The Revival Of The Global Mobile Phone Industry: Dark War, Mature Market, Universal 5G Will Become A Trend

Since the middle of May, the global high potential mobile phone market has been gradually reviving, and the cooperation between operators has begun to restart. After nearly half a year's delay, China's mobile phone manufacturers' new global campaign is finally open, which will affect the overall performance of the global market this year.

Recently, OPPO, which had already established the European office, announced its official appearance in Western Europe headquarters in Dusseldorf, Germany. At the end of last year, vivo quietly established its own Western European office in Germany. If the epidemic is not obstructing, the "latecomer" of the two Western European markets at the beginning of the year should be in the tide of contention.

Data show that, in the first quarter of 2020, OPPO's growth rate in the European mobile phone market in the single quarter was 1014%, ranking fifth, according to Canalys. It is only a sudden outbreak that makes the major intelligent machine market in Europe, India, Southeast Asia and Latin America stagnate briefly, and it will take some time to recover.

Recently, in an exclusive interview with the economic news reporters in twenty-first Century, Xu Qi, vice president of realme and President of global marketing, admitted that in the European market with high hopes, mobile phone sales were indeed affected by the epidemic. Of course, the company is actively preparing for it. "We see 6-7 months as the preparation period, and the European market will mainly see the second half of the year, especially in 11-12 months."

According to Xu Qi, even during the epidemic period, realme has not interrupted the new product distribution and channel consultation activities in overseas markets, and has been preparing for the development of emerging markets, including Turkey, Israel, Belarus and so on. With the relief of the epidemic situation, it will actively approach several markets.

Vertically, this year is also an important year for 5G to launch large-scale business. In the first restored Chinese market, the 5G market with less than 3000 yuan has been quickly occupied, and this kind of close combat is continuing to sink and expand.

5G communication products, 5G mobile booth. Map Vision China

Overseas business is gradually reviving

The epidemic poses a challenge to the pace and deployment of 5G in the global mobile phone market.

According to Gartner, a survey firm, the most serious decline in smartphone sales in the first quarter of 2020 has fallen by more than 20% in the quarter, with sales of only 299 million. Analysts point out that this is mainly due to the deepening economic uncertainty in many parts of the world in March and the closure of many smart phone manufacturing plants.

Until mid May this year, almost stagnant major markets in the world finally came to light, but the risk remained. Only after the official approval of some Chinese mobile phone manufacturers in India resumed work, according to the twenty-first Century economic report, some factories soon were forced to suspend operations because of the detection of new crown pneumonia cases. After a series of strict epidemic prevention work, the resumption process was resumed.

Xu Qi told reporters that at present, realme factory workers in India have not detected new crown cases, and the local market will report employees on time every day. "We have carried out nucleic acid testing for all employees, and have begun to gradually and orderly return to work on the premise of ensuring the safety of employees."

Although Europe has relaxed the blockade measures, the recovery of retail business under the line is also very cautious. Xu told reporters that Europe is one of the markets that realme will focus on this year. "In fact, with the liberalization of the policy, many offline stores have already opened up, but will limit the number of people entering the shop, and in general, they are slowly picking up. The European market may not be as fast as it is elsewhere. "

He added that for the European market, the big push for overseas e-commerce platform at the end of the year is an important breakthrough. "For example, black five promotion and so on, (similar promotional activities) in the whole time period (contribution to shipping) is an absolute leading position, so in this time period, the major manufacturers will have new product intensive efforts, and we will actively deploy channels to complete the (market at that stage) outbreak."

"From a global perspective, the overall recovery is better, but there are many variables in the epidemic, and some of the markets have not recovered so fast." Xu Qi concluded.

The traditional dominant market of Chinese manufacturers also showed a sharp contraction in the first quarter. Counterpoint analyst Tang Ding told reporters that the timing of the global market blockade was different and the extent of the spread varied, leading to a different degree of impact in the first quarter. Compared with the domestic market, the first quarter sales fell 20%, Latin America and Europe and the United States, the main market has been more intense impact.

This is precisely where Chinese manufacturers will focus their efforts this year. At the moment, pressure and motivation are parallel. Xu pointed out that "two markets in China and Europe, which we define as highly strategic markets, will be actively expanded this year. At present, in the Chinese market, under the active development and layout line, we will further strengthen cooperation with major operators, and further improve the price of 5G products and the sinking of the market through updating and iterating products.

In other markets, although the line was blocked, Xu said that during the epidemic, companies in Turkey, Poland, Israel, Belarus and other markets are also actively deploying. "We have prepared for a long time in the Turkey market, but recently the epidemic has affected the logistics operation. With the mitigation of the epidemic, realme products will soon meet with local users. At the same time, we have actively approached many markets, such as Latin America, which will be affected by the epidemic, but we are also keeping pace and active deployment.

Products are close to fight.

Although the pace of globalization has slowed down, the trend of close combat has been built up as the Chinese market begins to recover.

At the end of the second quarter, it is a node for mobile phone manufacturers to release the flagship machine at the mid-range price. From the news released recently, the 5G mobile phone at 1000-2000+ yuan price segment has come to our side, even the 8+256GB phone with high 5G memory can also be used for less than 3000 yuan.

"This year, the overall market is very special, including the current" 618 "promotion period, we all played a systemic solution. With the further improvement of 5G business this year, the price of 5G products will be faster. This year when the first 5G product in January 7th was realme true I X505G, the starting point of 5G price is still relatively high. From the whole industry, the price of 5G mobile phone is very fast, and the popularity of 5G mobile phone in China is worth looking forward to. Facing the current situation, Xu told reporters.

Tang pointed out to reporters that vivo's strategy was very obvious, which also led to its rapid development since 2019.

Starting in 2018, vivo's Y, U, S, Z and so on are all in the middle and low end market in addition to the fixed flagship series. "Coupled with the sub brand love cool started last year, basically vivo in the middle and low price segment coverage is more comprehensive, basically have been made up." At present, vivo has a great push on 5G products of S series and AI cool series.

In the face of such a trend, Xu told the economic news reporters in twenty-first Century that realme needs to achieve two points in the process of promoting the comprehensive 5G. One is to accelerate the sinking of 5G, to eliminate 4G mobile phones, so that consumers have more choices for 5G phones. Realme will launch a thousand 5G mobile phone in the second half of the year to complete the full price segment coverage from the thousand yuan price segment to the high-end flagship.

Second, speed up the 5G ecological construction, and unite more partners in the industry, upstream and downstream industry chain, operators and Internet vendors to promote the construction and development of 5G software and hardware, so that the application value of "5G connection" can be brought into full play.

"So we can see that the diversification of 5G phones has emerged, and two thousand yuan, or even 1000 yuan price 5G mobile phones have been launched, and become the major promotion of explosive products. I believe that comprehensive 5G and universal 5G will become an inevitable trend." He said.

At the same time, he stressed that although the price of 5G mobile phones is more popular with people, it is a trend, but low price is not a compromise. Realme does not emphasize cost performance, nor does it sacrifice some performance configuration because of pricing compromise. What we need to do is to compete with the best competitive products in the price segment and to cultivate young people.

Xu also further pointed out to reporters that this year is the 5G year. Realme is actively and continuously communicating with the major operators about policies and ideas, focusing on their concerns, and will cooperate with operators in the new products in the second half of the year. Apart from China Mobile, it is also actively contacting operators such as China Unicom and China Telecom.

According to the Ministry of industry and statistics, as of April 22nd, 96 5G mobile terminals were licensed to enter the network, and the proportion of 5G mobile phones to total mobile phone shipments was close to 40%. At the same time, the country has built 198 thousand 5G base stations, and the number of 5G packages has reached about 50000000. The domestic 5G industry chain sink closed loop has been increasingly perfect.

"China's 5G has been relatively advanced in the global development. At present, many Chinese brands have made outstanding performances on the world stage by virtue of cutting-edge technology, technology and product strength, because they are all moving forward. In the future, the high-end market will surely be more demanding for technology and technology, and price is only a part of the competition among manufacturers. Technology will also be a core competition weight. Xu Qi concluded.

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