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Title: The Internet Giants Fight for Overtaking Smartphone Market Share

Recently, the domestic leading Internet giants have been involved in the smart phone market share war.

With iOS and Android, smart phones have entered the Mobile Internet era. It is obvious to find that today’s leading smart phone platforms are not from traditional phone makers. After Apple redefined smart phone, Internet companies have been following closely this trend. Google is the first and most successful player to provide an Open OS for all phone makers to use and compete with Apple. Amazon is also grabbing people’s attention recently with its possible Amazon or Kindle Phone.

This movement is more complex in China. Being a huge market with the world’s largest Internet companies besides US, China may provide good opportunities for cloud based and services oriented smart phones. Internet giants like Alibaba, Tencent, Baidu have all entered into this competition.

“Internet Smart Phones” are also facing major challenges. Profit of smart phones in the International market being almost exclusively shared by Apple and Samsung, a reasonable revenue model is needed to support these new players. Let’s face the pioneers of Internet Smart Phone providers and discuss together the future for their products.

Chinese Internet giant Tencent has announced that it is cooperating with China Telecom and five mobile phone manufacturers in the launch of six smartphone products, which have the embedded QQ-service platforms.

These six smartphone products are made by five Chinese mobile phone makers, including Huawei, ZTE, Coolpad, K-Touch, and Hisense. Based on China Telecom's CDMA 3G network, the smartphones preinstall Tencent's QQ-service platform, which provides Tencent's existing mobile phone plug-ins and new applications. The smartphones will also be marked with the logo of QQ, which is Tencent's instant messaging service.

These six smartphones will reportedly be sold at the retail prices of around CNY1,000, targeting the student demographic.

At present, Tencent's QQ instant messaging product has a total of 1.2 billion registered users and the number of active accounts has allegedly reached 484.9 million. Based on the large user group, Tencent's own brand mobile phones will become a powerful competitor with both software system and mobile-terminal-based value-added services, covering instant messaging, entertainment, and information.

Baidu, search engine giant from China, has revealed its latest smartphone, boasting the company’s own mobile technology and priced to aim the country’s low-end smartphone segment.

The Changhong H5018 will be priced at approximately $158 without a contract, the company stated Tuesday. The smartphone marks the 2nd handset the company has launched, the last one is a smartphone produced in cooperation with United States PC manufacturer Dell that was heralded in December.

Baidu’s last smartphone, the Dell Streak Pro D43, was priced threefold higher than the Changhong H5018 at 2,999 yuan, and was commercialized for young trendsetters and business users.

This time, Baidu has partnered with Chinese smartphone maker Changhong to produce a fresh smartphone, which was constructed by Foxconn. The smartphone is constructed with a 3.5-inch touchscreen and has a 3 MP camera together with a 1,400mAh battery.

The less than 1,000 yuan price-tag commits the handset in a market section that analysts think will have the firmest development in China. Presently, only approximately 15% of China’s 1 billion cellphone subscribers are employing 3G services, based on to government statistics. But this is anticipated to shift as consumers prompt toward more low-priced smartphones.

The Changhong H5018 as well integrates the Chinese search giant’s newest mobile smartphone platform, Baidu Cloud, which has replaced the company’s former mobile platform “Baidu Yi,” based on the company spokesperson Kaiser Kuo.

The Xiaomi success of the mobile phone, Internet industry held its breath, and followers pressed. Since Baidu, 360 Internet company announced its entry into the mobile phone industry this year, a wave of Internet companies to do the trend of the mobile phone. But soon, one of China’s Internet veteran, Kai-fu Lee, founder of Innovation Works, the Internet to do a cellphone will not be successful, “the curse.

Kai-fu Lee said that the huge difference of two of the industry of Internet and communications industries and enterprises gene, the vast majority of Internet brands to mobile phones will not points but also the point system. Because these enterprises to user needs for the mission, but to embed their services, you can not get the user reputation; do not want to embed user-beloved competitors service will be criticized; closed industrial chain is clearly unrealistic to build an Android Phone - high profits .

This “curse” brilliantly summed up the problem of the current Internet to do the phone business model, but the moment the already highly competitive mobile phone market, will be a prophecy? Springs information

As the originator of the Internet, mobile phone, Xiaomi phone founder of LEI on the Internet, the mobile phone business model confidence. Xiaomi to create an Internet phone models, many people now to follow suit, this shows what? This model is the future direction of what the people want the trend of the times, so I think I welcome all the peers are changed to do Internet phone mode, common to this market bigger. “said Lei Jun, shipped over 3 million mobile phones this June 12, the results for the most mobile phone companies is a huge figure, which indicates that Xiaomi as the mode of Internet phone has taken a solid first step.

360 seem to find out a compromise to break the “curse”: the Internet company to do the phone and do not do phone. Do mobile phones, this is a great company of all the Internet must be dry. “Do you want to please the users, allowing users to special happy for you special satisfaction, we always have a way, this is the cornerstone of your users give you.” Woo Wei Hong Zhou said that the Internet companies themselves are not suitable for mobile phones, because the gene is not the same, do cell phone knowledge and a deep range of services, and Internet companies operating philosophy is completely different. Cooperation is the path and the cell phone companies, Internet companies understand the Internet business model helps mobile phone manufacturers to experience change, the industrial chain on everyone’s division of labor.

Baidu attitude into the mobile space, it seems that some “duplicity”, she explicitly says it will not do the phone side to communicate with the mobile phone contract manufacturers to discuss. , Baidu seems to already precise role in this matter do phone.

However, as the industry benchmark for Tencent, even adhere to the “professional people to do professional things” reasonable child, with a vague statement: “Almost does not do mobile phone. That so many people encouraged us to do a cell phone, we do not do, Tencent is not what company the Tencent vice president Liu Chengmin. “We choose to do business logic of our own judgment, for example, are we good at, not to do.”

An industry source said, coal, cement, iron and steel people also do mobile phones, such a rush to the state must give the industry a lot of chaos. Usually an industry is not a problem, is to see whether an outsider to join. Laymen are promising to do some low-threshold, repeat things, and easily lead to vicious competition.

Internet companies, industry has always been filled with ever-changing field, Kai-fu Lee’s “prophecy” is far from fulfilled, but in the mobile phone industry is already in a “Red Sea”, with Internet companies get together and involvement, will undoubtedly lead to future competition in the industry the white-hot, the risk in the future will have to cause alarm.

 


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