Ten years since the self-improvement of domestic mobile phones

Posted May 27, 20208 min read

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Technical Editor:Mango Fruit
SegmentFault thought to report public number:SegmentFault

In 1994, China started the era of mobile phones. At that time, China did not have its own mobile phone brand. Nokia, Motorola and Ericsson dominated the global mobile phone market. And China is just a processing plant for these international mobile phone brands.

In the 21st century, domestic mobile phone brands began to emerge. For a while, domestic brands such as Bird and TCL suddenly emerged and quickly occupied most of the domestic mobile phone market. However, due to the inability to master the advanced technologies of developed countries and only the basic production capacity, these domestic brands could not research and iterate on their own, and soon withdrew from the stage of history.

In 2010, smart phones began to become popular, and Lei Jun also strengthened his determination to make mobile phones. Immediately, Xiaomi was established.

Xiaomi's fortune history is the epitome of the development of domestic mobile phones. In 2011, Xiaomi launched its first mobile phone online, which was sold out in 5 minutes. It quickly detonated the market with low prices, rich functions and novel styles.

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The success of Xiaomi has brought enlightenment to many "cottage maker" manufacturers. Low prices, fashion, and functions became the main selling points of domestic mobile phones at that time. No need to consider the brand, as long as the appearance closely follows the fashion trend, the foreign brands can reap huge sales. But such a pure consumption model is destined to not last long, and the market naturally eliminated batches of batches of copycats.

At this time, the mainstream of the global mobile phone market was still Nokia, Motorola, Ericsson and Samsung.

The emergence of Xiaomi is like throwing a catfish into the river of the mobile phone market, and the concept of domestic mobile phones has become active.

2010 2014 Rapid growth

In 2010, Xiaomi was established in Room 807 of Yingu Building, Baofu Temple, Zhongguancun, Beijing. The whole company has only a dozen people. Lei Jun did not announce to the world that he would make a mobile phone excitedly after drying a bowl of liquor, but he made this decision after drinking a bowl of millet porridge with a dozen partners.

At first, Xiaomi did a MIUI system tailored to Chinese users based on the Android system. On August 16, 2010, MIUI was officially released. Since the first beta version was released, MIUI has had more than 300 million monthly active users at home and abroad.

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In 2011, Xiaomi celebrated its MIUI anniversary, and the first Xiaomi mobile phone was born at this time. Xiaomi's first mobile phone was equipped with a Qualcomm MSM8260 processor, clocked at 1.5GHz, which was the highest frequency of all smartphones at that time. It also had 1GB of storage and 4GB of memory, and also supported 32GB of storage expansion cards.

On the screen, Xiaomi also closely followed Apple's pace, using the same capacitive screen as the iPhone and equipped with an 8-megapixel camera. However, this mobile phone, which could be called a top accessory at that time, was priced at only 1999 yuan.

Xiaomi, it was so popular, on December 18, 2011, the online sale was sold out in only 5 minutes. Subsequently, Xiaomi chased after the victory and completed the C round of 216 million US dollars in financing half a year later, with a valuation of 4 billion US dollars.

Lei Jun has always believed that "Internet companies and new economic enterprises must grow at a high speed. A high-growth company is easy to gather resources and resist risks. When I was Xiaomi, I still commended running fast enough."

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Xiaomi did run fast enough. After completing the C round of financing for a few months, Xiaomi 2 was officially released, with sales exceeding 10 million. In August 2013, Xiaomi's first Redmi mobile phone was launched, which was more cost-effective than Xiaomi. It adopted MediaTek's strongest 28-nanometer chip MT6589 Turbo at that time. The mobile storage size was 1GB, 4GB of memory, and 32GB of extended storage was supported. 799 yuan. Redmi has sold 7.9 million units since it was released.

In December 2014, Xiaomi received US $1.1 billion in Series E financing from All-stars, DST, GIC, Hopu Investment and Yunfeng Fund. At this time, Xiaomi's valuation has reached 45 billion US dollars.

In three years, Xiaomi's worth has increased tenfold.

2015 2016 development stagnation, word of mouth plummeted

The rapid growth of Xiaomi in a short period of time has established a successful case for other mobile phone manufacturers, and the e-commerce model has also become a new track for competition in the mobile phone market. On the one hand, the influx of more manufacturers has stimulated market competition, and on the other hand, it has also hit companies that have already established established models.

When low prices are no longer "fatal attraction", only by building core competitiveness can you survive. Huawei began to set up a chip R & D department, OPPO exerted its power on flash charging, and vivo worked hard on taking pictures.

After the crazy 2014, Xiaomi's balloon, which was quickly blown up, seemed to be suddenly pierced with several holes and began to leak around. Xiaomi note, which was Xiaomi's first gun in 2015, has fallen into a vortex where the Snapdragon 810 chip is seriously heated and the supply cannot keep up. It was not until the listing of Xiaomi 5 in February 2016 that a full year of new breaks were connected. The product iteration cycle was too long, the mobile phone fever, battery life and other problems emerged endlessly, so that Xiaomi's sales began to decline, plus "hunger marketing" to consumers Caused psychological disgust, Xiaomi's word of mouth began to plummet. When Xiaomi Note 2 was released in October 2016, its sales fell by 24%year-on-year.

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Since its establishment, Xiaomi's sales model has been nicknamed "Hunger Marketing". Indeed, the fast online buying method not only earns Xiaomi enough heat, but also guarantees Xiaomi's "zero inventory".

But behind the marketing methods also exposed an essential problem, that is, the company's delivery capabilities. If a product wants to be widely accepted by the market, it must first pass the quality check, secondly it must have unique innovation, and finally it must be able to complete the delivery.

Lei Jun said in an interview with the media on the 10th anniversary of Xiaomi: In 2016, we met the first Kaner in the ten-year period of Xiaomi and started large-scale remedial classes, mainly to make up for hardware. In the process of accumulating manufacturing experience, no matter how good, smart, and hard-working the team is, they have to pay a price for it, and before that, they had a low price.

Looking back on 2015 and 2016, Lei Jun believes that the development of Xiaomi is always controllable, the risks are controlled during rapid development, and the overall performance continues to grow. He emphasized that starting in 2016, Xiaomi is actively slowing down.

2017-to-date headwinds, revenue exceeded 200 billion

The domestic market is basically stable, and it is difficult for Xiaomi to reverse the situation in a short time. In 2017, the top three domestic mobile phone sales were Huawei, OPPO and vivo. In order to find new opportunities in the fierce market competition, Xiaomi has set its sights on overseas markets.

Xiaomi took advantage of its low price and opened the Indian market. Until now, Xiaomi is also one of the most popular overseas mobile phone brands in India.

In just a few years, domestic mobile phone brands such as Huawei, Xiaomi, OPPO, and vivo not only gained a foothold in China, but even rushed out of Asia, ranking among the top few in the world. The recognition of Chinese brands by overseas countries has also shifted from low prices to cost-effective. The basis for cost-effectiveness is performance. Technological progress improves product performance. Optimized configuration highlights domestic brands. Advantages are the fundamental reason for domestic mobile phones to break through. Domestic mobile phones have gradually moved from technology to technology. Followers are transformed into innovation leaders.

2017 is the year of the outbreak of domestic mobile phones. The TrendForce report pointed out that in 2017, China's global smartphone sales reached 1.46 billion units, a year-on-year increase of 6.5%.

When online sales and brick-and-mortar sales are working together, Xiaomi's sales have also increased by 76%. In the second quarter of 2017, Xiaomi shipped 23.16 million units, which is the best single-season record in the history of Xiaomi.

The sales of mobile phones have skyrocketed here, and the sales of eco-chain companies there have also grown wildly. At the end of the same year, Mijiaguanwei released news that Xiaomi's ecological chain sales exceeded 20 billion, which doubled compared with 2016. Data show that Xiaomi wearable devices achieved the largest global market share in 2017.

Regarding how Xiaomi achieved a reversal in 2017, Lei Jun summarized three points:

1. Create explosives

Xiaomi MIX was the key product of this period, and the borderless design ignited the concept of "full screen". In addition to the gimmick of "the first full-screen mobile phone", Xiaomi MIX uses a ceramic body, which can be considered to be super-level in both beauty and feel.

As a conceptual product, Xiaomi MIX naturally cannot be bought, but this also highlights the characteristics of its "explosion". As soon as the mobile phone was released, there was a scalper that drove the price to tens of thousands of yuan.

Looking back at the entire domestic mobile phone market, the most impressive "high-priced mobile phone" is Xiaomi MIX except for Huawei's folding screen mobile phone Mate X.

2. Brand Features

A brand of mobile phone must have its unique superiority if it wants to occupy an unshakable position in the market. When it comes to Apple, it comes to the iOS system, and when it comes to Huawei, it comes to the Kirin chip.

What about Xiaomi? Xiaomi has always given the impression that it is cost-effective, but this is not enough to become the basis of its foothold in the market, because there will always be a day when lower-priced products will appear.

In 2019, the mobile phone market began to become a 5G "battlefield". With this opportunity, Xiaomi also began its high-end transformation. Xiaomi 10 uses the current top chip Snapdragon 865, customized Samsung AMOLED screen, refresh rate of 90Hz, plus 100 million pixels rear four shots, Xiaomi 10 has a lot of material in the configuration, and the price has also entered more than 5000 Positioning.

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3. Ecological chain layout

Xiaomi has almost everything from a pen to a computer. Lei Jun once said that the goal of the Xiaomi House is to open to 1,000 in three years, and its revenue will exceed 70 billion within five years.

Lei Jun believes that Xiaomi is more like a catfish in the market, stirring the entire market, promoting the transformation of the manufacturing industry and the development of the entire industry. He said:"I am very pleased that we have stirred up 100 vertical industries, and all walks of life are booming. Generally speaking, has China's manufacturing industry improved and consumers can buy better products, Is what we care about most. "

In 2019, Xiaomi's revenue was 205.8 billion, which exceeded the 200 billion mark for the first time, and its net profit increased by 34.8%year-on-year.

The wind stops, the pig needs to grow wings

In ten years, a time that speaks long or not short. For a century-old brand, it may have just started, but for Xiaomi, it has completed the transformation from zero to 40 billion US dollars in market value.

On May 20, Xiaomi released the first quarter of 2020 performance report, with revenue of 49.7 billion yuan, an increase of 13.6%year-on-year, and overseas market revenue of 24.8 billion yuan, an increase of 47.8%year-on-year.

Among them, in the first quarter, smartphone revenue was 30.3 billion yuan, and smartphone sales were 29.2 million.

In 2020, it is the tenth anniversary of Xiaomi. Today, we used this decade as a node to review the history of Xiaomi's overall layout from MIUI to smartphones to 5G + AIoT.

Lei Jun said in an interview with "Chinese Entrepreneur" magazine:"We will see some very good hardware companies, the software is not solid; very good software companies, you see he will be anxious to do hardware next to it. Explain the difficulty of Xiaomi. Many people underestimate the difficulty of software + hardware + Internet. In essence, Xiaomi is a group of people who mainly do software and Internet and do a "triathlon" job. "

The experience of a company will only be learned by others if it succeeds. The first problem that Xiaomi has encountered in the past decade is "delivery". The whole manufacturing chain behind this cannot be changed overnight. The second is "innovation". When the low-price strategy encounters a bottleneck, product quality and innovation ability become the key. What enterprises do is not to follow market trends, but to lead. The third is "transformation". For the purpose of high-end transformation, Xiaomi and Redmi are divested, taking into account the original user group and transforming their enterprises and products.

To borrow Lei Jun s famous saying: Standing at a typhoon, pigs can fly. What really makes pigs fly is not the wind that has been blown, but the wind created by pigs running wildly forward.

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