Apple 2019: Give up 5G and Open Content

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Apple 2019: Give up 5G and Open Content

2019-01-31 10:25:00 153 ℃

Photo Source @Visual China

New Knowledge of Science and Technology

Apple is looking for a breakthrough in 2018 because of pricing strategy problems in the Chinese market. With the Spring Festival approaching,

Apple has launched a great deal of preferential policies in the Chinese market, covering official websites, Apple Store and third-party e-commerce platforms, with unprecedented strength. In the operator-specific version, the lowest price for the iPhone XR is 4999, while the lowest price for the iPhone XS Max is 7999, which is thousands of yuan lower than the original price. The theme of price reductions is still hovering over the unpublished iPhone 2019 series. According to the Wall Street Journal, Apple is considering cutting costs by eliminating all 3D Touch features on all 2019 iPhones.

According to The Information, although the overall profit margin of the past generations of the iPhone has been declining, its absolute revenue has continued to rise considering the rising price. The inevitable trend is that in order to maintain a certain profit margin, if Apple wants to reduce the price of the new iPhone, how to cut costs is the first factor that Apple needs to consider.

According to the past market performance and the rules of the next generation upgrade of the iPhone, Apple should change its ID design in 2019, add to the reduction in cost, and the appearance of A13 chips and iOS 13 with halo. It is not as difficult as Apple imagined to retrieve users.

But today is different from the past. The biggest technological and public opinion advantage of the Android camp in 2019 over Apple is 5G.

In 2019, Android flagship with 5G chips will appear, but due to the lawsuit with Chase and Intel's backwardness in baseband chip technology, Apple has postponed the 5G iPhone timetable to 2020. This will put Apple at a disadvantage in the brutal market competition of 2019 - although the impact of 5G technology on the mobile phone industry itself is far less significant than that of 3G to 4G. Technological Myth of < p > 5G Mobile Phone < p > 5G Technology Popularization will be the next wave of mobile phone industry to rely on, this view has been almost recognized by the whole industry. And Apple's failure to release the 5G version of the iPhone in 2019 will result in Apple's technological backwardness and almost become a consensus. However, Robert X. Cringely, a well-known foreign columnist of science and technology, put forward a completely different point of view in an article.

The author believes that 5G technology is not yet fully mature. According to the 5G technology planning of countries and regions around the world, the 5G network and mobile phone in 2019 should only be small-scale pre-commercial, and it will not be fully popularized until 2020 at the earliest. At that time, the 5G version of the iPhone just catches up with this wave of technology trends. On the whole, Apple is just a little later than its competitors, and its disadvantage is not too great. 。

But this is not the key point. The most important and contrary to the mainstream idea is that 5G technology has nothing to do with the mobile phone industry at all. Over the past few years, with the development of mobile Internet, communication technology has increased from 2G to 3G to the current widely used 4G LTE network, and the real-time data download speed has increased from several KPS to several megabits per second. According to the test of China Broadband Rate Report, the average daily network speed of the three major domestic operators can basically maintain at about 2.68M per second. The number of

is enough to satisfy all your needs on your mobile phone. Except for the graphics and texts which consume little traffic, the highest standard HD video on mobile phone and large-scale online games can get enough smooth experience.

So, according to 5G technology, it can increase the network speed by 20 times, and how much can the experience of mobile phone itself be improved? Is it 4K or 8K quality or super high refresh rate like 144K? An undeniable physical reality is that these purely digital advances have already transcended the human naked eye, and the effect they can achieve on mobile phones is even less obvious.

Therefore, the author's point of view is that the future trend of 5G technology is not related to mobile phones, but to change infrastructure and eliminate all cable related to signal transmission, including fixed telephone, cable TV and broadband network. In the future, people will live in a completely cable-free network world, and traditional cable TV will be like Netflix. Like other websites, they have transformed into pure content providers. This is why the 5G generation will be called the Internet of Things, i.e. the interconnection of all things. Mobile phones are important as the current entry-level devices, but what is really subverted is the change of living environment outside mobile phones, including automobiles and homes. More importantly, even if we can get a freewheeling Internet world like science fiction movies, the content presentation provided by 5G technology's super-high Internet speed has already gone beyond the scope of the mobile phone itself. Only AR and VR-based facilities are more likely to become the core. Overall, 5G may not have as much impact on the mobile phone industry as expected.

But what the market can't ignore is the marketing influence of 5G, especially in China, where mobile Internet is the most radical and Apple is the most dependent market. The marketing value of

5G mobile phone

Apple released its financial report today. Revenue in Greater China was $13.169 billion, down 26.65% from the same period last year. Cook's most valued Chinese market is facing unprecedented challenges.

and the retail sales of mobile phone brands in China market from 2011 to now can be seen a rule. In the past few years, the Chinese market has gone through a process of "parameter is top-celebrity marketing-technology marketing":

  • In the early stage of the development of Chinese smartphone brand, parameter is the most important marketing tool of major mobile phone manufacturers, and millet has become the biggest winner in this period;
  • 2016-2017, influenced by the great success of OV, laying channels online. Looking for celebrity endorsement has become a new marketing trend, and Huawei Millet has followed up one after another;
  • and by 2018, marketing by technological innovation has become popular. OV and OV have changed the trend of online public opinion by technological marketing, and Huawei also rely on the way of "stockpiling" to stabilize the first position in China with Mate series.
< p> 2019, this trend is strengthening, and 5G is obviously one of the technological advantages that every country must compete for. At the same time, in 2019, vivo, millet and Meizu have exposed their conceptual machines which are difficult to produce in large quantities, just to gain a first-mover advantage in technology marketing. This approach is controversial, but it is helpless under the pressure of competition.

At this point, Apple is at an absolute disadvantage. Apple technology change is relatively small, compared with radical Android manufacturers, the gap is obvious; and 5G technology upgrade, under the bombardment of the influence of major manufacturers, is easy to become one of the important determinants for users to buy products. Apple's lack of 5G will inevitably become another major marketing disadvantage besides "Liu Haiping". At the same time, Apple has to face the fact that global mobile phone sales are declining year by year. Under the environment and external competition, Apple will face a lot of challenges in hardware sales in 2019.

Therefore, in recent years, Apple has gradually released the biggest action in software and content that has never been seen before. Content will be the best story it can tell. Following the announcement of Apple Open Content < p > First Quarter Returns in 2019, Cook, while acknowledging the fact that sales of the iPhone have declined, pricing strategies have failed and exchange rate effects, highlighted Apple's achievements in other businesses, especially its service revenue, which reached an all-time high of $10.9 billion, an increase of 19% over last year.

Obviously, besides improving the sales of the iPhone by adjusting the strategy, how to break through the problem of "laying eggs, laying eggs" between hardware and content ecology, so as to let software ecology break through the barrier of hardware sales dilemma, will be the key to Apple's next growth point. The direction given by Cook is to open content ecology. Last November, Amazon announced that Apple Music would officially land on Amazon's Echo smart speakers. The collaboration between two competing giants caused a shock across the industry. This month, Samsung announced that Apple's iTunes content would be launched on Samsung's TV products, while Apple announced that it would expand AirPlay 2's support for high-end TVs.

means that the content ecology established by Apple will greatly break through the use of its own platform and land on more other hardware products to enhance the influence of Apple as a content distributor. Since the birth of iTunes, Apple's strategy in content distribution has been to provide content to users who own Apple hardware through increasing hardware sales. In the early years, Mac computer market was not high, but Apple opened iTunes to Windows platform, and then sold digital music among all the users who bought the iPod, which changed the music industry completely, and became the most powerful music content distributor. The iPod also became "Big Thing" after Mac and before the iPhone in Apple's history. After the advent of the iPhone

, Apple Store continued the same distribution strategy. App Store promoted iOS device sales with high-quality software, and a huge user base reverse-generated revenue for App Store, which earned about $4.5 billion in 2018. However, with the popularity of music and video streaming media, Apple's content distribution strategy has gradually become ineffective, and paid downloads of music and video consumption has become the past, with rental subscriptions as the mainstream. According to the American Records Association, streaming accounts for 75% of the industry's total revenue in the music industry in the United States, with only 12% of digital music remaining, which is not much different from 10% of physical records - digital downloads that once subverted the record industry are being subverted by streaming media. At the same time, the video field has also been subverted by streaming media platforms such as Netflix and Hulu. The reference coordinate system of iTunes, which was influenced by unit content sales, has been completely replaced by the number of subscribers. At present, the number of users of Netflix, the largest video streaming media in the United States, surpassed 130 million in the third quarter of last year, and the largest music streaming media Spotify disclosed data in the middle of last year, with 170 million active users and more than 75 million paying users. In China, Tencent has 700 million active music users and 170 million paying users.

Streaming media has completely changed the game rules of the industry and made Apple's content distribution strategy unsustainable. According to Cook's figures in media interviews, Apple has a total of 1.4 billion active devices, with more than 60% of users owning only one Apple device. In this way, streaming media providers can not only occupy more user space, but also counter-eat iOS users

assuming that users use both the iPhone, Echo and Samsung TV, so when choosing a music platform, the platform-wide universal Spotify will certainly have more advantages than Apple Music.

is also to solve this problem, Apple will choose to open content to competitors in early 2019, in order to reduce the threshold of hardware use.