April 21, Hanwang Technology Chairman Liu Yingjian response to questions outside the industry, said confidence in the market for electronic readers, HW profit model future changes, and gradually transformed from a terminal equipment provider, content platform provider.
HW response to media reports, the reporting period for two main reasons for performance losses: first, the e-book reader industry, as represented by the iPad tablet PCs and other related products, the impact of the company's sales of electric paper products and prices are affected And has declined; second, employee benefits during the report period, an increase of R & D and other expenses, resulting in a larger increase in administrative costs.
In fact, the face of the impact of Apple iPad, HW is not without preparation. This reporter learned that the pricing of the product, lower product prices Hanwang again, but the selling price in China after the iPad, HW electric paper products, and sales agents book immediately affected. In order to secure the market, Hanwang Technology in March-end electronic paper book on product prices were significantly lower, this cause the Company's gross profit margin decline. HW relevant persons, subject to price shocks Apple iPad Hanwang not the only technology in the United States, the Amazon Kindle's price is dropping lower and lower, from $ 399 to $ 139 and then $ 114, the fierce market competition, Reading Terminal substantially reduced profit margins.
Yingjian said it would change the profit by reducing costs and improving competitiveness model in two ways. He said the price of paper books Hanwang power is largely due to the high screen, the high cost of this situation, will increase both the screen during HW supplier, then the screen will be priced at a considerable rate of decline.
Compared with the cost, HW paradigm shift more attention to profitability. Yingjian that Amazon's practice is worth learning. April 12, Amazon Kindle e-book reader will be lowered the price to 114 dollars cheaper than the previous best e-book reader Kindle also 25 dollars cheaper. However, this new home page e-book reader and screen saver in the following have joined the ad. Subsidized sales or advertising sales or subsidies to sell books readers will be a new profit model makers. "I think this is still a lot of space. " Ying Liu Jian said.