In fact, standing in the consumer's point of view, there is nothing wrong. Cell phone manufacturers also want to big price cuts to deal with, but so do the consequences is that the time-consuming years, hard work to build a high-end flagship image is all gone. Big price cuts in the short term will solve the problem of a flagship sales, but in the long run is not conducive to the establishment of high-end image.
Samsung Galaxy Note 20 Ultra
Every brand has a high-end flagship that spares no expense, such as Huawei's P series, Mate series, Samsung's S series and Note series, OPPO's Find series, etc. These flagships represent the facade of a brand, and damaging the image for the sake of sales will ultimately be a costly endeavor.
The flagship phone itself focuses on the high-end consumer market, when a certain series formed the user base, when the new machine replacement, most users will continue to choose this brand. Because of the high user retention rate, coupled with the high profit return of the flagship, cell phone manufacturers in the elimination of the old flagship will choose to discontinue, and will not be a big price cut to engage in promotions.
02 flagship behind the high R & D expenditure value-added decision can not realize the big price reduction
Common consumers may only focus on the flagship cell phone screen, memory, camera module, processor and body materials and other hardware costs are very high, affecting its price reduction space. But the establishment of a flagship phone is also inseparable from the market research, marketing expenditure and so on behind.
In addition, a flagship of the success of the market, there may be thousands of people behind the R & D team in the attack, large to the screen, camera hardware, small to the vibration motor, micro-stitch earpiece, such as small parts, and every detail of the software debugging, flagship cell phone under the efforts of the more than a thousand dollar machine, the so-called penny a penny is the same reason.
In addition to the high R&D expenditures behind the flagship, the flagship itself has a higher added value. And the added value here is that the purchase of flagship cell phone users enjoy the service, far more than the purchase of low-end models to be much more.
As an example, Vivo's high-end series flagship NEX 3S has a whole set of user service privileges. It not only includes comprehensive product services such as broken screen treasure, extended warranty, back cover treasure, users can also enjoy NEX exclusive maintenance spare machine, NEX exclusive customer service hotline and other after-sales service, the ultimate experience of the high-end flagship new product supplemented by a wealth of distinguished service privileges, can be said to be customized for the business elite exclusive benefits.
According to the official introduction of Vivo, members can not only participate in the exclusive free trial activities of Vivo intelligent terminal products to experience the new technology products, but also regularly participate in the NEX100+ CLUB Elite Salon to communicate with NEX invited elites in science and technology, culture, art, business and other industries.
This simple example is enough to show that the flagship cell phone is not only the product sold, but also the service sold.