The global mobile phone market is not as straightforward as many might think. Even for major mobile phone brands such as Samsung and Apple, a serious examination of the market is necessary to guide production. This will help avoid the situation of having many devices in the market without buyers. According to the Taiwan Economic Daily, the global mobile phone industry has serious inventory this year. Not only have sales declined, but giants like Apple and Samsung have also started cutting production. These major brands are doing everything they can to reduce market risks and accelerate the speed of destocking.
Analysts predict that due to factors such as slowing economic growth, inflation and the epidemic this year, global mobile phone shipments will be only 1.26 billion units. This is a year-over-year (YoY) decline of 6.8%. Next year, global mobile phone shipments will be around 1.327 billion units, an increase of 5.2% year-on-year.
Decline affects more Android brands
The decline of the Android mobile telephony camp is the most obvious this year. The three major Chinese brands such as Xiaomi, Oppo, and Vivo all fell sharply, with a year-over-year decline of almost 20%. Apple is the only one among the top six mobile phone brands to have a chance of positive growth this year. However, due to limited production capacity in the fourth quarter, final shipments may not be as good as previously forecast.
Samsung is also affected by a few factors. Recently, it was reported that the production capacity of its assembly plant in Vietnam, the largest production base, has been reduced again. At present, the share of Vietnamese factories in Samsung’s total mobile phone shipments has fallen to 50%. It could fall to 40% next year.
According to analysts, they believe that when it comes to the technology industry, mobile phones are the first industry to fall into a trough in this wave of cold market wind. The pace of destocking is also happening earlier than expected by the industry. However, there is a chance to return to previous levels in the second quarter.
The top seven brands in the global mobile phone market are Samsung, Apple, OPPO, Xiaomi, Vivo, Transsion and Honor. These brands account for more than 80% of global mobile phone shipments. Most cell phones are in the first half of the year, while Apple is in the second half of the year.
Strategy Analytics: Global Mobile Phone Shipments/Sales Ranking for November 2022
According to Strategic analysis Wireless Smartphone Strategy (WSS) Service Research Report, global mobile phone shipments (sold in) and sales (sold) in November 2022 fell 20% and 18% YoY respectively. Due to inflation and exchange rate volatility, low total industry inventories, manufacturing disruptions caused by the outbreak, ongoing geopolitical tensions and weak demand in several markets, the performance is also quite weak.
Gizchina News of the week
In terms of mobile phone brands, Samsung will lead the global market in shipments and sales in November 2022. After Samsung, Apple in terms of shipments and sales. Xiaomi maintains its third position in shipments and sales. Other brands on the list include OPPO (including OnePlus), Vivo, Transsion, Honor, Realme, Lenovo (Moto), and Huawei.
CINNO: the price of mobile phone panels will drop throughout 2022
CINNO Research’s latest report shows that due to the impact of the epidemic and the continued downturn in the global economy, market consumption is not as hot as in previous years. The global mobile phone market failed to reverse the downward trend. There are no good expectations for the demand for panels. Moreover, the price of mobile phone panels will drop throughout 2022.
The report points out that as Korean panel brands gradually withdraw from the LCD panel market, after the price of large-size panels stabilizes, the operating pressure of high-generation lines will decrease. It will also reduce the willingness to use mobile phone products to capture the market at low prices. But in the short term, mobile phone panel prices will remain under pressure.
Among them, the price of LCD mobile phone panels has entered a bearish cycle since July 2021. Moreover, the price will continue to be in a bearish channel throughout 2022. will accentuate in the fourth quarter. In 2022, the cumulative decline of a-Si panels will be 13.3%, and the cumulative decline of LTPS panels will be 9.7%. Panel makers’ a-Si production capacity continues to shift toward computer/industrial control/vehicle products, and leading LTPS panel makers continue to increase shipments into the white label market.
Demand for AMOLED devices is slowing
The growth rate of demand for AMOLED mobile phone panels has slowed down. This, coupled with high inventory levels, means the market continues to be in surplus. This is mainly the case for flexible AMOLED panels, where price competition is fierce. In 2022, the price of flexible AMOLED mobile phone panels will drop by 19.8%. Also, the price of rigid AMOLED panels for mobile phones will drop by 10.9%. The main panel brand, Samsung Display (SDC), saw a significant drop in shipments and market share, especially in the Chinese market.
CINNO Research predicts that in the absence of obvious positive demand factors, mobile phone panel prices will continue to decline. In addition, a-Si/LTPS panel prices will drop by $0.3 per month in December 2022 and January 2023. Rigid AMOLED panel price will continue to drop by $0.5 and Flexible AMOLED panel price may drop of $1. These widespread declines are forcing brands to scale back their projections.
0 Comments