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However, this statement was immediately questioned by the industry. For example, Kao Xiongyong, the vice president of TV marketing for Xiaomi, pointed to why Xiaomi TV insisted on cost-effectiveness. Then the question came, why did Liang Jun's speech get so questioned? What is the reason behind this?
Perhaps coincidentally, just when Liang Jun cast out a protracted war on LeTV, Levision Global Group Co., Ltd. and Vizio Corporation announced that due to the unfavorable regulatory constraints, the merger agreement to acquire Vizio will no longer continue, that is to say, Beginning last July, Levie’s acquisition of Vizio, the US’s smart television giant, had ended in miscarriage as part of a $2 billion global acquisition.
It should be noted that although both Levision and Vizio externally claim that M&A abortions are mainly due to regulatory factors, a number of foreign media analysis believes that apart from regulatory factors, Lehman’s capital chain break in the second half of last year should also be the main one. One of the factors, coupled with rumours that LeTV's layoffs in the North American market, can be said that LeTV's strategy to use the acquisition of Vizio to expand the North American market has encountered major setbacks. LeTV or Letv Ecology has to return to the origin of the Chinese market, that can only hope that in the Chinese market and the suffocation of your friends.
It may be based on the above reasons that LeTV, the president of LeTV to which LeTV belongs, has recently thrown out a statement about "the prolonged war on LeTV." There have been many reprints of this speech on the Internet. We will not repeat them here. After reading through them, the greatest feeling for us is to remember more than reality and the future, but as the saying goes, when one always misses the past, this People are certainly old, companies are.
Actually, we understand here why LeTV is so much about the past. When we used the "double-performance, half-price" strategy to change the industry's traditional profitability model, "adhere to high allocation and hardware cost pricing," these are summarized in the form of paragraph headings. When appearing in Liang Jun's long speeches, I believe that the industry has already guessed that LeTV did not use it to enter the smart TV market. Although it has been losing money, its LeTV ecosystem has not yet been truly established and valued, but it has taken a good look. The so-called China Smart TV market ranks first in terms of annual shipments. In other words, this is the only visible core advantage of LeTV's entire ecological bottom line.
Unfortunately, entering this year, the only visible core strengths of LeTV's TV, whether it is the helpless adjustment from its own strategy or the increasing competitive pressure from the external market, have all been diluted intangibly. This also explains well that Liang Jun no longer mentions hardware cost pricing in the latter part of his speech, but instead uses so-called “high configuration, high performance,†and “ecological opening strategy, only for continuous feedback to users. The big screen operation capability is replaced by the summative paragraph headings. The facts of the market have indeed confirmed this point.
At present, LeTV's main cost-effective Super TV X series, its price advantage has fully lagged behind its opponents, for example, by the same size and configuration of the millet 4A series of products fully exceeded (LeTV X series 43M/50M/55M price is 2599 yuan / 3299 yuan / 4599 yuan, millet configuration 4A series of products comparable to 43/49/55, the price was 2199 yuan / 2699 yuan / 3399 yuan, respectively, than music as the same product is cheaper 400 yuan, 600 yuan, 1200 yuan.) . Once upon a time, LeTV TV Super TV X series was LeTV CEO and chairman Jia Yueting called "the ruler of price/performance ratio", but from the comparison with the opponent's competing products, it is already quite a name, LeTV's cost-effective advantage has vanished. However, Liang Jun attributed this to the fact that the rise in raw materials actually evaded the light. Kaohsiung Yong cited the data of Zhong Yikang in the article on why millet TV insists on cost performance. Although TV panel prices increased last year, the panel's gains have converged since March of this year, prices have stabilized, and there is no so-called persistence. rise. Obviously, the rise in TV raw materials is by no means the main reason. The failure of the capital chain last year, together with the pressure of introducing external capital to require its profitability, is the cause of the cost-effectiveness of LeTV. Losing the advantage of cost-effectiveness, LeTV's ecological model will be followed?
As regards the content of LeTV's television ecosystem as the most valuable part, it is even more worrying in the industry. Take the television dramas in the name of the people who have recently hit the TV show. They can be seen on almost all video sites such as Tencent Video, iQIYI, Youku Tudou, Sohu Video, PPTV, Mango TV, etc., but they cannot be seen on LeTV. The sight of the play is unimaginable for LeTV, which started as a copyright distributor and follows the self-produced copyright model. Perhaps when the funds are sufficient, this model is quite competitive, but once the funds are short, the advantages of this model are not only lost, but even counterproductive, that is, change to release many opponents have always been competitive pressure on LeTV's above-mentioned model.
If we say that the above is only a gap compared with the professional video content vendors in which it is located, then compared with other business partners, it also reveals the lack of value that the LeSpe ecosystem has in its own ecological logic, or which can bring value. Here, taking Xiaomi TV as an example, in terms of the headlines of popular TV dramas, variety shows, and movies, LeTV's coverage has fallen far behind that of Xiaomi TV, regardless of which dimension it is viewed in. Among them, ratings have broken 1% of the variety show. The program, LeTV coverage is less than 35%, less than half of the TV millet; 2016 Q2-2017 Q1 broadcast Top30 TV drama, LeTV only covered more than 30%, and 80% coverage of millet TV far and wide. As for the content of film and television members who can really bring real money, LeTV only has a total of 6,000 movies, which is less than one-fifth of that of Xiaomi TV. From the 2016 movie box office price of RMB 100 million, the 2016 movie box office Top20, 2016 With the introduction of films and the new hot film index of the 200 million Yuan cinema in 2017, LeTV is far more discriminating than Xiaomi TV.
It is based on the above-mentioned overall decline in hardware (incremental smart TVs) and content (to generate real value) composing music as an important part of the TV ecology. The LeTV ecosystem is finally at the other extreme, that is, The company lost no time in inserting commercials on its television in order to make a profit. Although other Internet or smart TV manufacturers also use it as a profit model, LeTV is more like no other. Do you not know that this extreme profit model runs counter to the user's viewing experience, and in the long run, not to mention that this model will not last long, and it will also have a negative impact on the sales of already diluted hardware (LeTV itself).
In summary, we believe that the biggest challenge for LeTV’s future development of the TV ecosystem is Levision’s acquisition of Vizio’s abortion, which has led to the sudden termination of its overseas expansion strategy for smart TV business, and has had to return to the domestic market to participate in brutal competition, but This time, not under the pressure of competitors, the hardware and content that previously supported LeTV ecosystem did not form a so-called ecological countermeasure. Instead, it was surpassed by rivals in its own independent field, and from its CEO Liang Jun’s remarks. , LeTV seems to be forced to give up (very miss, but the opponent's competitive pressure makes it impossible to continue) before supporting LeTV's core competitiveness of the television ecosystem (from the previous price to the so-called high allocation, high price) meaning, and this Letv ecosystem is the most dangerous.
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Not only what is the TV ecology of Acquiring Vizio abortion LeTV?
In recent days, the seemingly calm Chinese smart TV market has begun to fluctuate. First, LeTV, the president of LeTV, has released an open letter on LeTV's protracted warfare. It attributed the newly high-priced new products to “the raw material costs of the entire television industry. "Raise" and bluntly "Chinese users no longer need low-priced products."