Editor’s note: This is the age of 5G. In one year, 5G information river convergence, the rise of enterprises into a peak, intelligent world has become extremely open. It is not only the soil in the information transformation, but also the important cornerstone of the consolidation of the position of scientific and technological innovation. In one year, 5G market groups are snarling: international circuits, major giants compete for the commanding heights in many fields, patent research and development, The global share of the Chinese camp has exceeded 50%, smart innovation, application scenario business opportunities continue to be put into production, mobile phone market, the segmentation of the hundred-dollar range is particularly fierce competition; …
Sina Technology Zhang Jun
In one year, by Sina Technology, Sina 5G jointly launched the “5G everyone talk” column, with dozens of political, enterprise, academic well-known people chat about the development of communication and landing, for readers to answer questions. At the same time, the “5G” column will explore the growth path of China’s telecommunications enterprises.
A year later today, the information has been integrated into the hundred industry. What kind of spark will collide when more people touch 5G?
10 5G handsets to be issued this year, the fourth largest share
In June 2019, the Ministry of Industry and Information Technology issued a 5G commercial license to Chinese operators. Although the operator’s 5G package was not yet commercial, but including Xiaomi, domestic mobile phone manufacturers have been preparing for 5G mobile phones for a long time.
At the end of 2019, Xiaomi Chairman Lei Jun said that in the first half of 2020 Xiaomi more than 2000 yuan of high-end mobile phones will be all 5G mobile phones. Xiaomi will release at least 10 5G phones in 2020.
In September 2019, Xiaomi unveiled its first 5G phone, the Xiaomi 9 Pro, with the SnapDragon855 Plus processor plus X50 5G baseband, priced from $3,699. In the months that followed, Xiaomi didn’t release new products on 5G phones.
This aspect has to do with Xiaomi splitting the Redmi brand. After splitting into two brands, the task of contributing shipments was left to Lu Weibing’s Redmi brand, while Xiaomi focused on the high-end market.
Since December 2019, the Redmi brand has released two new 5G products, the Redmi K30 5G and the Redmi K30 Pro, covering the mid-range and mid-to-high price segments. The Redmi K30 5G price started at 1999 yuan, also became the cheapest 5G phone on the market at the time, and on May 26th, the Redmi brand will also release its third 5G handset, the Redmi 10X, which is powered by the MediaTek 820, which is expected to set a new low of 5G.
On the other hand, Xiaomi brand in February and April of this year, respectively, released Xiaomi 10/Pro and Xiaomi 10 youth version, mainly for more than 2000 yuan in the high-end price segment of the market.
Overall, Xiaomi has made success on 5G phones in line with its position in the global smartphone market.
Xiaomi 5G smartphones shipped 1.2 million units worldwide in 2019, with a market share of 6.4%, ranking fourth in the world behind Huawei, Samsung and Vivo, according to research released by Strategy Analytics.
As for the Chinese market, Xiaomi ranks fourth behind Huawei, vivo and OPPO with 13.3% of the domestic market share for 5G handsets in the first quarter of this year, according to IDC. But the gap between Xiaomi and OPPO and vivo is not big, and the competition between the three is very scorching.
Overall, Xiaomi’s share of 5G phones is not out of the blue, both in the global and Chinese markets, but it has not made a breakthrough.
Can there be a breakthrough in mediatek 5G shares?
In March this year, Lu Weibing in the micro-blog revealed: “CC9 Pro immediately all de-listing, I meters 2000 yuan or more 4G products basically all cleared, 5G has come, who can not stop.” “
Whether it is Lei Jun or Lu Weibing’s statement, have set up a 5G mobile phone price line: more than 2000 yuan. The industry generally expects that the 5G machine will not appear until the third quarter of this year or the end of this year.
In fact, while mobile phone manufacturers announced at the end of 2019 that All in 5G will no longer be available for 4G phones, market data suggest that sales of 4G phones are still dominating.
According to the data of the Xintong Institute, in April this year, domestic 5G mobile phone shipments reached 16.382 million units, accounting for 39.3% of the same period of mobile phone shipments;
Xiaomi vice president, Redmi brand general manager Lu Weibing in an interview with Sina Technology, also believes that although the price of 5G mobile phone prices will be fast, but will not immediately replace 4G mobile phones. The improvement of 5G network requires a process, so 4G mobile phones will also coexist with 5G phones in 2020.
But he predicts that 5G handsets could sell more than 4G by the third and fourth quarters of 2020, and that by 2021, 70-80% of the market will be 5G.
Another interesting figure is that the three operators now have far more 5G package subscribers than the Chinese market has accumulated 5G handset sales so far in 2019. This means that domestic 5G mobile phone sales still have potential to be tapped.
However, the current situation in front of domestic mobile phone manufacturers is that to achieve 5G mobile phone prices to 2000 yuan below further exploration, but also face the challenges on mobile phone chips. Qualcomm, for example, has the SnapSnapdragon 865 at the high-end flagship level and the SnapDragon765G at the mid-range level, but more product sequences are needed for the mobile phone manufacturerto to ship the most low-end chips.
For Xiaomi, in addition to continuing its partnership with Qualcomm on 5G chips, it has also stepped up its partnership with MediaTek, another chipmaker.
As early as August 2019, the Redmi Note 8 Pro launched MediaTek’s G90T chip. In fact, xiaomi was able to withstand the enormous pressure, a large amount of rice powder on the use of MediaTek chip has doubts. Fortunately, the product finally achieved good results, Lu Weibing announced on Weibo in May this year, the Redmi Note 8 series of mobile phone sales have exceeded 30 million units.
Recently, MediaTek officially released the Tianyu series 5G SoC new products – Tianyi 820. Lu Weibing, who appeared at the launch as an “honorary product manager”, said Redmi’s new product series, the Redmi 10X, would be the world’s first-ever 820 chip. According to Lu Weibing’s description, the X-Series is Redmi’s new light flagship phone, or positioned under the K-Series, so the Redmi 10X is expected to sell for a new low than the Redmi K30 5G from 1999 yuan.
If the Redmi 10X is priced right, and MediaTek’s Sky820 has sufficient capacity, it is expected to give Xiaomi another boost to its performance on 5G phones in the second half of this year.
IoT business takes first-mover advantage but faces strong enemy
In the 5G era, in addition to the attention of 5G mobile phones, the explosion of IoT category has also become a new opportunity that mobile phone manufacturers are hoping to seize.
Among domestic manufacturers, Xiaomi’s layout on IoT is the earliest, and it has also achieved a certain first-mover advantage. In January 2019, Lei Jun announced that Xiaomi has officially launched its dual-engine strategy of “Mobile phone and AIoT”, and that Xiaomi will continue to invest more than 10 billion yuan in the AIoT sector over the next five years. Earlier this year, Xiaomi announced a further increase in investment in this area, the next five years will be at least 50 billion yuan.
In 2019, Xiaomi IoT and consumer products accounted for 62.1 billion yuan, up 41.7% YoY, accounting for 30.2% of total revenue, while IoT and Consumer Products accounted for 13 billion yuan in the first quarter of 2020, up 7.8% YoY, accounting for 26.1% of total revenue.
In 2019, the number of IoT devices connected to the Xiaomi IoT platform (excluding smartphones and laptops) reached 235 million, up 55.6% YoY, and the number of IoT devices connected to Xiaomi IoT platforms reached 252 million in the first quarter of 2020, up 42.6% YoY.
Although Xiaomi IoT’s business volume is still huge, Huawei’s glorified power on IoT has posed a threat to Xiaomi in the last two years.
Huawei has developed a strategy for ioT 1 plus 8 plus N, and has introduced its own HiLink standard. Huawei has also set a three-year goal in its IoT strategy: one-third of China’s IoT devices support the HiLink standard.
According to data released by Huawei’s Chief Strategy Officer for Consumer Business, Yan Yang, in 2019, Huawei’s cumulative shipments of IoT connected devices exceeded 220 million, and The HiLink eco-users exceeded 50 million. In terms of the number of IoT connected devices in 2019, Huawei is already gradually levelling Xiaomi.
In addition, not only Huawei, OPPO, vivo, Realme, OnePlus and other manufacturers are beginning to accelerate the layout of the IoT business. In the case of television, although Xiaomi TV is still leading in shipment slots, Huawei is aggressive, and OPPO, realme and OnePlus will launch TV products in the second half of this year.
Recently, Liu Yaoping, former Ceo of Storm TV, joined Xiaomi as General Manager of television. The move also has Xiaomi’s desire to further improve the layout of the television business, to deal with the new competitive situation and other considerations.
Another big space for Xiaomi on the IoT is the big appliance business. In May 2019, Xiaomi announced the establishment of the Department of Home Appliances, and has launched refrigerators, air conditioners, washing machines and other large home appliances, continue to enrich the product line, expand the IoT layout.
After Liu Yaoping took over as general manager of Xiaomi TV, Li Xiaoshuang, the former general manager, became general manager of the home appliance department, and both reported directly to Xiaomi Chairman Lei Jun. In the second half of this year and the future, Xiaomi and Huawei’s competition on IoT, Xiaomi’s layout in tv and big appliances and other categories, deserve attention.