Hardware competition slows down: Where do big-name vendors wait?

August 20, 2020

The annual communication industry event MWC is coming to an end in Barcelona. Many mobile phone companies have released their mobile phone products, including many of the flagship machines of the year. However, when we carefully looked at and experienced these latest products, we felt familiar and did not surprise us.

“There are not many bright spots and the products have not changed much.” A senior executive of the exhibitor told Netease Technology.

Mobile phones are undoubtedly one of the core terminals in the mobile Internet era. In the era of rapid development, where will mobile phones go? Where will the related companies drive their strengths? How should the Chinese legion break out? The signs presented at this MWC event may give us directions to think.

Hardware competition slows down: Where does Xiaomi/Huawei/Lenovo go?

High-end phones no longer stack hardware

The high-end mobile phone that attracted the most attention in this exhibition is the Samsung Galaxy S5. The S5 is equipped with a 5.1-inch screen with a resolution of 1920*1080, a 2.5GHz Snapdragon 800 processor, 2G RAM and a 16 megapixel lens. Compared with the enhanced S4 released in the fourth quarter of last year, it only slightly increased in screen size, frequency and lens. Similarly, the Sony flagship Xperia Z2 has only a small upgrade in terms of processor, memory size and camera experience compared to the previous generation.

It can be seen that the evolution speed of the flagship hardware has slowed down, and the method of simply building better components is not the preferred competitive strategy of the manufacturers.

The reason for this phenomenon is the change in market direction. After years of rapid growth, the high-end smartphone market has seen a trend of “stagflation” and “saturation”. For many applications, the performance of the previous generation of the flagship machine is good enough, consumers do not need to upgrade the hardware to get a better experience, so the demand for new machines is not so strong. It is not necessary for manufacturers to use this method to please consumers. After all, most people are not "running points" enthusiasts.

In addition, reducing hardware upgrades can keep hardware costs flat or even lower, and maintain profits when sales growth is frustrated.

This manufacturer puts more emphasis on some novel features and fashion elements. For example, the Galaxy S5 adds fingerprint recognition, rhythm sensing, waterproof and other functions, as well as the fashionable "local gold".

Turn to wearables and software services

In the case that the competition hardware is weak, smartphone manufacturers have turned their attention to other aspects, especially the wearable devices and software services.

Chen Xudong, president of Lenovo China, told Netease Technology, "There are many opportunities for smartphone applications, including software applications and peripheral devices, which are constantly innovating."

Hardware competition slows down: Where does Xiaomi/Huawei/Lenovo go?

At this exhibition, smartphone manufacturers Samsung Sony and Huawei released wearable devices, which are divided into two categories: smart watches and bracelets. These devices have their own design and functions, but they all need to be used in conjunction with smartphones. They can be seen as extensions of smartphones or peripheral products.

Hardware competition slows down: Where does Xiaomi/Huawei/Lenovo go?

In addition, mobile phone manufacturers are paying more and more attention to software services. At the Samsung and LG booths, there are large posters highlighting their security products: Knox and Knock Code, while the former is winning the US government and military for Samsung. Order. Lenovo also launched the "Doit" suite, which includes file transfer, synchronization and security applications. Lenovo even said that security software is more suitable for mobile phone manufacturers than third parties.

Although there are still many places where wearable devices still need to be improved, it is difficult for mobile phone manufacturers to develop software that stands out from the competition, but these explorations are worthwhile to solve the current problems.

Where are the domestic mobile phone opportunities?

What is the impact of the slowdown of foreign giants on domestic mobile phones? After knowing the specific configuration of S5, a domestic manufacturer executive was unable to conceal his excitement: "The biggest accident is no accident", "Everything is expected."

The executive recalled the situation two years ago. In 2012, Samsung just launched the Galaxy Note, which sold for nearly 6,000 yuan. Domestic manufacturers followed up with the production of large-screen mobile phones, although they also achieved great results.

But compared to the Galaxy Note, the gap between hardware and experience is very obvious.

Today, this gap, especially the gap in hardware, is getting smaller and smaller. This is mainly due to the globally integrated industrial chain. The resources that Samsung can get are also available to domestic companies.

But back to the original conclusion, the building hardware is not the most important. The difference in the difference between the domestic enterprises and the international giants can only be said that the two sides have reached the same "starting line". The next step is to compete for other capabilities, from the product's design experience price, to cost and supply chain control, to channel and marketing. Domestic companies currently have their own strengths in these areas. Who can make the long board to the extreme and make up the short board, who can really challenge Samsung Apple.

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