhong was once one of ZTE's "veterans". Since 2006, he has been serving as the senior vice president in charge of China. During his career, he has created sales worth nearly 1 billion yuan in a number of market segments in China and is therefore known as " Once billions " ZTE terminal choice such a Titan to start a journey of transformation, can not be careless. However, ZTE has always struggled with its ambition and reality.
Official data show that ZTE terminal shipped 100 million units in 2014, including 48 million smart phones. According to Zeng Xuezhong's "Early Recovery in 2016, Return of the King in 2016", a total of over 100 million ZTE terminals shipped in 2015, including 56 million smartphones, but smartphones shipments The annual target of 60 million is still 4 million.
If the performance of ZTE Terminal Group in 2015 is not satisfactory, the performance in 2016 will be even worse. ZTE terminal business unit in 2016 target for the smart phone shipments of 60 million to 70 million, the result failed to achieve "return of the king", or even end of the year had to "snow" specific data of shipments. In the 2016 Global Smartphone Research Report released by IDC, it is only mentioned that "ZTE's global shipments in 2016 dropped 36.5% from 2015," and no specific data is given.
Zeng Xuezhong did not stay up to the end of 2016, when Yin Yimin was replaced in October. Yin Yimin is clearly older qualifications "ZTE". Statistics show that as one of the founders of ZTE, Hou Weigui, one of the "five major generals", Yin Yimin stood out as the president of the company in 2004. However, Yin Yimin did not have time to deploy the CEO position in the Terminal Business Unit. Since March 2009, ZTE has made major personnel adjustments. Zhao Xianming resigned as chairman and Yin Yimin was the chairman of the board. Zeng Xuezhong announced his departure from ZTE almost at the same time. April 2017 ZTE Announces New Terminal Business Unit CEO Cheng Lixin, previously in charge of the North American terminal market.
Relevant media disclosed that due to personnel turmoil at the beginning of 2017, the absence of management due to the resurgence of ZTE's terminal business led to the failure of ZTE to release any end products during that time, which laid the tone for ZTE's terminal business in 2017. According to the latest forecast by Gartner, ZTE smartphone shipments in 2017 dropped 17.3% from 2016 levels.
Insiders told reporters that ZTE handsets overseas performance is not bad, because its business focus is overseas, ZTE mobile phone business accelerated from the decline in 2016, mainly because failed to adjust the domestic strategy in the world's largest smart phone market & mdash; & mdash; almost disappeared in the Chinese market.
According to ZTE's official data in 2014, out of the 48 million smartphones shipped in that year, overseas markets accounted for more than 70% and the domestic market accounted for nearly 30%. However, according to the latest statement of Cheng Lixin, ZTE smartphone sales in Jiucheng overseas, 10% in the country. At the same time, according to 2017 Mobile Internet Users' Analysis Report released by the operator World Network, ZTE mobile phones accounted for only 0.58% of China's mobile network users in 2017, even lower than their own younger brother Nubian.
However, during the interview, many industry insiders also said that ZTE handsets possess certain advantages in R & D, especially R & D in 5G and supply chain capabilities. As a national brand, ZTE handsets also have a certain market foundation. As long as the past few years are well summarized, Experience, lessons learned, at the same time identify the direction of the market, market rhythm, or is likely to turn over.