At the end of last year, 5G mobile phones were released in turns. As the products are constantly updated, the prices of mobile phones are also constantly rising. The flagship in the 4G era sells for 3,000 yuan (USD $429) and starts in the 5G era with 4,999 yuan (USD $714) . The price of the Samsung S20 Ultra S20 Ultra is even more than 10,000 yuan (USD $1429) , which is too much to say that it is a luxury in mobile phones. In addition to foreign-brand mobile phones, domestic mobile phone products that have always been more generous in price are also constantly rising prices. Find X2 Pro at the price of 7000 yuan (USD $1000) , vivo NEX 3S at the price of 5,000 yuan (USD $714) , and Xiaomi 10 at the price of 4,000 yuan (USD $571) , even connected to the brands iQOO and realme failed.
As mobile phone prices continue to rise, a speculation in the industry has raged-Qualcomm currently has a price limit on all mobile phones using Snapdragon 865, which is not allowed to be less than 3,000 yuan (USD $429) .
This statement is not groundless. Just looking at the current market, all the Qualcomm Snapdragon 865 processor 5G mobile phones you can buy are priced above 3,000 yuan (USD $429) . Moreover, from the perspective of mobile phone products, models above 3999 yuan (USD $571) occupy the mainstream, but there are only a few products in the price range of 3,000-3999 yuan (USD $429) . Snapdragon 865 phones are getting more and more expensive, and the product and market are evidence. With the release of various online brands and gaming mobile phone products, the price of Snapdragon 865 mobile phone products has almost bottomed out.
The industry has gradually fermented the idea of "Qualcomm to limit the price of mobile phones", which reflects the user's demand for high-performance 5G equipment. It is said that 2020 is the first year of 5G. Do we hope to buy a more affordable and cost-effective 5G flagship phone in the near future?
Difficult to climb into the sky, but maybe something better
To create a more cost-effective mobile phone product is not easy.
First, the positioning of the brand itself must be cost-effective.
Secondly, the brand itself needs to have a certain right to speak in the supply chain. It is not enough to have a goal, but to have the ability to achieve mass production of the product. To reduce the price of mobile phone products, the brand itself needs to have enough users and sales, so that it can ensure that the brand itself has sufficient bargaining space.
Throughout the mobile phone industry, the top batch of flagship mobile phone manufacturers with a price of more than 4,000 yuan (USD $571) was removed, and the bottom batch of manufacturers with low market share and few voice rights were eliminated. In the end, our hope is probably on Redmi. But from the current data, can Redmi's price really be low?
Hard choices for Redmi 5G
Whether to stick to the cost-effective line or to increase the price in line with the trend, it seems that this is a Damocles sword hanging on Redmi's head, but it is not difficult to answer this question.
First, we can start with the independence and positioning of the Redmi brand. On January 3, 2019, Xiaomi officially announced that the original Redmi mobile phone brand under Xiaomi's mobile phone would run independently and officially changed its name to Redmi (Redmi), and officially released the first product after independence on the same month , Redmi Note 7, using a 48-megapixel flagship camera, equipped with a "full blood" Snapdragon 660 processor clocked at 2.2GHz, and provides an 18-month long warranty service, starting at only 999 yuan (USD $143) , and then Redmi K20 and K30 were officially released in May 2019 and January 2020, with prices starting from 1999 yuan (USD $286) (including 4G K30 starting at 1599 yuan (USD $228) ).
It is not difficult to see that Redmi carried Xiaomi's price-performance banner at the beginning of its formal independence, which drastically lowered the average price of similar products, so this time, if Redmi wants to release less than 3,000 Snapdragon 865 Flagship phones are not impossible.
Secondly, we look at the bargaining power of Xiaomi's supply chain. Xiaomi has a strong user base and shipping capacity. At present, Xiaomi's top five smartphone manufacturers in the world, from the perspective of Redmi's first 5G mobile phone K30, the K30 series has been on the market for less than 3 months, and its sales have exceeded one million. In the February 2020 global smartphone market report released by market research agency Strategy Analytics, Xiaomi's February shipments and sales exceeded Huawei for the first time, and it has now become the third largest smartphone manufacturer in the world, with a large user base and sales volume. Xiaomi is fully capable of reducing the price of mobile phones by reasonably reducing the cost of shipments. Starting from Redmi 1S, Redmi has never stopped using Qualcomm Snapdragon processors. So far, Redmi has launched more than 30 Redmi mobile phones based on Qualcomm Snapdragon processors. Long-term cooperation makes Redmi's bargaining power stronger.
In addition, Xiaomi has more than 200 related ecological chain companies, which is unique among Chinese technology companies. From the perspective of this epidemic alone, the entire Xiaomi Group not only calmly tackles the problems that the company itself needs to face, but also actively integrates them. Upstream and downstream enterprises have provided various medical supplies. It can be said that in the epidemic situation, they are getting more and more frustrated. So far, the resumption rate of Xiaomi's supply chain companies has exceeded 80%. In this way, Xiaomi's bargaining power in the supply chain cannot be underestimated.
Choose to believe in Redmi's brand credibility
In 2020, one technology-5G-will be popularized around the world. According to data from CCTV news reports, 80% of China's 5G network construction is progressing as scheduled. This year, 550,000 5G base stations will be constructed and opened nationwide. 5G construction is still accelerating, but the price of mobile phone products continues to rise, forming an awkward contrast with the rapid popularity of base stations. The country continues to accelerate 5G construction, but fewer and fewer mobile phones can be bought, which is obviously unreasonable.
At this point, we have more reasons to believe that, as a domestic brand with a strong sense of social responsibility and mission, Redmi is bound to lower the average selling price of 5G flagship mobile phones, respond to the country's call, and accelerate the popularization of 5G technology.
Of course, the above are just the editor's specific analysis based on the relevant information we currently know. Of course, we also expect the industry to rumor that Qualcomm will set the price of the Snapdragon 865 processor above 3,000 yuan (USD $429) . On the 24th, we look forward to the coming of the Redmi conference.