The entry-level mobile market is back, and old brands are back. Who’s winning?

2022-06-20 0 By

The entry-level mobile market, which has been neglected in recent years, is booming again.The reporter found that from last year, a lot of old vanishing manufacturers and small manufacturers came out again, coincidentally chose entry-level mobile phones as a breakthrough point, such as Coolpad, Magic Blue, Letv, Lenovo Lemoon, etc.Investigate its reason, the starting point of each brand may vary, but it seems to the personage inside course of study, entry-level domestic mobile phone market have been very big development space, these old brand itself has certain market popularity, coupled with the price of the audience for the brand loyalty has always been on the low side, so for the new and old brand has the potential to compete.Before returning one after another, some mobile phone brands, such as Coolpad, LeEco, Lenovo LeMoon, Meilan and Smartisan, gradually disappeared from the public eye due to poor sales, strategic adjustment, or financial crisis.During this period, the mobile phone market basically bid farewell to the price war, have been fighting for high-end market share.However, in the past year and more, some brands have returned and brought their own new products, among which, Lenovo lemoon is the first to make moves. The first series of products brought by this brand after its return are LeMoon K12 and LeMoon K12 Pro, priced at 799 yuan and 999 yuan respectively.According to the official poster, the number one attraction of the K12 series is endurance.Leeco officially announced the return of its mobile phone business in May last year and unveiled its first new product, the S1, in September.The LEEco S1 looks like an antiquated product in terms of configuration and design, far from the mainstream phones on the market today, focusing more on “quality” and “utility” rather than refinement and technology. Priced at 1,599 yuan, the leEco S1 looks like an antiquated product in terms of configuration and design, far from the mainstream phones on the market today, focusing more on “quality” and “utility” rather than sophistication and technology.Also in May last year, Coolpad released its first new product after the return, COOL 20, priced from 699 yuan. In December last year, Coolpad released its second new product after the return, COOL 20 Pro, focusing on “video and audio entertainment”, priced from 1799 yuan, and the initial price of 1599 yuan.In January this year, fade out public line of sight more than 3 years of evil spirit blue also is taking new evil spirit blue 10 return to mobile phone market, as the first product that returns to the market, evil spirit blue 10 position “basic new benchmark”, 699 yuan start to sell, highest configuration price 899 yuan.Different situation from the price point of view, the new prices of the above several brands are below 2000 yuan, and even a few are 1000 yuan machines.At a time when mainstream brands are moving upmarket, why are they entering the entry-level mobile market?This reporter interviewed coolpad, Meilan, LeEco and Lenovo LeMoon respectively. As of press time, Meilan, LeEco and Lenovo LeMoon have not given any reply.As a matter of fact, among these brands, Lemoon and Meilan have been focusing on the product line of young group at that time, so it can be regarded as the continuation of brand positioning to still focus on the entry-level market after their return.Spirit’s blue had earlier said on weibo, “now, smart universal mission has reached, homebred brand occupy the high ground, but seemingly colorful mobile market still have regrets, in high flagship I your glamorous, in more consumers are using are less focused on one thousand yuan and one hundred yuan machine in the market, few talk about design and the experience, also less people Shouting”.Coolpad has taken into account the benefits of digital channels.Coolpad related person in charge told Beijing Business Daily that through the stepping stone of entry mobile phone, Coolpad started to develop service stations from the end of June 2021, and by December 2021, more than 3,400 Coolpad authorized service stations had been built in the country.Different from other entry-level mobile phones that rely on profits from hardware sales, service station owners under coolpad digital channel mode can obtain Internet income and policy incentive income based on regional active users in addition to traditional hardware income.”The development of mobile phone manufacturers is highly related to channel, and the law that channel is king still exists.Currently, nearly 70 percent of mobile phone shipments in China are still offline, with more than half of the purchasing power coming from third-tier cities and below.At the same time, the mobile phone market is continuing to shrink, purely rely on hardware sales to earn profit margins, it will be difficult to continue, in recent years, there have been offline stores’ tide of closure ‘.This is actually an opportunity for Coolpad to innovate and change channels.”The person in charge said.Leeco is more of a forced choice.Last September, executive vice President of Letv intelligent ecological meisel admits: “Letv mobile phone business after restart again after all these years, especially mobile phone raw materials affected by the epidemic at home and abroad, especially the chip supply shortages, Letv regression is hard to imagine all sorts of difficulties, but to come back, ratio what all good, also hope that the market can give us some time, we in the effort.”In fact, China’s entry-level mobile phone market has always had great room for development, as this segment of the audience is larger than that of high-end mobile phones.Ma Jihua, a communications expert, believes that entry-level mobile phones are mainly aimed at people who have little need for mobile phone functions, such as the elderly with certain use ability, people with low level of education and knowledge, and some users with relatively low income.”This segment of the population is focused on meeting essential functional needs, and ruggedness, smooth application and cost effectiveness are important.””Many consumers’ needs for mobile phones may be to send wechat messages, read short videos, answer phone calls, take photos and listen to music, etc. Entry-level mobile phones can fully meet the needs of these groups, without requiring sophisticated technology support.”Industry observer Hong Shibin said.Reporter discovers, current entry level mobile phone market is still held firmly by a few big mainstream manufacturers.For example, suning Tesco platform released mobile phone consumption data in January 2022, showing that low-end models iQOO U3, Honor X30, redmi40 ranked the top three.Other data show that in the sales data of mobile phones in November 2021, huawei accounts for 2.4%, OPPO 9.2%, Vivo 2.9%, Honor 16.4%, Xiaomi 49.6%, and In the range of 1000-2000 yuan, Huawei accounts for 2.5%.OPPO took 30.2 percent, Vivo 28.8 percent, Honor 18.6 percent and Xiaomi 17.4 percent.”The old brands have a certain degree of popularity, which can save marketing and communication costs, and some reputation from old users, but they are still in a weak position compared with brands backed by big manufacturers such as Xiaomi, OPPO and Vivo.”Ma jihua said.(Stone Flying Moon)