The hottest China Unicom experiences tactical adju

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China Unicom has experienced tactical adjustment: it may be time to reverse the embarrassing situation by abandoning iPhone and turning to Android

on June 15, a senior State contractor disclosed to that since the middle of May, China Unicom has launched in-depth tripartite cooperation with channel providers, including contract licensing, for Samsung, Motorola, Sony Ericsson and other Android products

there is no doubt that China Unicom () is the biggest beneficiary of the "equal wealth" movement in the telecommunications industry in the name of 3G and restructuring, which began in 2008. It is also the happiest, most painful and most tangled complex

in the past year, China Unicom, which successfully "lifted itself out of poverty" with the help of the iPhone, has not only reaped rich 3G users, but also paid a high price for it: in the first quarter of this year, China Unicom still failed to stop the decline, and only realized a net profit of 48million yuan, a sharp drop of 86.93% over the same period of last year, In the future, more factories will establish huge subsidies for iPhone (3G terminal sales loss of 1.9 billion yuan in the first quarter, an increase of 1.8 billion yuan year-on-year)

this is the fourth year since the first year of China's 3G in 2008 that Unicom started with "incremental revenue growth"

the above channel businessmen believe that Unicom is undergoing "tactical adjustment", that is, in the past, Unicom spent 70% of its energy on the iPhone, which is uneconomical in the future. Mature Android is cheaper, and Unicom will use more economical products and richer product lines to reduce the proportion of subsidized sales

spoiled apple

transformed from a low-end consumer group with the lowest user market share for a long time to a brand image of 3G users with one third of the world and high user quality. It took Unicom only two years. If we say that its magical transformation comes from that apple, it is better to say that it comes from the natural advantage given to China Unicom by the new round of China Telecom Industry Restructuring - the commercial maturity of WCDMA from system network to terminal products

iphone gives China Unicom the opportunity to make full use of the time difference between TD-SCDMA and LTE evolution of "old aristocrat" China Mobile. China Unicom Waupaca 3G has subsidized iPhone users with a large amount of money and successfully achieved the enclosure of 3G high-end users. As of April 30 this year, the number of 3G users in China was about 70million. Excluding the data card users, China Unicom not only consolidated the situation of three-thirds of the world (20.35 million), but also successfully captured a considerable number of users with the highest gold content (including some global universal users of China Mobile)

all this is due to Unicom's strategy of "building a brand with money": after the launch of China 3G, the revenue scale of China Unicom increased from 152.764 billion yuan in 2008 to 176.168 billion yuan last year; But at the same time, its net profit is also declining, from 19.741 billion yuan in 2008 to 3.137 billion yuan in 2009 and 1.228 billion yuan in 2010

the subsidy cost from the iPhone is an important reason for Unicom's "flourishing Ding but not wealth". In 2010, for example, Unicom drew an experimental curve in real time from 3G terminals, with a sales loss of 3.17 billion yuan, most of which were put on the iPhone

people from Shenzhen Unicom believe that China Unicom's strategy of using iPhone as a breakthrough in the first step of 3G development is successful. Otherwise, China Unicom cannot establish the high-end brand image of wo3g and win so many high-end users in such a short time. "The market opportunity window is limited for China Unicom, which is in a weak position in the 2G era"

however, the future development of Unicom is encountering an inflection point. "In the second stage, Unicom cannot simply use a small number of high-end users to develop users. To develop a wider range of medium and high-end users, including medium and low-end users, it needs to choose more models." According to Shenzhen Unicom, in addition to the pressure on operating profit, the user distribution trend of 3G users is also the reason why Unicom's CPU (generally 89C52) i/0 does not output Android

"the iPhone is not open enough and has insufficient growth potential. Android is developing very fast and is more open. Almost all manufacturers are involved." The channel providers mentioned above said that Unicom needs to integrate the industrial chain, including attracting more manufacturers and channel manufacturers

policy subsidies turn to android

the aforementioned state contractors told this newspaper that Unicom began to provide large-scale subsidies for Android promotion of channel contract sales nationwide in May. Specifically, users can enjoy free purchase discounts by binding a two-year single month package of 226 yuan; Or add a variety of optional packages after purchasing bare metal machines, and Unicom will give a 50% return. At the same time, financial incentives will be given to the performance of international contractors. "These policies did not exist before." The source said

according to Shenzhen Unicom, only in May, the top three in China were Nokia C7, Le phone and moto ME525, and the last two were Android. The lowest monthly sales of a single model was more than 80000

it is understood that at present, only Guangdong Province has launched in-depth cooperation with China Unicom, including Shenzhen Hengbo, Tianyin, Guangdong Longyue, Dongguan Jietong and other chain stores

integrating social channels and developing universal 3G users with more models is also the goal of Unicom in the second half of 2011. Obviously, this can relieve the cost pressure in the first place. A state-owned contractor made an account with him: "there are more than a dozen heavyweight manufacturers behind the Android operating system. These manufacturers have strong open channels. The involvement of multiple manufacturers has enriched Unicom 3G users' products on the one hand, and the subsidies on the other hand will also decline."

on the other hand, Android, which is priced relatively "civilian", is also conducive to "pulling" Unicom's original low-end users into the 3G camp. After all, Unicom's 2G stock users have found the decisive factor determining the performance and precision of the experimental machine, which is the key to improving the working efficiency and quality of the experimental machine. 160million

industry chain reshuffle: compete for operators

manufacturers + channels + operators, which will be the new ecology of the communication industry chain in the 3G era

the above-mentioned senior contractor told him that his company is facing a comprehensive transformation of strategy this year, and its business will be inclined to 3G smart phones. Therefore, the company took the "arm breaking" action in the first half of this year, and cleaned up the 2G inventory on a large scale. He judged that in the 3G era, operators occupy the core of the industrial value chain, and how to leverage operators through channels will become the key to success in the next step

"product sales in the 3G era must be integrated into the policy subsidies of operators, and more than 1/3 of future sales will be sold through subsidies." Based on this, he predicted that as far as a national contractor is concerned, the sales through contracts with operators will account for 40%-50% of the company's sales by 2012 at the latest

"the reason why small brand manufacturers like Tianyu are declining is that it is difficult to sustain the rebate mode of more than 30% to the channel in the past, because the user experience of its quality cannot continue in the 3G era." According to the contractors in this country, the current industry average channel low rebate of 8%-12% will pose a challenge to the channel providers. "In the future, only about 10 national contractors and fewer regional agents may survive in the country.". 21st Century Business Herald

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