Power Module

Microsoft mobile phone the truth behind the $25

OFweek electronic engineering net news: in wave upon wave of wearable and Internet of things a wave in the layout of the war, apple and samsung will bet on new products, hope to maintain their dominant position in the mobile Internet. Apple is expected to release the iPhone in September 6, the samsung is also expected to launch a galaxy series smart watch. Has been focused on Microsoft Windows Phone is “new”, launched a $25 (about 154 yuan) of cheap mobile phones, the main market in Africa and the Middle East. At that time the “surprise” for the industry, not sure of the Microsoft gourd sell what medicine?

In fact, Microsoft’s move, personal feel can from the following four aspects to analyze.

1.the use of nokia function machine open gap in emerging markets.

Although sales of smartphones has transcended the machine function, it is estimated that the global 1 billion people are still not belongs to own a mobile device. Each year, the emerging markets to digest more than 50 million $30 and the function of the machine. From the point of the sales of Nokia 105 pin, 1 million a week, emerging markets is a huge opportunity for Microsoft.

Since the function of machine has become a necessary means of the emerging market. Millet, lenovo, huawei has been preparing, Microsoft has nokia in hand, were less likely to this market. So they will these devices used as the carrier of its cloud services. Microsoft can pass them to the user to promote bing search, OneDrive cloud storage, such as Internet services, use of these users to create a Microsoft account, laying a foundation for constructing the Microsoft ecosystem. Subsequent to the corresponding feature phones and high-end Microsoft smartphone, are more reasonable.

2.differentiated competition way, avoid competing with apple samsung positive.

In high-end smartphones, Microsoft can only kneel to samsung and apple. But in emerging markets, global brand strength and advanced technology that is not the problem, the price is the decisive factor. And local rivals mobile phone prices between $100 to $300, and most of the key features high-end smartphone with samsung and apple. So, always takes high-end course of apple and samsung no songs.

Nokia function machine because of good quality, good brand awareness, great market in developing countries. Microsoft, after all, to spend money for nokia along while, be use value. Just want to take this advantage to compete differentiation and samsung, apple. So-called “thirty years hedong, hexi” thirty years. Suppressed by samsung and apple for so long, Microsoft is also can find a place to vent.

3.cost allocation smartphone, this “chicken ribs” throw.

Mobile phone profits in high-end machine commonly, the nokia one hundred yuan machine to remove the manufacturing cost, and circulation, operations, agents have profit, Microsoft unprofitable. Just to cater to emerging markets. Microsoft can insist on how long again. Unless there is a “chicken ribs” reasons.

From nokia had disclosed data, function of machine and the gross profit margin on smartphones almost flat, both in the 20% to 25%, while the losses are the result of intelligent mobile phone business part of the reason may be that poor performance, but continue to promote function machine, it is likely to profit, or at least it wouldn’t cost too much money, also be able to share the cost of the smart phone and professional technology. And want to close such a business overnight, cost is also very high.

4.as saturated market spare machine.

Related reports that a little selfishness, Microsoft hopes to nokia’s function as a saturated market spare machine, the reason people do not look good. Nokia’s death means the decline and fall of low-end machine. Only for future products will be more and more intelligent. Wearable, iot, artificial intelligence will be swept through every aspect of life, the user has accustomed to smartphones, could no longer put the low-end machine as the standby machine. And may put more money and expect more intelligence on mobile devices.

Established in 2004, Coding International Co., Ltd (shenzhen Coding Technology Co.,Ltd) is a gather the development, production, marketing combine together of the semi-conductor professional company. We can provide a wide range of capabilities in research and production such as all kinds of Diode, Triode transistor, Audions, Triac, Dynatrons, Thyristor, LED product, Optocoupler, Silicone Bridge, IGBT power Module and Surge arrester, ICs, ect.

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