The impact of smart phones in Shenzhen Manufacturer: do not transition will collapse
March 26 messages in Shenzhen called “Silicon Valley Power,” the factory cluster, white
tile building has been closed. Last year, it is mobile phone assembly line. A security
guard said: “closed, the staff had gone back.”
Shenzhen is the epicenter of the global mobile phone industry, but on today, the plant
closing is very common. Chinese consumers prefer smart phones, Internet, powerful, causing
disaster to the OEM manufacturers, small businesses of the past there have been thousands
of plants to provide low-end mobile phones to the Chinese domestic consumers.
Some companies began to cottage latest brands of mobile phones, some companies for non-
permanent workers, small town businessmen, farmers and produce new products. These products
are no brand or the brand is unknown, the price is much lower than the Nokia phones.
Mobile phone Chinese mobile phone market production in 2010, about half of these
enterprises, but now is in trouble. Gartner estimates that 2011 OEM mobile phone fell 7
percent to $ 186 million, accounting for 42 percent of China’s mobile phone sales last
year, this year’s sales will decline 30%.
Have a cause to decline, that is the 3G service launch, consumers want to use the phone to
the Internet. Operators also smart phone subsidies, marketing in a small city, originally a
small city dominated by OEM mobile phone.
Gartner analyst Sandy Shen said: “Consumers are becoming more and more mature, their high
quality requirements, like brand products.”
Due to changes in the market, hundreds of mobile phone manufacturers closed. For some, the
change also represents opportunities.
In closed factories, Silicon Valley Power “is sideways, medium-sized mobile phone
manufacturers SOP Corporation manager Mei Saichun explained:” We have a large investment in
quality control. “He pointed to the procurement of new equipment. Each month SOP to produce
300,000 units of mobile phones, of which about half of the smart phone.
Some companies actively build their own brands, such as language, Jin, Cool, Meizu, Oppo
and BBK, in developed markets, Huawei is also advancing to the consumer market.
Second-tier mobile phone operators is not easy. In the past, the global mobile phone brand
feature phones and low-end phones price differential operator subsidies, the small
difference of global brands and machines and cottage smartphone.
In addition, the mobile phone operators to achieve differentiation is even harder. Cool,
vice president of Su peak (transliterated from the Su Feng,) said: “smart phones are too
similar to the big screen, small size range, less buttons, less color.”
Some companies use different strategies, aimed at niche markets. For example, the Oppo and
BBK target in the female body. The Coolpad also with operators.
Meizu operate their own programs store Meizu Hua, Hailiang, sales director, said: “In order
to achieve differentiation, we are concerned about the program, rather than hardware
features.” Last week, the Meizu app store download capacity of 100 million, while Apple’s
worldwide program to download capacity 25 billion times.
There is a chance, that is, the less developed regions outside China. SOP is about one-
third of mobile phones sold in Indonesia, India and Ghana.
SOP export sector director Adam Chen said: “In fact, in South Asia and Africa the lack of
3G, many consumers can not read, can not afford to buy a smart phone, the next 2-3 years
will still be the main feature phones.”
Despite these challenges, the growth of the smartphone market opportunities or give China a
second-tier brands. IDC predicted last week, this year, China surpassed the United States
to become the largest smart phone market, India and Brazil will be in the top five in 2016.
To seize emerging market opportunities, smart phones need to develop low-end smartphones,
it has the complete, powerful experience.