The release of mobile phones has always been very lively, and the audience has paid high attention to new models, especially when 5g mobile phones are widely promoted. Recently, we have seen the presence of operators among the manufacturers of 5g mobile phones. In november2020, Chinatelecom announced the launch of Tianyi No.1 cloud mobile phone. On January 25, 2021, China Unicom released its own mobile phone brand u-magic and two new 5g mobile phones. Just one day later, Chinatelecom released its own 5g all Netcom cloud mobile phone – Tianyi No.1 2021. It is not difficult to see the great potential of 5g terminal market behind operators’ competing to enter the market.

According to the data of the Ministry of industry and information technology, in 2020, China has opened more than 718000 5g base stations, and the 5g network has covered cities above the prefecture level and key counties and cities across the country. The domestic sales of 5g terminals have also reached 160million, and it is expected to increase to 280million in 2021. “In 2021, the market share of 5g mobile phones will increase steadily, and the penetration rate of 5g mobile phones will exceed 90%.” Chenfengwei, deputy general manager of China Unicom terminal and channel support center, predicted. Moreover, according to the market report, the market share of 5g mobile phones will gradually increase in the future and become the mainstream of the industry.

Of course, in addition to the market scale factor, the positioning of private brand mobile phones in the middle and low end by operators is very helpful for the rapid popularization and sinking of 5g mobile phones. After all, with the large-scale development of 5g, cost performance will become one of the important factors that consumers will consider when buying mobile phones. In addition, the introduction of mobile phones by operators is of great value to the construction of their business ecology in the long run. Although various factors are favorable, it is not easy for operators to do a good job of private brand mobile phones in the current era of homogenization of smart phones.

Carrier powering 5g terminal

On January 25, Unicom Huasheng Communication Co., Ltd. (hereinafter referred to as “Unicom Huasheng”) under China Unicom officially released China Unicom’s new 5g mobile phone brand – u-magic, and simultaneously released two 5g mobile phones, youchangxiang 20 plus and youchangxiang 20. Among them, the price of youchangxiang 20 starts from 1699 yuan, and the price of youchangxiang 20 plus starts from 2299 yuan.

On January 26, Chinatelecom released its own brand 5g all Netcom cloud mobile phone – Tianyi 1 2021. It is reported that tianyi-1 2021 supports SA and NSA. It is universal in the whole network, cloud twin, and mass storage. The meter has two different configurations, 4g+64g and 6g+128g, of which the price of 4g+64g is 1199 yuan; The price of 6g+128g is 1499 yuan, and the promotion price during the first sale period is 1399 yuan.

In fact, in November last year, Chinatelecom launched Tianyi No. 1 cloud phone at Tianyi intelligent ecological Expo, with a price of 999 yuan. The biggest highlight of this model is that it has built-in cloud service function and can be switched to “cloud phone” mode at any time, without relying on mobile phone performance and storage space.

Compared with China Telecom and China Unicom, China Mobile began to get involved in the mobile phone market as early as 2013, launched two smart phones, m701 and m601, and released a thousand yuan 4G mobile phone m811 supporting five modes and ten frequencies in June 2015; In 2015, China Mobile released three new products: A1, N1 and n1max, all of which support 5-mode 11 frequency and dual card dual standby; In 2019, China Mobile launched its first private brand 5g mobile phone – Pioneer x1.

In fact, in the past few years, operators have never stopped their actions on mobile phones. In the 3G era and the 3G to 4G era, operators have jointly launched many customized machines with mobile phone manufacturers, and a large number of users have paid for them. However, after the all Netcom function has gradually become the mainstream of the market, consumers’ buying habits have gradually shifted. At this time, it is no longer profitable for operators to make customized machines.

Nowadays, the arrival of the 5g era seems to give operators greater ambition. They begin to deeply enter the 5g mobile phone market by operating mobile phone brands independently. This is a way for operators to expand users, deepen stickiness and support mobile services.

In this regard, some analysts said that the main significance of operators’ development of private brand 5g terminals is to set a benchmark or template for the industry, encourage manufacturers to develop benchmarking products, especially to better control costs, accelerate the rapid popularization and decline of 5g smart phones, and promote the 5g business process.

How to make a good self owned brand?

In that case, many industry experts have also analyzed why operators are making a comeback in the 5g era, and the upgrading strategy has begun to publish their own brand mobile phones.

In majihua’s view, in addition to their own communication services, operators have started to make mobile phones for a simple reason. They all hope to use mobile phones to expand the border, so as to bind users into their own ecosystem. In fact, like many Internet manufacturers and some mobile phone manufacturers, this is a transformation breakthrough under the condition of irreversible pipelining. Operators do not want to be marginalized by the mobile phone industry, so they can only make their own mobile phones and other terminals to deal with it. This is one of the measures to complete their ecological closed loop.

“Perhaps the layout of mobile phones by operators is only the first step. In the face of a large number of smart home product spaces in the future, the channel sales ability and network integration ability of operators can play a huge role in cohesion. In addition, operators must have their own experimental fields and own brands to develop new businesses in the 5g era, so as to better control the pace of development and guide industry partners to move forward in the direction they put forward.” Majihua further expressed his views.

Of course, the competitive pressure of the mobile phone industry and the huge opportunity for 5g business are behind the operators’ launching of their own brand 5g mobile phones.

Chenfengwei, deputy general manager of China Unicom terminal and channel support center / China Unicom Huasheng Communication Co., Ltd., said that 2021 will be the 4g/5g mobile phone scale switching period, the demand for 5g mobile phones will increase, the mobile phone market will steadily improve, and the 5g mobile phone share will reach 90%. The huge market scale is also an important factor for operators.

However, at present, the homogenization of the smart phone market is obvious. It is not difficult to launch a new brand and product, but how to gain consumer recognition.

“The concentration of the domestic mobile phone market has been very high. It is difficult for new brands to survive. Operators have no advantages in marketing. To gain a foothold in the 5g mobile phone market, they need to combine their own mobile phone products with their own services, unify and promote each other.” Fuliang, an independent Telecom analyst, said.

In addition, Fu Liang also pointed out that if operators want to truly succeed in 5g mobile phones, their own brand mobile phones should not be aimed at new followers, nor should they be aimed at mobile performance sensitive users (such as heavy game users). Many mobile phone manufacturers are involved in these two markets, and the competition is quite fierce. It is best to meet the basic configuration and low-cost mobile phones.

From the price point of view, it is obvious that operators also know the importance of price. The positioning is basically in the middle and low grades, trying to highlight the cost performance advantage. Of course, if operators can use their brains in terms of experience and user rights, such as bundling more affordable 5g packages, sending mobile phones with packages and other preferential policies, they will still be very attractive to users, which may help operators gain a firm foothold in the mobile phone market faster.

Editor in charge: Tzh


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