Although ByteDance didn't explain why this adjustment was made, we have every reason to guess that ByteDance didn't want to continue to fall into the cycle of burning money and losing money, so it was called stopping the mobile phone business.
First, ByteDance's Hammer cell phone team was merged. ByteDance suspended its mobile phone business because ByteDance merged its original hammer mobile phone hardware R&D team into the field of education, belonging to the merged hammer team, and naturally lost the leading role in the follow-up projects.
In other words, the R&D staff of Hammer Team are still in ByteDance, but their original project has stopped.
Friends who have worked in the IT industry should know that a project has been? Stop for a while? , almost equal to? Infinitely shelved? Because restarting the project will be quite expensive. ?
Secondly, ByteDance may withdraw from the competition in the mobile phone market. Although ByteDance didn't explain in detail the reasons for the merger of Hammer Mobile's team, the guess was consistent.
We know that when a team is merged and its business is suspended, it often means that the team and business have lost a lot of money, which is very painful common sense for senior investors.
At first, Luo Yonghao was making a hammer mobile phone, but because it was too expensive to make a mobile phone, Luo Yonghao went bankrupt without any suspense and was heavily in debt, and now he is still paying off his debts. In 20 19, ByteDance took over the hammer after acquiring some patents of the hammer mobile phone.
Now ByteDance has also announced that it will suspend its mobile phone business.
Hammer mobile phone has been supported by financing and burning money since its birth, but the sales volume has been sluggish and it is difficult to improve. Therefore, we have every reason to believe that ByteDance may stop loss in time, because he is unwilling to continue to burn money and lose money in the mobile phone business.
Once you insist on stop loss regardless of the previous investment, it means that ByteDance will give up completely and completely withdraw from the competition in the mobile phone market.
Third, ByteDance's withdrawal from the mobile phone market is a wise decision, although some people regard ByteDance's suspension of mobile phone business as? Collapse? But personally, I think it is actually a wise decision for ByteDance to do so.
The hardware field is not ByteDance's advantage, not to mention the domestic mobile phone market competition is already very serious. Hammer, where's the phone? Rising star? Like a? Clay Buddha? It loses hundreds of millions of dollars every year and will not be profitable in the foreseeable decade.
If ByteDance insists on making a mobile phone, it is tantamount to throwing eggs at a stone in front of Huawei Xiaomi, so quitting is the wisest.