On October 15th, Dopod, a subsidiary of Honor Electronics, launched its first Android smartphone, the Smart 1. This phone, available only in the 8GB version, was made entirely of engineering plastic and only came in black. It was priced at just $349.
Prior to October, Apple had cut iPhone prices by $100, resulting in a $399 price tag for the 4GB version and a $499 price tag for the 8GB version.
Dopod's Smart 1, available only in the 8GB version, was $50 cheaper than the 4GB version at the time, offering excellent value.
Furthermore, while the Smart 1 was publicly priced at $349, carriers like O2 and T-Mobile offered it for as little as $299 with a contract, requiring a minimum two-year plan. The carriers had negotiated a price with Dopod and would reimburse them for a portion of the cost.
The reason the Dopod Smart 1's price was so low, and still offered a substantial profit, was not only because its body was made of engineering plastic, which was relatively inexpensive, but also because its internal components were largely made from domestic Chinese manufacturers, significantly reducing costs compared to the iPhone and Mate.
As we all know, by 2007, the supply chain for knockoff mobile phones in China, centered in Shenzhen, was already well-established.
The term "shanzhai" stems from the fact that the era of knockoff phones in Shenzhen's Huaqiangbei district began after the mass production of MediaTek chips. At the time, MediaTek chips integrated cameras, video, and MP3 players, allowing factories to simply manufacture the casing and batteries and sell them. Consequently, many factories avoided branding their phones, instead using the initials SZ to indicate they were made in Shenzhen, a designation that later became known as "shanzhai."
However, even after the boom in 2003, the quality of these accessory manufacturers remained uneven by 2007.
After HTC was acquired and renamed Honor Electronics, they allocated funds to screen mobile phone accessory manufacturers near the Shenzhen Stock Exchange. They selected those with the most standardized practices and excellent quality control, provided financial support, made them partners, and helped them improve their technology. After all, the Philips patented technology purchased by Honor Electronics was relatively advanced.
Currently, the Dopod Smart 1 uses components from these manufacturers to reduce product costs. As quality improves, subsequent Honor models will gradually increase the use of components from this process chain.
Of course, domestically produced touchscreens for mobile phones still don't meet standards. The dominant suppliers in the market are still Sharp, Samsung, and LG. Therefore, the Dopod Smart 1 can only choose the slightly more cost-effective LG touchscreen, rather than the Sharp screen used in the Mate 1.
It's also worth noting that after the iPhone's price cut, hundreds of consumers who had purchased the iPhone 1 at the original price emailed Apple to express their dissatisfaction, prompting Steve Jobs to hold a press conference, where he apologized and offered compensation in the form of $100 Apple Store vouchers.
Honor Electronics went a step further, announcing a $100 price cut for its Mate 1. Existing buyers could receive a $100 refund directly from the store where they purchased the phone or through their carrier, effectively boosting its customer base.
Honor Electronics also announced the release of its latest Mate 1S on December 20th, before Christmas.
Compared to the Mate 1, the Mate 1S will only be available in a 16GB version and will include 3G support.
The Mate 1S will also feature a 500,000-pixel front-facing camera and a 2-megapixel rear-facing camera.
Yes, both the previously launched iPhone 1 and Mate 1 only had a 2-megapixel rear camera, rather than the popular front + rear dual cameras that later became popular.
The price of the Mate 1S was set at $599, and the price of their contract phones with mobile operators would be even lower - after all, 3G packages themselves are not cheap.
But even at $599, compared to the 8GB version of the iPhone 1 released at the time, their memory was expanded to 16GB, 3G network was added, and there was also a front camera, which can be said to be very attractive.
After the news of Honor Electronics was announced, it was probably not just Apple that wanted to curse, but also mobile phone manufacturers such as Samsung, Motorola, and Sony Ericsson, looking at the configurations of their upcoming Android phone models and the pricing they were preparing... By then, it's likely to be completely uncompetitive against the Mate 1S
...
On the operating system side, Android announced the launch of its Android Store after Apple launched the Apple Store. They've partnered with Klarna to offer online payment functionality within the Android Store.
Users can use Klarna Pay, built into the new Android version, to purchase apps and related paid items, such as game props.
Android had previously invested in Klarna, acquiring a 15% stake.
Klarna also launched its mobile version, Klarna Pay, in early October, offering mobile payment functionality. This approach complements Argos Retail Group's launch of the Argos app, making it easier for users to place orders via their phones.
However, previous iPhones and Mate phones lacked 3G network support, so shopping on the Argos app faced limited network performance and slow image loading. And for a site of Argos.com's scale, users often have to browse a vast number of images.
Therefore, the Argos app currently has a limited user base, and this situation will likely improve only after 3G-capable phone models are released.
Amazon currently operates in the UK, France, and Germany, three of which are also the largest e-commerce markets in Europe.
However, because Amazon's primary focus remains in North America, its market share in Europe is relatively low, surpassed by Argos.com.
However, Barron remains wary of Amazon and will not slacken Argos.com's growth. He continues to invest in the Argos Retail Group's e-commerce operations to maintain his advantage over Amazon.
Heavy asset investments in logistics and warehousing, in particular, are arguably the e-commerce industry's greatest defensive advantage. While some startups may initially gain traction through unique sales methods, the long-term user experience is paramount, and a comprehensive logistics and delivery system is crucial to providing a positive shopping experience.
Currently, in the UK, Ireland, France, and Germany, the Argos Retail Group has initially established a comprehensive distribution network, covering the vast majority of their regions. Of course, in some sparsely populated areas, delivery time is certainly longer, and a week is considered fast.
However, in major cities, delivery within three days is basically achieved, and in major cities like London, Paris, and Berlin, same-day delivery is already common.
Of course, this refers to Argos' own-brand products. The time required for merchants to settle in is much longer.
This is because Argos' own-brand products are stocked in various storage centers, while the shipping locations of merchants settled in are not fixed...