On July 31, Qualcomm announced its third-quarter earnings report for April-June, although both revenue and net profit have increased significantly, but this is mainly due to Apple's contribution of $4.7 billion in settlement fees. . Qualcomm's forecast for the company's operating income from July to September this year is about 12% to 26% lower than the same period of the previous year. The main reason for this decline is the weak demand from Chinese mobile phone manufacturers, and the increase in shipments and market share of Huawei’s smartphones using self-developed mobile phone chips for other mobile phone manufacturers using Qualcomm processors. .
According to the Nihon Keizai Shimbun, on the same day's conference call, Qualcomm CEO Steve · Morenkov mentioned Huawei, saying that "Wang will focus on improving (smartphone) share in China". Morenkov is worried that Huawei will turn the headwinds into power and concentrate on developing its business in the Chinese market.
Huawei mobile phone counter-trend growth in the second quarter, Qualcomm, MediaTek chip sales have been affected
According to the statistics report of the global smartphone market shipments released by the market analyst Strategy Analytics in the second quarter of 2019, Huawei's mobile phone shipments in the second quarter of this year were 58.7 million units, an increase of about 8.3% compared with the same period of last year. From 15.5% in the same period last year to an all-time high of 17.2%, it further widened the gap with Apple, ranking second in the world.
According to data from Counterpoint Research, Huawei shipped 56.7 million mobile phones in the second quarter of this year, up 4.6% year-on-year, and its market share increased from 14.9% in the same period last year to 15.8%.
Huawei's growth in the second quarter was the overall decline in the global smartphone market, and Huawei's acquisition of the US “list of entities” in May this year was included in the export restrictions. The key to Huawei's growth is its substantial growth in China's domestic market.
Due to the impact of the US ban, Huawei's mobile phones have indeed been affected by the overseas market. Huawei has to put more power into the domestic market. On June 17 this year, during the talks between Ren Zhengfei, the founder and president of Huawei, and the well-known media people in the United States, Ren Zhengfei answered the question about Huawei's downward adjustment of overseas sales of smartphones. Ren Zhengfei said: “Huawei mobile phone sales in the international market this year. 40% is indeed, but it is growing rapidly in the Chinese market. ”
The growth of Huawei's mobile phone sales in the domestic market has produced a large squeeze effect on domestic mobile phone brand manufacturers such as Xiaomi, OPPO and vivo.
According to Strategy Analytics, in the second quarter of this year, Xiaomi's shipments were 32 million units, which was the same as that of the same period last year, and the market share increased slightly to 9.4%. And Xiaomi's ability to maintain its fourth position is also mainly due to its growth in the Indian market. According to Strategy Analytics data, in the second quarter, Xiaomi's shipments in the Indian market were 10.2 million units (previous year's shipments were 9.9 million units), with a market share of 28.7%, and it remains the largest smartphone manufacturer in India. In other words, the shipment of Xiaomi in the domestic market in the second quarter of this year should have declined.
In addition, the fifth-ranked OPPO shipped 29.8 million units in the second quarter, down nearly 1% from the same period last year. This decline is also mainly due to the pressure on the domestic market. Strategy Analytics also said that OPPO is entering the Western European market through new models such as Reno 5G, but it still faces competitive pressure from Huawei in China.
According to data from Counterpoint Research, OPPO shipped 29 million units in the second quarter, and shipments fell 2% year-on-year. Although the second quarter shipments reached 27 million units, an increase of 1.8% year-on-year, which was mainly due to the success of its flagship iQOO series.
Overall, domestic brands such as Xiaomi and OPPO have indeed experienced a decline in shipments in the second quarter, and this decline is mainly due to the decline in the domestic market. The reason for the decline is mainly due to the fact that Huawei mobile phones are in the domestic market. Strong growth. Since Huawei encountered the US “ban” in May this year, the domestic market has set off a wave of support for Huawei to support Huawei mobile phones, coupled with the stimulation of Huawei’s many competitive new products, Huawei’s mobile phones in the domestic market. The growth is very fast.
It is precisely because Huawei in the domestic market for Xiaomi, OPPO, vivo and other mobile phone brand manufacturers using Qualcomm and MediaTek chips, it also indirectly led to the impact of Qualcomm and MediaTek's mobile phone chip sales in the domestic market.
Not long ago, industry insiders @手机片达人 broke the news on Weibo, "Qualcomm China and MediaTek, worried about the rapid growth of Huawei mobile phones. The reason is that the rapid growth of Huawei mobile phones has affected the sales of OPPO, vivo and Xiaomi, and indirectly affects the chip sales of MediaTek and Qualcomm.
Huawei 5G mobile phone is the first to be listed, Qualcomm will further pressure
As mentioned earlier, Qualcomm's forecast for operating income in the third quarter of this year is down 12% to 26% from the same period of the previous year. So why is Qualcomm so unwilling to be optimistic about the market performance in the third quarter? One of the key reasons is Huawei's mobile phone chip leader in 5G.
On July 26 this year, Huawei held a new product launch conference in Shenzhen, officially released its first mass-produced 5G smartphone & mdash; & mdash; Mate 20 X 5G version. The phone is based on the Mate20 X. It is based on Huawei's self-developed 5G baseband chip Baron 5000, which supports 5G SA/NSA network and is priced at 6199 yuan.
Although a number of 5G smartphones based on the Qualcomm Snapdragon X50 baseband chip have been launched overseas, the Snapdragon X50 only supports 5G NSA non-independent networking and does not support SA independent networking. In contrast, Huawei's Baron 5000 is the only baseband chip that is the first to be commercially available while supporting 5G SA/NSA networks.
In particular, at the MWC Shanghai Exhibition, which opened on June 26, Yang Jie, chairman of China Mobile, said, “From January 1st next year, the government will not allow NSA mobile phones to enter the network. SA is the development direction, and China will soon as soon as possible. Transition to SA”. And this news also directly triggered a great discussion from the outside world.
Although this new rule does not mean that 5G mobile phones that only support NAS will not be able to use 5G networks after January 1st next year (the 5G network can still be used in the next few years, the domestic NSA and SA are built synchronously, but the policy is Guided to increase investment in SA construction), but it has a great impact on consumer psychology. In particular, Huawei's marketing support for SA/NSA is the promotion of “5G”, which further affects public opinion.
In view of Huawei's leading position in the 5G mobile phone market, other domestic mobile phone brand manufacturers have to change their strategies, reduce the planning of new 4G mobile phones, and accelerate the deployment of 5G mobile phones, especially the focus of 5G mobile phone layout. SA/NSA on 5G phones. According to expectations, the 5G baseband chip —— Qualcomm Xiaolong X55 and MediaTek Helio M70, which can support SA/NSA at the same time, may not be commercially available until the first quarter of next year. This also makes domestic mobile phone brand manufacturers other than Huawei in a weak position in the 5G mobile phone market competition in the second half of the year.
In a recent conference call, Qualcomm CEO Steve · Morenkov explained that due to Huawei's rapid growth in China's mobile phone market, many Qualcomm customers in China began to focus on 5G and canceled many 4G models. The order, which in turn affected Qualcomm's performance in the second quarter of this year, is expected to become a “tired” in the next two fiscal quarters.
Qualcomm President Cristiano Amid (Cristiano Amon) also said, “We have some OEMs canceled 4G releases and migrated their product portfolios to 5G designs... 5G for the next sales season Prepare for climbing. ”
It is also known that Huawei and Qualcomm have not resolved the ongoing licensing dispute —— the interim agreement between the two parties expired at the end of June.
In addition, it should be pointed out that MediaTek recently launched the first chip for the game mobile phone market — — Helio G90, will challenge Qualcomm, which originally dominated the game mobile phone market.
In light of these unfavorable factors, Qualcomm cut its equipment shipment forecast for the full year of 2019 by 100 million units, from 1.8 billion units to 1.7 billion units.
On the whole, due to the US ban, although the shipment of Huawei mobile phones in overseas markets has been greatly affected since May, due to the strength of its own products, the leading edge in 5G, and the enthusiasm of Chinese people to support Huawei. Huawei's mobile phone shipments in the domestic market have achieved a high growth. Under the overall downward trend of global smartphone market shipments, Huawei's contrarian growth has caused a large squeeze on the production and shipment of domestic manufacturers such as Xiaomi, OPPO, and vivo, which undoubtedly affected the mobile phones of Qualcomm and MediaTek. Chip sales.
In addition, it should be noted that as US suppliers begin to apply for Huawei's export licenses, the resumption of supply to Huawei will help Huawei's shipments in overseas markets. According to the data disclosed by Ren Zhengfei, Huawei’s mobile phone shipment target this year is 270 million units. Huawei's 2019 first-half results report showed that Huawei's smartphone shipments (including glory) reached 181 million units in the first half of the year, up 24% year-on-year. In other words, Huawei's mobile phone sales in the second half of the year is expected to reach 152 million units. Next, sales of Qualcomm's mobile phone chips may be more affected.
Editor: Core Intelligence - ROCK Sword