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The mobile phone industry was supposed to be a small peak season in the summer, but last year it was in trouble, and dealers worried about their livelihoods. Although mobile phone shipments in the domestic market increased by 9.2% year-on-year in June last year, overall shipments from January to June fell 21.7% year-on-year, and the trend in the following quarters remained uncertain.
Unlike in the past, last year's summer mobile phone sales were stimulated by student purchase demand, but still not enough to save the market. Many dealers find that second-hand mobile phone sales outstrip new ones, and prices are forced to very low levels, putting them at risk of losing money. For example, a dealer named Ah Xiang said that his OPPO store barely sold new machines last summer and even considered closing or selling.
This fierce competition in the market has forced many dealers to sell mobile phones at low prices to meet sales tasks. For example, Zhu Guanwei, a Xiaomi home dealer, said that because profit margins are already small, he is often forced to agree to high discount requests from customers. In addition, he revealed that he is preparing for the civil service exam and no longer wants to be a store manager because of the pressure of work.
However, some dealers are also looking for other businesses to support their livelihoods. For example, Ah Xiang's store not only sells mobile phones, but also provides services such as repairs, sales of mobile phone accessories, second-hand mobile phones and mobile phones for the elderly. His store is even considering moving into appliance sales and smart homes, which are more profitable.
Although mobile phone shipments increased in June last year, the industry as a whole remained sluggish. Mobile phone makers and chip suppliers are also plagued by inventory backlogs. Some mobile phone stores have even closed, indicating that the industry's prospects remain uncertain. In addition, the slump in the mobile phone market is partly due to consumers' habits of online shopping and competition from large mobile phone stores in malls.
Communications industry observers said the downturn in the mobile phone market was mainly due to the pandemic and the stagnation of mobile phone innovation. Mobile phone manufacturers need to achieve breakthroughs in chips, systems and other aspects to improve consumers' enthusiasm for replacement. Although there will be policy pull and epidemic relief in the second half of last year, upstream manufacturers of the mobile phone industry chain are still cautious.
Overall, the mobile phone industry faces huge challenges, and dealers have had to take various measures to deal with market uncertainty. But only by persevering can you eventually reap the rewards.
Summary: Last year, the mobile phone industry encountered difficulties in the summer that was supposed to be a small peak season, and although student demand stimulated the market, it still failed to save the industry. June's shipment growth did not lead to a real recovery in the industry, as overall shipments from January to June last year fell 21.7% year-on-year. Dealers have felt the fierce competition in the market and have had to sell mobile phones at low prices, and some even consider closing or transferring stores. At the same time, some dealers are looking for other businesses to support their livelihoods, including appliance sales and smart home segments. Despite the increase in mobile phone shipments in June last year, the entire industry still faces challenges, and upstream chip suppliers and mobile phone manufacturers are also facing inventory backlogs. The slump in the mobile phone market is mainly due to the epidemic and the stagnation of mobile phone innovation, and mobile phone manufacturers need to achieve breakthroughs in all aspects to improve consumers' enthusiasm for replacement. Although there may be policy pulls and the easing of the epidemic in the second half of the year, upstream manufacturers of the mobile phone industry chain are still cautious. In short, the future of the mobile phone industry is full of uncertainty, but only by persevering can we ultimately succeed.
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