Recently, counterpoint, a well-known market research organization, released a report showing that the sales of smart phones in the Chinese market in the second quarter decreased by 17% year-on-year, but increased by 9% month on month. Although it has not reached the level before the epidemic, it also shows signs of recovery.
Huawei still maintains a huge advantage. Its market share jumped to 46% from 39% in the first quarter, and its sales volume increased by 14%, accounting for almost half of China’s mobile phone market. Apple, however, has seen the strongest growth, with sales in mainland China up 32%. Xiaomi, on the other hand, is down 35% compared with the same period last year, and ov’s is down about 30%.
it is reasonable to say that since the rise of domestic mobile phones, the momentum is much stronger than that of apple. However, from the data of this report, except Huawei, Apple’s momentum is still very strong, while the performance of Chinese mobile phone brands such as Xiaomi and ov, which are also promising, seems to be less satisfactory. The reason for the current situation is worth studying, because it may be related to the trend of China’s mobile phone market pattern in the next stage and has guiding significance.
compared with the previous period, Huawei’s sales volume has basically maintained a steady and rising rhythm. In the first half of 2020, Huawei sold about 58 million smartphones, ranking first in China’s mobile phone market.
this benefits from Huawei’s multi-level layout strategy. In this achievement, glory series, imagination series, Nova series, mate series, P series, etc. have contributed a lot. In the first half of the year, the best-selling models were glory 9x, Changxiang 10 and mate 30. The 5g mobile phone P40 Pro launched in April ranked among the top three best-selling models of Huawei in the second quarter.
in recent years, Huawei has greatly improved its strength with its multi-directional layout of technology, marketing and online and offline, and its word-of-mouth in the Chinese market and even the global market has been steadily increasing. The U.S. sanctions have put great pressure on Huawei, but on the other hand, it has also created a good opportunity for Huawei to improve itself.
now Huawei has the momentum of being a “national brand” in the Chinese market. When users see that the United States has repeatedly suppressed Huawei, it is easy to have a kind of “sympathy” for Huawei, and even raise the purchase of Huawei mobile phones to the height of “patriotism”.
although Huawei is only an enterprise in essence, once this kind of compassion is fermented, it can easily evolve into turbulent “public opinion” and huge profits. Even Ren Zhengfei has said “thank trump”. To some extent, the “tossing” of the United States is really equivalent to advertising Huawei in disguised form. In addition, Huawei has high-quality products to lay the foundation for its brilliant achievements The achievements are expected.
if you expect something, you will find it unexpected. Although Apple ranked fourth in the market share of China’s mobile phone market in the second quarter, its growth momentum was the strongest. As we all know, in recent years, the overall mobile phone market has shown a weak trend, and Chinese mobile phone manufacturers are also rising in the high-end market. In addition, Apple’s innovation is not as strong as that of the jobs era, which leads to the decline of its sales volume, and it no longer has the status of “star product” in the Chinese market in the past few years.
but judging from this report, Apple’s achievements are also commendable. In the report on China’s mobile phone market released by counterpoint in the first quarter, Apple’s mobile phone shipment fell by 1% year-on-year, but at that time, China’s smartphone shipment fell by 22% year-on-year, so Apple’s performance was still better than the overall market, and this quarter made greater progress and was more surprising than the previous quarter.
Apple’s performance in this state is mainly due to the sharp drop in the price of its mobile phone products. The price war was originally used by Chinese mobile phone companies to compete with apple and Samsung in the market, but now the geomancy turns around, and Apple also uses it quite smoothly.
launched a panic buying version of apple iPhone 11 last year. During the epidemic, subsidies for several major e-commerce platforms were awesome. Since April, several major domestic e-commerce platforms have announced big price cuts for iPhones, with a maximum price reduction of 1600 yuan. Jingdong and Suning said that this is the first time that large-scale and large-scale price reductions have been made in China since the release of iPhone 11.
they all say that “a lean camel is bigger than a horse”, and the iPhone is far from that. The attractiveness of the product itself and the price reduction strategy have led to a sharp rise in iPhone 11 sales. On the list of e-commerce platform mobile phone renewal season in April, iPhone 11 once became the sales champion of mobile phone single product, and even ran out of stock on some e-commerce platforms. All these made iPhone 11 the best-selling product in China’s mobile phone market in the first quarter of this year.
another model, the iPhone se2, also set a record low price. Taobao and pinduoduo competed with each other in terms of subsidies, bringing the price of the iPhone se2 down to 2799 yuan, making the iPhone se2 also sold out by Chinese consumers.
under such preferential power, it is difficult for Apple mobile phone sales to grow. Every time Apple’s price reduction can bring an obvious boost to its sales, which may also be a kind of “warning” to Chinese mobile phone manufacturers: in the past two years, Chinese mobile phone manufacturers have been developing too smoothly, and they are increasingly committed to the high-end market, and the price of mobile phones is rising all the way. Maybe Chinese mobile phone manufacturers should reflect on whether their pricing strategy is unreasonable, otherwise why is Apple’s price The strategy of war is a hundred trials.
and this strategy may be a signal that apple is aware of the importance of the Chinese market. Otherwise, with Apple’s arrogant temperament in the past, it would not be willing to “lower its own status” repeatedly. In addition, Apple’s emphasis on the Chinese market is also reflected in strengthening supply chain cooperation with mainland China.
for example, lichen precision recently announced that it would acquire 100% of the equity of two wholly-owned subsidiaries of Wistron, which is the third largest OEM of iPhone. After the acquisition, lichen will become Apple’s first generation factory in mainland China. In addition, Apple has recently increased the purchase proportion of third-party screen supply, and Apple hopes BOE will join the iPhone 12 screen supply.
all these are conducive to the formation of a closer cooperative relationship between apple and the Chinese market, thus further improving Apple’s image in the Chinese market. Apple’s moves are obviously paving the way for its future in the Chinese market.
in business, there are always people who are happy and others are worried, and the mobile phone industry is no exception. Xiaomi, oppo and vivo did not perform well in the second quarter, but this is understandable.
these manufacturers have put a lot of energy into offline layout in recent two years, and offline shops can be seen everywhere. There is no need to elaborate on the impact of offline channels during the epidemic period. The proportion of mobile phones purchased by consumers through online channels has increased significantly. Huawei has provided a variety of choices, and apple has offered a great deal of price reduction. In comparison, the three companies are weaker and their pace of progress is relatively difficult.
we can see that in the second quarter of China’s mobile phone market, the situation of mobile phone manufacturers is very different, which depends on the difference of their respective strategies. However, from a macro perspective, China’s mobile phone market in the second quarter has not recovered to the level before the epidemic. Therefore, no matter what their situation is, the practical problem that mobile phone manufacturers should consider together is how to break through the plight caused by the epidemic, and to achieve this goal, I am afraid, depends on 5g mobile phones to support.
in the first half of this year, the number of 5g mobile phones shipped in the Chinese market reached 63.597 million. Since June 2019, the number of 5g mobile phones in China has shown an overall growth trend. In the second quarter of this year, 33% of China’s mobile phones enabled 5g, a significant increase compared with 16% in the first quarter. The sales of 5g mobile phones accounted for 40% of the whole mobile phone market in June, a record high.
from the perspective of structure, Huawei accounted for the largest share of 5g mobile phone market in the first quarter of this year, accounting for 55.4%, followed by vivo, oppo and Xiaomi, which together accounted for 96% of China’s 5g mobile phone market. Huawei is one of the most outstanding companies. Although its sales volume has declined due to sanctions in the United States overseas, its 5g product portfolio has played an important role in the Chinese market, such as mate 30, P 40 and Nova 7 series.
from the price point of view, the price of 5g mobile phones in China is still in the middle and high-end price range of $400 and above, but it also shows a downward trend. Xiaomi even lowered the price of 5g mobile phones to the level of 1000 yuan.
according to statistics, the number of 5g base stations in China has increased by more than 10000 per week. As of June this year, more than 250000 5g base stations have been built in China. With the rapid progress of 5g infrastructure, the number of 5g devices has also increased significantly. As of June, 130 5g mobile phones have obtained the network sales license, and the number of 5g terminal connections has exceeded 36 million. In the second quarter of 2020, 160 mobile phones were applied for network access, including 83 5g mobile phones, accounting for 51.88%, an increase of 48.5% compared with the second quarter of 2019. In April alone, the number of 5g mobile phone users increased by more than 7 million.
However, regarding the situation of China’s mobile phone market, counter point analysts said: “although domestic business activities in China have returned to normal, consumers’ desire for mobile phone consumption is still low. Manufacturers and operators have made efforts to promote the sales of 5g mobile phones from their respective perspectives.”.
in fact, from the issuance of licenses in June last year to the outbreak of the epidemic, the construction of 5g in China has only been half a year. The epidemic has inevitably affected 5g. At the beginning, no one would have thought that the first application of 5g HD live broadcast would be to let tens of millions of netizens become the “supervisors” of Huoshen Mountain hospital, and then more places needed 5g, which made people understand it more deeply What is “g to the use of time hate less.”.
However, it is also out of the need of epidemic prevention that many 5g applications that have been “driven to the shelves” have the opportunity to practice, making 5g in China usher in the outbreak ahead of time. Although the progress of 5g construction of operators has been affected, they can still work overtime to complete the task after the epidemic, and the overall loss in this respect will not be too much.
it is possible that 5g terminal equipment will be affected most. After all, no matter how frequently mobile phone manufacturers hold online conferences during the epidemic period, the enthusiasm of users to change their phones can not return to the state before the epidemic in a short time, and the overall sales of smart phones will inevitably decline.
However, the efforts of manufacturers are not completely in vain. In the “restorative consumption” after the epidemic, the sales of mobile phones are easy to recover rapidly, among which 5g is a strong influencing factor, because according to the normal law, the arrival of restorative consumption is also the time of 5g phone replacement, and the overlap of the two factors is more likely to promote users to replace 5g mobile phones.
this is also proved by the facts. In the second quarter of this year, China’s 5g mobile phone penetration rate was the highest in the same period in the world. It can be seen that 5g mobile phone plays an important role in China’s mobile phone market in the second quarter. Manufacturers break through the shackles of the epidemic by relying on 5g mobile phones, and even the epidemic has become an “opportunity” to boost the sales of 5g mobile phones.
this change may change the mobile phone market pattern. In particular, the changes in China’s mobile phone market in the second quarter, as well as the acceleration of China’s 5g new infrastructure, may indicate that the outbreak of 5g replacement wave is no longer far away, and Chinese mobile phone manufacturers have great advantages. As for apple, which has a strong momentum, it is reported that its 5g mobile phone is affected by