Is this a golden opportunity for Vsmart? 100% of Vietnamese will buy a smartphone for less than VND 500,000!

Tram Ho

Super cheap smartphone

The original content of the program did not clearly state the smartphone brand, operator or application. However, simple inferences will help users quickly identify names holding the pioneering ability to popularize Vietnamese smartphones for Vietnamese people.

Đây có phải cơ hội vàng cho Vsmart? 100% người Việt sẽ được mua smartphone giá chỉ chưa đến 500 nghìn đồng! - Ảnh 1.

When it comes to Vietnamese smartphones that are super cheap, more powerful than Chinese smartphones, there’s only Vsmart.

First, the price of USD 50 / nearly VND 1.2 million (without subsidy) is sure to make users think of a brand now famous for the low segment: Vsmart. The Vsmart Bee 3 announced at the end of 2019 has a listed price of only VND 1.39 million but still owns a quad-core chip and 2GB of RAM. Many current stores still sell the first generation Bee at less than 1 million. It is only early or late for Vsmart to reach the price of 1.2 million dong for new products because Vsmart has been rebuilding a brand since the sudden price reduction for Vsmart Live in November last year. cheap price .

This company is also very hard to dump the configuration . Vsmart Live or Vsmart Joy 3 are all equipped with mid-range Snapdragon chips while Chinese rivals use low-end chips (Snapdragon 4xx or Helio). The recently launched Vsmart Joy 3 even has 3 cameras, while the Xiaomi or Realme phones of the same range only use a single camera. Therefore, users have the right to expect Vsmart to create a good enough experience at the price of 1.2 million dong.

Vsmart: Enough range, enough power

The lower the price of a smartphone, the lower the profit and make it more difficult for the manufacturer. Therefore, there is hardly any other name in Vietnam who can reach the price of 1.2 million dong like VinSmart. By the end of 2019, the Mobiistar brand had “disappeared” from retail chains in Vietnam after years of struggling in the low-price market. Its website is currently down. Earlier, Mobiistar had declared “pouring resources” from Vietnam to India, but by June 2019 it announced its withdrawal from the second most populous country in the world.

Đây có phải cơ hội vàng cho Vsmart? 100% người Việt sẽ được mua smartphone giá chỉ chưa đến 500 nghìn đồng! - Ảnh 2.

No other Vietnamese technology corporation has the potential to run super-cheap smartphones like Vsmart.

The only other Vietnamese smartphone company that is operating stably is BKAV. However, nearly 5 years since the unveiling of the first smartphone, Bphone has never entered the low-price segment until now. Because BKAV has invested nearly VND 1,000 billion to invest in smartphone production but has not yet made profits (according to an interview of Mr. Nguyen Tu Quang, CEO of BKAV in March 2019), the possibility of BKAV incurring additional losses and then giving away Bphone 4 down to the price of less than 5 million is nearly 0%.

What about Vsmart? According to VinGroup’s 2019 financial report, the group’s gross profit in 2019 is VND 37.7 trillion. The profit of the businesses that do NOT include smartphones and cars reached VND 39.9 trillion. Thus, it can be temporarily understood that VinGroup has “burned” about VND 2.2 trillion for VinFast and VinSmart (along with other production and technology segments) in the past year.

This number is quite small compared to the profits that VinGroup earns and will almost certainly be narrowed when the industry segment comes into operation stably. According to the announcement before Tet, in early 2020 VSmart will complete a smartphone factory with a capacity of 125 million units / year. At this scale, Vsmart can afford to serve cheap smartphones for 90 million people in Vietnam.

Perfect pieces

Đây có phải cơ hội vàng cho Vsmart? 100% người Việt sẽ được mua smartphone giá chỉ chưa đến 500 nghìn đồng! - Ảnh 3.

Chances are, 500,000 VND smartphone will be the handshake of cooperation between Viettel and Vsmart.

Before the smartphone popularization program was announced, Vsmart also had the incentive to race the price of smartphones. Right from 2019, VinGroup has also expressed its ambition to create ancillary revenue from cheap smartphones. Vsmart smartphones can be considered as a popular tool for digital applications and services that VinGroup’s subsidiaries such as VinAI, VinID and VinConnect are developing. These future applications can fully participate in the program “pre-installed application developers support 1 USD / application” to reduce smartphone prices in the smartphone universal program.

The carrier’s $ 10 offset is likely to be supported by Viettel, a partner that can be considered close to Vsmart / VinGroup. At the upcoming F1 race event in Hanoi, Viettel will work with Vingroup to deploy the most modern 5G infrastructure to serve 100,000 spectators to watch racing in My Dinh. Besides the network infrastructure, Viettel has many IT application solutions for consumers and businesses – combined with cheap Vsmart smartphones to promote the promotion of these solutions.

Thus, it seems Vsmart has all conditions ready to participate in the popular smartphone program under 500,000 VND for Vietnamese consumers. Will these smartphones be configured like, equipped with what utility applications? Let’s wait for the first official announcement from Vsmart.

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Source : Genk