Liu Hong, Vice President of Vivo and President of China Market
In 2020, the switch from 4G to 5G in the mobile phone industry will enter a critical period. vivo ’s vice president and president of the Chinese market, Liu Hong, said in a recent media interview that the resume rate of the vivo production line has exceeded 90% and the channel recovery has exceeded 80%. It is estimated that by the end of March, the daily output of 5G mobile phones will exceed 100,000.
After the resumption of the Spring Festival, vivo has successively launched three new 5G mobile phones, Z6, iQOO 3, and NEX 3S. The S6 to be released at the end of this month will also be a full dual-mode 5G. Counting the NEX3 and X30 series released last year, vivo's "5G Fleet" has now achieved full coverage of the price range of 2000-6000 yuan (USD $286) .
"For 5G, we made a full plan, but consumer demand for 5G mobile phones still exceeded our expectations. At present, we are all 5G products, including NEX 3S, X30 series, Z6, iQOO 3, etc., sales The situation is much higher than expected. "Liu Hong said in the interview that despite the impact of the epidemic, the current sales volume of vivo still increased by a dozen points compared with the same period last year.
Especially the dual-mode 5G mobile phone Z6, which was launched at the end of February, was welcomed by the market like never before, and the ordering phone was blown up. At present, vivo is completely free of 4G mobile phone inventory pressure above 2,000 yuan (USD $286) .
Every switch of mobile communication technology, for consumers, hopes to be an upgrade of experience. For mobile phone manufacturers, it is also an innovation or an upgrade of some products, hoping to bring better functions and experiences to consumers.
"We have been making mobile phones for so many years. We have experienced 2G to 3G and also 3G to 4G. We are now experiencing 4G to 5G. For each manufacturer, this switchover is an opportunity and a challenge." Liu Hong said. Standing on the development of the entire industry and vivo's perception of consumer demand, he believes that the more active the better the 4G to 5G mobile phone switch.
Behind the trend of sales growth, on the one hand, vivo is actively embracing 5G and covering terminal products in multiple price segments in advance, on the other hand, it is also inseparable from the strong consumer demand for 5G mobile phones.
A report released by third-party research company Counterpoint in 2018 shows that Chinese users now have a replacement cycle of about 27 months. On the other hand, the three major operators are currently actively adding 5G new infrastructure. As of the end of February, China Mobile has constructed and opened more than 80,000 5G base stations, and China Telecom has cumulatively opened 74,000 5G base stations. China Unicom has opened about 66,000 stations.
According to the latest arrangements of the Ministry of Industry and Information Technology, operators and other enterprises must speed up network construction, grasp epidemic prevention and control and resume production, and accelerate the pace of 5G network construction. On the other hand, they must deepen integration applications, enrich 5G technology application scenarios, and develop 5G-based Platform economy, driving the development of 5G terminal equipment and other industries.
Vivo has been dedicated to creating products that make consumers' hearts since it began with "consumer-driven and design-driven". The design concept of its 5G mobile phone is to ensure that consumers will consider the upgrade of 5G when the basic functional experience (screen, camera, game, etc.) is good. In terms of offline channels, vivo implements strategies such as price adjustments and supplements for retailers to ensure the withdrawal of old products, and the interests of retailers can be maintained.
"From 4G to 5G, we hope that vivo can provide better products and services, so that consumers have a better experience and provide consumers with choices." Liu Hong said. Consumers are also "voting with their feet." 4G and 5G versions coexist, and 5G mobile phones cost hundreds of dollars. Many consumers are willing to buy in one step. According to the data revealed by Liu Hong in the interview, consumers choose more than 70% of the 5G version.
"From the perspective of the 5G mobile phones we listed this year, they are already 5G in the entire system. From the perspective of the development of the industry, the overall 5G mobile phone sales account for about 20%, especially the 3000-6000 price is mostly 5G. "Liu Hong said. At present, vivo's 5G products have matured. In terms of cost control, manufacturing, and functional experience, 5G products have reached 4G maturity.
"Consumers have no reason to fall in love with 4G phones."