1. The U.S. FCC may further block Huawei's ZTE. Otherwise, operators will not receive subsidies;
Original title: The US FCC may further block the use of Chinese equipment by Huawei's ZTE operators and receive no federal subsidies
On March 24, according to the Wall Street Journal, the US Federal Communications Commission (FCC) is considering introducing a new regulation that will prevent small operators and mobile operators in rural remote areas from using Huawei and ZTE, etc., in manufacturing in China. Business electronics. If operators use the electronic products of these Chinese manufacturers, they will not receive federal subsidies. According to reports, this new rule may be filed as early as next Monday, but it may also be delayed or shelved.
As a background, on March 22, U.S. time, US President Trump signed a memorandum of the President. According to the result of the '301 investigation', it will impose large-scale tariffs on goods imported from China, and restrict Chinese companies from investing in the United States. .
For the communications industry that was the first to participate in global competition, since 2012, Huawei and ZTE have repeatedly been questioned and restricted by the US because of problems related to 'national security risks'.
On March 22, Beijing time, Reuters quoted sources as saying that Best Buy, the largest consumer electronics retailer in the United States, decided to stop selling Huawei phones in the United States. In January of this year, Huawei planned to announce with AT&T, the US operator, at CES. Cooperation to enter the U.S. market, which eventually ran aground before the announcement. In an e-mail message from the media that 18 U.S. lawmakers sent a joint letter to the Federal Communications Commission (FCC) chairman Ajit Pai', US lawmakers asked the FCC to investigate the cooperation between Huawei and US operators, and once again mentioned the ban on Huawei devices issued by the US Congress in 2012. Not long afterwards, Verizon, another major US operator, also terminated Huawei’s mobile phone sales.
On March 22nd, ZTE announced the establishment of the “ZTE Terminal China” holding company to strengthen the expansion of the mobile phone business in the Chinese open market. ZTE Mobile did not enter the top ten sales of the Chinese mobile phone market in 2017. According to ZTE In 2017, ZTE Mobile entered Top 5 in six overseas key markets, among which the United States, Canada and Mexico ranked fourth, Spain and Russia ranked fifth, and Australia ranked third. ZTE Terminal CEO Cheng Lixin said in an interview that day. After a profound study, the company decided to strengthen investment in the open market and make long-term investments in China. In the next three years, ZTE will become the mainstream mobile phone brand in China. 21st Century Business Herald
2.Vanchip tailors high-performance RF front-end for 4G full-screen mobile phones;
Original title: HPUE is not the best choice, Vanchip tailored high-performance RF front-end for 4G full-screen mobile phones
The micro-network message, starting with the emergence of a full-screen concept on the market in 2016, this smartphone's revolution in value and value quickly swept the entire mobile phone industry. In 2017, under the leadership of new machines released by Samsung and Apple, they took a wave. In the design trend, with the smartphone market becoming saturated and the replacement rate slowing down, the micro-innovation of the design became one of the key points for mobile phone brand manufacturers, and the full-screen mobile phone also became the mainstream of the market. In particular, the Apple iPhone X was once Tucao's Notch special (Qi Liuhai) design, this year has also become a target for mobile phone brand manufacturers to imitate.
On the one hand, large-screen mobile phones do give users a better viewing experience in terms of screen visibility. On the other hand, with the advent of full-screen products, the size of large-screen mobile phones can become even smaller, portable and portable. The sense of grip can give users a better experience. Although 2017 entered the full screen battle, the full screen is not a standardized concept.
From a technical point of view, the current comprehensive screen still belongs to the shortage of resources in the market. Due to the larger screen share ratio, the comprehensive screen not only requires special-shaped design, but also uses CNC or laser to cut the panel shape, and the proportion of the screen is larger. The smaller the space inside the cabling line. In addition, the larger screen share will also put new demands on other parts. At the same time, it needs the cooperation of the camera, fingerprint identification, handset, antenna and equipment factory. For ODM manufacturers, they also tested their ability to integrate upstream and downstream resources.
In particular, when the screen occupation ratio basically reaches 80%-85% or more, less mobile phone space is left to the circuit design part. Therefore, as LTE and even 5G multi-mode multi-band design booms rise, The smart phone RF front-end not only faces multi-antenna or multi-band interference, but also challenges the design space. It must also support carrier aggregation to improve signal reception capabilities. As a result, the relevant chip developers are stepping up to deploy next-generation RF technologies to meet the stricter requirements of mobile phone manufacturers. Specifications.
Typically, the RF front-end module is composed of RF device components such as RF switches, power amplifiers (PAs)/low noise amplifiers (LNAs), RF filters, and antenna devices (tuners and switches). The components that are essential to communications, for increasingly complex mobile phone RF designs, all know that mobile phones look better and better, antennas are more and more difficult to do, and efficiency is getting lower and lower. Traditionally, it is designed at the upper and lower ends of mobile phones. The space between the mobile phone screen and the metal shell is used.
The width of the so-called 'headroom' part of traditional mobile phones left for antennas is about 7-9mm. In a full-screen design, this part of 'headroom' is greatly reduced and compressed to 3 to 5mm, especially for iPhone-X. Liu Hai Noach screen, may be about 2 mm clearance.
The reduction of antenna headroom reduces the gain of the antenna, which results in the traditional radio frequency system design failing to meet the communication protocol and networking requirements. A higher output power RF front end must be used to compensate for this part of the antenna loss.
At present, most full-screen mobile phones use high-power RF front-end systems developed by foreign manufacturers for HP UE systems to solve this problem. However, after all, this program is developed for HP UE systems and is not tailored to 4G full-screen mobile phones. Therefore, it is not the best solution, for example, the RFT module (TxM) of foreign manufacturers does not consider the application of the full screen, and the GSM saturation power is slightly insufficient.
The high-power RF front-end does not simply increase the power. While increasing the power, it also needs to solve a series of problems such as harmonics, current loss, and temperature compensation. This poses a great challenge to the RF front-end design. Understanding customers After the demand for high-power RF front-ends, Vanchip quickly organized its forces to develop new technologies. Relying on its strong research and development capabilities and long-term accumulated engineering experience, Vanchip pioneered the introduction of RF front-ends for 4G full-screen mobile phones. solution.
The only RF front-end solution for the 4G full-screen mobile phone application is CD-CX, which is fully compatible with the mainstream Phase2 RF front-end solution. The power output of all frequency bands supported by the product has been enhanced and the harmonics have been optimized. Current and current. In particular, the saturation power of the necessary call module (TxM) for 4G smart phones has also been properly improved, ensuring that the phone call quality is not affected by the change of the antenna. This helps the mobile phone R&D engineer to complete the mobile phone design quickly and easily. Guaranteed the progress of research and development.
This solution has been well received by users since it was introduced, and has been introduced into multiple designs. Soon, the market will be able to see a full-screen mobile phone using Vanchip high-power RF front-end components.
3. The Apple Industry Chain Company intensively responded to the impact of the Sino-US trade friction on the business;
The United States will impose large-scale taxation on Chinese goods. Some brokers believe that the first areas of influence will be information and communications technology. Even orders from Apple's industry chain will run counter to the United States. In response, many Apple's industrial chain companies respond: An Jie Technology said The impact of the tariff increase on the company is minimal, and the Sino-US trade war has no direct impact on the company's performance. Goergi said that the company’s North American customer orders will not be directly exported to the United States but will be exported to domestic downstream assembly companies; Changying Precision said that Some of the company’s customers are U.S. companies, but most of the products are shipped to domestic companies; SVN said that it has not had any impact on the business.
4. The depth of secrets of foreign media: Why do US politicians try hard to stop Huawei from entering the US?
The foreign media pointed out in an article recently that US politicians may not even be able to read “Huawei” (Huawei), but they are very confident that China’s largest technology company actually threatens its national security.
In fact, what American politicians really worry about is that the United States will lose to China in the 5G war.
The following is a summary of the article compiled by Tencent Technologies (Micro Signal ID: qqtech):
Following the tweet claiming that 'the trade war was good and it was easy to win', US President Trump issued an executive order on March 12 to block the largest M&A deal in the history of the technology industry.
Earlier, the Singapore chip maker Broadcom proposed to acquire mobile chip maker Qualcomm for a total consideration of US$117 billion. Trump said that this transaction was blocked because of concerns that 'this transaction may endanger US national security.'
Trump’s boss Chen Fuyang, who was in a bad temper, was frustrated. To know a few months ago, Trump had praised Chen Fuyang a lot in the White House. In addition, Broadcom is like in many ways. Like American companies, Chen Fuyang is an American citizen, and the company’s employees are mainly based in California, and Broadcom also promised to relocate the company’s headquarters to the United States.
What national security interests of the United States also wants almost immediately, the conversation turned to the question from Broadcom Washington really care about:? Huawei.
According to calculate revenue, Huawei is currently China's largest technology company, with sales 60% higher than the company Jingdong ranked second. Although the United States four major mobile operators --AT & T, Verizon, T-Mobile and Sprint- - Huawei are to prevent the use of telecommunications network equipment, but the company is still the world's largest telecommunications network equipment maker.
In the highly competitive global smart phone market, Huawei also occupies a place. It is these two factors make many American policy makers fear that they would rather let Broadcom losers.
Chuck Grassley, who has long served as a Republican senator for the United States Congress, said he fears that U.S. telecommunications companies will rely on a Chinese manufacturer that he suspects has problems.
'I can't spell this company's name,' but this company starts with the letter H and ends with the wei pronunciation. Whenever this company gets involved, it will scare me.' '
Even Trump’s executive orders did not appease this fear, partly because of Huawei’s great success.
Although Huawei is now the world’s third-largest smartphone maker, it has grown faster than the top two Apple and Samsung electronics companies, and the company’s manufacturing capabilities and technology are now ready to go with Qualcomm’s fifth-generation wireless devices. Technically counterbalanced.
Huawei, which has more control over the 5G market, cannot take away billions of dollars of market share originally owned by its US competitors and will also charge high fees to other companies.
However, such as the Hawks, Glasley believes that the bigger issue is still the national security issue. The Chinese government can enter Huawei's network hardware and software through the back door to monitor US citizens' phone calls, text messages, and e-mails.
As for why President Trump opposed Broadcom’s acquisition of Qualcomm, the White House’s answer was that no matter which company Chen Fuyang is in, he likes to cut spending. After acquiring Qualcomm, he will cut off Qualcomm’s R&D spending, indirectly. Huawei has gained more advantages in the 5G wireless standard and equipment development war.
The US Foreign Investment Committee (CFIUS) warned in its March 5 letter that potential M&A transactions will 'weaken Qualcomm’s lead to allow China to expand its influence in the development of the 5G standard.'
The letter also stated that 'As we all know, the United States is concerned that Huawei and other Chinese telecommunications companies will affect the national security of the United States, and that China’s acquisition of a dominant position in 5G will have a serious negative impact on the national security of the United States.'
In early January of this year, Texas Confederate member Mike Conaway proposed a new proposal called “Defending US Government Communications Act”, which aims to prohibit US government agencies from using these companies’ mobile phones and devices.
Two weeks later, the National Security Council stated in a memorandum that was revealed that in the course of the development of 5G technology, Chinese technology companies will be a threat to the national security of the United States.
The memo mentioned the names of the two companies: Huawei and ZTE. The committee called on the current U.S. government to invest in U.S. 5G networks just as President Eisenhower invested in the interstate highway system.
Huawei refuted claims that the fear of US politicians about their intentions is a fear of nationalism. Huawei said that the company’s connection with the Chinese government is not as high as Apple or Google. There is no doubt that installing backdoors for spying activities in network hardware or software is undoubtedly a problem. Suicide.
Joe Kelly, Huawei’s vice president of international media affairs, said: “We have been in business for 30 years and have never had a security issue. Should the United States worry about us from the perspective of cyber security? The answer is of course no. . '
Before the U.S. National Security Council’s memorandum was exposed, U.S. operators had even been ready to cooperate with Huawei. However, within a day, Verizon Communications abandoned its plans to sell Huawei phones in retail stores. Prior to this, AT&T Pressure from the U.S. Congress has also given up on similar plans.
According to sources familiar with the writing of the memo, the White House is currently concerned that US wireless operators lack the financial resources to build four independent wireless networks. Unless Washington is taking drastic action, China will defeat the United States in deploying 5G technology. In this context, Broadcom’s acquisition of Qualcomm will allow the Sino-American confrontation to fall in the direction of China.
A US telecommunications industry executive involved in discussion of 5G policies said, 'This is the main concern. 5G is the new battlefield, but the fighter is not the protagonist.'
Of course, blocking the entry of Huawei into the country’s market will not stop the company’s development. Huawei currently has 180,000 employees, and most of them are technicians. Huawei’s products have entered 170 countries and regions worldwide.
Although it is still a private company, in order to convince foreign governments to sign an agreement with the company, Huawei will issue two financial reports each year. In 2017, Huawei’s revenue reached approximately US$92 billion, far exceeding US$35 billion five years ago. The company’s revenue this year will exceed 100 billion US dollars.
Huawei also has plenty of room for growth, especially if it vigorously develops the 5G standard. The US Foreign Investment Committee has stressed in its open letter this month that Huawei currently has about 10% of 5G patents, and the company has 300 best technologies. Personnel develop full-time 5G patents.
Huawei has invested 600 million U.S. dollars in 5G R&D, and is expected to invest 800 million U.S. dollars this year. The company has signed contracts with more than 50 operators worldwide to test 5G devices. Overall, Huawei's in 2016 R&D investment reached US$12 billion, far exceeding Qualcomm’s US$5.1 billion and Nokia’s US$4.9 billion. Tencent Technology
5. The United States provoked a trade war with China. The impact of mobile phone supply chain?
On March 24th, Micronet reported that US President Trump announced on the 22nd that it intends to use the '31 investigation' to restrict China’s trade and investment in the United States on a large scale. The United States arbitrarily waved a big stick of trade protectionism. .
In a heavyweight report released last March by Goldman Sachs, ''Made in China'' or 'Made in America'’, Trump’s proposal to allow manufacturing to flow back to the United States and a series of trade protection policies issued will trigger a global supply chain. The major changes in the pattern. The report uses the mobile phone industry as an example. The conclusion reached from the analysis and analysis is that the next smart phone purchased by American consumers will be more expensive.
Set Micronet now extracts and compiles the report as follows:
What will the return of mobile phone manufacturing bring to the United States?
In 2016, there were approximately 1.5 billion mobile phones sold globally (US sales of 175 million, or 12% in the United States), making smartphones the world’s largest sales volume and highest total value technology products. For smart phones, the supply chain is already Globalization, but manufacturing is mostly in Asia.
From the material cost point of view, taking the iPhone as an example, 15%-20% of the material costs are generated in the United States, and most of them are composed of design aspects. For example, the chip designs are designed by Apple, Qualcomm and Broadcom, but most of the chips are manufactured. Completed in Taiwan Semiconductor Manufacturing Co.
China occupies about 25%-35% of the iPhone's production costs, most of which are made up of back-end assembly costs, but also includes parts that are locally manufactured by foreign companies (such as Catcher, Samsung SDI, Foxconn, etc.). Japan and South Korea are also In key areas, these countries provide mainly memory and screens.
Today, more than 50% of the jobs are from the final assembly part. The labor cost in the United States is 14-25 dollars per hour, while in China it only needs 2-3 dollars per hour. Therefore, the cost increase mainly comes from the high-volume assembly labor. Cost, and only the transformation of trade policies in the supply chain will not necessarily lead to more employment opportunities.
Therefore, if the mobile phone industry chain moves to the United States, the cost and labor supply will become two major challenges. It is estimated that the mobile phone industry's return to the United States will take about five years, and this will bring about significant changes in costs and prices.
If the U.S. government takes appropriate incentives (such as fiscal and taxation subsidies) and the degree of industrial automation increases, the cost of a U.S.-made smart phone product will increase when all supply chains return to the United States and operate effectively. 37%, this shift will cause the average cost of each iPhone in the hands of American consumers to increase by 135 US dollars.
If the factors of factory automation are excluded, assuming that workers can be recruited, then five years later, the United States will add 500,000 manufacturing jobs.
But the report also pointed out that the automation or the mobile phone will slash the traditional workers of this type of assembly line, but will create new engineering jobs. Some experts predict that automation or will cut 40-70% of workers on the last production line , But doing so also requires original equipment manufacturers to change product cycles and related designs for automation.
This picture can illustrate the impact of the smart phone industry's move back to the United States:
How does the smart phone supply chain migrate to the United States?
To realize the transfer of the supply chain to the United States, it is very important to play a good agglomeration effect. Aggregated companies can get good returns from the labor force and supplier side. When more suppliers gather in the same area, The effect will increase, which will make the supply chain effective and competitive. Over the past 25 years, this smart phone supply chain has been clustered in China.
The report pointed out that moving the final assembly part to the United States will be an important process that will open the transfer of the supply chain. The assembly part can attract parts suppliers. For non-semiconductor parts, the supplier prefers to be able to get close to the assembly end. During the design period, it will be able to provide better service and speed of response. It is expected that the equipment part will bring 350,000-400,000 jobs to the United States. But at the same time, the report also pointed out that the assembly part may inhibit the United States because of high labor costs. Improvement of assembly level.
For other key parts of the smart phone industry chain, such as memory, display and battery, it is now possible to achieve a highly automated production process, which can be more easily achieved in the United States. Most of the companies in this area come from Korea, Japan and Taiwan. If the United States adopts sufficient incentive policies (such as tax incentives, government subsidies, etc.), these companies will have the intention to establish factories in the United States. However, the report also pointed out that for storage, it shows that industries with high investment and long-term investment will increase costs. Relatively limited, the establishment of a new factory in the short term may bring pressure on supply demand. For the semiconductor manufacturing sector, the potential for relocation to the United States may be minimal because of possible environmental protection and other aspects of supervision.
Considering the investments that have taken place in engineering and manufacturing systems for decades, the report believes that it will be very expensive to completely transfer the supply chain to the United States. With an annual average of 175 million smartphones sold in the United States, all domestic direct investment (not Counting sub-materials, including chemicals and raw materials, will require an investment of 300-350 billion U.S. dollars.
The report analysis pointed out that because of possible environmental protection and other aspects of supervision, semiconductor manufacturing transfer may be the most risky, and memory, screen, battery and other industrial chain links can be implemented after careful consideration of demand and supply. For the assembly part, It is also feasible if companies can guarantee the amount of committed labor.
Which companies will be at risk? Which companies will benefit from this?
The report pointed out that the border tax and tariff adjustments of the mobile phone industry will benefit the rise in the share prices of related listed companies in the United States. Asia's semiconductor manufacturers (TSMC, Hua Hong), packaging (ASE/SPIL) and foundries (Hon Hai, Wistron, Pegatron) ) may be affected by tax policy and face threats from US competitors, because customers like Apple may prefer domestic manufacturers.
American IDM manufacturers and manufacturers may benefit from this (Intel, Qorvo, TI), and for their customers, they will bring lower taxes. American assembly companies (Flex and Jabil) can also benefit from their Asian Competitors seize market share.
At the same time, the report anticipates that companies involved in the original product design, such as Apple, or the decline in demand caused by the increase in product prices will cause the stock price to fall. (Proofreading/Yecheon)
The following figure is a list of companies that may be affected and may benefit from this
6. Xiaomi encounters growing pains in India: It needs to strengthen the supply chain to meet user needs
According to an editorial by Tencent Technology, “Foreign media reported on Saturday that the company’s flash sale and good use of social media has made Chinese technology start-up company Xiaomi beat Samsung Electronics to become the leader of the Indian smart phone market. Although Xiaomi plans to increase India’s revenue this year, More than doubled, reaching about $2 billion, but how to improve the supply chain to meet the needs of Indian users becomes a new worry for Xiaomi. The following is the summary of the article:
After failing five times in the past month, Indian university student Bhavsar Hardik successfully booked a dream-smart phone on the Internet - the red rice Note 5 Pro. from Xiaomi. It's like the iPhone X, 'Hadik said excited.
The 19-year-old Hadik, like many Indian nationals, has been deeply attracted by Xiaomi's flash shopping activities through local e-commerce websites Flipkart, Amazon India, and Xiaomi official website Mi.com. The flash sale activities held by these websites usually last for less than After 3 seconds, very few people were able to place a successful purchase of a millet device.
Hadik said that the demand for Xiaomi’s smart phones is very large, but there is a shortage of supply in the market. Despite these limitations, Hadik still said he is a fan of Xiaomi, because Xiaomi’s mobile phones are inexpensive. “I don’t like Samsung. Electronic products, because the brand's products are too expensive. Apple, Vivo and Oppo are also the same reason. 'Hartik snapped red rice Note 5 Pro is priced at 13,999 million rupees, while the iPhone X in the Indian market ups and downs The price is 8.3499 million rupees (about 1285 US dollars).
Millions of Indian consumers like Hadik helped Xiaomi become the second largest smartphone market in the world - the leader of the Indian market. After about three and a half years of entering the Indian market, Xiaomi was in the fourth quarter of last year. Beat Samsung Electronics and become the largest smartphone manufacturer in India.
According to statistics from market research firm Canalys, after entering the Indian market in July 2014, Xiaomi occupied 27% of India's smartphone market in the fourth quarter of last year, ahead of Samsung's 25%.
Xiaomi, known as 'China's Apple', has seen the Indian market as its next growth engine in the face of intensified competition and slower growth of smart phones in the domestic market. Xiaomi also focuses on diversified and long-term revenue channels. , to support the company's efforts for the listing.
Creating a more internationalized image will enable Xiaomi to attract more international investors in its initial public offering (IPO). Although management of Xiaomi did not make an official statement on the company's listing plan, sources revealed that Xiaomi has hired investment banks to prepare Hong Kong Stock Exchange listed.
After a disappointing 2016, Xiaomi’s rejuvenation in 2017 was strong. In the fourth quarter of December 31, 2017, Xiaomi’s smartphone shipments increased by 83% year-on-year, becoming the top 10 smartphone brands in the world. The highest increase in the brand. Throughout 2017, Xiaomi’s smartphone shipments reached 96 million units, ranking sixth among global manufacturers.
Xiaomi’s Indian revenue hit a record high last year, reaching US$1 billion. This brilliant performance also made Xiao Jun’s founder, CEO Lei Jun, set the company’s revenue target in the Indian market this year to exceed 2 billion. USD. Milli Global Vice President, Manu Jain, the first Indian employee, said that at the beginning of his business in India, Xiaomi only had a small office with 6 chairs.
Today, Xiaomi India already has more than 400 local employees and three manufacturing factories. Xiaomi, who is good at using social media, also gathers about 4 million active Indian 'rice flour'. Through flash purchase and development of India's 'rice flour' community, Xiaomi Has been insisting on his 'try and test' marketing strategy.
Tarun Pathak, deputy director of Counterpoint Research, said, 'Through organizing city-level offline interactive activities and other continuing activities, Xiaomi has been building his own 'rice flour' community.' Pasak said through Facebook With the online interactive activities held, millet fans are able to prioritize first-hand information on new products. 'Through the effective use of social media, Xiaomi has created a positive reputation for the company and its products,' he said.
The self-proclaimed Indian consumer Ekrar Saiyyad, one of the most loyal fans of Xiaomi, claimed that since July 2014, he has purchased over 100 mobile phones for himself, his family and friends. 'We talk about mobile phones.' And what they do, and what the future of millet phones will look like, Said said.
Unlike Xiaomi, other Chinese smart phone brands have invested heavily in advertising to increase their brand awareness among Indian consumers. Vivo paid $338 million last year for the Indian professional cricket league's naming rights. Today, The name of the event has been changed to 'Vivo Indian Premier League'. The OPPO signed a five-year agreement worth US$ 166 million to become a sponsor of the Indian national cricket team.
Navkendar Singh, an Indian market analyst firm IDC India, said that smart phone buyers in India 'are currently focusing on the price/performance ratio of smart phones,' rather than the company’s marketing campaigns. In the global smart phone market, The speed is almost stagnant, while the Indian market maintained a growth rate of 12% last year. How to increase the market share of smart phones in India has become a priority issue for all manufacturers.
IDC statistics show that at present, over 75% of the demand in India's smart phone market is related to products priced less than US$200. Xiaomi’s current product prices in India are generally between US$100 and US$200. The profit rate is very low.
"Millet is currently proud of the horseshoe disease in the Indian market. If Xiaomi can continue to maintain its current growth rate, Lei Jun's $2 billion sales target in the Indian market is not impossible," said Kiranjeet Kaur, senior research manager at IDC Singapore.
However, Xiaomi still needs to learn lessons from the Chinese market. It is impossible to become a low-cost handset maker. The millet was founded in 2010 and was once the world's highest-valued technology start-up company. At the end of 2014, it had a valuation of over 46 billion yuan. US dollar. However, with the rise of Huawei, OPPO and vivo, and other smart phone brands, flash purchases and social media have reduced the attractiveness of Xiaomi's young consumer groups, resulting in former Xiaomi users choosing to use other brands of products.
Market analysts believe that Xiaomi has not built a user group large enough to afford more expensive smartphones. 'This is a very difficult ceiling to break,' said IDC's Kaul. The number of users in the high-end market is limited. Limiting the profitability of Xiaomi. Counterpoint expects Xiaomi's profit margin for each cell phone to be only $2 in the third quarter of last year.
In comparison, Huawei, OPPO and vivo have higher profit margins, with each handset reaching US$15, US$14 and US$13 respectively. The world’s second-largest smartphone maker, Apple, has an average profit of 151 per smartphone. Dollars.
Counterpoint predicts that Xiaomi’s revenue in the Indian market last year accounted for nearly 30% of the company’s total global revenue, and this year’s proportion is expected to reach 35%. Xiaomi’s global vice president Jia Yin said that millet is still optimistic about the opportunities in the Indian market. Attitude. 'We can make more achievements here,' he said.
Xiaomi is still an active venturer in the Indian market. The company promises to invest at least $1 billion in 100 Indian start-ups between 2017 and 2022. 'We are currently able to become a long-term partner and help us conduct business in India. The startup company is very interested in, 'Jin said.
Xiaomi currently also sells smart TVs, health bracelets and charging treasures in the Indian market. The company will also introduce more intelligent networking devices such as smart scooter and water purifiers to the Indian market in the future.
Although the maturity of the Indian market has allowed Xiaomi to launch more smart devices, the company’s supply chain may limit its large-scale promotion of these products throughout India. Xiaodi’s loyal fan Said has encountered this problem. Haunting. 'I very much want to buy a millet 55-inch 4K TV, but this company does not have enough inventory.'