Globally, the epidemic has severely affected the 3C supply chain, including Nintendo Fitness Rings, Playstations, and some smartphones. The impact of demand is mainly concentrated in China, especially the outbreak caused manufacturers to miss the peak season of the Chinese New Year holiday.
Being able to deal with the weak domestic demand in China and the serious domestic inventory problems, manufacturers can compete well in the recovery quarter of 2020. In addition, after the epidemic, consumption power may not be able to recover, and Chinese consumers will be more sensitive to product prices.
Therefore, it is estimated that the retaliatory rebound of the consumer electronics industry is more reflected in relatively low-cost non-essential products. The brand image of the four major domestic mobile phone manufacturers is different. Only Xiaomi has always been famous for its “cheap”, “high cost performance” and “price butcher”, which may gain some advantages in the rebound in demand after the epidemic. We are also optimistic about the true wireless earphones ( True Wireless Stereo, TWS ) that sell for around 500-2,500 RMB.
But investing in Xiaomi is not all risk-free. For details, please see this analysis.