The behind-the-scenes push for Chinese mobile phones to sweep the world: Where will the solution companies go?

By the end of 2016, global mobile phone (including feature phones) shipments have reached 2 billion, and the global smartphone users have exceeded 2 billion. Among them, the number of Chinese smartphone users exceeded 625 million, accounting for 31% of the world. China's design and manufacture of smart phones accounted for more than 50% of global mobile phone shipments. When it comes to China's mobile phone R&D and manufacturing, in addition to the well-known Huami Ouwei and the previous China Cool Alliance, the most worth mentioning is the domestic mobile phone solution company that has been obscured but made great contributions.

The solution company is more flexible and convenient than the branded mobile phone company. The large solution company process is very standardized and the response time is also very fast. For the brand mobile phone company, the same project can also choose two customers to compete, according to the acceptance results to determine the proportion of the two companies' shipments. Therefore, in the low-end running project, it is more willing to find a solution company to do, rather than self-research. This also makes domestic solution companies occupy a very important place in this mobile phone smoke.

The origin of the solution company

Since the establishment of CLP, the first mobile phone solution company in China in 1999, the solution company has been in development for 16 years. ICshare has divided the development of domestic mobile phone solution companies into the following stages:

1. Before 2002, the embryonic stage of the solution company

In December 1999, China Telecom Electronic Industry Group (CEC) and Cylon International Corporation jointly established the China Mobile Sailong Communication Research Center to become the first mobile IDH in China;

In May 2002, Li Hailin resigned from the position of director of mobile phone R&D of Konka Company and founded Jingwei Technology Co., Ltd.;

In July 2002, Dong Defu resigned from the work of Motorola China Sales Manager and founded Dexin Wireless;

In December 2002, Wang Hao, the son of Mr. Wang Zutong, the president of electronic components distributor, established the company.

In July 2002, 29-year-old Du Junhong started his business from ZTE, and Shanghai Longqi was established.

The solution company is beginning to enter the embryonic stage.

2. From 2003 to 2005, the development stage of the solution company

Due to the rapid development of sales in the mobile phone market, and the launch of the launch of the Linkage and MediaTek's Turkey program, the difficulty in designing mobile phones has been reduced, and mobile phone solution companies have been established. Both Huaqin and Wentai were established in 2005. At this time, there are not many capable company companies, so the solution company has the dominant position and can charge customers with expensive research and development fees and product commissions.

The biggest impact on the industry at this stage is Motorola and ZTE. Beijing Dexin boss Dong Defu and CEO Huo Baozhuang are from Motorola. The Shanghai solution company Longqi, Moshang, Wentai, Huaqin and Yousi are all from ZTE. The R&D engineers of many companies in Shanghai are from Taiwan's Duba (Shanghai Dibit). There are two words circulating in the industry: the mobile phone industry North Motorcycle, South Zhongxing; Shanghai's solution company is ZTE's boss, the big fighter.

3. From 2006 to 2010, the prosperity stage of the solution company

The number of solution companies began to increase, and the domestic registration of mobile phone brands began to be released. The mobile phone industry has become a channel for the king. So the integrators with sales channels began to dominate the industry chain. The solution company can no longer charge R&D fees and product commissions, but start to provide PCBA or complete machine ODM. After the integrator purchases it, it sells it to the brand customer, or the integrator buys the right to use the brand like the first letter, Eastcom, and sells the whole machine.

4. From 2010 to 2013, the transformation phase of the solution company

Solution companies have developed their own brands. Longqi's Qi Le, Rui Jiake's Green Orange, Shanghai Yousi's Yousi, Wentai's Wen Shang, Dexin's Tektronix and other brands have become the new mobile phone brand with the Internet. With the rise of TDS-CDMA and smartphones, the entire mobile phone sales channel has become the dominant operator. In order to absorb the amount, the solution companies have been associated with the big operators of the operator projects, Cool, Huawei and ZTE. By the operator subsidizing the impulse, and getting better bargaining power with the supplier.

5. From 2013 to the present, the integration phase of the solution company:

With the rise of e-commerce and the layout of branded mobile phones, operators have gradually lost their voice. Whether it is from the China Cool League in 2013 or this year's China Europe and the United States, they have begun to rise through open channels. At this time, the domestic solution company began to change the thigh in order to obtain more markets. Locked Huawei, Xiaomi, Meizu and other customers. In addition to the high-end models self-research, some low-end models were handed over to domestic solution companies. So the red rice, the blue behind the charm blue, Hua Qin behind the glory of Huawei, and even the Zhuo wing behind Gree, the Himtoon behind the hammer is gradually becoming familiar to outsiders.

In the history of the development of domestic solution companies, there are so many things that have a great impact on the industry:

1. Nokia’s lawsuit infringement of Huaqin Company and the infringement of the company. Not to mention whether Huaqin and Yiwen are infringing. In the early stage of the development of the scheme company, the high imitation of the scheme company is very serious. The high imitation mobile phone is very popular, and many small solution companies are taking risks.

2. In June 2011, due to the state's strict investigation of high imitation smuggling, and tax evasion and tax evasion, Time Hualong foundry was seized. Due to this incident, several Shanghai solution companies were suddenly investigated in June. And Beshang, Zheng Ze is thus closed down. By this time, high imitation, smuggling, tax evasion and tax evasion is still one of the magic weapons for the survival of the solution company. During the investigation of this incident, many programs were suspended and even the company name was changed. Since then, the high imitation and other things, the various companies are cautious.

3. In February 2016, the exhibition was closed down. Judging from the explanations of the exhibition, it is due to the fact that the important customers of Zhantang and the FLY arrears have not been settled. But it also reflects the weakness of the solution company at this time in the entire industry chain. If you want to sell your products, you not only need to sacrifice profits, but you also need to invest in production before you can pay back the goods. Even if it goes public, there is no good business model, and it will close down.