Market accelerates recovery and costs rise Domestic mobile phone “price surge”

With the rapid resumption of mobile phone enterprises, domestic mobile phone production capacity, demand rapidly increased, and in demand rebound, upstream raw material costs rise, high-end mobile phone high profits and domestic mobile phone in the global voice continued to improve and other factors, the domestic mobile phone collective “price increase”! Huawei, Xiaomi, OPPO, vivo, OnePlus, realme and other domestic mobile phone manufacturers, have made efforts to high-end, grab the high-end mobile phone market, which is monopolized by Apple, Samsung and other foreign giants, the domestic mobile phone industry is also officially from the previous low-cost customer-grabbing stage into a benign growth stage.

Mobile phone market accelerates recovery in March

March 16 at 7:30 p.m., the twilight has come, the outbreak of “China Electronic First Street” Huaqiang North several major mobile phone communications market far away from the digital city, Manha digital square, flying communications market has long been closed, but only for shopping malls and internal staff to pass through the market back door is crowded, the endless flow of trucks, high goods , as well as the surrounding dense distribution of express outlets frequently out of the fast packaging sound, together to send a signal: busy!

Market accelerates recovery and costs rise Domestic mobile phone "price surge"

Market accelerates recovery and costs rise Domestic mobile phone "price surge"

Market accelerates recovery and costs rise Domestic mobile phone "price surge"

Huaqiang North Far Away Digital City night back door and surrounding courier outlets

Securities Times e company reporterfrom OPPO, vivo, Tianyin Holdings and other major domestic mobile phone manufacturers were informed that since the end of February, domestic mobile phone sales rebounded significantly, the mobile phone industry need not be too pessimistic throughout the year.

Vivo Vice President, China Market President Liu Hong told reporters that after the outbreak of the Spring Festival new crown pneumonia outbreak, the entire mobile phone market decline is more serious, but from March, the industry growth rate is better, vivo growth than the same period last year more than 10% growth.

“Although the outbreak had an impact on February sales, we found that consumer demand for electronicproducts was relatively stable and should be bought or bought.” Liu Hong said.

OPPO Vice President, Global Sales President Wu Qiang also told the Securities Times reporter, affected by the outbreak of new crown pneumonia, OPPO sales in February only last year about 50%, but february 10, many regions began to resume work, OPPO sales recovery is more ideal, the end of February data has been restored to the level of the same period last year.

“The recovery in mobile phone sales shows that consumer demand is still there, and their demand for mobile phone products and even better and higher configuration of mobile phones will be more obvious, because during the outbreak many people stay at home nothing to play with mobile phones, the use of mobile phones much longer than before, for that kind of experience is not good or older mobile phones, many people will have a need to change phones.” Wu Qiang believes that domestic mobile phone shipments will remain largely stable in 2020 compared with last year, i.e. between 340 million and 360 million units.

In an investor conference call last week, Tianyin Holdings executives also said that the mobile phone market as a whole is rebounding, the company’s sales pace has accelerated recently, the impact of the outbreak is expected in March will be very small, after the outbreak is expected to have an explosive rebound growth.

Earlier, the Ministry of Industry and Information Technology’s China Xintong Institute data show that in January and February this year, domestic mobile phone market shipments fell by 38.9%, 56.0%, and on February 25, CICC also issued a report that in order to reflect the impact of the outbreak, China’s smartphone shipments forecast for 2020 to 348 million units, down 6.5 percent from 372 million domestic smartphones in 2019.

The resumption of production and channels and inventory also send a positive signal. According to reporters, the current OPPO, vivo, Xiaomi and other major domestic mobile phone manufacturers return to work rate of more than 80%, and inventory, vivo is currently more than 2000 yuan price segment has no inventory pressure, Huawei and glory is going all out to step up production.

Upstream raw materials rise to the terminal conduction

Affected by the outbreak of new corona pneumonia, the world’s major electronic components manufacturers production capacity is affected, but market demand has not weakened, in this context, the global semiconductor products to start the price cycle.

Take memory as an example, recently, driven by the strong market of 5G, IoT, memory demand, NAND Flash took the lead in price increases, NOR Flash capacity tight out of price increase news, DRAM also appeared to stop the decline signal, more forecast shows that NAND flash memory and DRAM memory contract prices, The increase is expected to reach double digits in the second quarter of this year.

“The semiconductor industry experienced a downward cycle last year, this year the market is out of stock and prices return to rational ity is relatively large, this year some products have increased prices. “The listed company, Jet Micro-electric, said. In addition, the largest demand for passive components MLCC (the largest demand for passive components) industry leader Taiwan Guoju recently also said that due to tight demand and labor, logistics costs, the company will be in March, April to increase the price of MLCC and patch resistance 30%.

Upstream semiconductor prices will naturally be transmitted to one of the downstream industry mobile phone industry, and this has even detonated a wave of industry “price increases” in advance.

On March 10th OnePlus Technology CEO Liu Zuohu tweeted that this year’s OnePlus 8 series would be standard with 5G, and that the phone would cost a lot more than the previous generation, the OnePlus7Pro, so the price would be higher.

Not long ago, Xiaomi 10 released, has also been unanimously interpreted as Xiaomi “price increase.” Specifically, after Xiaomi 9 test water 2999 yuan, Xiaomi 10 changed the past Xiaomi product slower pricing of the inherent model, directly increased the price to 3999 yuan, Xiaomi 10 Pro is the highest 5999 yuan to Apple iPhone 11 Pro and Samsung Galaxy S20.

In fact, in recent times, the release of new mobile phone products, positioning high-end, price in the price of more than 4500 yuan mobile phone is not in the minority, such as OPPO Find X2 series 5G new machine, starting at 5499 yuan, the highest price is as high as 12999 yuan, and then the price of 16999 yuan Huawei folding screen mobile phone Mate Xs , as well as low-ratio 4998 yuan, high-edition 5298 yuan vivo high-end new machine NEX 3S and so on. In addition, according to reporters, Huawei on March 26 will release P40, the news shows that the Price of P40 than the previous generation of P30 will have a certain range of increases.

“This wave of mobile phone price increases, upstream semiconductor prices lead to rising raw material prices is one of the reasons, in fact, in recent years, the industry including research and development, operating costs, including the overall cost has been on the rise, in addition to the latest release of high-end mobile phone configuration to increase the cost of rising costs is also an important pusher. “A mobile phone industry insider told the Securities Times reporter, the expected mobile phone price surge mainly concentrated in the middle and high-end models, low-end mobile phone market strategy to attract users, prices will not be affected.

The industry insider pointed out that the current market determines whether the high-end machine mainly look at the mobile phone three configuration, first look at whether it is equipped with Qualcomm SnapSnapdragon 865 chip, compared to The SnapDragon 855,865 CPU and GPU performance at the same time improved by 25%; At present, the general high-end machine for 90HZ, part of 120HZ, and then look at the camera function, all three aspects of the configuration are higher mobile phones, the price is generally more than 4500 yuan.

“These two days a lot of people are talking about the cost of Xiaomi 10, Xiaomi 10 cost is really higher than imagined, SnapSnapdragon 865 is twice as expensive as the previous generation, customized dual-surface professional screen is much more expensive than AMOLED hard screen, there are 108MP and OIS camera module, and talk about Xiaomi 10 price increase, Lei Jun admitted on Weibo.

Realme recently unveiled a new X50 Pro 5G that also features qualcomm SnapSnapdragon 865, which costs between $3,599 and $4,199. Realme Vice President, Global Product President Wang Wei told the Securities Times reporter e company reporter, said that the supply chain price increases occur, is a normal, this time affected by the outbreak, some core device price increases are also expected, such as memory devices, this year because of the impact of the epidemic will rise, The company will pre-judge, the corresponding planning, such as advance procurement, adjustment of product configuration price, etc. , the overall impact can be pre-determined and can be controlled.

High-end mobile phones have “profit” can be figured

In addition to rising costs, high-end mobile phone profits, high-end market is optimistic, and domestic mobile phones have passed the previous low-cost to seize customers stage, the global mobile phone market voice to enhance, but also this wave of mobile phone collective impact on the high-end drivers.

It is understood that although China’s mobile phone companies have a pivotal position in the global smartphone market, in 2019 the world’s top 10 mobile phone companies, China’s enterprises accounted for seven seats, respectively, Huawei, Xiaomi, OPPO, vivo, Lenovo, realme and telex, but from the profit point of view, Apple, Samsung has split most of the industry’s profits by its long-term market share of high-end handsets.

According to Counterpoint, a research firm, global smartphone profits were about $12 billion in the third quarter of 2019, with Apple accounting for 66 percent, Samsung 17 percent, and Huawei, OPPO, Vivo and Xiaomi accounting for the remaining 17 percent. Apple’s current shipments account for only 13% of the world’s total.

In addition, a professional company has dismantled the cost of Apple’s iPhone 11 Pro Max 512GB version, and found that the iPhone 11 Pro Max, which costs $12,699, costs only $490.5, or about 3,493 yuan. In other words, the phone costs less than a third of the price of the national line.

In contrast, domestic mobile phone companies long-term meager profits, even domestic head mobile phone enterprises are no exception. A head mobile phone enterprise employees told reporters that the company’s mobile phone hardware profit margin is very low, the main source of profits for software, advertising marketing, ecological circle.

“The domestic mobile phone industry in the past many years in the low-cost to grab customers, seize the market stage, the industry profitises are very small, sometimes research and development of a technology, may have to sell tens of millions of mobile phones to be flat.” “A mobile phone industry insider also told the Securities Times reporter.

Xiaomi China President Lu Weibing recently broke the industry machine, he said, mobile phone market competition is becoming more and more fierce, high-end machine market profit spree, can show the technical strength of manufacturers, easy to drive user reputation, push back low-end mobile phone sales. As a result, almost all front-line mobile phone brands are desperately trying to squeeze into the high-end market.

“Xiaomi brand mobile phone has put down the price restrictions, at all costs to pursue the ultimate experience, go all out to impact the high-end market. Recently, Lei Jun made a public statement.

Market accelerates recovery and costs rise Domestic mobile phone "price surge"

According to a previous report by Counterpoint Research, a third-party research firm, demand for smartphones with prices in the $600-$800 range rose significantly in the third quarter of 2019, from 31% of high-end machines in the third quarter of 2018 to 43% in 2019.

Domestic mobile phones step into a benign growth stage

For the high-end market, OPPO recently launched the Find X2, it is worth noting that the new machine launch is two years away from the company’s last Find series of products, and in 2018 when the company launched the Find X, there have been four years without the Find series.

Now, however, OPPO is thinking about it. “This pace is not conducive to our expansion into the high-end market, so our future strategy will be relatively stable every year.” Wu Qiang, vice president of OPPO and president of global sales, told reporters.

Wu Qiang said that in order to succeed in the global market, the company must upgrade the brand, brand upgrade, to upgrade the brand must have flagship products, “OPPO in the past few years in the end market after a firm foothold, but also to gradually expand the high-end market, high-end market will become one of the company’s main sources of profit.”

Wu Qiang believes that from the user level, high-end users pay more attention to brand strength, pay more attention to the brand brought about by scientific and technological innovation, including whether there is intelligent terminal ecological products, they will have higher requirements for product design, science and technology, product experience from a single product to integration.

In addition, from the overall trend point of view, Wu Qiang believes that the future of the integration of 5G and IoT and big data and AR will bring some new opportunities for the expansion of the high-end market, so for OPPO, the company after the arrival of 5G is determined to make a breakthrough at the high end.

In realme vice president, global product president Wang Wei, not so much domestic mobile phone manufacturers collectively power high-end mobile phone market, but rather domestic mobile phone brands are gradually improving their product lines, this is the brand in order to be able to meet all-round consumer demand, Meet the various consumer demand for mobile phones to make adjustments.

“Recently saw a lot of friends hit the high-end market, we think this is more conducive to domestic mobile phone brands to establish their own voice, will further stimulate the consumer market.” OnePlus mobile phone related person in charge to the Securities Times reporter said that the high-end mobile phone market to expand up the space is very large, market demand and consumer trends are pointing to the high-end market.

A long-term observer of the mobile phone industry pointed out that, with the domestic mobile phone manufacturers in the global voice of continuous improvement, manufacturers have gradually mastered the global mobile phone market pricing power, the future industry is expected to gradually out of the low-profit era of rational development, benign growth stage, and the benefits will be transmitted to the entire mobile phone industry chain.

Commentary: Under the outbreak, who would like to pay for high-end mobile phones?

Under the outbreak of new crown pneumonia, the domestic and even the global economy are implicated, at this time suddenly found that the previous cost-effective domestic mobile phone actually quietly increased prices, high-end machine prices are getting more and more expensive, it is inevitable that people are surprised. But the question that comes with it is, when the economy is weak, is anyone buying a mobile phone that is siphone dwelling for $56 million? Who will pay for it?

This question may be answered by peering into recent high-end handset sales.

Huawei folding-screen phone Mate Xs, which costs up to 16,999 yuan, and Samsung’s second folding phone, the Galaxy Z Flip, sell out in limited quantities, selling out every time the product goes on sale. Although the actual sales volume to date is unknown, but behind the wheel sales at least reflects the strong market demand.

And the price of 6999 yuan, has not yet officially opened the OPPO Find X2 Pro although it has not yet officially opened for sale, but the Securities Times reporter noted that the mobile phone in hot demand on idle fish, many buyers because of the eager to change the machine, and worried about opening after-sale more difficult to grab the new machine, generally directly out of 7000 yuan purchase price, The highest bid is nearly 8000 yuan.

In addition, big data from JD.com as of March 14 at 13 o’clock showed that Xiaomi 10 JD.com’s monthly sales were about 145,000 units, while Xiaomi’s 10Pro sold nearly 65,000 units a month.

“In fact, after so many years of development, domestic mobile phone users consumption habits have been cultivated, mobile phone is not only a communication tool, but also has become a lot of people to show their own trend hobbies, and even status of the status of the symbol. “A domestic mobile phone industry practitioners admitted to reporters, although they are also the current move of 56,000 yuan mobile phone market sales are skeptical, but there are indeed some people willing to pay for high-priced, high-end mobile phones.

So who would be willing to pay for it? Reporters multi-understanding found that willing to pay for high-end mobile phones or mainly concentrated in the following categories of people.

The first category, executives of enterprises and institutions or relevant high-end people, especially technology executives. Because of their special identity, and often need to be paid, so out of a new trend of mobile phones, not only to highlight their fashion trends, more aptly reflect their identity, and even to enhance their social impression and recognition of each other. For such people, an investment of tens of millions of dollars in mobile phones, or permission to bring in hundreds of millions of dollars of co-op orders, but a public company executive holding a long-outdated mobile phone will make it a lot of social price.

The second category, fashion trends, technology enthusiasts. Although this kind of crowd consumption power is not too high, but the mobile phone, technology, the trend of the hobby, will make it willing to pay a high price for a mobile phone, even if it needs to continue to repay the loan for a year is also at all costs.

Third category, games, photography professional users. It is understood that high-end mobile phones in the data processing speed, screen refresh rate, camera than ordinary mobile phone performance is much higher, so this kind of high-end mobile phone can well meet some game enthusiasts play games do not card the needs, or a mobile phone as a professional camera demand.

In addition, with the popularity of digital products in recent years, high-end mobile phones as high-end gifts, but also a relatively easy choice, and not easy to make mistakes in gift-giving products, can be described as high-end atmosphere.

It is worth mentioning that mobile phone industry practitioners told the Securities Times reporter, in fact, for the ordinary people who do not play games or business activities on weekdays, there is no need to buy high-end mobile phones, ordinary mobile phones can meet their communications, Internet access, consumption, entertainment and other daily needs, high-end mobile phone screen high refresh frequency, High-tech camera technology is of little “use” for ordinary people.