Technology

Don't laugh at anyone, Apple Android phones are having a hard time selling out

The iPhone 618 sudden "diving", the domestic giant raging, probably even Cook was caught off guard, their own iPhone 13 series will be in the 618 sudden "diving". As of press time, the 6+128G version of the iPhone 13 on a cat has come to a direct drop of 1300 yuan, which can really kill the crazy. The actual amount paid 4698 yuan, nearly 1300 yuan cheaper than the official original price of 5999. On this price, which business top resist ah. Why is it that Apple, which has always been uncompromising, has also played "diving" this time?

Don't laugh at anyone, Apple Android phones are having a hard time selling out

Even though iPhone 13 has been out for most of the year, and iPhone 14 will be available in just three months. But the non-Pro digital machines are all Apple's go-to machines, and the reason why the prices are stable and firm.

This big dive really took people by surprise.

In the past two years, due to the general environment is not very optimistic, all walks of life have a downturn phenomenon. The most direct manifestation is that people's desire to consume is not as strong as before, such as our daily essential smartphone replacement frequency fell particularly serious. In May this year, China's cell phone sales fell 20% year-on-year, Apple is still so, then the other cell phone manufacturers? Including OPPO, glory, Apple, vivo and other well-known big manufacturers are no exception.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

The main reason for the "4 years after the 00s did not change the phone" and the continued weakness of the cell phone market is two, one is the increasingly high pricing of smart phones, can not afford to pay the high cost of frequent replacement; second is that smart phones are not transformative innovation, the last two years are conventional upgrades, not bring innovation that can make people shine.

The epidemic at the moment, fresh graduates also look at the hands of the precarious rice bowl, fearing that one day will be unemployed or only the minimum wage, the meal can not afford to eat, but also to pay the rent, which there is free money to buy a cell phone!

And for those digital enthusiasts who are not bad?

Unfortunately, the last two years of Android flagship phones lack of transformative innovation, most of them are only upgraded hardware configuration or enhanced imaging capabilities, the relative lack of innovation, no corresponding innovation is very much the desire and impulse of consumers to buy.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

Apple has added 120Hz ProMotion and the A15 chip with a blistering energy efficiency ratio to the iPhone 13 Pro, but it seems more sincere and has made many users willing to buy it.

Unfortunately, the Apple 13 Pro is still too expensive for most people, so it's back to the dead end of the economic situation. So, inevitably, we get the following result.

According to Wisdom APP learned that on May 24, according to CINNO Research's Monthly China Smartphone Market Sales Analysis Report, smartphone sales in the domestic market in April 2022 were only 17.6 million units, down 21.6% from the same month last year and down 12.2% sequentially, with single-month sales hitting the second worst single-month result since the 2020 epidemic, just above the CINNO Research forecasts that domestic smartphone market sales will decline by 7-8% year-over-year in 2022.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

Looking specifically at the performance of each cell phone brand manufacturer, Apple regained the sales championship against the trend, with sales down by only 2.2% YoY and 3.5% YoY, the only brand with the least YoY decline, and its three models of iPhone 13 series still firmly occupy the top three of the Top 10 list in April.

The largest year-on-year sales decline in April was for OPPO, reaching 42.7%. Glory achieved positive growth year-on-year due to its low sales base last year.

In addition to the short-term impact of the epidemic, CINNO Research observed that in recent years, the domestic cell phone market, especially the Android camp, has seen a significant lack of momentum, with sales of Android brands falling 24.6% year-on-year in April, higher than the average, while Apple fell only 3.5% year-on-year, maintaining solid sales even with the impact of the epidemic.

It is worth mentioning that Glory itself has completed its brand reconstruction work, with bright results compared to 2021, and even 4 products on the list of single products in April, divided into 4, 5, 6 and 10. However, Glory's April sales also fell by around 15.4% YoY, which is basically at the same level as other brands.

CINNO Research believes that the main problem in front of the Android camp is that, on the one hand, due to macro factors, consumers' desire to switch to a new machine has weakened and the replacement cycle has lengthened; on the other hand, Qualcomm, MediaTek and other SoC suppliers of the Android camp are gradually being pulled apart by Apple for more than two generations, and the terminal experience is facing the dilemma of being overtaken by Apple, and the selling point of the replacement is insufficient and the cost is rising. Obviously, it is difficult to continue to attract consumers.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

Currently, the cell phone market is in the doldrums, and manufacturers are under pressure to find new growth points. Rely on the '618' node to pull up the third and fourth overall turning point, or very difficult." But from a longer-term perspective, adjusting business strategies is the biggest challenge facing each manufacturer. "The change in the general market of cell phones, I also agree with the judgment of many analysts, this year is certainly below 300 million units, but we believe that there is no poor market and environment, only poor strategy and response." Zhao Ming said.

As a result, April 2022 saw the second worst single month of smartphone sales in the domestic market since the 2020 epidemic, just a little better than February 2020.

Cell phone shipments continue to dive

Sales can not, shipments naturally can not, and then look at a set of data.

According to CINNO Research's Monthly China Smartphone Market Sales Analysis Report, smartphone sales in the domestic market in April 2022 were only 17.6 million units, down 21.6% from the same month last year and down 12.2% sequentially, with single-month sales hitting the second worst single-month result since the 2020 epidemic, just above the level of February 2020, while this was the worst April sales since At the same time, this is the worst April sales since 2015, highlighting the dismal sales performance in April this year.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

The most direct reason for this performance is undoubtedly due to the fact that April was the most serious time when the epidemic was affecting many regions of the country, such as Shanghai, Shenzhen and Jilin, which not only affected the opening of enterprises and stores, but also hindered the normal operation of the logistics system, while the consumer side also suffered a serious impact.

Looking specifically at the performance of each cell phone brand manufacturer, Apple regained the sales championship against the trend, with sales down only 2.2% YoY and 3.5% YoY, the only brand with the least YoY decline, and its iPhone 13 series three models still firmly occupy the top three of the Top 10 list in April.

The largest year-on-year sales decline in April was for OPPO, reaching 42.7%, Vivo also close to 40%, Xiaomi also reached 32%. Glory achieved positive growth year-on-year due to its low sales base last year.

In addition to the short-term impact of the epidemic, CINNO Research observed that in recent years, the domestic cell phone market, especially the Android market, has experienced a significant lack of momentum, with sales of Android brands falling 24.6% year-over-year in April, higher than the average, while Apple fell only 3.5% year-over-year, maintaining solid sales even with the impact of the epidemic.

It is worth mentioning that Glory itself has completed its brand rebuilding work, with bright results compared to 2021, and even had 4 products on the list of single products in April, ranked 4, 5, 6 and 10. However, April sales of Glory also fell by about 15.4%, which is basically at the same level as other brands.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

In fact, not only domestic, look at the global cell phone market, shipments are also in decline year by year.

Recently, IDC released a report saying that global smartphone shipments will decrease by 3.5% to 1.31 billion units in 2022, but will grow by 5% in 2023.

Previously, IDC believed that smartphone shipments would grow by 1.6 percent in 2022, but is now revising the numbers, indicating poor market conditions.

Nonetheless, IDC believes the market will only fall off in the short term, with a 5-year CAGR of 1.9% through 2026.

In this environment, many manufacturers are already cutting back on orders, and Apple is no exception.

Even Apple, which has been unbeatable in the global cell phone market for many years, will inevitably be affected in this environment. According to the relevant media, the iPhone SE3 released by Apple not long ago has now cut 10 million units due to poor sales in the world. As a brand standing at the top of the pyramid of the cell phone industry, Apple's market analysis and prediction is very accurate, and this kind of cutting order is almost never in previous years.

Nonetheless, IDC remains bullish on Apple, saying it is more resilient because of its strong control of the supply chain, higher-end customers, and greater immunity to macroeconomics.

Where do cell phone manufacturers go from here?

For Chinese cell phone makers, the alarm has been sounded: according to data from the China Academy of Information and Communication Technology, the Chinese market shipped only 14.864 million cell phones in February, down 31.7% year-on-year, which is the lowest value in more than a year. In the first two months of this year, the Chinese market shipped 47.886 million cell phones, an overall decline of 22.6% year-on-year. 5G cell phone shipments also took a rare dip, falling 11% year-on-year.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

For cell phone brands, the search for a second growth curve is no longer the icing on the cake, but the edge of life and death, and there is no time to lose. For cell phone manufacturers, the continuous launch of multi-screen and folding screen products to attract customers' attention, to promote the brand to go up for more high-end brand market share, is a lot of cell phone brands based on their own business to make changes.

For domestic cell phone manufacturers, the overseas market is also the focus of major brands to make efforts. Last year, Xiaomi's overseas revenue was 163.6 billion yuan, accounting for 49.85 percent of total revenue, and its revenue growth rate was above 30 percent for three consecutive years; OPPO and Vivo's overseas revenue accounted for about half of the total. But while there are plenty of opportunities in the overseas market, the risks it breeds are also growing. Due to similar positioning, domestic cell phone brands in the overseas market is also inwardly rolled more and more powerful. As the major manufacturers of cell phones production is large, so the future price war or inevitable. Especially in the global economic downturn, through price cuts to boost sales may become a lot of brands have to take a road. In addition, the increasingly elusive political environment abroad for domestic cell phone manufacturers, is also turning from out of reach into a situation that could happen at any time around.

Don't laugh at anyone, Apple Android phones are having a hard time selling out

For domestic cell phone manufacturers, it is not easy to find a second line of growth. On the one hand, cell phone manufacturers have invested heavily, risking huge failure to start their own chip research; on the other hand, Xiaomi Huawei began to invest tens of billions of dollars at every turn to the booming field of intelligent electric vehicles. In the future, the cell phone, in fact, may only be a part of the whole big ecology, if there is no way to better interconnect with other hardware, simply fragmented to look at the cell phone industry, domestic cell phone manufacturers in the matter of corporate strategic decision-making will fall into a misunderstanding. That is to say, you can not simply look for the second growth curve and look for the second growth curve, how to develop a set of strategic planning, to find new breakthrough points and can continue to focus, this is easy to say, do it is very difficult.

So, you guys, this year's 618 will still get a new phone?