It still takes time for the mobile phone market to fully recover

2023-10-13

Every year during the National Day holiday, it is the "golden period" for mobile phone sales, especially on the eve of this year's Mid Autumn Festival National Day holiday, when Huawei and Apple both released new phones, it triggered a wave of phone switching. However, it is still too early to say that the mobile phone market has emerged from the downturn and fully recovered. Taking into account various factors, the future of the smartphone market is still full of uncertainty. This round of mobile phone sales boom during the Mid Autumn and National Day holidays is still a counter trend growth for high-end mobile phones. The product is' far ahead ', and the shipment is' far ahead'. This joke confirms the popularity of popular models. During the golden week that just passed, many Huawei and Apple stores had a busy flow of people, even queuing up in long lines. The more high-end models became more and more popular, such as Huawei Mate 60 Pro, Mate 60 Pro+, and Apple iPhone 15 Pro Max primary color titanium metal models, which were "hard to find". Not only that, the higher the premium for high-end models, the more. The high premium of Apple phones has always been a dream goal for domestic phones, and now it has finally been successfully achieved. Compared to the slight rebound during the holidays, the overall mobile phone market is still sluggish this year. Data shows that the shipment volume of domestic mobile phone brands is still declining in the first half of the year. In fact, the shipment volume of domestic smartphones has been declining since reaching its peak in 2016, except for a slight rebound in 2021 due to the large-scale launch of 5G phones, which has returned to the level of 10 years ago. The mobile phone market has already passed the good time of rapid user growth and entered a saturation period. Especially in recent years, against the backdrop of overall weak global economic growth, smartphone products still face problems such as severe homogenization and unclear innovation iterations, resulting in consumers having little desire to switch devices and continuously prolonging the switch cycle. It is clearly not enough to rely solely on two popular models to shift the mobile phone market from years of low performance to a comprehensive recovery. High end is the only way and also the 'battle of life and death'. Looking at the continuously sluggish mobile phone market in recent years, from a prominent and steadily growing foldable screen phone to the best-selling models during this golden week, it can be seen that mobile phones have transformed from just needed products to improved products, and increasing demand has forced product upgrades. Without high-end products, there is no market. Compared to the mid to low end market where profit is exchanged for space, the high-end market means high profit and high stickiness. It relies on leading technological and application innovation to seize future market growth opportunities. For mobile phone manufacturers, what cannot be changed is the overall market trend. What can be achieved is to move towards the high-end and create a positive interaction between the high profits brought by the high-end and product innovation, creating a brand moat, and thus standing invincible in the ever-changing market competition. The high-end market is valuable, but not easily obtainable. Over the years, domestic mobile phone manufacturers have made many efforts in independent innovation, technological breakthroughs, and other aspects, and the significant progress is evident to all. Innovation is the first driving force behind development, and innovation is never ending. In the future, it is necessary to focus on tackling key core technologies, establish a technology innovation system that is enterprise centered, market oriented, and combines industry, academia, and research. Accelerate technology iteration and bottom level innovation, break homogeneous competition, continuously accumulate small and micro innovations, and ultimately evolve into a technological innovation, firmly occupying the high-end market.

Edit:Hu Sen Ming    Responsible editor:Li Yi

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