Xiaomi group, known as the “young people’s first stock”, briefly stood back at the issue price of HK $17 / share on July 10, ending the embarrassing situation of being cut short. This change made Li Kuang, an investor of the “post-90s generation”, quite excited that he was “finally relieved”.
Li Kuang, who participated in the listing of Xiaomi group, has been under the pressure of loss. He told the first finance and economics reporter that although he continued to be optimistic about Xiaomi’s future, he did not continue to hold the stock price after this wave of stock price recovery, “it was immediately sold out after unwinding”.
after briefly stepping back to the high of HK $17.5, Xiaomi group’s share price did not maintain strong, but continued to decline. As of press release, Xiaomi’s share price fell 3.05% to HK $14.64, with a total market value of HK $353.107 billion.
in addition to the stock price problem, the more difficult situation is that the negative impact of the epidemic continues. In the 5g era, mobile phone manufacturers have gathered in China to fight hand in hand, and Xiaomi’s mobile phone sales have declined under heavy pressure. The question in front of investors is whether to be optimistic about the general trend of IOT of Xiaomi group, or to be cautious about the trend of Xiaomi mobile phone business?
on July 27, counter point, a well-known market research organization, released that in the second quarter of 2020, China’s smartphone sales decreased by 17% year-on-year, but sales increased by 9% month on month, indicating that the smartphone market showed signs of recovery. Relying on the vigorous promotion of 5g by smart phone manufacturers and operators, 5g mobile phones account for one third of the total sales in this quarter, that is, one 5g mobile phone is sold for every three mobile phones sold.
among the subdivided manufacturers, Huawei has an overall market share of 46%, vivo of 16%, oppo of 15%, apple of 9%, and Xiaomi of 9%. However, in terms of growth data, in the second quarter, Apple’s mobile phone sales rose 32% month on month, Huawei Rose 14%, vivo fell 29%, and oppo fell 31%; Xiaomi mobile phone ranked fifth fell the most, down 35%.
counter point research analyst Tang flor said: “Huawei is still the best performing company in the Chinese market, accounting for 46% of the market share this quarter. Despite the slowdown in overall market growth, Huawei still achieved a year-on-year growth of 14%. China has become Huawei’s most important market. With the help of high-end mate 30 and P40 series and mid tier Nova 7 series, Huawei’s 5g product portfolio has grown rapidly. ”
Sun Yanbiao, President of the first mobile phone industry research institute, told reporters of China’s first finance and economics that the counter point list reflects that after the epidemic, the consumption habits of Chinese consumers have undergone significant changes – the proportion of online shopping is rapidly increasing, which can be reflected by Xiaomi mobile phone. In the second quarter, the market share of Xiaomi mobile phones was almost the same as in the past, with a relatively small decline, but the sales volume decreased significantly. Behind it are the impact of sales growth of Apple mobile phones and Huawei mobile phones, as well as the decline of the overall smartphone market.
and the reason behind the soaring sales of Apple’s mobile phones, sun Yanbiao said, is that it has increased the space for cooperation in the online market. The first financial reporter compared the price of iPhone 11 in Jingdong, Taobao, Suning and other online channels with the price of Apple’s official website, and found that online channel providers have taken different degrees of price reduction measures for iPhone 11, with the maximum price reduction of 20%.
analysts believe that since the beginning of last year, China’s e-commerce channels began to take price reduction measures for some apple models, which was also affected by the fierce competition in the domestic mobile phone market. The new round of iPhone price cuts, on the one hand, are due to the elimination of inventory during the epidemic period, and on the other hand, it is also in preparation for Apple’s upcoming new mobile phone.
since it entered the market with the “cost performance” label and the “hunger marketing” strategy, Xiaomi has been bullish for many years. Until 2015, it began to decline, and was overtaken by Huawei and ov camps.
in September 2017, Xiaomi held a meeting, and Lei Jun said that it would take two and a half years for Xiaomi’s mobile phone sales to return to the first place in the domestic market. The time limit has passed. In the past three years, hot spots in the mobile phone industry have been emerging, and Xiaomi mobile phone has adjusted its overall strategy to impact the high-end market.
on May 20, this year, Xiaomi released the financial report for the first quarter of 2020. The total revenue of Xiaomi reached RMB 49.7 billion, up 13.6% year-on-year and 12% month on month; after adjustment, the net profit was 2.3 billion yuan, up 10.6% year-on-year and 1.9% down month on month. Among them, the gross profit margin of Xiaomi’s smartphone business branch increased to 8.1% from 3.3% in the same period last year, the revenue share decreased to 61% from 61.7% in the same period last year, and the sales volume of mobile phones increased from 27.9 million units to 29.2 million units. ASP increased to 1038 Yuan due to the release of 5g and other high-end smart phone models in the quarter.
Wang Xiang, President of Xiaomi group, said that affected by the epidemic situation, the production of the company in February and March was far lower than the market expectation, and the transportation of raw materials was delayed to some extent. Therefore, the company had some raw materials in stock and the prices fell. With capacity restored, the problem has been solved. In addition, according to IDC statistics, in the first quarter of 2020, Xiaomi smart phones will maintain the first shipment volume in India for 11 consecutive quarters, with a market share of 31.2%. In addition, Xiaomi’s smartphone shipments in the Middle East and Africa also increased by 55.2% and 284.9% respectively.
for the first time, overseas revenue accounted for half of Xiaomi’s total revenue. However, the current fluctuating international market environment will bring pressure on mobile phone sales in the next quarter. According to a data report released on July 17 by canalys, a research company, millet will ship 5.3 million smartphones in India’s smartphone market in the second quarter of 2020, accounting for 31% of the market share. However, compared with last year’s 10.3 million units, Xiaomi’s shipment decreased by 5 million units.
under the changing situation, mobile phone manufacturers including Huawei and Yijia have gradually shifted their focus to China, but China is in a new round of fierce competition in the 5g era.
“although the growth rate of China’s smartphone market is slowing down, Chinese OEM manufacturers have accelerated the pace of 5g development. Of the smartphones sold in the second quarter, 33% supported 5g, compared with 16% in the first quarter. ” Speaking about the development of 5g smartphones in China, senior analyst Ethan Qi of counterpoint stressed that “in a single month, the proportion was higher in June, and more than 40% of smartphones sold had 5g features.”
according to its analysis, China’s 5g smartphone market has been very stable, with hovx occupying 96% of the market. “Huawei has a leading position in 5g smartphone sales, accounting for 60% of the market share, followed by vivo, oppo and Xiaomi.”
in the first half of 2020, a total of 63.597 million domestic mobile phones were shipped, with 5g mobile phones accounting for 41.5% of the total; in June, the total shipment was 28.63 million, and the 5g mobile phones were 17.513 million, accounting for more than 60%. In terms of single product models, Huawei accounted for eight and oppo accounted for two of the top ten sales of 5g mobile phones in China’s market in June. There was no Xiaomi mobile phone in the top 10.
on July 23, Lei Jun issued a document saying that Xiaomi plans to invest 50 billion yuan in five years, continue to increase scientific and technological innovation, and make the artificial intelligence internet of things become a service capability throughout the whole product, platform and scene of Xiaomi intelligent ecology.
earlier, Lei Jun emphasized the importance of 5g era. He said that Xiaomi’s external opportunities come from the 5g era and the aiot era. With the advent of 5g era, it will drive a new wave of replacement wave in smart phone industry. It will take two to three years for 5g to be commercially available. The arrival of AI era is a super opportunity at least one order of magnitude larger than that of mobile Internet era.
but the difficulty is that Xiaomi is not the only one aiming at the opportunities in 5g era. Many brands, such as Huawei glory, OV, Yijia, etc., continue to place bets on technology investment, channel construction and brand promotion. Therefore, this tests the overall awareness, resource allocation ability, R & D investment level and strategic layout of markets outside the first and second tier cities.
under pressure, Xiaomi no longer blindly pursues the transformation of high-end models. Instead, it timely launches Xiaomi 10 Youth Edition, which reduces the product price to between 2000 yuan and 3000 yuan. Together with redmi mobile phone products, which focus on cost performance, alleviate the overall sales and profit pressure of Xiaomi mobile phones, and consolidate the existing consumer groups.
Mr. Zhao Ming, President of glory, told reporters at first finance and economics that the popularity of 5g mobile phones is still concentrated in the first and second tier markets. After the second quarter, the whole process of 5g mobile phones began to accelerate. By the third and fourth quarters, 5g’s share may reach 50% to 60% of the whole mobile phone market, and will be close to 70% by the end of the year.
in view of the development forecast for the next quarter, sun Yanbiao told the first finance and economics reporter that after Huawei’s mobile phone has shifted its focus to the Chinese market, it will keep pace with both online and offline, thus forming a large proportion of sales increase. Relatively speaking, Apple’s rise is based on the online market price reduction promotion, which is recognized by the market, but its actual shipment volume is relatively reduced, so the future sales of Apple will not be particularly optimistic.