In the field of domestic mobile phones, the more well-known brands are nothing more than Huawei, Xiaomi and so on. But as early as before, there was a mobile phone brand in China, which not only developed smart phones earlier than Xiaomi, but even received investment from Ma Yun. But now, the company is in the predicament of selling itself. So, what is the main reason for the decline of this domestic mobile phone?
The domestic mobile phone brand mentioned above is Meizu. Many people may have used the brand's mobile phone, after all, it was also one of the hot mobile phones in China before. Although the brand has now reached the point of decline, it has created brilliance in the field of smartphones, and as a result, it has received 3.7 billion yuan of investment from Jack Ma. So, where is Ma Yun optimistic about the company?
Specifically, Meizu's founder Huang Zhang has made great achievements in the MP3 field before entering the field of smart phones. Because of the relatively good quality of its products, It has attracted many fans for Huang Zhang, and after having the accumulation of users, he began to march into the field of smart phones.
It is worth noting that at that time, Xiaomi had not yet entered the field, and it can be said that Meizu was an early investment in the field of smart phones. After the company released its first mobile phone, it successfully attracted the attention of Ma Yun. Specifically, in 2009, the Meizu M8 was successfully listed and achieved good results once it was released.
According to the data, in just two months, the sales of this mobile phone reached 100,000 units, and by 5 months after the release of the phone, its sales even exceeded 500 million. It can also be seen that the phone was popular at that time. After this, Meizu is also actively studying the next mobile phone in order to harvest more market share.
It is worth noting that by 2014, Ma Yun wanted to use the smartphone to combine with the company's OS operation, and found Huang Zhang. At that time, Ma Yun looked at the company's research and development, market and other reasons, and believed that if it continued to develop in this direction, the company would have made great achievements, so Ma Yun invested 590 million US dollars in Meizu, about 3.7 billion yuan.
However, after obtaining Ma Yun's investment of 3.7 billion yuan, the company's development did not improve, but began to decline continuously. Even now, the brand's share in the surgical field is only 0.1%, and it has also sold itself to Geely. So, what is the reason for Meizu to come to this step?
In fact, for the company, the decline is not because of the rise of other domestic mobile phones, resulting in a continuous reduction in its share, which can only be regarded as a secondary factor at best. What really makes the company go into decline is that Huang Zhang has constantly retreated and comeback in the years of enterprise development, frequently circulating this process.
In the long run, it has led to many problems in the operation of the company, and even caused frequent departures of executives. It is understood that in 2017, Bai Yongxiang, an executive of the company, left his job, and Li Nan also left in 2018. The departures of several executives also hint at the downside of the company.
But Huang Zhang did not think so, and even decided to cut some models of the company's low-end mobile phones and enter the high-end field. However, it is worth noting that the company's high sales volume is mainly based on low-end brands. From the data point of view, in 2014-2017, the company's sales volume alone accounted for 50% of the charm blue series, and after this model was cut, the company's total sales were also reduced by 46% compared with before.
It is for this reason that the company's sales volume and market continue to shrink, until the end of January 2021, the company's market share is only 0.1%.
It is worth noting that when Meizu's market share was negligible, the company also made a decision to sell itself to Geely. Although neither company's official announcement of the incident, the deal is already underway. For both of them, it is also a win-win situation.
For Meizu, it will not come to the step of exiting the market. For Geely, a large part of the reason why the company won Meizu may be to achieve research on the interconnection of vehicles and machines. As we all know, although Geely is involved in many fields, after all, car building is one of its main businesses.
Therefore, in order to achieve better innovation and development in the automotive field, the company has to acquire a company that has technology and production chains in this field.