Shen Jin: The Gold Rush of the Smartphone Market Shows Six Features

In the past year, the complementary forces of mobile Internet and smartphones have created new markets. As an important carrier for the mobile Internet, the spurt development in the Chinese smart phone market has brought a feast to the industry chain. However, new entrants such as Internet companies have flocked to the same market as terminals and applications.

However, on the other hand, Internet companies are involved in the mobile phone field and smart phone built-in feature applications, highlighting the characteristics of the era of smart phone applications. The open nature of the mobile Internet has determined that the convergence of software application providers and hardware vendors has become a trend.

Shen Jin, the global vice president of Qualcomm, stated that "for a good user experience and innovation in various applications and services of the mobile Internet, it must be optimized and integrated with the hardware, especially the processor."

With the growth of smart phones, the Chinese market has become a new wave of industrial innovation driven by the core mobile internet. Mobile terminals have become the largest platform in human history. According to a report on traffic and market data released by Ericsson, as of the first quarter of this year, the penetration rate of global mobile terminals has reached 87%, and the total number of users has reached 6.2 billion. Shen Jin said, “This is an unprecedented information platform in history. This information platform is closest to us personally. We follow our longest personal time and the widest coverage area. We have great potential in this type of information platform.”

With the development of the mobile Internet, the explosive power of the smart phone market is of particular concern. US IDC research company recently released forecast data that, in 2012, global smartphone shipments will increase by 38.8% year-on-year to 686 million units. According to Ericsson’s estimates, the number of smartphone users worldwide will reach 3 billion in 2017, compared with 700 million at the end of 2011.

The development trend of the smart phone market has encouraged the entire industry chain. In just two years, smart phones are transforming from luxury goods to necessities. Among them, the Chinese market is an important driving force. Benefiting from operators pushing down thousands of smart phones and mobile phone chip prices, the Chinese mobile phone market has seen a spurt development in the past year.

According to the latest research report released by CCID Consulting, in 2011, the smart phone application environment has been growing, the scale of users has grown, and the “thousand Yuan smart machine” has driven sales. The smart phone market in China has maintained a high-speed growth trend. It reached 73.444 million and achieved an increase of 129.4%.

Today, this explosive growth trend continues. US market research firm Canalys reported that the global smartphone shipments in the first quarter of this year were 146 million, an increase of 45% year-on-year. Among them, China's shipments accounted for 22% of global shipments, exceeding 19% of the United States, making it the world's largest smartphone market.

Shen Jin said that the center of gravity of mobile terminals, especially smart phones, has been transferred to China. From 2011 to 2012, this trend is very rapid. This year, the sales volume of smart phones in the Chinese market will reach 160 million. Among them, Huawei, ZTE and other mobile phone manufacturers will play a very important role.

The “Gold Rush” of the smart phone market presents six major characteristics The Internet has created a number of new markets in the process of migrating to the mobile Internet. The domestic 3G market is entering the inflection point of large-scale development. The development momentum and potential of the smart phone market have attracted many nuggets.

Shen Jin believes that the "gold rush phenomenon" of the smart phone market today presents several features: First, the number of new entrants has soared. The Internet company's investment in smart phones has become a hot spot in the near future. The second is 2G to 3G smart. 2G has a very large production base. It will face various opportunities and challenges in the transition from 2G to 3G. The third is the rapid increase in mobile phone configuration. Fourth, the price of mobile phones has fallen. Fifth, the product life cycle is shortened. Sixth, homogeneity is serious.

Recently, Internet companies have become the focus of attention in the industry. The success of Xiaomi’s mobile phone has brought a huge demonstration effect. After internet companies like Xiaomi Technology and Alibaba Cloud launched their own-brand smart phones, many Internet companies including Qihoo 360, Shanda Networks, and Netease have also announced that they will enter the smart Mobile phone market.

In this regard, Shen Jin believes that Internet mobile phone companies should become smart Internet builders. In fact, Internet companies that participate in smart phones are mobile phones. "This is simply measured in two dimensions. One is the depth of hardware and software integration, and the other is a loose overlay of hardware and software. Internet companies can enhance user experience through technological innovation and leverage on their value of propaganda. They propose new business models and improve Added value and amplified value through various channels of communication. In this regard, Apple is a typical example of success."

In addition, there is a strong demand for popular smartphones in important nodes where 2G users migrate to 3G. Right now, regardless of traditional manufacturers or Internet companies, they have chosen to use thousands of smart machines as their starting point. In this regard, the threshold for smart phones has been lowered, and on the other hand, it has also caused the homogenization of the domestic smart phone market.

Shen Jin said, “We also particularly support the reduction of prices through good processes and scientific methods, and reduce the circulation costs through e-commerce circulation, and expand the experience of cost-effectiveness through communication. However, we should support the promotion of value, technological innovation, and the introduction of new ones. Business model and value approach."

Industrial chain integration innovation, deep integration of chips and applications to enhance the user experience In the smart phone market, Qualcomm Snapdragon processors are almost everywhere. As a global leader in mobile phone chips, Qualcomm continues to innovate and dominates the emerging mobile computing and communications industries. With the development of smart phones, deep integration and innovation between chip makers and handset manufacturers will play a crucial role in breaking down homogeneity and improving user experience.

First, the demand for smart phones for chips continues to expand, which places higher demands on chip vendors' R&D, platforms, and supply chains. With the acceleration of the popularity of smart phones, Qualcomm will also extend its product line to the low-end market. Last year, Qualcomm launched the QRD platform and one-stop solution to reduce handset manufacturers' early research and development costs, reducing the mobile phone development cycle from the previous five months to 2.5 months.

Second, smart phones have higher requirements for display technology and interface operations fluency. Shen Jin said that the advanced graphics processor determines the experience of mobile multimedia, and the GPU's contribution to the user experience is definitely not less than the CPU and even more important than the CPU. Four applications in smart phones are closely related to the GPU. One is the mobile phone interface; the second is the Internet. For example, many web interfaces display and render using the GPU. The third is mobile games. The fourth is navigation. The GPU's capabilities play a decisive role in the user experience of large-screen mobile phones.

In addition, chip deep integration applications bring innovation. Today, smart phone applications are an important means of avoiding homogenization. Many chip makers including Qualcomm have reached a series of applications with application developers. Shen Jin said, "Application developers and service providers, through deep integration with hardware, including chips, improve the user experience and bring about the possibility of innovation. For example, through chip integration and optimization, can achieve a better Web experience The average speed of downloading pages can be increased by 30%. Qualcomm's dual-core and peer quad-core comparisons have increased the rendering experience by 12 times."