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On June 15th, Zhou Hongyi, the instructor of the dark horse development camp and the founder of 360 company, once again came to the dark horse classroom to share with the trainees his latest views on Internet and entrepreneurial innovation in the past year. He believes that the outlook for smart hardware is still promising, and that smart hardware will be tightly integrated with artificial intelligence in the future, and smart hardware will no longer continue the traditional free mode of the Internet, and it must rely on the hardware itself to make profits.
This point of view seems to be in line with the trend of the Internet of Things in the industry - hardware is free, service charges are a bit irrational.
Hardware fees, as the biggest force supporting and promoting the industrial revolution in the past more than a century, have been the root and basis for the survival of a large number of manufacturing companies. Today, when Internet companies want to subvert this fundamental by "hardware free", they will undoubtedly face an unprecedented revolution in thinking and collision of ideas.
LeSuit, as a freeware developer of hardware, debuted a “hardware free day†on April 14th. It ended up with a sales volume of 2.32 billion yuan for LeTV and a sunrise volume of 549,000 super TVs. It was like a spring thunder. Shocked the entire home appliance industry, the Internet industry and the entire terminal consumer market.
Since then, this "hardware free, service charging" model has been followed by other Internet companies, which also makes the "hardware free" has become a flag of the mobile Internet era. Of course, no one understands the truth of the big idea, LeEco holds such banner-high propaganda hardware free of charge, and other companies naturally have no way of looking at it. The co-founder of millet and the head of Xiaomi TV Wang Chuan is one of them. He calls LeTV “smartâ€. The hardware is free of charge, and users are bundled with long-term membership fees, ignoring the life cycle of the TV.
Afterwards, most TV manufacturers in China have also published relevant views. The main point is that "no free lunch" and "free lunch is the most expensive".
Now as the pioneer of the Internet free mode, Zhou Hongjun suddenly proposed that the smart hardware will no longer continue the traditional free mode of the Internet. To truly rely on the profitability of the hardware itself, many enterprises are really confused. Because Zhou Hongyi once defeated once the anti-virus software such as Jinshan and Rising with the free anti-virus software, once became the industry's leading enterprise in the anti-virus market. The success of Zhou Hongjun once opened a new era of free internet models.
Nowadays, when the industry is holding the banner of "hardware free", the cardinal has turned around and suddenly proposed that the hardware must rely on fees to make profits. So, should the smart hardware be charged?
This requires us to pay attention to those companies holding “free flags†around us. If we observe carefully, it is not difficult to find that, in fact, most companies that call out “hardware free†are companies that sell televisions and sell mobile phones. There are very few other companies. Why does the company follow the company? Because if the hardware sold by other companies is free of charge, simply relying on service charges may have long since closed.
In the case of television, Hong Shibin, an expert on Internet marketing at the China Internet Association, pointed out that free TV is not a matter of money. Instead, users pay a longer service fee to offset hardware costs, so that TV hardware is free. It is understood that the television gift content service is purchased. In today's smart TV market where price wars are frequent, this approach can undoubtedly impress consumers more than simple low-price strategies.
From the user's point of view, the "free TV" model is undoubtedly beneficial, whether it is to buy TV to watch content for free, or to purchase content services to get free TV, for the consumer, can get more value.
Of course, some industry observers have pointed out that the key to “free TV†is the operation of the color TV companies to users. If LeEco sees this type of model, consumers will pay for the equivalent of the TV price at the time of purchase, but they will only receive extra years of content services. For LeTV, its loss is equivalent to the cost of providing services to users every year. If LeTV can provide users with value-added services, or other advertising profit model, then "free TV" can become a normal operation.
Therefore, the hardware free slogan is misunderstood, especially the new generation of Internet special cases such as mobile phones, because the mobile phone is the only information portal of the mobile Internet era, so it itself has a certain commercial value, even if the company sent free Give a user a mobile phone, the hardware is a loss of a few hundred, a few thousand dollars, but the mobile phone itself brings advertising, video, games and other commercial value, but also reflects the value of deep mining companies, in other words companies can be attached to the phone itself The innate value of this to make up for the loss of the hardware, so that the company's final account is still profitable, because the value consumed by the hardware is tangible, and the associated value attached to the distinctive hardware like the mobile phone is intangible. Because once the user has depended on these intangible values, it will realize the value of long-term payment. In this case, the cost of hardware and the cost implied by these incidental values ​​are almost the same!
In the general trend of the Internet of Things, interconnecting different devices is a big market and a foundation that must be realized. However, merely connecting sensors to the Internet and controlling them through smart phones cannot ensure their commercialization. success. Lieseok-Woo, deputy director of the White House Internet of Things Presidential Innovation Research Committee, said that “it is not important to bind the device to the Internet of Things. For example, you can connect the refrigerator and the watch, but there is no value; you should pay attention to the device connection. What kind of new services can be provided. The composition of the Internet of Things business consists of four parts; from the lowest level of hardware, to the upper level of the network, data analysis, services, etc. The greater the value, the greater the added value."
Go back to the hardware free topic. Regardless of whether the hardware is free, the service is free, and the content is free, users can enjoy free, partial and limited conditions, and it cannot be absolutely free.
Therefore, the hardware free price must be the service charge, but the free hardware must depend on how much additional value can be brought to the enterprise in the later period. Of course, this kind of service charge will also bring huge value to the enterprise to some extent. The burden, such as hardware costs, labor costs, etc., once the company is unable to withstand such losses in the short term, it is bound to make the company into a bigger dilemma!
As Zhou Hongyi said: "A smart hardware should not be completely pursuing the highest price/performance ratio. If there is a reasonable profit, it should seek to make the experience the best. When you buy this hardware, it can really give you a tasteful If you blindly pursue the hardware free of charge, nobody is Lei Feng, who has to support the company.I can tell the shareholders that the return is later, but the shareholders' investment is also the ultimate reward.You can not always rely on the support of the capital. Capital cannot support it."
So the entrepreneurs paid attention to: The hardware is free of risk, and the service must be careful!
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