Liu Hong, Vice President of vivo and President of China Market
In 2020, the switch from 4G to 5G in the mobile phone industry will enter a critical period. Liu Hong, vice president of vivo and president of the Chinese market, said in a recent interview with the media that the resumption rate of vivo production lines has exceeded 90%, and the recovery of channels has also exceeded 80%. It is expected that by the end of March, the daily output of 5G mobile phones will exceed 100,000 units.
After the resumption of work during the Spring Festival, vivo has successively launched three new 5G mobile phones, the Z6, iQOO 3, and NEX 3S. The S6 to be released at the end of this month will also be a full-line dual-mode 5G. Counting the NEX3 and X30 series released last year, vivo’s “5G fleet” has now achieved full coverage in the price range of 2000-6000 yuan.
“For 5G, we have made adequate plans, but consumer demand for 5G mobile phones has exceeded our expectations. At present, our full range of 5G products, including NEX 3S, X30 series, Z6, iQOO 3, etc., are sold The situation is much higher than expected.” Liu Hong said in the interview that despite the impact of the epidemic, the current sales of vivo still increased by more than ten points compared with the same period last year.
In particular, the dual-mode 5G mobile phone Z6, which was launched at the end of February, was welcomed by the market like never before, and the order calls were blown up. At present, vivo has no 4G mobile phone inventory pressure at more than 2,000 yuan.
Every switch of mobile communication technology is expected to be an upgrade of experience for consumers. For mobile phone manufacturers, it is also an innovation or an upgrade of some products, hoping to bring better functions and experience to consumers.
“We have been making mobile phones for so many years, and we have gone through 2G to 3G, 3G to 4G, and now we are going through 4G to 5G. For every manufacturer, this switch is an opportunity and a challenge.” Liu Hong said. Based on the development of the entire industry and vivo’s perception of consumer demand, he believes that the switch from 4G to 5G mobile phones should be as active as possible.
Behind the growth of sales against the trend, on the one hand, vivo actively embraces 5G and covers multi-price segment terminal products in advance. On the other hand, it is inseparable from the strong demand of consumers for 5G mobile phones.
A report released by the third-party research company Counterpoint in 2018 showed that the current replacement cycle for Chinese users is about 27 months. On the other hand, the three major operators are currently actively adding new 5G infrastructure. As of the end of February, China Mobile has built and opened more than 80,000 5G base stations, and China Telecom has opened a total of 74,000 5G base stations. China Unicom has opened about 66,000 stations in total.
According to the latest arrangement of the Ministry of Industry and Information Technology, operators and other enterprises should speed up network construction, do a good job in epidemic prevention and control and resumption of work and production, and accelerate the pace of 5G network construction. The platform economy will drive the development of industries such as 5G terminal equipment.
Vivo has been dedicated to creating products that appeal to consumers since it clearly started with “consumer-driven and design-driven”. The design concept of its 5G mobile phone is to ensure that consumers will consider 5G upgrades when the basic functional experience (screen, camera, games, etc.) is good. In terms of offline channels, vivo implements strategies such as price adjustment and compensation for retailers to ensure that the interests of retailers can be maintained while old products are withdrawn.
“From 4G to 5G, we hope that vivo can provide better products and services, so that consumers can have a better experience and provide more choices for consumers.” Liu Hong said. Consumers are also “voting with their feet”. There are products that exist in both 4G and 5G versions, and 5G mobile phones are a few hundred dollars more expensive. Many consumers are willing to choose to buy in one step. According to data disclosed by Liu Hong in the interview, the proportion of consumers choosing the 5G version exceeds 70%.
“Judging from the 5G mobile phones we launched this year, it is already a full range of 5G. From the perspective of the great development of the industry, the overall sales of 5G mobile phones account for about 20%, especially the 3000-6000 price point is mostly 5G. “Liu Hong said. At present, vivo’s 5G products are mature. In terms of cost control, manufacturing, functional experience, etc., 5G products have reached the maturity of 4G.
“Consumers have no reason to be attached to 4G phones.”