How to digest inventory and expand new markets to make up for the decline of China’s offline channels has become a top priority for mobile phone manufacturers.
Affected by the epidemic, Apple, Samsung, vivo, Xiaomi and many other mobile phone brands have suspended some or all of their offline stores in China.
Apple’s official website previously announced that, based on recent public health and prevention considerations, Apple Store retail stores will be temporarily closed from February 1st to February 9th.
According to CNBC, Wade Bush Securities analysts Daniel Ives and Strecker said that due to traffic restrictions in major cities in China, limited passenger traffic in Shanghai, Beijing and other cities will lead to sales of 1 million iPhones in the region. , Will be delayed from the first quarter to the second quarter. But the impact on the company’s overall revenue is minimal.
Tianfeng Securities analyst Guo Mingzhang predicts that iPhone shipments are expected to fall by about 10% to 36 to 40 million units due to the impact of pneumonia outbreaks in the first quarter of this year.
At the same time, the Samsung Bund flagship experience store issued an official WeChat public account saying that due to careful consideration and according to the latest recommendations of health experts, from February 2 to February 9, Samsung ’s flagship experience The store (the Bund) will be closed. This experience store is located on Nanjing East Road, Shanghai, in the thriving business center of Baiye. It officially opened on October 18, 2019, and is Samsung’s largest flagship experience store in China.
Samsung also said that during the epidemic, fewer trips, and avoiding as many people as possible, are the best way to prevent new pneumonia. If you need to purchase equipment, you can choose an online store.
Xiaomi House also announced that To cooperate with epidemic prevention and control, Xiaomi House will be held on January 28, 2020 ) Business will be suspended until February 2, 2020 (the ninth day), and business will resume on February 3, 2020 (the tenth day). Any adjustments will be notified separately.
vivo also said that where the epidemic is serious The flagship stores directly under management have been suspended. The suspension is uncertain until now. We are still monitoring the situation. .
Offline channels are very important for China’s mobile phone industry. About 70% to 80% of sales come from offline. Affected by the epidemic, offline sales will slow down significantly in the first quarter.
Guo Mingying predicts that due to the epidemic, mobile phone shipments in the Chinese market will fall by about YOY during the Spring Festival in 2020.50–60%, resulting in about 50–60 million high-water inventory in the current channel. The outbreak of pneumonia has hurt consumer confidence, and the lower-than-expected demand for 5G replacements has worsened. He estimates that China’s mobile phone shipments will plummet by 15% this year to 310-330 million units.
The Strategy Analytics report shows that China’s smartphone shipments will decrease by 5% in 2020, and China’s smartphone market shipments will decline by more than 30% in the first quarter of this year. Manufacturers such as Huami OV will face the risk of falling demand in the Chinese market, and their overseas expansion will also be affected by production capacity and travel bans. International brands such as Apple will also suffer from insufficient production capacity and the risk of falling demand in the Chinese market.
This is much lower than previously expected. Before the outbreak, the industry was optimistic about the recovery of the Chinese mobile phone market. How to digest inventory and expand new markets to make up for the decline of China’s offline channels has become a top priority for mobile phone manufacturers.
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