Why did the United States close its mobile phone business?

Meitu mobile phone has always been the choice of many girls who love beauty, but Meitu announced that it would completely close its mobile phone business before the middle of this year. Why did Meitu close its mobile phone business?

On March 20th, Meitu Company released its first annual performance announcement after the reform.

According to the announcement, Meitu's sales in 20 18 were 2.79 billion yuan, down 37.8% year-on-year. The net adjustment deficit was 879 million yuan.

Online business revenue was 948 million yuan, up 26.3% year-on-year, of which online advertising revenue was 620.9 million yuan, up10/.9% year-on-year.

Intelligent hardware revenue was 65.438+84.4 billion yuan, down 50.7% year-on-year, mainly due to the decline in smartphone sales, but partly offset by the high average price. The average selling price is 25 18, 12, 3 1, 2017,65438.

Meitu mobile phone was once famous in China mobile phone market with its beauty function. But with the improvement of smartphone photography technology, the advantages of beauty function no longer exist. For Meitu, the heavy asset business of mobile phone is untenable.

Why did Meitu close its mobile phone business?

In 20 18, Meitu launched a new strategy of beauty socialization.

The core of this strategy is to transform Meitu Xiu Xiu, a photo editing tool, into a social media platform. 20 18 In February, about 5 1% of the monthly active users of Meitu Xiu Xiu App were social users, and the monthly page views were about 8 billion. According to the announcement, the monthly active users of Meitu Xiu Xiu App reached the highest level in the past in February of 20 19.

20 18 is a year of Mito's social transformation and brokeback survival.

In terms of profit, Meitu's net profit loss in 2065.438+08 was 65.438+0.2 billion yuan, including about 500 million yuan for smart phones and 200 million yuan for e-commerce business. According to the announcement, Meitu adjusted its unprofitable and asset-heavy businesses, namely e-commerce and smart phones, through strategic partnership.

Therefore, Meitu authorized Meitu Group to promote the future Meitu mobile phone series, that is, Meitu no longer made its own mobile phone, and Meitu authorized Meitu brand to Siku Holdings Co., Ltd., thus cutting off the electricity business.