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Time： 2024/7/26　Posted： Shenzhen Frame Electronic Technology Co., Ltd.: There is a factory cluster called "Silicon Valley Power" in Shenzhen, and the White Tile Building has been closed. Last year, it was still a mobile phone assembly line. A security guard said, 'It's closed, the employees have already gone back.' Shenzhen is the epicenter of the global mobile phone industry, but today, factory closures are very common. Chinese consumers prefer smartphones because they can access the internet and have powerful functions, which has caused a disaster for OEM manufacturers. In the past, thousands of small businesses provided low-end smartphones to Chinese consumers. Generally, low-end smartphones only require ordinary double-sided circuit board accessories.
Some companies are starting to imitate the latest brand of mobile phones, while others are producing new products targeting non fixed workers, small town merchants, and farmers in China. These products have no brand or unknown brand, and their prices are much lower than Nokia phones.
In 2010, about half of the mobile phones produced in the Chinese mobile phone market came from these companies, but now they are in a difficult situation. Gartner estimates that in 2011, the number of OEM smartphones decreased by 7%, reaching 186 million units, accounting for 42% of China's smartphone sales last year, and this year's sales will continue to decline by 30%. There is one reason for the decline, which is the launch of 3G services, and consumers want to use their phones to access the internet, while smartphone circuit boards are HDI motherboards or multi-layer circuit boards. Operators also provide subsidies for smartphones and market them in small cities, where OEM phones are dominant< br /> & Gartner analyst Sandy Shen said, "Consumers are becoming more and more mature, they have higher quality requirements, and they are starting to like branded products. Shanzhai phones have fallen behind, especially those with ordinary motherboard models Due to market changes, hundreds of mobile phone manufacturers have closed down. For others, change also represents opportunities. Right next to the closed factory "Silicon Valley Power," Mei Saichun, the manager of the SOP Group, a medium-sized mobile phone manufacturer, explained, "We have made significant investments in quality control." He pointed to the newly purchased equipment. SOP produces 300000 mobile phones per month, of which about half are smartphones that use high-end circuit board accessories such as HDI and multi-layer circuit boards< br /> & nbsp; Some companies are actively establishing their own brands, such as Tianyu, Gionee, Coolpad, Meizu, Oppo, and BBK. In developed markets, Huawei is also entering the consumer market, using HDI, multi-layer circuit boards, and high-precision circuit boards in the procurement of mobile phone motherboards.
Second tier mobile phone companies are not easy. In the past, there was a large price difference between global mobile phone brands' feature phones and low-end phones. Now, due to operator subsidies, the price difference between global brands and phones and counterfeit smartphones has decreased. In addition, it is even more difficult for mobile phone companies to achieve differentiation. Coolpad Vice President Su Feng said, "Smartphones are too similar to each other, with large screens, small size ranges, fewer buttons, and fewer colors
Some companies adopt different strategies and target niche markets. For example, Oppo and BBK have set their sights on women. Coolpad also collaborates with telecom operators.
Meizu operates its own program store, and Hua Hailiang, Meizu's sales director, said, "In order to achieve differentiation, we focus on programs rather than hardware features." Last week, Meizu's program store had 100 million downloads, while Apple's global program downloads reached 25 billion. There is another opportunity, which is in underdeveloped regions outside of China. About one-third of SOP's mobile phones are sold to Indonesia, India, and Ghana. Adam Chen, the head of SOP's export department, said, "In fact, there is still a lack of 3G in South Asia and Africa, and many consumers cannot read or afford smartphones. In the next 2-3 years, feature phones will still be the mainstay
Despite facing challenges, the growing smartphone market will still bring opportunities for Chinese second tier brands. IDC predicted last week that China will surpass the United States to become the largest smartphone market this year, and India and Brazil will also enter the top 5 in 2016. In order to seize opportunities in emerging markets, smartphone manufacturers need to develop low-end smartphones that have a complete and powerful experience. Ordinary circuit board manufacturers must keep up with the trend and transform into producing HDI and multi-layer circuit boards, otherwise they will have to shut down with the popularity of smartphones.

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