MediaTek takes Apple software integration and HTC needs to break
According to an article published in Business Week, from the point of view of the difference in revenue and stock price of 300 yuan between MediaTek and HTC in November, the smart phone market has seen a typical shift. Through the new layout, MediaTek will take the road of Apple software integration. And HTC still has the old thinking, it is difficult to take off Nokia's hardware model.
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On December 7, HTC announced its self-settled revenue in November, with a turnover of only NT $ 14.3 billion, a 19% decline from the same period last year. Citi Global Securities lowered HTC â€™s target price to 250 yuan.
On the same day, MediaTek also announced its self-settled revenue in November. MediaTek â€™s revenue reached 110.1 billion yuan in November this year. In the same period last year, MediaTek â€™s revenue was nearly 6.2 billion yuan, and its performance increased significantly. In addition to stimulating MediaTek â€™s share price In the latest attack, Citi Global's latest report set MediaTek's target price at 558 yuan.
The two new and old stocks of Taiwan stocks, which are also specializing in the mobile phone industry, why can the target prices of the two companies now differ by 300 yuan in the eyes of foreign legal entities?
The price of three hundred yuan represents the era of Paradigm Shift in the smartphone industry!
Taiwan University Vice President Tang Mingzhe believes that there has been a paradigm shift in the smartphone industry.
The so-called paradigm shift was originally proposed by American science philosopher Thomas S. Kuhn. He believes that the process of scientific evolution is not evolution but revolution. From yesterday â€™s invention, we will not find clues to today â€™s new invention It must come from brand new ideas and thinking logic.
Tang Mingzhe pointed out that the operating model of the smartphone industry has changed from the era of selling hardware alone to the era of operating mode of integrated software. The best contrast is between Nokia and Apple.
Smartphones have become the hottest industry in this year's technology industry, but in the third quarter of this year, Nokia, which had the largest market share in the global smartphone market, turned in the first loss report since 1996.
In the third quarter, Nokia suffered a loss of 559 million euros (approximately NT $ 26.8 billion), and Nokia's global smartphone market share fell from 41% to 35%.
On the contrary, at the same time, Apple â€™s mobile phone division's operating profit reached US $ 1.6 billion (approximately NT $ 51.6 billion), surpassing Nokia's mobile phone division's profit of US $ 1.1 billion in the same quarter, making it the world's most profitable mobile phone the company.
This year, Nokia launched 20 smartphones. I did nâ€™t expect Apple to defeat Nokia by relying solely on the iPhone. What â€™s more amazing is that since the iPhone has been on the market for more than two years, its shape has nâ€™t changed.
MediaTek's new layout will take Apple's software integration
"It is no longer a war of hardware." Li Renfang, a professor at the Institute of Science and Technology Management of Political University, explained, "It is a war of hardware, software plus services, and content." Just like the iPhone, each one looks the same and is infused with different software. 20 million iPhones are 20 million different mobile phones.
Apple only produces a mobile phone, but through the software platform on the mobile phone iTunes store (online software store), let all kinds of software for consumers to download, can meet Nokia's "machine sea tactics" can not meet individuals demand.
Apple â€™s iPhone business model has triggered a new revolution in the smartphone industry. It is a completely different entry point from Nokia â€™s past tactical sales model that relied on a large number of mobile phone models and different price bands, bringing the smartphone industry into another new Among the models.
Even Nokia is alert to the advent of a revolutionary era in the mobile phone industry. "This is why Nokia has also dropped $ 20 billion to acquire different companies and develop its own Ovi Store." Li Renfang said.
This is the turning point for Taiwan stock kings, MediaTek and HTC.
Layout 1: M & A download platform not only sells mobile phones, but also earns download fees
The scene shifted to Caoxi Road in Shanghai. At the moment when MediaTek could have a paradigm shift in the mobile phone industry, the secret of sitting firmly on the throne is hidden here.
In May of this year, MediaTek acquired US $ 2.5 million (approximately NT $ 80 million) for Woking Technology on this road.
Founded in 2006, Woqin Technology is like the iTunes store of a mainland copycat machine. As long as users use mobile phones of MediaTek and Spreadtrum chips, they can buy software and download games on their platforms.
With this platform, the cottage mobile phone factory no longer can only make money by selling mobile phones, but can also profit by selling software. Luo Tianbo, deputy general manager of Woqin Technology, said that after the acquisition of Woqin, MediaTek had pre-installed Woqin's software download platform in the mobile phone chips shipped.
He said that in the first phase, they aimed at ordinary mobile phones that can execute simple programs. Currently, 150 million mobile phones sold in the world have MediaTek chips installed.
After consumers buy a mobile phone equipped with a MediaTek chip, they can download the program they want via the 2.5G network and execute it on the mobile phone.
Luo Tianbo said that there are currently 90 software partners in Woqin. By downloading the program, users can not only play mini-games, but also use QQ and MSN to communicate with their friends. They can even "watch TV, listen to music, and play online games." "It is not a problem to play online games such as Happy Farm.
Luo Tianbo said that currently Volvo is "only charging consumers", and their profit model is provided by software manufacturers, and mobile phone manufacturers help to pre-install Volvo â€™s platform programs. Consumers can choose to use telecommunications companies or other channels. Payment, and the money received, "divided by Woqin, mobile phone manufacturers and software vendors."
In the future, Volkswagen will launch a software platform service for smartphones. At present, the mobile phone manufacturers that cooperate with Volkswagen "have exceeded one hundred."
Layout two: Invest in music service company's mobile phone to become KTV, and download one for ten yuan
MediaTek relied on the acquisition of Woqin and developed an iTunes-like platform. MediaTek went to the next city in the first half of this year, investing in iPeer, which has acquired the copyright of 500,000 songs, to build MediaTek â€™s unique mobile music service and completed the Apple iPhone. The content service puzzle on the business model catches up with the wave of new paradigm shifts created by Apple.
Now, through the online software platform created by MediaTek, consumers can use the MediaTek mobile phone as a KTV and download music content. Not only will the album screen of the song pop up on the phone screen, but the lyrics will also jump out of the beat. For each song downloaded, the fee is about two yuan (about NT $ 10).
If the software is installed on 150 million mobile phones, MediaTek can make money from mobile phone users at any time. "This is definitely a golden rooster." Guo Yanlin, an analyst at JP Morgan Chase, observes.
Guo Yanlin analyzed that MediaTek has mastered the mobile phone hardware and software, plus its own three major online program store platforms, MediaTek's new value chain has been formed, because it can bring a large amount of new revenue for telecom operators and mobile phone manufacturers, even if the rival Spreadtrum is bargaining. And cannot shake the position of MediaTek.
On the other hand, HTC is facing the threat of low prices in the mobile phone industry's cottage, Wang MediaTek, and the low-cost regular army of the personal computer industry. Acer has even pushed forward. Even Acer has tapped more than 30 HTC mobile phone teams to enter the smart intelligent industry and smart intelligence. The price war has already been triggered.
Researcher Lu Junkuan, a senior analyst at Gartner, observes that as smart intelligence is about to spread from the top users of the pyramid to the average consumer, Gu Neng estimates that by 2013, for every ten mobile phones sold worldwide, there will be Four are smartphones.
HTC's old thinking is hard to take off Nokia sells hardware models
According to the Gu Neng report, the price of smartphones has declined at an annual rate of 8.5%. By the end of 2010, the price of smartphones will fall to only two hundred US dollars (about NT $ 6,500), which is equivalent to HTC's entry smart now. Half of the phone.
But smart intelligence, which is more expensive than computers, has long since become the Red Sea. "Low-cost smartphones will surely be the trend in the future." Observed by President Tudor Brown of semiconductor giant ARM.
However, at this moment HTC's breakthrough strategy still seems to be turning around Nokia's old model.
In the past decade, HTC, with the help of Microsoft and Qualcomm, has repeatedly won the world's number one position in the research and development of new Microsoft intelligence.
However, the current smart phone platform is already open, HTC no longer monopolizes the know-how to lead its competitors, and even Motorola, which is considered to have been eliminated in the mobile phone industry, surpassed HTC in October this year. , Become the first company in the world to launch Android 2.0 platform.
Dilemma 1: tactics outdated and then push low-cost mobile phones, but no innovative strategy
Facing the decline in revenue, HTC CEO Zhou Yongming has already shouted the goal of "revenue multiplication" internally, but what he has high hopes for is a low-cost Android mobile phone that will be launched next year.
The mobile phone is redeveloped with Qualcomm's low-cost BMP chip platform, coupled with the Android mobile phone system and HTC Sense interface developed by HTC, and the price will be reduced to 8,000 to 9,000 yuan. It is expected to be on schedule in March and April next year. The development is complete.
This product will mainly open the Chinese market, HTC even considers the launch of this product from London to China or India.
HTC is facing a strong challenge from the outside world. The outside world does not see HTC deploying on the new paradigm of smart phones, but still exerting its efforts on the tactics of the sea under the old paradigm thinking.
Li Renfang analyzed that Apple introduced smartphones later than HTC, but once launched, it completely used the iPod to defeat the Sony walk man strategy for smart intelligence, which is a four-in-one model of hardware, software, content, and services.
Dilemma 2: R & D leader failed to add value like iPhone software
"Is Apple's technology deep? Bullshit!" Li Renfang said, turning on the iPhone, 70% to 80% are Japanese parts, a few are European parts, and a few are Taiwanese parts, completely produced with the power of others. The real threshold for Apple's competition is the lifestyle established by software plus model.
He believes that HTC is doing research and development, and has invested nearly 2,000 R & D personnel. "R & D accounts for more than 6%, 7% of turnover, or even more than that." Li Renfang analyzed, "but they (referring to HTC) will be System, assembly, "In recent years," The price of HTC has softened, but the price of the iPhone has not fallen at all.
Tang Mingzhe even said, "The current iPhone is very expensive, but you can guarantee that Apple will not launch an iPhone for only ninety-nine dollars in the future? This thing will happen!" This is like Apple â€™s launch of the iPod. The high-end iPod Touch, which has a asking price of more than NT $ 16,000, also has an iPod Shuffle of less than NT $ 3,000, which wipes out the entire MP3 market.
When this day comes, a new business model like Apple â€™s iPhone has not been established, and HTC â€™s revenue and profitability will probably decline like smartphone prices.
This is the reason why the share price difference between MediaTek and HTC is 300 yuan!
With the "software cottage" established on the mainland, MediaTek took the train of paradigm shift of the smart and intelligent industry. MediaTek wants to make the mainland's cottages more varied in the future.
In the future, you will see a copycat game phone and a copycat music phone. MediaTek has the strength to transform into a mainland iPhone, which is the secret that it has once again become the king of shares.
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