The impact of the new coronavirus epidemic on the global mobile phone industry has far exceeded expectations. China-based tech website Laoyaoba.com quoted industry sources as saying that China's major mobile phone brands will collectively cut orders in June.
Mobile phone manufacturers originally expected that the market will pick up after the end of the epidemic in China. However, the overseas epidemic has intensified, resulting in a very optimistic situation in overseas markets, especially in Europe and India.
In this case, Chinese mobile phone brands' plans to restore production capacity was thwarted and had to cut orders.
This will also cause a great impact on the supply chain, especially for companies that have begun to resume production capacity. Because many orders in the first quarter were determined in the fourth quarter of last year, but the weak market demand has caused many supply chain manufacturers. in stock.
According to the above report, Samsung's order cuts in May reached 30% -50%, and Apple's order cuts also exceeded 25%. By June, domestic mobile phone brands have followed up, among which OPPO and vivo cut orders reached 30% -40%.
The report said that Apple had already started to cut orders during the February epidemic in China in the morning. "From about 45 million bills to 37-38 million bills per month at that time, Foxconn also took vacations for employees at that time, including dispatching workers for one month and hourly vacations. 3 Months," the report said quoting industry insiders.
"But after China resumed work, Apple began to increase its production capacity. Unexpectedly, the outbreak in the overseas market led to a decline in demand. Eventually, it could only find ways to promote and reduce production. At present, the demand in overseas markets has dropped by about 25%."
The report said that Huawei and Xiaomi's order cuts also reached 20% -30%.
Some people in the industry believe that Huawei and Xiaomi may cut orders by far more than 20%. Taking Huawei as an example, "mainstream devices such as Huawei P40 have been reduced from the 25 million earlier to 20 million, and recently continued to cut orders to 15 million. "In this way, the order cut rate has reached 40%.
There is no doubt that for mobile phone supply chain manufacturers, the real crisis will be behind.
One reason for many companies' net profit growth in the first quarter is that the results of this quarter have actually been placed in the fourth quarter of 2019, but from the current point of view, supply chain manufacturers are bound to face great inventory difficulties.
It is understood that taking a mobile phone core chip supplier as an example, its mobile phone terminal vendors' orders in the second quarter have reached 20% -30%, and the chip's usage in mobile phones is still in a state of gradual growth.
For Chinese mobile phone brands, Xiaomi and Huawei account for a relatively large percentage of sales in overseas markets. Among them, Xiaomi has reached 60%, Huawei has reached 40%, and OPPO and vivo have about 30%.
The total shipments of mobile phones in the Chinese market in January were 20.813 million units, a new low in 11 months, a year-on-year decrease of 38.9%, and domestic brand mobile phone shipments were only 18.319 million units, a decrease of 42.9% year-on-year.
Since the outbreak of the Chinese epidemic in late January, sales in the Chinese mobile phone market have been even lower in February.
The total shipments of the Chinese mobile phone market in February were only 6.384 million units, a year-on-year decrease of 56%. Among them, domestic brand mobile phone shipments were 5.858 million units, a year-on-year decrease of 55.3%.
