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Date Submitted: 07/13/2015 10:39 PM
China Smartphones
Can low-cost smartphone makers
make money?
Presenter: Chris Lu
Date: 5/14
1
Agenda
1)
2)
3)
4)
2012 the year of the low-cost smartphone
BOM analysis
Conclusion
Suggestion
2012 the year of the low-cost
smartphone
2012 the year of the low-cost
smartphone
1.
Strong growth in 3G
2.
3.
4.
Telecom operators and handset makers support it
All targeting strong volume growth
Low-end 2G feature phone makers are moving
5.
No big international brand presence in this segment
BOM Analysis
ZTE Blade V880
• This was ZTE’s the best selling model in 2011
• The most successful Rmb1,000 smartphone in China
in 2011
• Most components are from international component
makers that can help in handset performance
ZTE Blade V880
ZTE Blade V880
• This was ZTE’s the best selling model in 2011
• The most successful Rmb1,000 smartphone in China
in 2011
• Most components are from international component
makers that can help in handset performance
• Four major components account for nearly 40% of
the total BOM cost.
ZTE Blade V880
ZTE Blade V880
• This was ZTE’s the best selling model in 2011
• The most successful Rmb1,000 smartphone in China
in 2011
• Most components are from international component
makers that can help in handset performance
• Four major components account for nearly 40% of
the total BOM cost.
• Gross margin is less than 4%.
ZTE Blade V880
Coolpad E239
Coolpad E239
•
•
•
•
More components are from domestic component makers
User interface components use domestic vendor products
Poor touch screen sensitivity and display performance
Cheaper BOM have better unit margins
• Gross margin is around 6.6%
Coolpad E239
Alcatel OT-980
Alcatel OT-980
• Adopted a lot of feature phone design elements
• Saved on BOM costs by using no-name components for
non-core components
• The component costs of this model are relatively low
• Gross margin is...