The "smile curve" theory and practice: Panel companies scream 100 billion in profits, and color TV companies struggle

The founder of Acer Group, Mr. Shi Zhenrong, proposed the famous "Smiling Curve" theory in 1992 for "recreating Acer". According to this theory, the areas with the richest value are concentrated at both ends of the value chain-technology, R & D and brand, market, assembly and manufacturing are at the bottom of the curve, that is, the position with the lowest profit level.

Panel companies rush to attract 100 billion profits, color TV companies struggle

In terms of manufacturing capabilities, China has become so strong that it has no rivals. China produces 60% of global cement, 45% of steel, 50% of glass, 25% of cars, 40% of ships, 70% of smartphones, 90% of laptops, 80% of air conditioners, 65% of refrigerators ...

However, as revealed in the "smile curve", assembly and manufacturing are only at the bottom of the value chain. Without core technology and market brand capabilities, after consuming a lot of human and material resources, manufacturing companies can only obtain the profits of Weibo , Objectively can only "make wedding clothes for others."

Although China's color TV industry (complete machine enterprise) has achieved a major breakthrough in technology and market in the past five years, while its scale and market coverage have continued to improve, its profit level has continued to decline, and it has not completely bottomed out from the bottom of the "smile curve". walk out.

Nail Technology noted that in 2012, the profit margin of the top six domestic color TV companies was still around 3%, but this data has been declining in the past five years. The profit margin in 2017 was only around 1%.

According to data from Aoweiyun.com, the retail volume of China's color TV market in 2017 was 47.52 million units, down 6.6% year-on-year; the retail sales scale was 163 billion yuan, up 4.5% year-on-year.

Panel companies rush to attract 100 billion profits, color TV companies struggle

If calculated with a retail sales of 163 billion yuan and a profit rate of 1%, the overall profit of the color TV industry is only 1.63 billion yuan. You should know that there are currently more than 20 brands (including Internet brands) participating in the color TV market, with an average profit of less than 100 million yuan each. In fact, the industry profits cannot be divided equally, the head brands will occupy most of the industry's profit share, and the vast majority of brands will be in a state of meager profit or loss.

Color TV companies do not make money, making many brands struggling, and some Internet brands even delist directly. However, the difficulty of the whole enterprise does not mean that the entire industrial chain is in trouble. In fact, panel companies that are on the upper reaches of the industry chain made a lot of money in 2017.

According to Nail Technology, the price of LCD panels has increased from March to April 2016 for 14 months, and the monthly price increase of some size peaks has reached 90%, and the overall price has reached 40%.

The price increase of the panel is also transmitted to the whole machine market. Nail Technology noted that the price of LCD TVs increased by 12% in 2017, and the average price rose from 3200 yuan at the beginning of the year to 3500 yuan at the end of the year. However, it is obvious that the increase of the color TV set is not as large as that of the panel.

In terms of profit, the days of panel companies are very rich. In the first three quarters of 2017, the profits of the six largest LCD panel manufacturers in the world reached US $ 11 billion, and consulting agencies estimated that the full-year profit in 2017 will reach US $ 14 billion-US $ 15 billion, close to RMB 100 billion!

Panel companies rush to attract 100 billion profits, color TV companies struggle

The profit of the whole industry of color TV sets is less than 2 billion yuan, the total profit of the six major panel companies is nearly 100 billion yuan, and the profit of the panel companies is 50 times the profit of the whole machine companies!

For the color TV industry to be sustainable and healthy, it cannot allow panel companies to be unique. Color TV companies must increase profit levels as soon as possible. Major General Ding, an observer of Sankei and founder of Nail Technology, believes that color TV companies need to pay attention to the following five points to improve profitability:

One is rational competition. Under the condition that the profit rate is already very low, we must resolutely put an end to the simple and rude price war, do not follow the old road of "sacrificing profits for the market", and avoid harming others.

The second is to focus on high-end. Focus on the layout of large-scale high-end markets of 55 inches and 65 inches, accelerate the upgrading of new display technologies, speed up product structure adjustments, and increase the profit margin of single products.

The third is the joint upstream. The panel is an asset-heavy industry, and whole-machine enterprises can strengthen their cooperation with upstream through self-building and equity participation in real time to enhance industrial early warning and risk control capabilities.

The fourth is to broaden the profit model. Based on the current status of the popularization of smart TVs, color TV companies must develop from a pure hardware profit model to a software and hardware profit model to increase OTT-side operating income.

Fifth, expand overseas markets. The domestic market is basically saturated, and the focus of the incremental market can be tilted overseas. It should be noted that the OEM method is still only the lack of scale, and the global layout of independent brands should be strengthened to increase the brand premium level.

The "smile curve" is terrible for current color TV manufacturers, but as long as they insist on technological innovation and the development of independent brands, and the industry forms a relatively consistent action goal, then walk out of the "smile curve" bottom and occupy High value is not impossible.

Super D

Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.Mietubl Premium Super D screen protector with best price.

Super D screen protector,super D screen guard

Mietubl Global Supply Chain (Guangzhou) Co., Ltd. , https://www.mietublmachine.com