Behind Lei Jun's speech "selling hardships", go to "mobile phoneization" and move towards "high -end"

Life is like a glass of bitter wine, as is it a company. When the industry is good, thousands of people chase thousands of people, and "fan marketing" and "Internet thinking" will imitate you as a successful case in the industry; but when the industry is not good, people will ask, "Are you going downhill roads? "? It is a live version of "Little Sweet and Mrs. Niu".

In 2022, the smartphone industry is in a trough. According to IDC's data, global smartphone shipments have declined for four consecutive quarters. Among them, the global smartphone shipments in the second quarter of 2022 were 286 million units, a year -on -year decrease of 8.7%, and a decrease of 3.5%from expected.

The demand for smartphones in the Chinese market is also declining. According to data from China Xinong Institute, from January to June 2022, the domestic market's mobile phone shipments cumulatively 136 million units, a year-on-year decrease of 21.7%.

At the beginning of this speech, Lei Jun mentioned "today's speech, we don't talk about Xiaomi", but looking at Lei Jun's speech for nearly 3 hours, "Xiaomi" is everywhere. The theme of the low valley and Lei Jun's lecture "perception of the trough of life" in the smartphone industry has overlapped to some extent.

Lei Jun mainly told three stories: "product failure, business collapse, and the company almost closed". Among them, his story in "Jinshan" is most impressive. "The worst time, there were only 100,000 on the account, and wages could not be paid next month." For the performance, Lei Jun even went to the software store store in Zhongguancun to sell goods.

In the middle of the speech, Lei Jun used a period of soul chicken soup to summarize: "And all the setbacks and failures you have experienced, and even those things that seem to be meaningless to spend time will become your most valuable wealth. Life is long, no matter what is, no matter what is Let us maintain our belief: always believe that beautiful things are about to happen. "

The Internet industry is increasingly speaking in public places. On the one hand, it is to better operate the company; on the other hand, they are also unwilling to be "taught them" by "keyboard men". Lei Jun still rushed forward, from the side reflects Lei Jun's deep feelings for Xiaomi and his diligence.

There is a pragmatic side from Lei Jun from Xian Tao, Hubei Xiantao. Xiaomi spent a lot of manpower, material resources, and financial resources to promote this speech. Obviously, it is not to let the outside world use the gossip of Lei Jun's "suffering" as the gossip of the big guy as a talk. In the end, in the end, in the end, It will still benefit Xiaomi.

Go to "mobile phone"

Smart phones are Xiaomi's "roots", and Xiaomi's "cost -effective" label occupies a high position in consumers' minds. However, when the current smartphone industry is in a trough period, unless mobile phone manufacturers have enough innovative highlights, it is difficult to make consumers "heartbeat". After all, the upgrade of screens, fast charging, cameras and other components, users have already been upgraded by users. It's not surprising to see.

After more than ten years of development, the smartphone industry does not rely on mobile phone manufacturers to make good products alone. Smartphones rely on the help of supply chain companies such as chips, semiconductors, screens, batteries, etc. Later, mobile phone manufacturers may be upgraded with it, which leads to many similarity in hardware such as Xiaomi, vivo, OPPO, Honor, etc. When the mobile phones of each manufacturer are "almost", they must make differentiated innovations. It is difficult.

Of course, smartphones have very large markets in China and the world. It is impossible for mobile phone manufacturers to abandon this market. The best way is to reduce the proportion of revenue in mobile phone business. Lei Jun's speech was to "mobile phone" to Xiaomi to some extent.

Xiaomi ’s 2012 Q1 quarterly report showed that in the first quarter of 2022, Xiaomi smartphone revenue revenue was 45.8 billion yuan, a year -on -year decrease of 11.1%; smartphone shipments were 38.5 million units, a year -on -year decrease of 22.1%.

Although the revenue and sales of mobile phone business declined, Xiaomi's revenue in IoT business is growing. In Q1 in 2022, Xiaomi IoT and consumer goods revenue was 19.5 billion yuan, an increase of 6.8%year -on -year.

For Xiaomi, "mobile phoneization" can give other hardware business more opportunities. The smartphone business is in the trough period, but the refrigerators, washing machines, electric lights, door locks and other products are in a period of growth. Compared with other manufacturers, Xiaomi builds the IoT market earlier, and consumers' mental recognition is also higher.

At the end of the Internet anchor is "bringing goods", Lei Jun's "selling hardship" in the early stage is also for the "bringing goods" in the back. In addition to Xiaomi MIX Fold2, Lei Jun also brought users Xiaomi BUDS 4 PRO headset, Xiaomi Watch S1 Pro watch, Xiaomi Mi Tablet 5 PRO, K50 Supreme Edition, Mijia Smart Cleansing Cancer P1, Mijia Zone Washing and Baked Machine and other products.

In the face of the current trough of the smartphone industry, Xiaomi can only pass through other business lines to see "light".

Go towards "high -end"

In the early days, Xiaomi continued to label himself in order to kill himself in the smartphone industry. However, when Xiaomi has been established for more than 10 years and the market value exceeds HK $ 300 billion, Xiaomi can no longer like " The cost -effective "label, why? Because the subtext of "cost -effectiveness" is "cheap", it is difficult for Xiaomi mobile phones to sell high prices, or when Xiaomi mobile phones want to sell high prices, they have surpassed their cognition in consumers' minds. But moving towards "high -end" is a step that Xiaomi must take.

The most profitable company in the mobile phone industry is Apple. It is difficult for other manufacturers to make money like him. While Xiaomi is playing "cost -effective", while facing the cost of the screen, battery, chip and other components, it has risen. The profit margin is extremely low. Only when you go "high -end" can Xiaomi make money. As far as Xiaomi is concerned, "cost -effectiveness" has become a drag. Xiaomi is not only a mobile phone business, but also a wealth of IoT product lines, including car products that are about to launch in the future. If the "cost -effective" label cannot be torn, it is difficult for other Xiaomi to sell products and cars on other business lines and cars.

In order to show Xiaomi's "high -end", Lei Jun mentioned two points in his speech:

The first is R & D investment. "We always attach great importance to technical investment. Last year, our R & D investment was 13.2 billion yuan, and this year is expected to reach 17 billion yuan. In the next five years, R & D investment will exceed 100 billion."

The second is Xiaomi's autonomous driving and robots. "The size of the autonomous driving team has exceeded 500 people, and the first phase of the research and development fee was invested, and the target entered the first camp in 2024."

As early as 2022, Lei Jun mentioned that "products and experience must be comprehensively benchmarking the iPhone and won the first domestic high -end mobile phone market share within three years." Although Lei Jun's saying is somewhat suspicious, Xiaomi will also be Xiaomi. The topic of "high -end" has detonated, and Lei Jun, who is good at marketing, is willing to see this.

In addition to "selling hardships" and "cargo", Lei Jun's speech also has the intention to show investors. At present, Xiaomi's stock price has been as low as 2 years ago. Although Lei Jun "no longer cares about stocks and deleted all stock software", Lei Jun obviously does not want the company's stock price to be too ugly, including Alibaba, Tencent and other giants, including giants such as Alibaba and Tencent There are stable stock price measures such as repurchase. Although Xiaomi cannot be "local tyrants" like them, it is okay to come to some soul chicken soup. Since Lei Jun can break a large road in the past failure. It is possible to "cross the low valley."

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