The once-hungry Hanwang is now experiencing an unprecedented winter. According to Hanwang’s latest 2011 annual performance amendment announcement, due to lower-than-expected revenue and gross profit from electronic paper book products, it is expected to lose 425 million to 435 million yuan in 2011. In 2010, Hanwang's technology revenue exceeded 1.2 billion yuan, a year-on-year increase of 112.71% and a net profit of 8,790,160 yuan. However, in the past year, the e-book market has been strongly impacted, especially with the rapid development of tablet computers and smart phones, and people's expectations for e-books have been reduced to the lowest point.
YiMen Consulting analysts said that compared with tablet PCs and smart phones, electronic paper books pale in comparison with practical applications and cost-effectiveness. The first two not only have the function of reading and sharing electronic paper books, but also have some Internet services. Functionality, even with the characteristics of the Internet of Things, these advantages led to the shape of electronic paper, but also caused the industry's current predicament.
Unlike Hanwang's e-books, unlike Amazon, Amazon can sell e-books very cheaply, and then make money by selling content, and Hanwang buys its own content, and it costs money to buy the copyright. The most critical point is that in the Chinese market, consumers have a congenital resistance to paid services.
Today, the Hanwang has yet to open up new paths, trying to improve e-books, and the business is simple. The situation is already very subtle.
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