Internet mobile phone or "ceiling"? Sales channels are interested in relying on physical stores

The product page features a detailed tech section with a main display area that showcases key components. The image carousel highlights a mobile phone crystal measuring 3.2*2.5mm (3225), operating at 26M (26.000MHZ) with specifications like 7.5PF, 10PPM, 20PPM, and 30PPM. Another slide presents the STM32L151CCU6 single-chip microcontroller, emphasizing its advanced performance and reliability. In recent years, the mobile phone market has faced challenges such as saturation, overcapacity, and slow growth. With high hardware homogenization and intense low-cost competition, internet-based phone brands are now exploring new strategies to balance online and offline operations. Many have started to shift focus back to physical retail stores, aiming for a more integrated sales approach. Since last year, the smartphone industry has entered a "bottleneck period." Major players like Samsung saw negative growth, while Apple and Xiaomi experienced slower expansion. In 2016, many manufacturers adjusted their expectations, with Xiaomi even using the phrase "2016 Happy" to signal a move away from aggressive sales targets. One clear trend is the growing presence of internet brands in offline markets. For example, Nubia’s general manager, Ni Fei, mentioned that in 2015, online and offline sales were split roughly 60/40, but by 2016, they aimed for a 50/50 ratio, opening over 1,000 stores and 3,000 sales points. Similarly, LeTV's Feng Xing highlighted a multi-channel strategy, including their own e-commerce platform, third-party sites like JD.com and Tmall, as well as offline partners. This three-dimensional model aims to enhance customer interaction and expand reach. Wang Yanhui, secretary-general of the China Mobile Alliance, noted that while internet phones haven't hit a ceiling, relying solely on online sales is no longer sustainable. He suggested that brands should consider expanding into overseas markets or integrating with physical stores for better survival. Zhang Yi, CEO of Ai Media Consulting, echoed this sentiment, stating that the internet-driven model had once brought rapid growth but now faces limitations. He pointed out that low-end users are mainly found in third- and fourth-tier cities and rural areas, representing a "bonus market" for future growth. Overall, the integration of online and offline channels is becoming the norm for internet-based mobile phone brands. Feng Xing of LeTV believes 2016 will be a turning point, with many manufacturers either shrinking or exiting the market. The future belongs to those who can adapt and build a balanced, comprehensive distribution strategy.

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