Recently, the China Information and Communication Research Institute under the Ministry of Industry and Information Technology released the "Report on the Operation and Development Trend of the Domestic Handset Market in 2017".
The report pointed out that the domestic market shipments in 2011 419000000, a decrease of 12.3%. 4G mobile wave tide receded, the performance of the rigid switch replacement demand weakened, resulting in the domestic market shipments over the past two years the growth trend.
From the price trend, the average price of smartphones in the domestic market in 2017 rose nearly 20% compared with that in 2016. The prices of domestic branded mobile phones are constantly rising, among which, the shipments of domestically-made smart phones with the prices of 3,000 to 4,000 yuan year-on-year Up 74.9% from a year earlier, accounting for 85.6% of the total in 2016, up from 80.2% in 2016; domestic smartphone shipments of over 4000 yuan increased by 170.8% from a year earlier, accounting for 12.7% of the total.
The concentration of the domestic handset market rose to a new high, with a total share of TOP5 reaching 71.3%, representing an increase of 15.1 percentage points from 56.2% in 2016, further expanding the leading edge of second and third tier mobile phone brands. SMEs are facing more severe competitive pressures, Especially in the second tier (6-10), the share squeezed is particularly noticeable. In 2016, the shipments from TOP6 to TOP10 totaled 14.2%, down from 9.3% in 2017.
The following is the full report:
Looking at the handset industry in 2017, on the one hand, Chinese handset brand manufacturers continue to lead the global market with increasing popularity and market share. On the other hand, shipments in the domestic market have ended their rapid growth in the past two years, Decline, the market intensified shuffling, the competition is particularly fierce.
First, Chinese mobile phone brand manufacturers have achieved remarkable results in the global market
At present, the domestic market is getting saturated and overseas has become a very important target market for domestic branded handset manufacturers.From the data released by Gartner, Chinese manufacturers took 3 seats in TOP5 in global smart phone shipments in 2017, namely Huawei, OPPO And vivo, respectively, with shipments of 9.8%, 7.3% and 6.5% respectively, both up from 2016. The total shipments of the three vendors (23.6%) increased 4.2 percentage points from 2016 levels.
In addition statistics from other agencies and well-known media reports are also showing the Chinese mobile phone manufacturers have achieved fruitful results in overseas markets: India's "Economic Times" reported that in 2017, OPPO, vivo, one plus, millet and other Chinese smart phones The brand's sales in India have all witnessed several-fold growth, with total sales up nearly 3 billion U.S. dollars. China's smartphones have accounted for half of the Indian market. According to IDC's report, in the third quarter of 2017, The market share has become the No. 1 handset maker in the African market. According to Counterpoint statistics, Huawei gained 13% share in the European mobile phone market in 2017, and ZTE and Lenovo each gained 4% and 3% respectively .
Second, the domestic market top-hit shipments, increasing market competition
(A) the domestic mobile phone market shipments decline
Shipments of 491 million units in the domestic market in 2017, down 12.3%. 4G mobile phone upgrade tide receded, the performance improvement of rigid replacement demand weakened, resulting in the domestic market shipments over the past two years the trend of growth, especially 2017 The fourth quarter of the year, shipments fell more than 20%.
Figure 1: 2015-2017 domestic handset market shipments and up
Source: China Institute of Information and Communication
In terms of product distribution, the share of 2G, 3G and 4G handsets shipments were 5.8%, 0.1% and 94.1% respectively, of which 399 million were handsets for 4G mobile handsets, accounting for 86.4% of domestic 4G handsets shipments in the same period %.
From the smartphone operating system, Android phones accounted for 82.9% of the 461 million smartphones shipped in 2017, an increase of 1.3 percentage points over 2016.
According to the distribution of domestic and foreign brands, the handset shipments of domestic brands reached 436 million units in 2017, accounting for 88.8% of the total. Domestic handset manufacturers dominated the market share.
From the price trend, the average price of smartphones in the domestic market in 2017 rose nearly 20% compared with that in 2016. The prices of domestic branded mobile phones are constantly rising, among which, the shipments of domestically-made smart phones with the prices of 3,000 to 4,000 yuan year-on-year Up 74.9% from a year earlier, accounting for 85.6% of the total in 2016, up from 80.2% in 2016; domestic smartphone shipments of over 4000 yuan increased by 170.8% from a year earlier, accounting for 12.7% of the total.
(B) the concentration of the domestic mobile phone market rose to a new high
According to the shipments of handset manufacturers to the domestic market in 2017, the total share of TOP5 reached 71.3%, up 15.1% from 56.2% in 2016, further expanding the leading edge of second and third tier mobile phone brands. For the severe competitive pressure, especially in the second tier (6-10 positions), the share squeeze is particularly evident. In 2016, the total share of shipments from TOP6 to TOP10 was 14.2%, down from 9.3 in 2017 %.
Figure 2: TOP5 / TOP10 share of domestic market for 2016-2017
Source: China Institute of Information and Communication
(C) full screen and AI technology to lead the mobile phone innovation trend
As of the end of 2017, more than 30 domestic and overseas branded handset manufacturers launched more than 120 full screen mobile phones, and full screen handset shipments in 2017 More than 50 million units, accounting for 10.2% of the total screen panel suppliers to re-line production line and process optimization to meet new needs, pre-camera, acoustic devices, antennas, fingerprint recognition and other components to upgrade and update The demand for replacement, to promote such devices to miniaturization and invisible development.
Figure 3: Full screen mobile phone shipments in the domestic market
Source: China Institute of Information and Communication
In addition to the full screen, artificial intelligence is also one of the vanes for the development of the smart phone market, and all smart phone manufacturers are paying close attention to the layout of artificial intelligence, and human-machine interaction has gradually become the trend of the times.Huawei has released the world's first AI phone chip Kirin 970 and applied On the Huawei Mate 10 mobile phone, Apple is equipped with the AI chip 'A11 bio-neural network engine' for the iPhone X. Samsung is equipped with the self-developed artificial intelligence platform 'Bixby' for the Galaxy S8 and provides 'Bixby Voice' service; Data accumulation and cloud services coupled with deep learning led to the birth of small AI products; Vivo is equipped with the 'Smarter Engine 4.0' feature on X20 handsets. The latest data from Counterpoint show that AIs or NPUs that are expected to have AI by 2020 Mobile phone will reach 1/3.
(D) improve product details to enhance user experience
Standby battery life is still the focus of attention.More and more manufacturers have chosen to give mobile phones with large battery capacity to enhance the battery life of the standby battery.In 2016 smartphones shipped more than 40% of mobile phones equipped with a 3000mAh battery. In the current battery material is not revolutionary update under the premise of fast charging through the promotion of voltage, increase the current or both at the same time to enhance the way to reduce the charging time and improve user experience has become a major hot spot in the mobile phone market.
Figure 4: Domestic shipment Smartphone battery capacity distribution
Source: China Institute of Information and Communication
CPU performance is still in the process of continuous improvement.China's domestic market shipped smartphones in 2017, accounting for 66.6% of eight nuclear processors and above, an increase of 16.8 percentage points over 2016; CPU clocked at 2.0GHz and above Accounting for 46.5% of the total, up 24.2 percentage points from 2016.
Figure 5: Domestic shipment of smart phone CPU distribution
Source: China Institute of Information and Communication
The demand for mobile phone storage space to increase.With the continuous enrichment of mobile applications, the storage capacity of smart phones put forward higher requirements from 2017 smartphone shipments of ROM distribution point of view, the most obvious growth is 32GB and 64GB , Accounting for 26.8% and 34.7% of that in 2017 from 19.6% and 16.4% in 2016 respectively.
Figure 6: Domestic Shipment Smartphone Storage ROM Distribution
Source: China Institute of Information and Communication
Third, the independent research and development of industrial chain and independent production capacity are improving
(A) domestic 4G mobile chip localization rate increase.
According to the handset shipments for the domestic market in 2017, the number of 4G handsets using domestic chips surpassed 90 million, an increase of 41.3% over the same period of last year, an increase of 7.3% over 2016. Domestic chips, while mass-produced, With significantly improved capabilities, Huawei unveiled the Kirin 970, the world's first smartphone AI computing platform with built-in independent NPU (Neural Network Unit), taking the lead in the field of artificial intelligence chips.
Figure 7: The proportion of 4G handsets using domestic chips
Source: China Institute of Information and Communication
(B) BOE and other domestic OLED panel shipments, and gradually narrow the gap between domestic display panel technology and Japan and South Korea manufacturers.
In 2016, 86.4% of domestically-made mobile phone LCD screens in China were domestically manufactured.On the OLED screen, though the pattern of monopolization by Samsung, LG and other brands has not been changed, the gap between domestically produced screens is gradually narrowing, Bring major impact of the expected major companies continue to increase the investment in OLED flexible screen, the domestic panel makers to speed up the layout, BOE has a flexible OLED panel shipments, has volume production capacity, indicating that the domestic high-end screen technology to mature gradually, Monopoly of foreign high-end display market structure will change.As capacity increases, AMOLED screen will not only be the flagship high-end patents, will be infiltrated to the low-end models.
Fourth, 2018 mobile phone industry outlook
Demand from the demand, the international market demand is higher than the domestic space.After more than 10 years of rapid development, the Chinese mobile phone market is close to saturation, although the full screen, AI and other technologies to promote the development of the mobile phone industry, but before the arrival of 5G, these technologies Not enough to bring a large replacement needs.And in some emerging markets in the world, such as India, there is still a dividend growth, the current Internet penetration rate of only about 30% in India.In addition, according to CounterpointResearch findings show that about three Indian mobile phone users plan to upgrade their mobile phones in 2018.
From the perspective of competition, leading enterprises will continue to lead the expansion of the first-tier brands rely on large-scale orders, lower costs, get a higher priority to supply, thereby strengthening the lead.From Huawei, millet, Samsung to the media Disclosure of 2018 performance indicators, the overall global market slowdown in overall shipments growth or even under the background, is still flat even higher than the number of shipments in 2017.
From the technical point of view, screen technology, camera, screen material, chips and other areas there is an innovation trend. With the rapid development of full-screen mobile phone, the screen itself will be innovative, such as shaped design, shaped cutting, etc. Fingerprints and other technology updates will be followed up quickly; the camera will continue its evolution of evolution around the multi-camera, face recognition and other directions; battery material will be accompanied by Samsung's research and development of graphene batteries enabled Galaxy S9, breaking years of technology Bottleneck, triggering changes in battery technology; chip technology is focused on the combination of artificial intelligence, speech recognition, object recognition, etc. in a new generation of processors will have better performance.