Wired
Judging from the current situation, the expectations of the mobile phone industry in the first half of this year are very low. Behind everyone’s pessimism, there is still a severe decline in demand, which also leads to the risk of high inventory of mobile phone manufacturers.
TF International analyst Ming-Chi Kuo recently stated that almost all Android brands are facing high inventory risks due to weak demand. This is no longer a problem for one brand, but for all manufacturers.
Taking Samsung as an example, the brand’s global mobile phone inventory (the sum of terminals and components) is not expected to drop to a reasonable level until June.
Because the demand for components from brands or agents/distributors is weak, even if the inventory of components falls to a reasonable level, at least in the next 6-9 months, they will generally face the challenge of YoY decline in shipments, which may be detrimental to stock price performance.
Prior to this, the news from the supply chain also showed that Apple also successively cut orders for the iPhone 14 series in Q1 this year because of the decline in demand.
Sources said that in the case of shrinking market size, various manufacturers are facing the risk of high inventory, which will force the price war to become more intense. For example, Apple, the big brother of the industry, can no longer stand it. The unexpected price reduction of 800 yuan soon is the best signal.
For users, the price reduction means that they can buy more affordable mobile phones. How long is your replacement cycle?
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