Industry News

Mobile Phone Giants Enter The Big Screen Traffic

  On August 20th, it was reported that Huawei, OPPO and vivo all intend to enter the color TV market and seize the entrance of smart home. Although this rumor has not yet been confirmed, considering the precedent of Xiaomi’s TV circle, it seems that these mobile phones It’s logical for the giants to do TV. Whether Huawei, OPPO, and vivo are strategic needs for layout smart homes, or because mobile phones have a large user base, doing TV may be an important part of the company's strategic layout. However, the color TV industry's profits are meager, and even many manufacturers are operating at a loss. In addition, traditional TV manufacturers have already occupied most of the market share. Huawei, OPPO and vivo may have no small challenge to profit from it.



  According to the news, Huawei has re-established the TV project team and conducted research on the hardware and UI levels. The Huawei TV project team has recently recruited people and is also in contact with upstream panel makers. Unlike Xiaomi's TV, Huawei may focus more on the 8K display in the 5G communication era (that is, the resolution is 7680×4320 pixels, and now the TV on the market is mainly 2K, 4K). However, for the above rumors, Huawei related people responded that they "have not heard of it."

  A TV upstream supplier who asked not to be named also said that Huawei wanted to do TV two or three years ago. The first Huawei wanted to provide customers with a total solution in Europe, from communication equipment to terminal products. At that time, Huawei and panel makers discussed cooperation with 4K TV. There is no clear progress 

  In addition to Huawei, the mobile phone industry's "big brother" OPPO and vivo have recently been passed down into the color TV market, and are currently evaluating the research TV market. In this regard, the relevant people of the vivo denied the news, saying that "this is only a rumor, there is no such news inside the company." As for whether vivo may enter the TV field, he said that the current vivo will still focus on the mobile phone industry.

  Last month, OPPO completed one of the largest patent acquisitions to date, bringing in more than 20 patent portfolios from American audio giant Dolby Laboratories. Some analysts said that OPPO has acquired many audio and video patents from Dolby Laboratories. Its ambition must not be limited to the research and development of new mobile phones in the future. The real purpose is probably to create a better than "Friends" millet in audiovisual. A cost-effective TV product with a focus on quality and sound quality.

TV has always been regarded as a smart home in the industry, which is the entrance to the living room traffic. Therefore, if the mobile phone giants such as Huawei, OPPO and vivo really enter the color TV market, I am afraid that they cannot be separated from the smart home. According to the latest statistics, in 2018, the global smart home market has reached 50 billion yuan. It is expected that the smart home market will exceed $79 billion in the next 3-5 years.

  Analysis of the home appliance analyst Liang Zhenpeng pointed out that the development of the home Internet of Things, the entrance is very important, but the traffic portal is a smart phone, TV or audio, there is no unified answer, each enterprise has its own ideas, Huawei, OPPO and Vivo should also want to share information and interconnect with TV and mobile phones.


Low profit

In recent years, with the gradual landing of concepts such as the Internet and the Internet of Things, the concept of smart home has been highly sought after. The post-production observer Ding Shao pointed out that it is indeed at a critical stage for the entrance to the living room flow. In fact, this kind of competition, if it was marked by the LeTV in the TV industry in 2013, started as early as four or five years ago. From the perspective of the industry, the smart home as a whole is still in the stage of single product intelligence. The cross-brand and cross-category interconnection based on unified standards has not really scaled up.

  It is reported that Huawei's smart home is the first to be led by its glory. In 2015, Zhao Ming, president of Huawei Glory, said that in the next two to three years, the income of smart home can account for 30% of the glory. Yu Chengdong, CEO of Huawei's consumer business, also said that in the next decade, smart terminals will enter the era of full-scenario experience, and the commercial essence is “people” rather than “things”.


The timing may be right, but the color TV industry is not easy to survive, and the meager profits have caused many TV manufacturers to withdraw from the historical stage, such as Xoceco. Although China's color TV industry (the whole machine enterprise) has achieved a breakthrough in technology and market in the past five years, the scale and market coverage have been continuously improved, but the profit level has been continuously lower, and it has not completely come out from the bottom.

Beijing Business Daily reporter noted that in 2012, the profit rate of the six major domestic color TV companies was still around 3%, but this data has been declining in the past five years, and the profit margin in 2017 is only about 1%. In fact, industry profits cannot be equally divided, and the head brand will occupy most of the industry's profit share, and most brands will be in a state of low profit or loss.

Regarding the issue of profit, Ding said that smart homes contain a trillion-dollar market, and television is the center and an important entrance to the home Internet. Into the TV market, the purpose is not to thin the hardware profits, but to control the entrance of the home Internet, to achieve sustainable operation of the home user market. "Huawei and BOE have good cooperation on the small screen of mobile phones. It is very easy to expand to the big screen of TV. And Huawei has its own HiSilicon chip, has successful experience in manufacturing and operating consumer electronics products, and has invested in the TV market. And the risk is not big, but the possible benefits are very high."

  Liang Zhenpeng also pointed out that the TV industry does not make money, and most Internet companies are now dying. However, there are a lot of room for development of programs such as on-demand broadcasting and shopping for smart TVs. The ARPU value (average revenue per user) in this part is increasing significantly every year, so the future is expected. "By providing users with software and content to obtain a steady stream of profits, it is the reason why new companies continue to enter the TV industry."



If Huawei, OPPO and vivo enter the TV industry, it is a good thing for the market. Industrial observer Hong Shibin said: "Because of the revolution in the color TV industry, it is impossible to rely on traditional color TV manufacturers. When LeTV failed to do Internet TV, LeTV’s strategy is actually correct. Smart home has been spoken for many years and still in In the initial stage, the key is that the terminal is not opened, and the real smart TV has not been developed, which leaves room for Huawei."

Some analysts said that if Huawei is doing TV, it is expected to target 5G applications, because it is of little significance to develop 5G applications from the mobile side. 5G has two applications in the terminal, one is unmanned driving and the other is 8K display. The cost of broadband replacement in the home is high, and 5G wireless communication can meet the demand of 8K ultra-high definition display, so 8K is a huge potential market.

   "Huawei will not compete directly with Skyworth, Hisense and TCL for the TV market. It may only focus on 8K TV and 8K display." One person analyzed that Huawei does not necessarily have to do 8K TV itself if others have already done the market. It is very mature, Huawei will be a good network service provider; otherwise, it may take a big step. It is estimated that the global 8K TV shipments will reach 200,000 units in 2018, and it is expected to reach 2.9 million units by 2021. This year, Huawei has cooperated with BOE to expand the 8K display market and showcase the 8K display solution in the era of 5G communication.

    "Huawei, OPPO and vivo, manufacturers including Xiaomi, must open the smart port of the TV, turn it into the port of the Internet of Things, try to reduce the hardware cost, improve the software service capability supporting the background, and the terminal intersection of the living room. Detonated." Hong Shibin said that mobile phones can connect everything outside, this is the real intelligence, color TV also needs such reforms, many TV manufacturers have not really solved this problem, once the bottleneck is broken, the market dividend is very worth looking forward to. 


Ding Shaoer suggested that mobile phone companies can do three things in the TV market: First, borrow the "potential" of mobile phones, including existing brand resources, channel resources, supply chain resources, etc.; second, focus more on young people, in products, The price, market, and marketing are misaligned with traditional brands; the third is to take advantage of the ecological advantages to realize the interconnection of small screens of mobile phones and large screens of TVs, and to promote the development of large screens with small screens under the framework of smart homes.

Beijing Business Daily reporter Shi Feiyue / Wen Song Yuanyuan /

Prepared by :Lucy Ye