The reason why Daqian mobile phone sales dropped so quickly was actually due to Nokia and Motorola.
Daqian Mobile's CEO, Cook, asked his subordinates to conduct three systematic market research to find the reason for the decline of Daqian mobile phone sales.
These three market research actually led to the same conclusion.
The conclusion was that Daqian mobile phone's brand background was not enough.
In the past, there were two main reasons why Daqian mobile phones could beat Nokia and Motorola. First, Daqian mobile phones were very creative and had new features. The first three generations of mobile phones were able to create disruptive features, which made users choose Daqian mobile phones.
The second reason was the price advantage of Daqian mobile phones. Compared to Nokia and Motorola mobile phones, Daqian mobile phones were at least a few hundred dollars cheaper with the same features and effects. Of course, Daqian mobile phones could capture the market.
However, in 1998 and 1999, these two tricks were abolished.
First, in terms of price, because the price of Nokia and Motorola's lowest-priced mobile phones was 399 dollars, which was the same price as Daqian 2 mobile phones. As a result, Daqian mobile phones instantly lost their price advantage.
Then, there were new features. Daqian 4 was rated as the worst innovative mobile phone among Daqian's current fourth-generation mobile phones. This was because Daqian 4's innovations were almost superficial, and there were no substantial functional innovations. At most, it was an improved version of Daqian 3.
This caused Daqian 4's sales to suffer an avalanche.
Three months after Daqian 3 was released, the total sales exceeded three million units.
However, it took eight months for the Da Qian 4 to sell more than two million units. This was a result achieved when the mobile phone market was booming. It could be seen that the Da Qian 4 was not liked by people.
The Daqian 4's price was 999 dollars, which was absolutely unacceptable to many users.
But then again, compared to Nokia and Motorola's flagship mobile phones, Daqian 4's performance was definitely better than its competitors, and the price was about 600 dollars cheaper. It was reasonable to say that it should be able to outsell Nokia and Motorola's mobile phones.
This reflected the biggest shortcoming of Daqian mobile phones, which was that the brand value of Daqian mobile phones was difficult to be recognized by users.
Now, customers all over the world were willing to accept a price above 1,500 dollars when they saw Nokia or Motorola's brand.
However, if it was the Da Qian Mobile Phone, the price of 999 USD was still too expensive without the attraction of absolutely novel features.
So to put it bluntly, the brand value of Daqian mobile phones was less than 500 dollars in the hearts of customers. This was the most fatal and also the most unsolvable problem. It was just like how Xiaomi's mobile phones wanted to challenge Apple's mobile phones.
Apple phones with the same specifications, Daqian.
But if Xiaomi dared to exceed 4,000 dollars, it would forget its original intention. It was like a toad wanting to eat swan meat … Especially in Hua Xia, this kind of thinking was much more intense than in the United States.
But in this era, there were no hardware indicators such as the number of generations of chips, the amount of memory, the refresh rate of the screen, the number of pixels of the camera, etc., so that the audience could see the hardware configuration and the price.
In this era, there was no awareness of the price-performance ratio at all. No one would compare the relationship between the hardware and the price.
It was not that customers were not interested in comparison, but after all, the Internet information was not developed in this era, and the information was seriously asymmetrical. Users could not know the configuration of each mobile phone and the price of mobile phones with the same configuration to compare. Naturally, it was difficult to use the price-performance ratio, or things like "born for fever".
In short, Daqian's failure in 1998 and 1999 was the problem of the brand. The brand construction was not at the level of Nokia and Motorola, or it could be said that there was still a long way to go.
As for Samsung and Ericsson that caught up in 1999, they actually relied on the two magic weapons that Daqian relied on to win.
First, it was Samsung. They had rushed to the fourth position in the mobile phone sales, relying on Samsung Electronics' reputation and sweet prices!
The price of Samsung mobile phones with the same features and configuration was basically the same as the price of Daqian, so they were also very competitive.
The second was the color screen mobile phone launched by Samsung: Samsung Gale 1.
This flagship mobile phone launched by Samsung in 1999 became the first mobile phone in history to support a color screen and could be mass-produced. The color screen of the mobile phone shocked the entire mobile phone market.
Even the color screen was still only sold at the price of 999 dollars. Moreover, Samsung Gale 1 also launched a mini version. Although the configuration was lower, as long as you were willing to spend 799 dollars, you could also buy a color screen mobile phone. This made the market even more desperate.
This year, many middle-class people and poor people who pursued cool features spent money to buy Gale 1 or 1 mini. With these two mobile phones alone, Samsung's mobile phone sales in 1999 exceeded 15 million units.
Among them, Samsung Gale 1 mini was actually close to the annual sales of Daqian 1.
As for Ericsson mobile phones, they relied on their outstanding music function!
Ericsson's SH888 mobile phone in 1999 played with the concept of music mobile phones.
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