Super Tycoon

Chapter 885 Watching the opponents fall one by one

The hot sales of X5 made Zhiduoxing mobile phones win the sales champion in the first quarter again. Not just sales, but sales, and even profits.

The sales gap between Smartphones and Samsung phones has not continued to widen. Samsung has also launched two cheap entry-level smartphones, but LG, another South Korean mobile phone giant, has declined significantly.

Two years ago, LG was still one of the top five in the global mobile phone market. By this year, it seems that it will not even be able to enter the top ten. It is reported that LG intends to adjust the mobile phone business, or even sell it, and is seeking buyers in the market.

However, Google, which acquired Motorola's mobile business, did not perform well, which also made many companies hesitate. LG can't manage it by itself, so we can make money by buying it?

So the potential buyers are only those colleagues. Naturally, there is a desperate price reduction among peers. Many technologies are available by ourselves, so there is no need to buy them from LG.

And they don't need LG's brand, they want to promote their own brand. The dual-brand strategy is actually not very easy to develop. At present, Lianxiang is the only one with dual-brand development in the mobile phone industry, and it is also because they have the support of the Chinese market.

Zhiduoxing Group also used the brand of Wenquxing to launch a phone watch, focusing on the children and elderly market, but the performance was mediocre. Although it did not lose money, it did not make much money.

However, after inviting a few child stars to endorse this year, the sales have increased, but only in the Chinese market, not in other markets.

After Motorola was acquired by Google last year, many people said that Google would revitalize this business, after all, they also got the right to use the brand for five years.

Google's software strength is also very strong. It has launched many mobile phone applications. This time, it should be able to combine the system and hardware by itself.

But the reality gave Google a slap in the face. They couldn't sell it in the North American market, which was similar to Motorola's performance before.

Although Google did not let the sales continue to decline, if the sales volume is only 20 to 30 million units a year, it is not worth their tens of billions of dollars to acquire.

I heard that Google is looking for buyers. They plan to sell some factories and hardware businesses they have acquired. In the future, all mobile phones will be produced by foundries, and the design department and R\u0026D department will be retained.

Google also felt that it was cheated by Motorola. Motorola's brand value was not that high at all. Their wrong judgment would fill in Google's profits in the past few years, and even cause a lot of losses.

In order to acquire Motorola, Google also issued some additional shares, and the founder's shareholding ratio was also diluted a lot, but there was no sign of making money.

The time has just arrived in May, which is the beginning of the Golden Week in the Chinese market. LG Huaxia Branch announced that their mobile phone business will withdraw from the Chinese market after the end of the second quarter.

The reason is simple. In April, the sales volume of LG mobile phones in the Chinese market was 160,000 units. Such a big mobile phone manufacturer has such a low sales volume, and their staff in the Huaxia branch are not paid enough, let alone other expenses.

This year, LG didn't even launch an advertisement in the Chinese market. It really has no money, and there is no hope in sight. China's mobile phone industry is rising too fast, and the cost of components is also rising rapidly. Coupled with their previous decision-making mistakes, they chose to support the Microsoft system, which is not popular in China at all.

Others use the Zhiduoxing system, and it is more convenient to transfer information between each other.

The Microsoft system always feels slow and easy to get stuck.

Many people say that LG will regret its withdrawal from the Chinese market, and it will be more difficult for them to enter again. But Zhang Yang didn't think so. LG's other investments in China were not a loss.

For example, the real estate such as office buildings that LG once purchased in China was very cheap at the beginning. After 2008, the real estate prices in China skyrocketed, especially in first- and second-tier cities.

The prices of LG's buildings have also risen, and they can just sell them to make up for LG's operating losses in the Chinese market.

And LG just said that the mobile phone business is withdrawing from the Chinese market. They also have monitors, computers, printers, speakers, refrigerators, TVs, air purifiers, water purifiers, screens, mobile phone flashes, batteries...

The product lines of LG Electronics and LG Appliances are very rich, far exceeding that of Zhiduoxing. This is also a common business strategy of many large companies, relying on brand effects to make more products.

Every possible ranking is not particularly high, as long as it can make money. When a certain product declines rapidly, they can completely give up, and the impact on the company's revenue is not too great.

What's more, LG also has chemical products, such as medicine, cosmetics, care products, etc., which are also selling well.

But in any case, mobile phones, once LG's flagship product, are indeed in decline across the board. Withdrawing from the Chinese market this time, maybe next year we will withdraw from other markets.

After LG's announcement, Suony also announced that the mobile phone business will completely withdraw from the Chinese market. For the sales of less than 100,000 units in that month, it is not worthwhile for them to develop a Chinese version.

If LG hadn't announced it first, Sunny might have to hold on and continue to lose money.

After these brands were announced, there was also an independent brand on Huaxia's side that announced that it was going to sell, which was the once very famous Gionee. Because their boss embezzled funds, the company's capital chain was broken.

Not only have to pay the high interest of the bank, but also the supplier's payment, the advertiser's payment, and the distributors and retailers are also blocked.

This also shows how important a good decision maker is to an enterprise.

I heard that ZTE is going to acquire Gionee's business, and of course the price will be very low. ZTE plans to acquire Gionee's brand as well, but the factory will lay off workers.

And this villain, ZTE still doesn't do it, and wants Gionee to lay off employees and finish the job before deciding to buy it, saving them the burden.

At the end of the second quarter, news came from the North American market that BlackBerry's 4G smartphones were selling extremely poorly. Their market was taken away by the Motorola brand controlled by Google, and neither of them was full.

If it weren't for Zheng Fu and others to purchase mobile phones from their own companies in North America, I am afraid their performance would be even worse. Even if it weren't for the 4G launch, BlackBerry's sales this year would not exceed three million units.

Even with 4G, BlackBerry won't surpass 10 million units this year, and it's about to die.

Zhang Yang looked at the sales statistics in the market, except for Samsung, it seemed that there was really no rival that could pose a threat. Lian Xiang has firmly established himself as the third in the industry, but he is far behind in terms of sales and profits.

The former competitors fell one by one, but Zhi Duoxing went forward bravely and continued to make great strides. The sales of feature phones have fallen sharply again, and smartphones are about to completely replace feature phones!

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