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 piled up to fight hand in hand at home, and the sales of Xiaomi mobile phones have declined under heavy pressure. The question in front of investors is whether to be optimistic about the general trend of IOT (Internet of things) of Xiaomi group, or to be cautious about the trend of Xiaomis mobile phone business?
In the second quarter, the rise and fall were obviously differentiated
On July 27, counterpoint, a well-known market research organization, released the report on the domestic smartphone market in the second quarter of 2020. According to the report, Chinas smartphone sales in the second quarter of 2020 decreased by 17% year-on-year, but the sales increased by 9% month on month. The smart phone 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, Huaweis overall market share reaches 46%, vivo accounts for 16%, oppo accounts for 15%, apple accounts for 9%, and Xiaomi also accounts for 9%. However, in terms of growth data, in the second quarter, Apples 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%.
Huawei is still the best performing company in the Chinese market, with 46% market share this quarter, said Tang flor, a research analyst at counterpoint. Despite the slowdown in overall market growth, Huawei still achieved a year-on-year growth of 14%. China has become Huaweis most important market. With the help of high-end mate30 and P40 series and midrange nova7 series, Huaweis 5g product portfolio has grown rapidly.
Sun Yanbiao, President of the first mobile phone industry research institute, told the first finance and economics reporter 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 realized through 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.
Sun Yanbiao said that the main reason behind the soaring sales of Apples mobile phones 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 Apples 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, Chinas e-commerce channels began to take price reduction measures for some apple models, which is 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 Apples upcoming new mobile phone.
Its hard for Xiaomi to be number one again
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 to return its sales volume 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 first quarter financial report of 2020. In this quarter, Xiaomis total revenue reached RMB 49.7 billion, up 13.6% year-on-year, and 12% month on month decrease. After adjustment, the net profit was 2.3 billion yuan, up 10.6% year-on-year and 1.9% lower than the same period last year. Among them, the gross profit margin of Xiaomis 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, the sales volume of mobile phones increased from 27.9 million units to 29.2 million units, and ASP (average selling price) rose 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 companys production 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 has some raw materials in stock and the prices have fallen. 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, Xiaomis 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 Xiaomis 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 Indias smartphone market in the second quarter of 2020, accounting for 31% of the market share. However, compared with last years 10.3 million units, Xiaomis shipment decreased by 5 million units.
Under the changing situation, mobile phone manufacturers such as Huawei and Yijia have gradually shifted their focus to China, but China is in a new round of fierce competition in the 5g era.
The battle of manufacturers in 5g Era
Although Chinas smartphone growth 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. Talking about the development of 5g smart phones in China, ethanqi, a senior analyst at counterpoint, stressed that in a single month, the proportion was higher in June, and more than 40% of the smartphones sold had 5g features.
According to its analysis, Chinas 5g smartphone market has been very stable, and hovx (namely Huawei, oppo, vivo and Xiaomi) has occupied 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 will be shipped, with 5g mobile phones accounting for 41.5% of the total; in June, the total number of domestic mobile phones will be 28.63 million, and the number of 5g mobile phones will be 17.513 million, accounting for more than 60%. From the perspective of single product models, Huawei (including glory) accounted for eight seats and oppo accounted for two of the top ten sales of 5g mobile phones in the Chinese market in June, and Xiaomi mobile phone was not found in the top 10.
On July 23, Lei Jun issued a paper saying that Xiaomi plans to invest 50 billion yuan in five years to continue to increase scientific and technological innovation, so as to make the artificial intelligence internet of things (aiot) a service capability that runs through Xiaomis whole intelligent ecological products, platforms and scenes.
Earlier, Lei Jun emphasized the importance of 5g era. He said that Xiaomis 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 the pressure, Xiaomi no longer blindly pursues the transformation of high-end models. Instead, it timely launches Xiaomi 10 youth version, 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. Zhao Ming, President of glory, previously told reporters from China 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 quarter, 5gs 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 Huaweis 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, Apples 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. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931
Under the pressure, Xiaomi no longer blindly pursues the transformation of high-end models. Instead, it timely launches Xiaomi 10 youth version, 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.
Zhao Ming, President of glory, previously told reporters from China 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 quarter, 5gs 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 Huaweis 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, Apples 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.