ByteDance announced the suspension of its mobile phone business because it has made major adjustments to its future business strategy. The mobile phone business of the original Smartisan team has now been merged, and its energy and focus has been shifted to the education field.
Although ByteDance did not explain why it made such an adjustment, considering the sluggish sales of Smartisan mobile phones, we have every reason to guess that ByteDance is unwilling to continue to burn money and lose money. Money is a vicious circle, so I stopped the mobile phone business. 1. ByteDance’s Smartisan mobile phone team was merged
The reason why ByteDance suspended its mobile phone business was because ByteDance merged its original Smartisan mobile phone hardware research and development team into the education field, which was merged The Hammer team naturally lost the right to dominate subsequent projects.
In other words, the research and development personnel of the Smartisan team are still in the company ByteDance and have not resigned, but their original project has been stopped.
Friends who have worked in the IT industry should know that if a project is "temporarily suspended", it is almost equivalent to "infinite shelving", because the cost of restarting the project will be quite high. ?2. ByteDance may withdraw from competition in the mobile phone market
Although ByteDance did not explain in detail the reasons for merging the Smartisan mobile phone team, the outside world's speculations on this are quite consistent.
We know that when a team is merged and the business is suspended, it often means that the team and the business have lost a lot of money? This is very painful common sense for senior investors.
In the beginning, Luo Yonghao was making Smartisan mobile phones, but because making mobile phones was too expensive, when the capital chain accidentally broke, Luo Yonghao went bankrupt without any suspense, and was heavily in debt. He is still paying off his debts. After ByteDance acquired some of the patents of Smartisan mobile phones in 2019, it was equivalent to taking over the business from Smartisan.
Now ByteDance has also announced the suspension of its mobile phone business?
Since its birth, Smartphone has been relying on financing and burning money, but its sales have been sluggish. Therefore, we have every reason to believe that ByteDance may have stopped losses in time because it was unwilling to continue to burn and lose money in its mobile phone business.
Once it insists on stopping losses regardless of the initial investment, it means that ByteDance will completely give up and completely withdraw from the competition in the mobile phone market. 3. Bytedance’s withdrawal from the mobile phone market is a wise decision
Although some people regard Bytedance’s suspension of mobile phone business as a “failure”, I personally think that Bytedance’s decision to do so is actually a very big mistake. Wise decision.
The hardware field is not ByteDance’s advantage in the first place. What’s more, the competition in the domestic mobile phone market is already serious. Smartisan, a rising star, is like a clay Buddha. Losing hundreds of millions, and there is no possibility of making a profit in the foreseeable ten years?
If ByteDance insists on making mobile phones, it will be tantamount to hitting a stone with an egg in front of Huawei and Xiaomi, so it quits is the wisest.