Can Huawei break Google's spells?

Google’s new generation of Nexus phones finally unveiled at Google’s new product launch in the early hours of this morning, and its Nexus 6P mobile phone is quite eye-catching for the first time as it was handed over to Huawei’s Chinese manufacturer Huawei. In fact, prior to the release of the Nexus 6P, domestic media and commentaries had already given a lot of positive feedback to Huawei's OEM Mexus based on rumors. After all, Nexus was once the benchmark of the Google Android flagship known to the industry and could be used for its OEM. At least proved the strength of the foundry business itself. Is this really true?

The industry familiar with Nexus history knows that in the early days of Android's entry into the smart phone market, manufacturers and models were uneven. Google launched the benchmark Nexus series phones to present and indicate the development direction of Android for users and manufacturers. However, as the Android market gradually matures, especially the mobile phone manufacturers’ own Android flagship level, the benchmarking and influence of the Nexus series phones is actually continuously weakening, and today, its own benchmark and existing value has been Dramatically shrinking, and even analysts believe that Nexus's benchmarking role has passed.

Second, from the market positioning, the initial Nexus is positioned in the high-end Android machine. This can be seen from the pricing of its first three generations of Nexus models, especially the second generation of Samsung's Nexus S, which was priced at 650 euros at the time. Unfortunately, the price of Nexus S dives sharply after only one month of its release. When it came to the third-generation Galaxy Nexus, it failed to support its high-end market positioning price, and ultimately it was able to sell at a reduced price of around US$350. Since then, Nexus 4 and Nexus 5, manufactured by LG, have learned lessons from previous Nexus high prices and caused poor sales, locking the initial price at around $300-350. Although the market performed well, overall shipments and mainstream Android The fact that the camp vendors are still relatively small is the main reason why the relevant statistical agencies have not calculated the Nexus series shipments independently. In the Nexus 6 that was OEMed by Motorola last year, Google once again hoped to boost the high-end position of Nexus with the aid of price. However, the dismal sales of the Nexus 6 with a price of 600 US dollars not only failed to realize the dream of Google Nexus returning to the high-end, but also resulted in this The related decline in Google’s performance is still based on a significant price reduction.

In the end, from the perspective of the Nexus foundry companies, although they were the main force of the Android camp and the market performed well, they all began to decline after the OEM Nexus. The most typical are HTC and Samsung. At present, the market share of HTC in the smart phone market has fallen to the marginalized situation, the market value has fallen below its cash reserves, and it has been rumors of mergers and acquisitions; Samsung is a market share, revenue, profits and market value all the way down, especially the high-end market. Already unable to compete with Apple iPhone. As for LG, it is also living under extremely low profit conditions. According to the latest statistics, the profit of each LG smart phone is only 1.2-1.6 cents. It can be said that the performance of the companies that used to be Nexus's foundries is now surprising.

It is not difficult to see from the above that Google Nexus is more like a charm in its own development, whether it is for itself or for foundry business. So this time by Huawei OEM, Google and Huawei can let themselves out of this spell it?

As we all know, Huawei’s momentum in the smart phone market has grown rapidly in recent years. In 2014, Huawei’s smartphone shipments nearly doubled from 2013, reaching 75 million units, ranking third in global smartphone shipments, and this year’s sales. It is expected to reach 100 million units and the position of maintaining the top three positions in the global smart phone should be no suspense. In addition, Huawei's reliance on Mate 7 and P series in the domestic high-end mobile phone market also makes Huawei have a good reputation in the domestic high-end mobile phone market, in which the proportion of high-end smart phone shipments is gradually rising. In addition, according to IPSOS data, in 2014, Huawei's global brand awareness increased to 65%, and China's area increased from 68% to 90%. The Huawei brand's net recommendation value increased from a negative 24% in 2013 to a positive 43% in 2014. This year, it has significantly increased. It can be said that in the current Android camp, Huawei is the only choice and hope to break the Nexus spell.

In addition, from the Android camp's market performance, due to the popular Apple iPhone 6 and iPhone 6 Plus before, Android users have to invest in the Apple camp. According to a survey by investment bank Cowen & Company, 16% of the users who purchased new iPhones previously had Android devices; in China, the ratio was as high as 29%. Even more lethal is that, in addition to Apple, Android camp vendors are either at a loss; they are either at a low profit; or they are in a state of sharp decline in profits, so from the perspective of Google, they also need to re-enter the industry through the real success of Nexus. Establishing the image and confidence of Android benchmark, which is why the rumors that Google may abandon Nexus before finally determine the main reason to keep and update Nexus. From this point of view, Huawei's foundry Nexus is not only a simple mobile phone, but the future Android camp can effectively compete in the market and the healthy development of the important task.

In summary, we believe that the benchmarking role of Google’s Nexus mobile phones is no longer the same, and it is precisely because of this that it’s important to reshape the role of the benchmark. In particular, given the previous Nexus spells, Huawei’s ability to break through The only manufacturer of this spell condition, but there are still no small challenges.