Li Ming (pseudonym) is a mobile phone parts listed company head of investor relations, he told china Securities News reporter, in the fourth quarter of last year, manufacturers go to inventory, there will be a cut, but the fourth quarter of this year the company did not encounter this situation. “Huawei, Xiaomi, OPPO, vivo are not cut, the situation is better. “”The previous quarter and the first quarter of the following year are relatively weak, but this year is not this situation, during the Spring Festival we will continue to be busy, there is still greater demand for employment. ”
On December 2nd, when several institutions investigated Changying Precision, the company said its products include mobile phone connectors, shielding parts, exterior parts, etc., and have supplied some 5G handsets.
“The mobile phone industry as a whole is not actually doing well this year, but it’s better in the fourth quarter of this year relative to 2018. Zhang Wei (pseudonym), a listed company in Guangdong’s mobile phone supply chain, spoke directly to a reporter from China Securities News.
Recently, China Securities News reporter sresearched a number of mobile phone industry chain companies learned that compared to 2018 mobile phone industry suffered a cold winter, the fourth quarter of this year mobile phone industry is ushering in a warm winter.
From the domestic market, China’s Xintong Institute data show that in 2018, the domestic mobile phone market volume of 414 million units, down 15.6% year-on-year, a decrease of 3.4 percentage points from the previous year. From January to November 2019, the total volume of domestic mobile phone sales was 358 million units, down 5.4% YoY.
At the start of the third quarter of this year, the mobile phone industry began to show signs of recovery. Global smartphone shipments grew 1 percent year-on-year in the third quarter of 2019, the first increase in two years, as a series of market-driven demand growth, according to Canalys, a city agency.
5G mobile phone stock increase
For the fourth quarter of this year mobile phone industry rebounded the reasons, Zhang Wei told China Securities News reporter, in general, the first half of the industry is relatively weak. September mobile phone manufacturers issued new machines, July and August began to pull goods, the third quarter is generally the peak season. But the third quarter of this year was poor, with not many new models. Now in the 4G to 5G replacement stage, mobile phone manufacturers focus on the first quarter or the first half of next year, we all push 5G mobile phones, so orders are more.
Zhang Shijie, chief analyst of Northeast Securities Electronics Industry, said that for 5G mobile phones, mobile phone manufacturers have higher expectations, brand manufacturers actively stock 5G, individual manufacturers in some areas will be purchased in advance to prevent out-of-stock situation, downstream overall demand is relatively prosperous. In addition, the apple brand is looking at the release of the iPhone SE2 in the spring of 2020, compared with an incremental model in 2019.
“A lot of orders next year will be 5G phones. More and more customers are producing through our factory, and a lot of materials are handed over to us for purchase. We first look at the quality of supply chain enterprises, followed by delivery capacity and capacity support capacity. There are also a lot of new companies emerging in the upstream supply chain, and they’re growing fast. Wang Bo said.
Recently, a mobile phone supply chain listed companies to accept the agency research, said that the domestic 5G large-scale commercial is accelerating, driving the entire consumer electronics industry’s popularity and strong demand, the company and the consumer electronics industry supply chain to create favorable conditions, the company’s second half of 5G mobile phone orders and delivery showed a sustained and rapid growth.
According to China Xintong Institute data, in January-November 2019, the domestic mobile phone market 5G mobile phone shipments of 8.355 million units. In November, 5G handsets shipped 507.4 million units, up 103.45 percent from 2.494 million in October.
“5G is coming so fast that everyone is already making 5G phones. But 5G mobile phone this year has not been large-scale volume, core components, chips, antenna capacity has not yet come up. Zhang Wei said.
Intensive agency research
“Next year the mobile phone industry should be better, 5G driving effect will be reflected. Li Ming told China Securities News that there are a lot of institutions that have recently come to the company to investigate. When reporters talk to them, there are also investment agencies to call to make an appointment to the company to investigate.
Oriental Fortune Choice data show that since the fourth quarter of this year, Lixun Precision, Gore shares, Shennan Circuit, Endida Technology and other more than 20 listed companies in the mobile phone supply chain received institutional research. In December alone, institutional investors have been intensively investigating more than 10 mobile phone supply chain companies, such as Guangxin Materials, Anjie Technology, Xinwei Communications, Star Technology, Shenzhen Tianma A, etc.
On December 16th, Anjie Technology accepted a survey that said that the thermal product value of 5G mobile phones will be higher than 4G mobile phones. The company’s supply of thermal products are mainly graphite heat sinks, graphene film heat sinks, etc. , the company is also developing more suitable 5G mobile phone demand thermal products.
Changying Precision said 2019 was a year of transition from 4G to 5G for smartphones, with consumer demand for switching machines affecting some extent. Next year will usher in the first wave of 5G mobile phone change, the major mobile phone brands will launch more price-friendly 5G mobile phones.
Market-adjusting agency Counterpoint estimates that global 5G smartphone shipments will exceed 270 million units by 2020, and that penetration of 5G phones will grow from about 1% in 2019 to more than 15% by 2020.
From the Chinese market, Counterpoint believes that Chinese parts manufacturers, mobile phone manufacturers, operators and channel providers have introduced “5G and IoT” “5G-AI” and other development strategies, and with the upstream and downstream partnership, strong alliance to seize the excellent market opportunities brought by 5G. China’s 5G handset products are expected to exceed 100 in 2020, and shipments of 5G handsets in China are expected to exceed 150 million units.
“The first half of next year’s projects are full, many of them 5G mobile phones. The mobile phone industry hasn’t seen such strong demand in two or three years. Wang Bo (pseudonym) is located in the company is a head of the mobile phone ODM company, he told China Securities News reporter, next year is the mobile phone industry big year, brand customer demand is strong, the company orders have been fully saturated, production capacity in short supply, the entire upstream supply chain capacity is relatively tight.
Recently, China Securities News reporter from a number of mobile phone supply chain listed companies learned that, due to 5G mobile phone stocking and other favorable factors, the fourth quarter of the mobile phone supply chain began to come out of the “cold winter.” The smartphone supply chain is having a “warm winter” compared to 2018.