Xiaomi’s growth slows down and shipments shrink. Domestic mobile phones are the top spot or change hands.

  Some insiders believe that Huawei has a considerable chance to squeeze Xiaomi into the China mobile phone market in 2016, and the gap between the two parties’ mobile phone shipments will gradually widen.

  ■ Our reporter Ma Yan

  "Three or two years of leading the way" and "the flag of the king is changing at the head of the city" may be the portrayal of the rapidly changing mobile phone market.

  According to Fortune magazine, the revenue of Xiaomi, the second largest startup in the world, showed little growth in 2015.

  Failed to meet the shipment target

  Revenue in 2015 was almost flat.

  According to reports, a staff member in charge of publicity and communication of Xiaomi said last weekend that the company’s revenue in 2015 reached 78 billion yuan (about 12.5 billion US dollars), an increase of 5% compared with 74.3 billion yuan in 2014. Coupled with the depreciation of the renminbi, if converted into dollars, the revenue will only increase by 3%.

  Since Xiaomi’s founder Lei Jun announced in March last year that the revenue target for 2015 was set at 100 billion yuan, the company kept its mouth shut about the total revenue figures last year. A staff member in charge of publicity and liaison of Xiaomi revealed the above figures in an interview with the media last weekend, which was recorded and released by several Chinese media.

  However, a Xiaomi spokesperson said: "We have never shared revenue data, and we can’t comment on the data you provided. The data we can provide is that despite the shrinking smartphone market, our sales last year exceeded 70 million units. "

  The revenue is almost flat, reflecting the great changes in the fate curve during the development of Xiaomi. Xiaomi’s revenue increased by 135% in 2014. Lei Jun, the founder of the company, said in early 2015 that Xiaomi’s new smartphone was even better than Apple’s iPhone.

  However, after the launch of Xiaomi Note, which was highly praised by Lei Jun, it attracted the spit of early adopters. The main problem was that the fuselage was seriously heated, so this mobile phone did not appear as the company expected. Later, Xiaomi encountered a sharp decline in the development of the smart phone market in China, with a growth rate of only 2.5% last year.

  Xiaomi has said that its smartphone sales in 2015 were lower than the previous target. The company’s initial sales target for 2015 was 100 million units, and later it was lowered to 80 million to 100 million units.

  But Xiaomi still failed to achieve this goal. According to market research firm IDC, Xiaomi sold 71 million smartphones last year.

  However, Xiaomi’s disappointing last year was not only the sales of mobile phones.

  According to an investor of Xiaomi, the company’s Internet service revenue from application software and games failed to reach the sales target of $1 billion, which was $560 million in 2015.

  Xiaomi is currently valued at $45 billion, second only to Uber, the originator of taxi application. Xiaomi’s valuation means that its price-earnings ratio is about 75 times, which is suitable for a fast-growing Internet company, but not for a smartphone manufacturer with slow sales growth.

  In order to diversify its development, Xiaomi has expanded its business to Internet services and products other than smart phones, such as air purifiers and electric skateboards. However, these sideline businesses only account for a small part of the company’s revenue, accounting for about 5% of the total, and the growth rate cannot offset the negative impact caused by the decline in smartphone sales.

  Moreover, if the industry status of Xiaomi mobile phone is no longer, these peripheral industries will become rootless trees.

  Market ranking falls

  It is difficult to return to the top spot.

  In fact, Xiaomi, who once had a beautiful scenery and opened the era of Internet mobile phones, gradually showed its decline from last year.

  According to IDC statistics, in 2015, the sales ranking of smart phones in China was still ranked first by Xiaomi with a shipment of 64.9 million units, and the market share was nearly 15.0%.

  However, compared with Huawei’s shipment of nearly 108 million smartphones in 2015, Xiaomi’s total shipment of Xiaomi’s mobile phones was only over 70 million units due to its weak expansion outside China, and there was a sales gap of over 20 million units between them.

  With the increase of the penetration rate of the mobile phone market in China, the shipment gap between Huawei and Xiaomi has widened, which will make it more difficult for Xiaomi to maintain its leading position in China.

  When communicating with the Securities Daily reporter, some insiders believe that Huawei has a considerable chance to overtake Xiaomi as the king in the mobile phone market in China in 2016, and the gap between the two parties’ mobile phone shipments will gradually widen.

  This trend has been revealed by the data of institutions in the first quarter of 2016.

  According to IDC data, in the first quarter of this year, Xiaomi’s smartphone sales shrank by 5%, falling out of the top five in the global smartphone market share ranking.

  In the China market, Xiaomi’s performance is not satisfactory. According to IDC statistics, Xiaomi Q1 shipped 9.2 million units, ranking fifth in China market, which should be the first time that Xiaomi shipped less than 10 million units in a single quarter in recent three years. According to public information, in 2015, the shipment of Xiaomi Q1 was around 14 million units. Based on this calculation, the shipment of Xiaomi shrank by nearly 33%.

  Although Xiaomi still ranks second in China market according to the data of another market research organization IHS, Wang Yang, research director of IHS China, also said that Xiaomi has no hope of returning to the top spot when communicating with the reporter of Securities Daily.

  Wang Yang said, "The competition in e-commerce channels is too fierce this year. Glory, LeTV and Meizu are all grabbing the market. Moreover, the market increment comes from offline channels, where OPPO and vivo are the strongest, while Xiaomi’s offline channels are weak. "

  In addition, some analysts pointed out that in the past, the main reason for the rapid volume of Xiaomi mobile phone shipments in the China market was not only related to factors such as hunger marketing and ecological circle building, but also related to Xiaomi mobile phone’s demand for low price and high cost performance. However, when the gap between Huawei and Xiaomi’s mobile phone shipments widens, Huawei will have better advantages in purchasing and manufacturing costs to cope with horizontal competition, and Xiaomi’s low-price strategy will face more severe pressure.

  Lei Jun said that in 2016, Xiaomi will set up a "special force" to strongly promote Xiaomi 5 mobile phone, and at the same time set up a Xiaomi exploration laboratory to invest in virtual reality (VR) and robotics. In addition, after the balance car, Xiaomi will also launch the first drone product.

  Compared with the development of Xiaomi’s diversified products, Huawei seems to be more focused on its own industry, and through the one-stop operation mode of telecom equipment and mobile phones, with the deepening of technology and brand power, it will make it easier for Huawei to win the confidence and reputation of consumers in the mobile phone market, and become an important key for Huawei to squeeze Xiaomi in the China market.

  However, Xiaomi did not sit still. For Xiaomi’s failure to complete the goal of selling 80 million smartphones last year, Lei Jun said that they will readjust, forget KPI, return to their original heart, and re-make products with extreme fever.

  Xiaomi launched a new flagship model at the Mobile World Congress (MWC) held in Barcelona, Spain in February this year, which may boost the company’s smartphone sales this year.

  Wang Yang believes that it is possible for Xiaomi to maintain the top five ranking in China market.

Counterfeiter Wang Hai posted a post questioning the official response of Dalian in the investigation process of "100 acres of cherry tree death"

  Dalian, China, November 14 (Reporter Wang Song) On the 13th, professional counterfeiter Wang Hai posted on the Internet that since 2020, hundreds of acres of cherry trees have died after farmers used the cherry plant protection scheme of Dalian Dianlong Company; The post questioned the relevant investigation and disposal process of Dalian Agricultural and Rural Bureau. On the 14th, Dalian Agriculture and Rural Bureau answered the questions raised in Wang Hai’s release.

  What Wang Hai posted on the Internet (screenshot)

  Question 1: Excuse me, Director Xing Fang of Dalian Agriculture and Rural Bureau, why didn’t the special class set up by your bureau to deal with the death of cherry trees investigate the phytotoxicity of Dalian Dianlong Company?

  In March, 2023, Dalian Special Class for Handling the Death of Cherry Tree in Wafangdian went deep into wafangdian city Dianlong Company, the involved enterprise, and investigated and verified 23 kinds of pesticides and 8 kinds of fertilizers sold since January 1, 2021 by consulting the sales ledger, checking the quality inspection report and taking samples for identification, and entrusted a third party to identify the quality of 15 kinds of pesticides in stock, and traced the quality inspection report of 8 kinds of pesticides and 8 kinds of fertilizers out of stock to the manufacturer. Judging from the inspection report and appraisal results, no quality problems have been found in the above pesticides and fertilizers sold by Dianlong Company.

  On March 29th of the same year, the working class organized 7 experts from Northwest A&F University, Beijing Academy of Agriculture and Forestry, Shandong Academy of Agricultural Sciences and other units to form an expert group, and went to relevant orchards to carry out on-site investigation, guide sampling and expert judgment (a total of 5 orchards). In response to the problem of "copper ion phytotoxicity" reflected by the whistleblower, according to the expert’s suggestion, the city sent the sampling samples to the Environmental Quality Supervision, Inspection and Testing Center of the Ministry of Agriculture and Rural Affairs (Tianjin) for testing the total copper and glyphosate content (pesticide residues). On May 6, 2023, the expert group made a comprehensive judgment. According to the field investigation, identification test and test report, the conclusion was given: the main cause of the damage symptoms of cherry tree branches, roots and trunk bark was caused by fungal diseases.

  Question 2: Since 2020, farmers have used the cherries of Dalian Dianlong Company to solve the plant protection scheme, and hundreds of acres of cherry trees have died one after another. You didn’t go to the scene investigation the first time you received the report, and didn’t set up a special work class until this year. Is there anything strange in this?

  According to the working rules, after receiving the report, the relevant departments of the territory are responsible for the investigation. The incident occurred in September, 2022, and its territory was wafangdian city. The relevant departments of wafangdian city will deal with it as soon as possible according to the law. First, on October 11, 2022, wafangdian city Agriculture and Rural Bureau filed an investigation on Dianlong Company’s alleged unauthorized modification of two kinds of fertilizer labels, and finally imposed an administrative penalty of 20,000 yuan. The work class carefully checked the relevant files. The main facts of the case were clear, the evidence was conclusive, the law was accurately applied, and the law enforcement procedure was legal. Wafangdian city Municipal Market Supervision Bureau received five complaints from informants about Dianlong Company on September 2, September 15 and October 20, 2022, and all of them responded within the prescribed time limit.

  In order to verify and supervise the territorial work, the Dalian Municipal Government set up a special work class in March 2023, and went deep into wafangdian city to carry out a 9-day investigation and verification work, forming a work report and reporting it to the Dalian Municipal Party Committee and Municipal Government. After that, it was reported to the Liaoning Provincial Party Committee and the provincial government in the form of documents of the municipal party committee and the municipal government.

  Question 3: This special class has not been publicized, and it has not been declared whether it has an interest in the investigated object, no instruments and equipment, no appraisal qualification, and no opinions from farmers. What makes it clear that the cherry tree died of fungal infection?

  According to the requirements of the Regulations on the Openness of Government Information in People’s Republic of China (PRC), "the internal affairs information of administrative organs, including personnel management, logistics management, internal workflow and other aspects, may not be disclosed". The work class is a temporary organization for government agencies to handle internal work. Members are all staff of relevant departments, and there is no need for publicity as required. The relevant experts hired are authoritative experts in China, and the relevant testing institutions entrusted are qualified. During the investigation, the working class visited relevant farmers and enterprises, and the expert group hired was based on the on-site investigation, appraisal test and test report.

  Question 4: After filming the forehead, the special class only took samples from cherry trees that had been dead for one or two years, and also entrusted fruit trees without appraisal qualification to do experiments on whether fungi could cause the death of living trees. When entrusting, the disease is used to set the tone first, misleading the fruit trees to draw the wrong conclusion that they are not qualified at all. The bacteria in the corpse can kill people, which proves that this person was killed by bacteria? No matter how you die, it is common sense that all kinds of bacteria that cause death may be detected on rotting corpses. Is this experiment meaningful?

  On March 29th, 2023, the municipal work special class organized an expert group to carry out an on-site investigation on the death of cherry trees. The expert group learned about the symptoms of cherry trees on the spot with growers, and guided the on-site sampling of damaged branches, roots, trunk bark and rhizosphere soil of cherry trees in orchards. After the on-site investigation, the expert group held the first working meeting, and then sent the samples to the Environmental Quality Supervision, Inspection and Testing Center of the Ministry of Agriculture and Rural Affairs (Tianjin) for detection of total copper and glyphosate, and the Fruit Research Institute of China Academy of Agricultural Sciences (Xingcheng, Liaoning) for detection of pathogenic bacteria. Among them, the Environmental Quality Supervision, Inspection and Testing Center of the Ministry of Agriculture and Rural Affairs (Tianjin) is a ministerial-level professional quality inspection center in the field of agricultural ecological environment. In 2017, it became the first batch of national agricultural testing benchmark laboratories (pesticide residues), and the Fruit Research Institute of China Academy of Agricultural Sciences is a national scientific research institution, not a fruit research institute without appraisal qualification. After the two testing units respectively issued the Experimental Report on Pathogen Isolation and Identification of Cherry Samples in wafangdian city, Dalian and the Test Report (NO.KY030-2023), on May 6th, the municipal work class organized the expert group to hold another meeting. Based on the inspection and test report, the expert group focused on discussion, consulted the literature and standards, and obtained the comprehensive judgment opinions of experts.

  Question 5: The death of these cherry trees is characterized by yellowing and shedding of leaves, which is not a symptom of fungal infection at all. Why didn’t the special class investigate the problem of drug injury? Afraid of what?

  After the on-the-spot investigation on March 29th, 2023, the expert group held the first working meeting of judgment, and sorted out the main symptoms found in the on-the-spot investigation as follows: the symptoms of branch withered; The damaged parts of the trunk show partial cuticle cracking, ulcer, rot and gumming, which may cause the whole tree to die in severe cases. Some plants showed symptoms of bolting, and a few plants showed symptoms of neck rot. According to the symptoms, the main causes are infectious diseases and non-infectious diseases. In order to further analyze the reasons, the expert group suggested that the sampled samples should be subjected to disease identification and pesticide residue determination, and finally the "Experimental Report on Pathogen Isolation and Identification of Cherry Samples in wafangdian city, Dalian" and "Test Report (NO.KY030-2023)" were formed, and the expert group gave judgment opinions according to the identification results.