BOM cost announced for the first time. Who pays for LeEco's super phone?

April 14 (Reporter Zhang Zhichang) After being away from the public eye for a year, LeTV CEO Jia Yueting made his first comeback at the LeTV Super Phone new product launch conference which was just released today.

During the entire super phone launch conference, in addition to the official release of three flagship mobile phone products with distinctive appearance, LeTV Super Phone 1, LeTV Super Phone 1 Pro, and LeTV Super Phone Max, the astonishing move of "the world's first announcement of BOM cost price" during the product price announcement seemed to have become the biggest highlight of this conference.

In fact, in the smartphone industry, it is not a wise means of competition to compete by publishing prices to show BOM costs. After all, BOM costs have become the last line of defense in the fiercely competitive smartphone market. In particular, the disclosure of BOM costs may completely push the smartphone industry into a low-profit, pure manual industry. In the PC field, computer brands such as Qixi and Shenzhou have also proved that this means of gaining competitive advantages by simply pursuing low prices may eventually lead to destruction.

In response to this, Jia Yueting explained that LeTV does not need to make money through hardware.

In the smartphone industry, mobile phone manufacturers, including the international technology giant Apple, have long been following the business model of hardware sales profit. The biggest disadvantage of this single business model is that once a product development error occurs, the profit margin of the entire enterprise will directly face a decline. For example, Apple's iPhone 5c series is mainly aimed at young users.

More importantly, in the process of transitioning from the era of feature phones to the era of smartphones, the transformation of the mobile phone form factor also requires the business model it relies on to change. The complex functions and numerous applications of smartphones also determine that they need to bid farewell to the previous single hardware sales business model and explore more commercial value at the content application level.

And this may be the real intention of LeTV Super Phone to "announce the BOM cost price for the first time in the world".

At the LeTV Super Phone launch conference, Jia Yueting announced the mass production costs of LeTV Super Phone 1 and LeTV Super Phone 1 Pro, including the main chip, memory, radio frequency module, multimedia module, structural parts, packaging and accessories, materials and manufacturing, software and patents, logistics and after-sales, etc. Combined with Jia Yueting's previous denial of the Internet marketing model, LeTV Super Phone's move may lead the entire mobile phone industry into the era of ecological marketing 2.0.

Of course, as an important product developed by a company, LeTV Super Phone cannot be "unprofitable". And this also brings up the question of who will really pay for the Super Phone?

In response to this, Jia Yueting announced that in the sales model of LeTV Superphone, users can decide the hardware price of the product independently; that is, LeTV Superphone will provide users with membership fees to purchase full-screen movies and TV shows, and reduce the hardware price of the product through the membership fees, so as to achieve the final effect of the product hardware selling price of 0 yuan.

It can be seen that the emergence of the LeTV Superphone sales model not only refers to LeTV's content resource advantages in the industry, but also successfully replicates the "platform + content + terminal + application" ecosystem explored by LeTV Super TV to the mobile terminal field of superphones.

Whether it is the smart TV industry or the smart phone industry, the continuous decline in product hardware prices has become a mainstream trend. In addition to the product hardware itself, the experience value that companies can create for users during the product sales process will completely surpass the value of the product hardware itself. Content and services are both an unavoidable hurdle and another important opportunity for companies to find success.

This ultimately determines that it should not be the users or consumers who pay for hardware products, but the achievements and future development of the enterprise itself.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.