Glory After Independence: Supply Chain Restructuring In Progress

After glory independence, the reconstruction of its chip supply chain has become the focus. In recent days, there have been many new developments in its supply chain. It is reported that the existing mobile phone supply chain manufacturers are promoting the 5g mobile phone R & D project of new glory using high pass chips, and the glory V40 mobile phone will be officially released in January.

On January 7, a number of people close to glory confirmed to the 21st century economic reporter that both Qualcomm and MediaTek have been promoting cooperation with glory in 5g chip, and the new product of glory 5g mobile phone is planned to be launched in mid-2021.

On the same day, MediaTek told the 21st century economic reporter: "as a global smartphone chip supplier, MediaTek cooperates with many OEM manufacturers and is committed to bringing leading technologies to global customers and consumers. At present, as a newly established independent company, we are assessing the status quo. "

According to industrial securities analysis, glory is expected to obtain chip supply from Qualcomm and MediaTek after its separation from Huawei. However, due to the shortage of chips, a large number of chips will not be available until the second half of 2021. "We judge that glory may have a shipment level of nearly 40 million in 2021, and Huawei + glory can reach 80 million units in total."

An analyst of a securities company told the 21st century economic report: "due to the shortage of processors, the shipment volume of glory in 2021 is limited, but the internal goal of glory is very high. The planned shipment volume in 2021 is 70-80 million units, which actually depends on how many chips can be obtained."

Gradual recovery of suppliers

Not long ago, the scene of Huawei selling glory is still vivid. On November 17, 2020, a number of Huawei supply chain enterprises issued a joint statement. Shenzhen Zhixin new information technology Co., Ltd. has signed an acquisition agreement with Huawei Investment Holding Co., Ltd., completing the comprehensive acquisition of relevant business assets of glory brand. After the sale, Huawei no longer holds any shares in new glory.

At that time, Ren Zhengfei, the founder of Huawei, said at the glory farewell party, "first of all, we should restore the supply of channels as soon as possible. If the channels are dried up for a long time, it will be difficult to recover life. We should fully embrace global industrial resources and establish relationships with suppliers as soon as possible. Supply is a very complicated and complicated problem. You are more difficult than any new company. "

It can be seen that supply chain and channel problems are in urgent need. In less than two months of "single flight", new glory is rapidly sneaking into contact with suppliers of a series of products such as mobile phones and laptops.

Among them, the supply of core chips is the most critical. Prior to this, the president of Qualcomm, Mr. anmon, had already stated that he was very much looking forward to and glorifying cooperation in relevant fields. "This is a new situation and pattern, and we have started some dialogues with glory.".

According to the reporter's understanding, both Qualcomm and MediaTek have cooperated with glory in the supply of 5g chips. On January 7, a senior executive of an OEM manufacturer told the reporter of 21st century economic news: "at present, we are trying to make the new 5g mobile phone of glory. Huawei's mobile phone orders have changed greatly. For glory, we will see the situation this year, and there should be still potential." Moreover, the reporter also learned that some core device manufacturers, including the screen, are also negotiating with glory for this year's cooperation.

In terms of software suppliers, on December 24, 2020, glory announced that it had signed a global cooperation agreement with Microsoft to adopt Microsoft Windows 10 as its official operating system for laptops worldwide. Glory said that Magic Book Pro, which is equipped with Microsoft Windows 10 and Intel corei5 processors, will be launched in overseas markets in January 2021.

At the same time, it is reported that glory will also launch the glory v405g mobile phone or carry the MediaTek Tianji 1000 + processor this month. The V40 was originally planned to be launched in November 2020. With the establishment of the new glory, V40 will surface, of course, the mobile phone mainly uses stock preparation.

What we are looking forward to may be the glory 5g new mobile phone planned to be launched in the middle of this year, because it marks the recovery of chip supply chain and the new glory posture in 5g battlefield. It is understood that new glory will complete the signing of new labor contracts for all employees by the end of December 2020, and will officially go to the market in January 2021. Now glory has opened a new speed. Looking back, Huawei dares to make a major decision to split up. Perhaps it has made various preparations in the process of previous negotiations.

Wang Xi, manager of IDC's China research, told 21st century economic reporter: "the focus of the development of new glory lies in the availability of stable supply. In theory, the cooperation between glory after independence and upstream suppliers will be smoother, but the first is to sort out the suppliers as soon as possible and start cooperation, and the second is how to improve the priority of their own supply and ensure the stability of supply. "

New glory starts new qualifying

From the perspective of Huawei as a whole, this is an important change in the organizational structure. For glory, it has opened a new way of growth. It has broken away from the label of "rich second generation of manufacturing industry" and started its second venture. The internal competition between Huawei and glory has been transformed into that of external competitors, which has also added more variables to the global mobile phone and IOT market, and a new qualifying competition has been opened.

Wang Xi told reporters that based on IDC's data up to the third quarter of 2020, the top five manufacturers of mobile phone cumulative shipment in 2020 are Samsung, Huawei, apple, Xiaomi and vivo. The potential changes in the market structure have stimulated a new round of market competition, and further extended to the upstream supply level. The competition in the whole supply chain, especially in the chip end, will become increasingly fierce.

Glory has shown its ambition. According to media reports, at the staff communication meeting in Beijing, the day before the glory farewell party, Zhao Ming, CEO of glory, said that the goal of new glory is to become the first in the domestic mobile phone market. Ren Zhengfei also said at the farewell party that glory should be Huawei's strongest competitor in the world, surpass Huawei, and even call down Huawei to become a self-motivated slogan.

In the previous interview, Zhao Ming, President of glory, told reporters: "it is estimated that the market share in 2020 will be about 16% - 17% At that time, its goal was to win the second place in China. Now, with the change of identity, the first is the new goal of glory.

At the same time, glory faces fierce competition. On the one hand, there is still uncertainty in the overseas market. In the short term, glory needs to restore the supply of parts (3-6 months) and strive for GMS usage rights. However, the decline in brand power and the homogeneity of chip performance caused by its separation from Huawei will restrict its overseas share expansion. As the recognition of glory overseas brand is lower than that of Huawei (glory overseas shipment accounts for 30%), it is still difficult to maintain Huawei's overseas competitiveness (mainly in Europe).

On the other hand, competition in the domestic market is more fierce. Societe Generale Securities points out that at present, the domestic market structure tends to be stable. Apple may give priority to Huawei's high-end market share, and Xiaomi's high-end will continue to make efforts, which is expected to obtain more high-end and high-end shares than vivo and oppo. Meanwhile, Xiaomi's capital increase and domestic offline channels are also expected to help the company seize Huawei's medium and low-end shares. It is estimated that Huawei 2020 / 202 will In one year, it will ship 160 million / 100 million units, millet 150 million / 210 million units, and apple 200 million / 220 million units.

Trendforce said that the global smart phone industry is expected to recover with the increasingly stable life style. With the support of periodic phone replacement demand and demand from emerging markets, it is estimated that the total annual production will grow to 1.36 billion, with an annual growth rate of 9%. It is estimated that Huawei's production performance in 2021 will fall to the seventh place due to the ban and the split of new glory. The top six seats in the world are Samsung, apple, Xiaomi, oppo, vivo and transmission, which will cover nearly 80% of the global market. However, due to the uncertainty of the epidemic situation and the international situation, as well as the shortage of wafer foundry capacity, the future trend of the smart phone industry will be There are still variables.

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