The quiet and long-lasting Coolpad has returned to the public in recent days, but it is not the new products released in April that the Coolpad was launched to the stage, but the patent dispute between the company and Xiaomi. Since the time of the prosecution coincided with the critical period of Xiaomi's IPO in Hong Kong, the market also paid special attention to the game between the two sides.
The reporter noted that behind this round of infringement lawsuits, Coolpad has quietly started a new round of layout in the domestic market. Although Jiang Chao, the CEO of Coolpad, had publicly stated that he would focus on the US market, from the current situation, it is still difficult for Coolpad to abandon the domestic market. However, what is the space left for Cool in this Red Sea?
On May 11, Coolpad held a media communication meeting on the patent infringement case of Xiaomi in Hong Kong. Coolpad said that it initiated a patent lawsuit against eight companies including Xiaomi Technology, involving a total of four valid patents and eight mobile phone products. Zhang Na, the chief intellectual property officer of Coolpad, said that since 2014, Coolpad has sent a warning letter to Xiaomi on several occasions, including the alleged violation of Coolpad patents by the Xiaomi series of mobile phones, but a series of warning letters did not receive a response from Xiaomi; At present, a total of seven cases have been filed, six of which are in Shenzhen and one in Jiangsu. The next step is to focus on the domestic and continue to defend Xiaomi.
Xiaomi also responded on the same day, saying that he did not receive any notice from the court. At present, the company's business activities are all normal, and the mobile phone models are selling as usual. At the same time, Xiaomi also questioned the validity of Coolpad-related patents and submitted invalid requests for several patents claimed by Coolpad.
The reporter learned from the official website of the State Intellectual Property Office that three of the four patents involved in the lawsuit received a notice of acceptance of the invalidation notice at the end of April and early May respectively. In response, Zhang Na told reporters that Coolpad has been continuing to pay for related patents. Xiaomi’s operation is only to delay the proceedings. In response to Xiaomi’s response to the notice of the court, Zhang Na said that since 2014, Coolpad has sent too many letters about patent infringement to Xiaomi, all of which were sent via EMS. “Unsigned letters will be sent to EMS. Returned, but Cool did not receive the returned letter, and Xiaomi did not respond positively to these letters," Zhang Na further explained. "The company has evidence of the passage with Xiaomigou, but the case is currently under trial. Not convenient to disclose."
It is worth noting that this is the second time that Coolpad has sued Xiaomi this year. In January 2018, Coolpad had filed a complaint against Xiaomi. Xiaomi said at the time that he had not received any prosecution documents, and the fact of the infringement was not clear. There was no clear progress in the case, but the millet products involved in this cool lawsuit were in line with January.
As the lawsuit is in the sensitive period of Xiaomi IPO, some insiders believe that Cool's move is to "touch porcelain" to Xiaomi, but Zhang Ke, president of Cool China, denied this. Zhang Ke told reporters that a series of infringement lawsuits against Xiaomi have been being dealt with. This time it just happened to appear at the time node of Xiaomi IPO; and Xiaomi’s sales strategy does not coincide with Cool’s operator system, and the two sides basically do not exist. Competition, so there is no such thing as "touching porcelain."
As a domestically established mobile phone company, Coolpad has made a splash in the carrier era. However, with the rise of Internet mobile phones and the subsidy of operators, Coolpad chose the teammates twice in the critical period of industry development. The “Great God†brand left and was dragged down by LeTV, missing the industry window of its own transformation, LeTV in 2017. The overall collapse of the department became the last straw to overwhelm the cool.
In August 2017, Liu Jiangfeng left from Cool, "The five-year three-one (that is, the sales of over 100 million in 5 years, the cool mobile phone returned to the industry first, the Cool Group's market value exceeded 100 billion)" was ruined. The cool capital of the capital chain break can only be busy dealing with various debt crises in 2017, and almost no new machines are released.
In January 2018, Coolpad issued two announcements in succession. Lefeng Mobile sold 897 million shares and 551 million shares of its company twice. After two transactions, Lefeng Mobile is no longer a Coolshare shareholder. LeTV officially left the scene from Cool, and the company's debt crisis began to ease. Jiang Chao told this reporter that at present, there are only more than 100 million yuan of disputes left in Coolpad, and the previous debt problems have been resolved.
It is worth noting that at the beginning of this year, Jiang Chao publicly stated that the future Coolpad will put all the focus on the US market. However, since April, Coolpad has launched four new machines in succession, three of which are customized machines for operators. As an online product, the current Coolpad is still difficult to say "no" to the Chinese market.
Zhang Ke told this reporter that there is no "route dispute" between China and the United States in Coolpad. China has suffered serious injuries in 2017. Therefore, the focus of the group is currently on the United States, and Cool will not withdraw from China. The market; the current debt crisis of Coolpad has been solved, the company's upstream and downstream supply chain, customer system has been completely normal; this year's cool domestic market is to achieve the industry's eighth place, that is, to ensure annual shipments of around 10 million .
Zhang Ke said that Cool's "small goal" this year is tailored to the needs of downstream customers. Whether it is online e-commerce or offline operators, the demand for such customized machines still exists; Coolpad will not go with the head enterprises at present. Competition, first guarantee your survival. In addition, Zhang Ke stressed that since April this year, Coolpad China has relied on products to achieve profitability, and the company's 5G products are also ready. It is expected to be available around May next year. Due to the long-term cooperation with operators, Therefore, the 5G era cool is capable and has the opportunity to preempt.
Wang Yanhui, secretary-general of the China Mobile Alliance, told reporters that the primary problem facing the Cool Party that has experienced the crisis is to survive. Through cooperation with operators, Coolpad can at least guarantee a certain amount of shipments, and survival is not a problem; but 5G The promotion of the products of the times has been completely different from the 3G and 4G eras. The carrier level will not occupy the leading role of the market. The strength of the manufacturers is a more important factor. As for the future market changes of Coolpad, it is necessary to continue to observe.
On the last day of 2017, Jiang Chao said on Weibo that in 2018 Coolpad will grow on American soil and be great again.
Compared with the Chinese market, most mobile phones in the US market are sold to consumers through operators. In the United States, operators through the "contract machine" or other purchase preferential policies, so that users can buy mobile phone products far below the market price, which is why operators have always firmly control the US mobile phone market. And in the long run, this model has become ingrained in the United States, and operators will have long-term control over the mobile channel. For this reason, ZTE and Coolpad, which have the genes of natural operators, can have a place in the US market.
Cool CEO Jiang Chao told this reporter that among the top five operators in the United States, Coolpad has officially cooperated with the four companies, and the remaining ones are also negotiating. At the same time, Cool's business team in the US is also rapidly localizing. At present, the income of the US market has accounted for more than 80% of the group's revenue. Apart from the market recession in China, this is also related to the rapid expansion of the US market.
Jiang Chao said that the polarization of the US market is extremely serious. The high-end market with a price above $600 accounts for 67%, and the low-end market with a price below $200 accounts for 27% of the market. This 27% share is basically ZTE, Cool, TCL (Alcatel) is divided. ZTE had occupied more than half of the market in this market. Coolpad and TCL (Alcatel) have the same share, but ZTE is currently in a whirlpool, so Coolpad has gained a lot of market space. The growth of the Cool American market in 2018 is expected to reach 60%, shipments are also expected to exceed 5 million.
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