Red rice phones selling again the attention of the media gathered to millet head first batch of 10 million units of red rice phone has been sold out within 90 seconds, the red rice price 799 yuan phone configuration is not low, people in the industry It seems this product profit is not high, the red rice phone in the end can make money?
Indeed millet millet company launched the first mobile phone from the start, the outside world for the profitability of the voices of doubt millet products constantly. Red rice millet phone is always more cost-effective to achieve the ultimate in style, MTK quad-core processor, 4.7-inch high-resolution screen, 8 megapixel rear camera, such a configuration with high-end smart phone market, the configuration of the gap is not Large, millet is actually given 799 yuan price.
Currently millet company's products have covered 2,000 yuan smartphone market, which is the main battlefield of Chinese mobile phone manufacturers, and Lenovo, Huawei, ZTE and other mobile phone manufacturers, millet more comprehensive strategy, in addition to mobile phones millet, millet also has e-commerce platform, MIUI system, mobile phone users is just the first step in gathering, but definitely not rely on the overall profitability of selling mobile phones, in essence, is a network company instead of millet mobile phone manufacturers.
Red rice phone can make money on this question, millet technology CEO Lei Jun said that the configuration of high does not mean good material, red rice is still some room for profit phone. It is reported that red rice phone is powered by an eastern Chinese foundry production, foundries compete in various red rice phone orders, this foundry to offer a lower cost to win orders, we can see that the profits and red rice phone not low.
Millet phone low profit margins in the sale early to pre-order to attract users, and does not release the amount of large, red rice phone number of the first sales of 100,000, while the reservation number reached 7,450,000. After gathering a certain popularity, millet phone will increase production, mass production would lower the cost of product components, product margins will steadily improve. According to industry estimates, the red rice handset component selected mostly millet phone supplier, mobile work is also good, red rice product components handset costs about the initial sale of approximately 740 to 760 yuan between, ready production continues upgrade, the cost can be reduced to 700 yuan or less. Phone itself, profit margins are not high, but the phone is still red rice There are other ways of income, support China Mobile's TD network, while China Mobile's TD mobile phone subsidies for each of about 200 yuan. More importantly, every sale of a red rice has increased by a MIUI mobile phone users, millet user activity on all Chinese mobile phone manufacturers is the highest, each phone can bring about the application of tens of dollars revenue. On the whole red rice phone 799 yuan profit margin of 15% -20%.
Red rice millet phone for the benefits of many of the media have been analyzed very thoroughly, in fact, this 799 yuan of products against competitors, but also millet company's product strategy is a challenge, one affecting sales 2A millet, millet 2A price of 1,499 yuan, the configuration slightly millet 2S; rather low grade brand millet, millet mobile phone users with more for mobile phone enthusiasts, the smart phone has its high enthusiasm, buy mobile phone users is red rice more for ordinary users, less demanding on the phone, which is the brand image of millet have a certain influence.
Lei Jun is now the number of users, the CEO invested dozens of network-related companies, and his goal is definitely not just doing a mobile phone brand, but the phone is an important user base and network entry, so for millet and words, the phone is definitely not the sole pursuit of profit, which may explain why red rice phones sold only 799 yuan.
