Is it no longer possible to subsidize the hardware of LeTV Super TV?


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Jia Yueting announced that he will no longer subsidize the hardware in the future, LeEco’s hardware negative development model has been put to rest, and the hardware-free era that had been highly hoped for by the outside world was pushed back indefinitely. Having lost the low-cost weapon, how will LeTV be able to maintain its competitiveness in the color TV industry in the future?
Yesterday (January 15), LeTV Jia Yueting made a clear statement at LeTV's Strategic Investment and Cooperation Conference. After the LeSco Ecology entered the second phase, the pricing of smart hardware will also enter the second stage. It does not seek high gross profit, but it does not subsidize hardware. It uses a very reasonable and relatively low positive gross profit pricing model.
LeTV is able to emerge in the color TV industry. The weapon is an ecological model for hardware subsidies. There are two important factors, one is the ultra-low price of hardware and the second is a powerful content resource.
LeTV's negative profit model, which is lower than the cost price, once brought greater impact on the color TV industry, and once caused traditional TV companies to feel the pressure of a strong price competition. At the same time, LeTV, which started as a video site, has a natural advantage in terms of content. However, traditional TV companies are relatively lacking in content at that time, which gives them a rapid growth opportunity.
Since entering the color TV industry in 2013, sales of LeTV Super TV have rapidly increased in just three years. According to the data released by LeTV, as of September 30, 2016, the cumulative sales of LeTV Super TV for three years reached approximately 8.5 million units.
In the future, the hardware will not be subsidized, and another message sent is that the low-cost advantage will be weakened. In the future, LeTV will face the low-price competition of internet brands such as millet and micro-whales, as well as traditional TVs. The suppression of Internet TV brands by enterprises is obviously happy to face greater challenges in the development of the color TV industry.
How to maintain and enhance the continuous attraction of users?
The advantages of content-based television brands, including LeTV, are facing the chase of many traditional color TV companies. At present, Changhong, Skyworth, Hisense and other traditional color TV companies have all stepped up efforts to repair content shortcomings. Compared to LeTV's single content platform, traditional color TV companies often cooperate with iQiyi, Tencent and other video sites. The pursuit of content by traditional TV companies has weakened the content advantages of LeTV.
At present, the consumption of color TVs has entered the stock market, and the momentum of large-scale and rapid growth is no longer maintained. If LeTV wants to continue to maintain its rapid growth in user scale, it must strengthen its content advantages and user depth and refine its operations, and attract more paying members on the basis of maintaining the existing tens of millions of users.
How to seize the high-end opportunities?
In recent years, the high-end trend of consumer TVs has become increasingly apparent. According to a survey of high-end consumer electronics products released recently, 44.8% of consumers tend to choose high-end televisions with prices ranging from 1,500 yuan to 12,000 yuan.
Traditional color TV companies that have struggled in the price war have accelerated the pace of high-end deployment. On the one hand, they have increased the introduction of high-end products, such as Skyworth introduced Skyworth OLED TVs, Changhong pushes artificial smart TVs, etc., to increase the technical attachment of products. On the other hand, accelerating the creation of high-end brands, the high-end sub-brands have been launched and brand premiums have been raised.
However, for LeTV, it is clear that there is not much consideration for high-end areas.
With the advent of display technology, how will LeTV respond?
Color TV is a technology-oriented industry. Traditional TV companies have strong advantages in display technology. For example, in the fierce battle of display technology wars, Hisense focused on creating laser televisions with core technologies, while Skyworth advocated OLEDs, and TCL made every effort to create superior upstream screen resources.
When ecological wars centered on smart TVs are attributed to silence, display technology is once again dominant, and the manufacturing advantages of traditional TV companies will be strengthened. If we say that in recent years, traditional enterprises have been able to quickly fill up content shortcomings through resource integration in the competition with Internet companies, but in the age of display technology, Internet-branded TVs have been unable to compensate within a short period of time or even longer. Qi technology short board.
After years of experience in the market, LeTV has a strong market operation capability and market competitiveness in the color TV industry. For LeTV and Jia Yueting, the huge investment of just 16.8 billion yuan has undoubtedly contributed to the snow. Looking forward to music, with the help of this "one-time solution to the financial problems in the development of music as LeTV", in the next era of Jia Yueting judgement, that is, the era of industrial Internet and music as the second stage of ecology, launched a new game, to achieve new model innovation And subversion.
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