Xiaomi is still focusing on mobile phone business. In 2014, Xiaomi’s mobile phone business accounted for 96.7% of its total revenue (its announced revenue of 12 billion US dollars, Nomura Securities estimated its mobile phone business revenue of 11.6 billion US dollars), due to 2015 Millet hit the price war, resulting in a decline in sales revenue (Nomura Securities estimated its mobile phone business revenue of 9.94 billion US dollars), so the industry is watching the sound of Xiaomi!
However, in the quiet, Xiaomi's business may have turned. Taiwan's digiTImes reported that Xiaomi's patents focused on the IOT (Internet of Things) field in 2015, which means that Xiaomi is looking forward to its upcoming future of trillions of dollars. Level market!
Xiaomi encounters development problems in the mobile phone market
Xiaomi started in the mobile phone market, but since the patents in the mobile phone market are mainly concentrated in the hands of traditional communication companies such as Qualcomm, Huawei, and Samsung, it is difficult for Xiaomi, a rising star, to solve the patent problem. At present, Xiaomi is shrouded in the haze of patent warfare.
Due to the particularity of the Chinese market, although Huawei and ZTE, which had patent advantages in China, issued a patent lawyer's letter to domestic mobile phone companies last year, they have not officially launched a patent war. However, in overseas markets, Xiaomi is encountering a real patent attack.
In the Indian market, due to Ericsson's patent infringement lawsuit, its momentum of high-speed growth has been under certain containment. Since the second quarter of last year, it has been surpassed by the Lenovo brand in the Indian market, and then went all the way. In the US market, several mobile phones have been sued by patent hooligans just after obtaining FCC certification, and then the Xiaomi mobile phones sold by US carriers have also been removed!
Patents are becoming an important obstacle to the continued development of Xiaomi, and this obstacle is insurmountable. In fact, Xiaomi has already realized the importance of patents and established a patent operating company. However, the industry giants soon knew the relationship between the patent operating company and Xiaomi, which led to a setback in Xiaomi’s plan to quietly acquire patents. Lenovo’s acquisition of MOTO’s mobile phone business is actually a patent that it owns. However, the 2,000 patents were selected by Google. Even so, it cost 2.9 billion US dollars, but Xiaomi’s financing before and after was only 2 billion US dollars. It is very difficult to continue to solve the patent problem through mergers and acquisitions!
In 2015, Xiaomi released a message that it has applied for 6,000 patents and plans to apply for 10,000 patents this year. It can be seen that Xiaomi values ​​the patents. However, at this time, Taiwan media reports revealed that Xiaomi's patent concentration is mainly based on the IOT field, indicating that Xiaomi's future business layout has shifted from the mobile phone business to the Internet of Things.
Market opportunities for the Internet of Things
After a rapid growth in the past few years, the smartphone market has experienced a sharp decline in growth due to the stagnation of the Chinese market (IDC data shows that smartphone sales growth in China is only 2.5%), and India is expected to replace China as a new one. The high-growth market also encounters certain problems. For example, the consumption level in the Indian market is only one-third of that in China. The rapid expansion of India’s export deficit is worrying about whether its economy can continue to grow, etc., which have led to concerns about the future development of the mobile phone market only, 2015 In the year, the global smartphone growth rate was only 10.1%. India has not been able to promote the rapid growth of global smartphone sales in the slowdown of the Chinese market.
After years of cultivation, the Internet of Things field seems to be showing signs of prosperity. ARM has released the core A35 with ultra-low power consumption. Qualcomm, MediaTek, Samsung and Huawei have all started the local Internet of Things market. The development of 5G is also due to the Internet of Things. With the development of demand, Xiaomi has also begun to layout in the Internet of Things, investing in industries such as bracelets and smart homes.
IDC expects the global IoT market to grow from $655.8 billion in 2014 to $1.7 trillion in 2020, and another research firm, Juniper Research, believes that the number of connected IoT devices will increase from 13.4 billion in 2015. In 2020, 38.5 billion, all aspects are very optimistic about the development prospects of the Internet of Things market.
At the beginning of the year, Xiaomi Chairman Lei Jun said that the Internet of Things is one of the strategic high points of the new round of economic and technological development in the world. It is an opportunity that cannot be missed or missed. The mobile Internet is ten times that of the Internet. The scale of networking will far exceed the mobile Internet, and Xiaomi will not miss this opportunity.
On the one hand, the development difficulties faced by the global market of smart phones and the patent containment of Xiaomi, on the other hand, the signs of prosperity of the Internet of Things, and because the Internet of Things belongs to emerging industries and there is no enterprise with absolute patent advantages, it is no wonder that Xiaomi began to layout. Networking, seeking new developments.
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