“Now some company’s project managers are doing the same action, and this action is to formulate a cost reduction plan.” A few days ago, in response to today’s smartphone market, a person who has long been concerned about the mobile phone industry chain said. The reason, some industry insiders said,Global smartphone shipments fell sharply year-on-year due to unfavorable economic conditions and seasonally subdued demand.
At the same time, due to the decline in total terminal demand,In the case of an imbalance between supply and demand, major upstream manufacturers are competing for orders in order to survivewhich in turn affects product profits.
In addition, it has become the norm for downstream mobile phone manufacturers to squeeze the unit price of upstream suppliers’ products. This move has shifted the pressure on the unit price of the entire mobile phone product to the upstream, thereby compressing the unit price of upstream mobile phone products.
It can be seen that the decline in consumption capacity, the high-speed inflation and the outbreak of the conflict between Russia and Ukraine have led to a global economic downturn, and the poor market environment has been passed on to the smartphone market, which has directly affected the global smartphone shipments this year. They are also racking their brains to reduce risks in order to achieve the purpose of stable operation.
Bad news from mobile terminals
Entering 2022, there will be frequent unfavorable news from the mobile phone supply chain.
In March this year, Tianfeng Securities Guo Mingji announced that China’s major Android mobile phone brands have cut orders by about 170 million units so far in 2022 (accounting for 20% of the original global shipment plan in 2022), of which more than 70% of the orders. Use a MediaTek chip. Orders are likely to continue to decline in the coming months due to low consumer confidence.
In May, bad news came again.
On May 18, according to Nikkei Asia, China’s three major mobile phone brands, Xiaomi, OPPO, and vivo, have notified suppliers that they will cut orders by about 20% in the next few quarters.
Nikkei, citing unnamed sources, pointed out that Xiaomi notified the supply chain that it would reduce the original sales target of 200 million units this year to 160 million to 180 million units. About 20% of the order is to digest the excess inventory accumulated on the current channel.
Guo Mingji also warned that mainland mobile phone brands have cut orders again to 100 million units in the past two months. Currently, it is estimated that the shipments of Xiaomi, OPPO, vivo, Transsion, and Honor this year will be 160 million units, 160 million units, and 115 million units, respectively. 100 million units, 70 million units, 55 million units. Samsung also lowered its mobile phone shipment target for this year by about 10% to 275 million units; for other components, the shipments of camera modules and lenses for Android-branded mobile phones in mainland China may decrease by 20% to 30% in the third quarter of this year. .
In fact, major mobile phone brand manufacturers have lowered their mobile phone shipment targets this year because of poor sales and their own inventory.
A person who is deeply involved in offline channels of mobile phones communicated with Jiwei.com that in the face of such a poor market environment, how to sell inventory is an important test for major mobile phone terminal manufacturers.
The above-mentioned person continued to introduce that there are generally two types of bad inventory, one is half-cost preparation, and the other is finished product. unknown.
However, he admitted that domestic mobile phone manufacturers do have the pressure to destock, and at present, in order to promote product sales during the summer vacation, many mobile phone brand manufacturers have made two-handed preparations. , On the other hand, the price of old products has been greatly reduced.
In his view, the summer vacation will be a battle for the share of domestic mobile phone manufacturers.
At the same time, it is understood that this year’s 6.18 is a “carnival” in the mobile phone industry, because under the influence of the policy, the price of domestic mobile phone products has been greatly reduced, and some products have been reduced in price by thousands of yuan.
So, in the case of weak demand and low sales, can 6.18 save the decline of mobile phones? In this regard, a person who is deeply involved in the upstream of mobile phones admitted that he does not expect this 6.18 promotion, because according to the normalized market in the past, mobile phone manufacturers will generally stock up before important promotion dates, but this year, ” No” because there is too much inventory.
It can be seen that inventory pressure has become an important reason for the terminal to pull goods upstream. However, it should be noted that while the terminal sales are not good, it also stimulates the emergence of undesirable phenomena in the mobile phone supply chain, such as price wars and insufficient capital chain.
Mobile phone upstream suppliers “changes”
In the face of weak terminal sales, the pressure on mobile phone manufacturers has also shifted to the mobile phone supply chain.
According to Jiwei.com’s information from the supply chain, due to the continuous influence of factors such as poor sales of smartphone terminals, there have been three obvious phenomena in the upstream supply chain of mobile phones so far.
The first major phenomenon is that among the upstream suppliers of mobile phones, the project managers of some manufacturers are currently working on low-cost solutions, and behind this action, it means that they are considering the cost factor, or to squeeze. The product price of upstream suppliers, and even the situation of changing suppliers due to price problems.
In other words, while squeezing the profits of the upstream supply chain, mobile phone terminals may also change the existing supply chain market structure.
In fact, in addition to the above phenomenon, the product shipments of upstream mobile phone suppliers are also showing a downward trend. Taking cameras as an example, many manufacturers in the entire mobile phone camera field are not only under pressure to clear their inventories, but also have a year-on-year decline in product shipments.
According to an industry insider in the field of mobile phone cameras, the current mobile phone camera manufacturers’ shipments have all declined year-on-year, and some manufacturers’ shipments have even fallen by nearly one-third year-on-year.
However, under the circumstance of declining shipments and pressure on prices, some of the upstream mobile phone suppliers have adopted the method of “evolution” in order to achieve the purpose of healthy and sustainable development.
A few days ago, Jiwei.com learned from the supply chain that at present, several mobile phone camera module manufacturers have not divided mobile phone and non-mobile phone business. On the contrary, they have integrated mobile phone and non-mobile phone projects to facilitate cost reduction and optimization of internal control.
You must know that earlier mobile phone camera module manufacturers intended to better develop non-mobile phone business, and they transferred more personnel to non-mobile phone fields, and now this move is enough to see the poor state of the entire market.
From another point of view, in the procurement process, the price of cameras in the mobile phone and non-mobile phone fields must be different, and the emergence of integration may further compress the unit price of non-mobile phone cameras.
Therefore, for suppliers, whether it is mobile or non-mobile, the pressure will only increase.
On the mobile phone side, suppliers are faced with declining shipments and lower prices; and in the field of non-mobile phones, regardless of the factor of shipment, they are also facing the “encirclement and suppression” of many competitors.
Now, once the price side is “stricken”, the level of worrying situation can be imagined.
However, in the face of various external uncertainties, “internal control” seems to be a way to reduce risks, and at the supply chain end, efficiency, structure, product, and organizational optimization are all important issues that have to be considered , and the competition in the future supply chain may not be limited to turnover, but more about efficiency, cost control, account period, etc.