智能手机2020年5月跟踪月报
China Smartphone Tracking Monthly Report of May,2020
5月国内手机销量同比回落，
预计Q2国内整体向好、海外承压
China‘s mobile phone sales fell in May compared with 2019
Expected to improve the overall domestic on Q2, but had overseas pressure
Summarized by Leon
202/7/7
1
Simmtech Confidential
Core Points
China High-frequency data tracking of mobile phones
1. Mobile phone shipments declined again YoY in May, benefiting from 618 promotion in June, which is expected to turn into a reg ular
one, maintaining the positive forecast of domestic sales volume in the second quarter: According to the data of China Information
and Communication Institute, the total shipments of domestic mobile phone market in May reached 33.759 million units, 19.10%
MoM, -11.84% YoYY and fell again after the positive growth in April: In the first five months, the total shipments of the domestic
mobile phone market reached 12,444 million units, with a YoY rate of -18.00%; Looking ahead to June, 618 sales promotion is
expected to drive mobile phone sales ,We judge that compared with the pressure caused by the epidemic in the first quarter, the
second quarter will be significantly improved, maintaining the forecast of single-digit YoY decline in the overall domestic sales in
the second quarter
2. Channels, part of the online channel sales slipped, speculated that part of the requirements to 618: after part of the online
channel may (huawei, glory, millet, oppo, vivo, samsung Tmall official flagship store, similarly hereinafter) 761,300 units, sales
dropped 21.76%, YoY decline slightly large plate, considering the electric business platform in May 618 activities for the
preheating, we hypothesized that some requirements after extended to 618
3. As far as 5G is concerned, the trend of increasing penetration rate will not be changed, price level will continue to decline , and
sales of huawei and xiaomi hot style models will continue to be in the lead: domestic 5G mobile phone penetration rate remains on
the positive side. According to data from the China information and communication institute, in May, 5G mobile phone shipments
totaled 15.6443 million units, with a penetration rate of 46.3%, among which some online channels sold 326,800 units, with a
penetration rate of 42.9%.Major Android brands launched new 5G phones, focusing on flagship models in the first quarter, while
focusing on medium and low-end models in April-May. In May, the overall average price of 5G phones in some online channels was
3,666 yuan, with a month-to-month decline of -15%. Currently, the lowest 5G phones have dropped to 1000-2000 yuan. In terms
of best-selling models, Huawei maintained strong sales in product matrix and individual products. In May, among the TOP5 models
series of some online channels, huawei had 4 and xiaomi 1, Which are Huawei Nova 7 series, Huawei Honor 30 series, Xiaomi 10
series, Huawei P40 series and Huawei Honor X10 series
Global and regional mobile phone trends
1. The COVID-19 in China is basically under control, and demand is expected to recover quickly. According to IDC, China shipped
66.6 million mobile phones in 2020Q1, -20.4% YoY. According to data from China Information and Communication Research
Institute, in April, the domestic mobile phone shipments reached 41.728 million units, with a MoM +92% YoY +14%; in May, the
domestic mobile phone shipments reached 33.759 million units, with a MoM -19% YoY -12%; in June, it is estimated that the YoY
growth rate of 618 promotion is expected to return to positive. At present, the COVID-19 situation in China is basically under
control. The overall situation of domestic electronic enterprises has basically returned to normal. We maintain the forecast of
single-digit YoY decline in domestic Q2 sales and a decline of 5-10% in the annual dimension.
2. Overseas production resumed after COVID-19 and the sales volume in the second quarter is expected to reach the bottom:
according to IDC data, 276 million mobile phones were shipped worldwide in 2020Q1, 11.3% YoY; Among them, the domestic
was -20.4% YoY and the overseas was -7.9% YoY, mainly because the COVID-19 situation in the first quarter was concentrated in
China, and the overseas COVID-19 situation developed rapidly since the end of the first quarter and the beginning of the second
quarter. Overseas mobile phone industry chain is mainly involved in Europe and the United States (semiconductor, etc.), Japan
and South Korea (panels, storage, MLCC, etc.), southeast Asia (OEM, etc.), currently the main countries and areas have gradually
entered the stage of return to work after the outbreak and production, but still need to be climbing capacity, we predict the global
2
handset shipments 30 ~ 40% YoY decline in Q2, Q3 and Q4 decline is expected to narrow, 10 ~ 15% decline throughout the year.
Simmtech Confidential
3. Brands base, brands with low overseas share and high online share are relatively less affected. From the perspective of regional
Core Points
There are many voices about the outward migration of the anti-globalization industry chain recently. We are still optimistic about the
important role of domestic consumer electronics companies in the global supply chain, and believe that the outward migration is still a
long-term dimension of 5-10 years:
1. China is the world's largest exporter of consumer electronics now, accounting for nearly 90% of the global output of smart phones.
China not only absorbs the huge domestic demand, but also exports 70% of the domestic smart phones to the global market.
Chinese enterprises are widely distributed in the latter part of the industrial chain and dominate in the production and assembly of
some components.
2. In the short term, Based on national industrial security consideration under COVID-19, basic manufacturing necessities (related) or
there is a property may be industrial chain relocation, but the industrial globalization division of labor is clear, after nearly 40 years
of evolution, Chinese vendors have efficiency, cost, supply chain and other significant advantages, in the short term for the
outsourcing is not the economy; In addition, the escalation of COVID-19 may cause a global economic downturn and further slow
down the process of industrial chain relocation in the short term.
3. In the medium and long term, based on the fact that costs have risen in recent years, tariffs have gone up and local efficiency
needs have been served, part of the industrial chain and assembly links of consumer electronics have a tendency to move out, but
the destination needs a long time to be able to undertake. On the other hand, from the perspective of the long-term development
of Chinese enterprises, benefiting from the bonus of engineers, the domestic consumer electronics industry will also take the
initiative to carry out structural upgrading and transformation. Domestic enterprises will focus more on the links of the industrial
chain with higher added value and move out some industries with low added value.
Industry dynamic tracking
1. Apple opened WWDC2020 and released its own Mac SoC chip, updating five software systems:
2. For Androids , after the intensive flagship new product release in the first quarter, new phones of various manufacturers mainly
focus on mid-end 5G models in April-May. In May, Huawei released Changyou Z and honor X10, with the starting price below 2000
yuan. Xiaomi released Redmi 10X with a starting price of 1599 yuan, which is the lowest 5G model at present. Vivo released the
iQOO Z1, starting at 2,198 yuan.We are optimistic that the annual 5G penetration rate will rise and the price segment will fall. From
the perspective of a longer cycle of one to two years, it is estimated that 5G and other upgrading demands can still support the
high-speed growth of the industry
3. 5G SoC reaches the middle and low end in an all-round way. The "three-battle world" of mobile phone's main chip: From May to
June, Qualcomm released mid-order 5G Snapdragon 768 and low-order 5G Snapdragon 690. MTK released medium-order Breguet
1000Plus and low-order Breguet 820, 5G SoC to the middle and low end. The main chip of mobile phone forms a "three-body
world" : the first world chip provides for itself, reduces maintenance and strikes, including Apple, Huawei, Samsung, etc.; Second
world standard leading, brand premium, typical representatives such as Qualcomm; The third world is dominated by dark forests
and the market. Mediatek, Unisplendour, ASR and other middle and low-end applications are the main ones. 5G changes are
expected to bring development opportunities.
Key Companies
1. Among the manufacturers of terminal mobile phones, we tracked the financial and sales data of Apple, Xiaomi and TECNO, and
concluded that Apple's brand and product strength are still leading with strong user stickiness. Although its short-term performance
is affected by COVID-19, the long-term growth drivers including wearables and software services are expected to remain
unchanged. Xiaomi's domestic share bottomed out, 5G new phones
3 showed bright performance, low inventory level, decentralized
distribution in many countries and regions, and high proportion of online channels also made the impact of COVID-19
relatively
Simmtech
Confidential
CONTENTS
目录
1.
2.
3.
4.
China High-frequency data tracking of mobile phones
Global and regional mobile phone trends
Industry dynamic tracking
Key Companies
4
Simmtech Confidential
Domestic Shipments Declined Again YoY,
5G Penetration Continued to Improve in May
 According to data from China Information and Communication Research Institute, in May 2020, the total shipments of the
domestic mobile phone market reached 33.759 million units, with a MoM rate of -19.10% and a YoY rate of -11.84%. After a
positive YoY growth in April, the total shipments declined again. In the first five months, the total shipments of the domestic
mobile phone market reached 12,444 million units, with a YoY rate of -18.00%;5G mobile phone penetration rate maintained a
good trend, with 15.643,000 units shipped in May, accounting for 46.3%.In the first five months, 46.085 million 5G mobile phones
were shipped, accounting for 37.0%.
 We judge that there was some demand for replenishment of inventory through channels in April, which fell slightly in May.
Benefiting from 618 promotion in June, it is expected to regain the positive status, maintain the positive forecast of domestic sales
in the second quarter, and the YoY decline in Q2 is expected to narrow to single digit. At present, the epidemic situation in China
is basically under control, and the overall domestic electronic enterprises have basically returned to normal. Most overseas
countries and regions entered the stage of gradual resumption of work and production, the second quarter is expected to hit the
bottom of sales.
5
Simmtech Confidential
Online sales are less affected by the COVID-19,
and the proportion of brands online is differentiated
 According to historical data, the online sales of domestic smart phones account for about 30% of the total sales volume,
among which Xiaomi accounts for a relatively high proportion while OV accounts for a relatively high proportion low, Huawei,
apple moderate
 By brand, Huawei (including honor) accounted for about 30% of online sales in 2019, Xiaomi accounted for about 60%,
OPPO,
Vivo online sales accounted for about 10%, and Apple online sales accounted for about 40%.
 From the perspective of different channels, JD, Tmall and Suning respectively accounted for 50%, 24% and 5% in April
2018, among which Tmall flagship brands, The store accounts for more than half of Tmall sales;In addition, the official
mall of Apple, Xiaomi and Huawei accounted for more than 10% in total.
 We looked at the monthly sales of the major Android brands (HOVMS) in some online channels. See next page for details.
6
Simmtech Confidential
sales volume of some online channels declined MoM,
it is speculated that some demand was extended to 618 In May
Sales:
 In May, the sales volume of some online channels of smart phones (huawei, Honor, xiaomi, oppo, vivo, Samsung Tmall official
flagship store, below is same) was 761,300 units, with a MoM decline of 21.76% and a slight drop of expected. Considering that the
e-commerce platform warmed up the 618 activity in May, we speculate that some of the demand was extended to 618
 Brand Base





Huawei Tmall official flagship store (including Honor) was
478,200 units, down 21.06% MoM and the online share was
62.81%, up 0.56% from last month.
Xiaomi's Tmall official flagship store sold 164,900 units,
down 24.96% MoM, and its online share was 21.65%, down
0.93% MoM
OPPO Tmall official flagship store was 43,200, up 0.20%
MoM, and the online share was 5.67%, up 1.24% MoM.
Vivo Tmall official flagship store were 69,400 units, down
29.07% MoM and the online share was 9.12%, down 0.94%
MoM
Samsung Tmall official flagship store was 5,700 units, down
14.16% MoM, and the online share was 0.74%, up 0.07%
from the previous month.
7
Simmtech Confidential
Average price of some online channels dropped slightly compared with the previous month
the new machines went from flagship machines to the middle and low end In May

Average Price
 In May, the average price of some online channels
of smart phones was 2,426 yuan, down 4.03%
MoM; Major mobile phone manufacturers in the
first quarter of the intensive release of flagship
new phones, the price has increased compared
with previous years, after the inventory of old
models, the sales of new models increased, the
average price of online mobile phones in March,
April were slightly increased; In the second quarter,
new phones were released in the middle and low
end, and the average price of online mobile phones
fell slightly in May

Brand Base
 The average prices of Samsung, Huawei, OPPO,
Vivo and
Xiaomi were 5,532 yuan, 2,606 yuan,
2,595 yuan, 1,986 yuan and 1,937 yuan respectively
8
Simmtech Confidential
5G mobile phones Sales in some online channels dropped slightly in May
the penetration rate continued to rise
 Sales Volume
 In May, sales of some online channels of 5G mobile
phones reached 326,800 units, down 4.47% MoM.
Accounting for 42.92% of the total mobile phone
online sales volume, the penetration rate continues
to increase
 Brand Base
 huawei's Tmall official flagship store (including Honor)
reached 216,300 5G units, up 0.42% MoM, and the
online share was 66.19%
 Xiaomi Tmall official flagship store sold out 72,600
5G units, down 9.70% MoM, and the online share
was 22.21%.
 OPPO Tmall official flagship store was 15,200 5G
units, up 23.51% MoM, and the online share was
4.65%.
 Vivo Tmall official flagship store were 19,900 5G
units, down 32.01% MoM, and the online share was
6.10%.
 Samsung Tmall reached 28,000 5G units, down
41.01% MoM, with an online share of 0.84%
9
Simmtech Confidential
Average price of some online channels for 5G mobile phones dropped MoM
reflecting the continuous downward trend in price In May


Average Price
 In May, the average price of some online channels
for 5G mobile phones was 3,666 yuan, down
15.10% MoM, reflecting the continuous downward
trend of 5G price segment.
Brand Base
 The average prices of Samsung, OPPO, Huawei,
Xiaomi and Vivo by brand were 7,067, 4,012,
3,767, 3,295 and 3,194 yuan respectively.
 The average price of some online channels of
major brands 5G showed a MoM decline, mainly
because the price segment of 5G models continued
to decline. As of May, the average price segment of
5G models with the lowest price of Xiaomi reached
1000-2000 yuan, that of Huawei, Oppo and Vivo
reached 2000-3000 yuan, and that of Samsung
reached 3000-5000 yuan
10
Simmtech Confidential
Some best-selling models of 5G mobile phones in online channels in May:
Huawei has many models and high sales volume
 In May, the sales of the TOP5 models in some online channels of 5G mobile phones were ranked as Huawei
Nova 7 series, Huawei Honor 30 series, Xiaomi 10 series, Huawei P40 series and Huawei Honor X10 series,
with sales of 6.88, 5.25, 4.13, 3.69 and 25,800 units respectively
 Huawei's flagship Mate series, P series, mid-range NOVA series, mid-range Enjoy series and sub-brand
Honor V series, X series and digital series have all launched 5G models, with relatively complete product
layout and leading sales. Xiaomi takes its main digital series and its sub-brand Redmi K series as its 5G
models. In addition, the new Redmi 10X series launched in May is featured by low price and leads the sales
of single models. OPPO's 5G models include the Find series, Reno series and Ace series, while Vivo's 5G
models include the NEX and iQOO flagship series as well as the mid-end X series, low-end S series and Z
series
11
Simmtech Confidential
CONTENTS
目录
1.
2.
3.
4.
China High-frequency data tracking of mobile phones
Global and regional mobile phone trends
Industry dynamic tracking
Key Companies
12
Simmtech Confidential
China: The COVID-19 is basically under control
And demand is expected to recover quickly
 According to IDC, China shipped 66.6 million mobile phones in 2020Q1, -20.4% YoY; According to the data
of China Ict Institute, in April, the domestic mobile phone shipments reached 41.728 million units, with a
MoM +92% YoY+14%; in May, the domestic mobile phone shipments reached 33.759 million units, with a
MoM -19% and a YoY-12%; in the first five months, the total domestic mobile phone market shipments
reached 12.444 million units, with a YoY -18%.
 At present, the epidemic situation in China is basically under control. The overall situation of domestic
electronic enterprises has basically returned to normal. We maintain the domestic Q2 sales forecast singledigit YoY decline, the annual dimension decline of 5~10%.
13
Simmtech Confidential
Global: Short-term demand remains under pressure,
with domestic demand outperforming overseas for 2020
 According to IDC, 276 million mobile phones were shipped worldwide in 2020Q1, down 11.3% YoY.Among
them, the domestic epidemic fell by 20.4% YoY, and the overseas epidemic fell by 7.9%. This was mainly
due to the fact that the epidemic in the first quarter was concentrated in China, and the overseas epidemic
began to develop rapidly from the end of the first quarter to the beginning of the second quarter
 The overseas demand side may repeat the weakening domestic demand in the first quarter, and the impact
extent needs to be continuously observed . Our preliminary forecast, in the second quarter affected by the
epidemic overseas under pressure, global sales fell 30 ~ 40%, with Europe and the United States and other
countries gradually into the epidemic overseas return to work after the production stage, we think the
downstream demand side will gradually recover, three or four quarter is expected to gradually recover,
throughout the year to see mobile phone sales or fell 10 ~ 15%, which is expected to be superior to
domestic overseas
14
Simmtech Confidential
Brand Base:
Brands with a high proportion of overseas sales have a greater impact
 We looked at the percentage of sales of major brands outside of China
 Samsung and Apple accounted for a relatively high proportion of overseas sales, accounting for 99% and
83% respectively in 2019
 Among domestic brands, Huawei and Xiaomi are highly internationalized. However, due to GMS restrictions,
huawei's overseas share has decreased to 42% since 2019. Xiaomi continues to expand in India and Europe,
and its overseas sales share has increased to 67% in 2019.OPPO and Vivo made slower progress for
overseas , accounting for 45% and 39% of overseas sales respectively in 2019.
 In our opinion, brands with a high proportion of overseas sales will be more affected. From the perspective
of the whole year 2020, Samsung and Apple may decline by 15-20% YoY, Huawei by 20-30% YoY due to the
contraction of overseas market, and Xiaomi, OPPO and Vivo by 5-15% YoY.
15
Simmtech Confidential
Region Base:
2019 China is the largest market, while India and Europe still have positive growth
 Region Base:
 In 2019, 377 million units were sold in Greater China, accounting for 27% of the global total. In 2017-19,
CAGR-7.9%;
 In 2019, 325 million units were sold in other regions of Asia Pacific, accounting for 24% of the global sales.
In 2017-19, CAGR accounted for 3.9%. India accounted for over 40% of the sales in other regions of Asia
Pacific.
 In 2019, it sold 239 million units in Europe, accounting for 17% of the global total. In 2017-19, it sold 6.4%
of the CAGR
 In addition, sales in North America, the Middle East and Africa and Latin America were 152/142/139M
respectively
16
Simmtech Confidential
Optimistic about the importance of domestic consumer electronics
companies in the global supply chain
 There are many voices about the outward migration of the anti-globalization industry chain recently. We are
still optimistic about the important role of domestic consumer electronics companies in the global supply
chain, and believe that the outward migration is still a long-term dimension of 5-10 years
 China is the world's largest exporter of consumer electronics now, accounting for nearly 90% of the global
output of smart phones. China not only absorbs the huge domestic demand, but also exports 70% of the
domestic smart phones to the global market. Chinese enterprises are widely distributed in the latter part of
the industrial chain and dominate in the production and assembly of some components.
 In the short term, Based on national industrial security consideration under COVID-19, basic manufacturing
necessities (related) or there is a property may be industrial chain relocation, but the industrial globalization
division of labor is clear, after nearly 40 years of evolution, Chinese vendors have efficiency, cost, supply
chain and other significant advantages, in the short term for the outsourcing is not the economy; In addition,
the escalation of COVID-19 may cause a global economic downturn and further slow down the process of
industrial chain relocation in the short term
 In the medium and long term, based on the fact that costs have risen in recent years, tariffs have gone up
and local efficiency needs have been served, part of the industrial chain and assembly links of consumer
electronics have a tendency to move out, but the destination needs a long time to be able to undertake. On
the other hand, from the perspective of the long-term development of Chinese enterprises, benefiting from
the bonus of engineers, the domestic consumer electronics industry will also take the initiative to carry out
structural upgrading and transformation. Domestic enterprises will focus more on the links of the industrial
chain with higher added value and move out some industries with low added value
17
Simmtech Confidential
CONTENTS
目录
1.
2.
3.
4.
China High-frequency data tracking of mobile phones
Global and regional mobile phone trends
Industry dynamic tracking
Key Companies
18
Simmtech Confidential
Industry dynamics:
Android 5G SoC drops to the middle and low end
 5G SoC drops to the middle and low end
 In May and June, Qualcomm released mid-end 5G Snapdragon 768 and low-end 5G Snapdragon
690.MTKreleased mid-end Breguet 1000Plus and low-end Breguet 820
19
Simmtech Confidential
Industry dynamics:
Android 5G SoC drops to the middle and low end
20
Simmtech Confidential
Mobile phone main chip "three battle world"
main battlefield of platform type company
 First World: chip supply, dimension reduction attack: (1) Apple AP chip self-supply (2) Huawei's high-end
self-supply, mid-to-low level MTK and Qualcomm;(3) Samsung; self-supply
 Second World: Standard-leading, brand premium: Qualcomm supplies main chip products to Android brands
such as OPPO, Vivo and Xiaomi. The era of 4G concentration of downstream brands has squeezed MTK's
space
 Third World: Dark forest, the market is king: MTK, UniSOC(SPRD), ASR and other low-end applications
mainly, 5G changes are expected to bring development opportunities
21
Simmtech Confidential
5G SOC summary and comparison
22
Simmtech Confidential
Industry dynamics:
New Android phones in May focus on 5G mid to low end models
 In May, manufacturers mainly focused on mid and low end 5G models
 Huawei released Enjoy Z and Honor X10 series, Vivo released mid-range model IQOO Z1 5G, Redmi released
10X series, RealMe released mid-range model X50 Pro 5G Player version, and Meizu released 17 series
flagship phones
23
Simmtech Confidential
Summary of Android 5G models
24
Simmtech Confidential
CONTENTS
目录
1.
2.
3.
4.
China High-frequency data tracking of mobile phones
Global and regional mobile phone trends
Industry dynamic tracking
Key Companies
25
Simmtech Confidential
Key company: Apple Q2 2020 performance is more than pessimistic expectations,
short-term uncertainty is obvious
 Apple's FY20Q2 results beat the market's pessimistic expectations: Apple's main Q2 financial data in fiscal
2020 exceeded the market's pessimistic expectations, with operating revenue of $58.3 billion (+0.5% YoY)
and net profit of $11.3 billion (-2.7% YoY).In terms of products, services and wearable business increased
by 17% and 23% respectively, while iPhone, Mac and iPad fell by 7%, 3% and 10% respectively.
 Short-term uncertainty is obvious, mid term still can period: affected by the epidemic, Apple did not disclose
the Q3 earnings guidance, but still provides some prospective judgment, including the iPhone and wearable
Q3 business is expected to worsen, and the iPad and the Mac business benefit from online education and
telecommuting is expected to be good and services appear differentiation, AppStore, video, music, and
cloud services will continue strong, but Apple Care and advertising materials will be under pressure; In
general, short-term performance is still uncertain, but in the mid term, with the gradual improvement of the
epidemic situation in Europe and the United States, the trend of replacement driven by 5G is still clear, with
the strong momentum of superposition services and wearable business, we can still expect Apple next year
26
Simmtech Confidential
Key company: Xiaomi's Q1 2020 performance slightly exceeded expectations,
and the impact of the epidemic is expected to be relatively controllable
 Performance overview in 2020Q1: The performance slightly exceeded expectations, the domestic mobile
phone share basically stabilized, and overseas expansion promoted growth
 Xiaomi's revenue in 2020Q1 was 49.7 billion yuan (+13.6% on a YoY basis), and its adjusted net profit was
2.3 billion yuan (+10.6% on a YoY basis).In 2020Q1, overseas revenue reached 24.8 billion yuan, and the
proportion of overseas revenue increased to 50.0%.Smartphone revenue reached 30.3 billion yuan, up 12.3
percent year on year.2020Q1 smartphone shipments of 29.2 million units (+4.7%), ASP 1038.52 yuan
(+7.3%)
 2020 performance outlook: low inventory level, decentralized distribution in many countries/regions, and
high proportion of online channels, etc., so the impact of the epidemic is expected to be relatively
controllable
 According to IDC, Xiaomi shipped 29.5 million phones in 2020Q1, up 6.1% YoY, and its market share
exceeded 10% for the first time, reaching 10.7%.Domestic shipments of 7 million units, market share
improved MoM, 10.5%;India shipped 10.3 million units, with a 31% market share. According to data from
Canalys, Xiaomi's market share in Western Europe reached 10% in Q1, while IDC's market share in the
same period of last year was less than 3%, which was significantly increased YoY. We will continue to
monitor the development of overseas epidemic and mobile phone sales, while maintaining long-term
optimism for Xiaomi's global layout.
27
Simmtech Confidential
Key company: TECNO Africa has limited impact of the COVID-19
and has made steady progress in many businesses
 2020Q1 performance overview: The impact of the epidemic is limited, and the deduction of non-profit
exceeds expectations
 The company's operating income in 2020Q1 was 5.645 billion yuan, with a YoY growth of 15.12%. The net
profit deducted from non-attributable income was 296 million yuan, with a YoY growth of 16.23%, exceeding
market expectations . The upstream of the company is fully stocked, and the downstream of the company is
in high demand. The impact of the epidemic is relatively limited.
 Outlook of 2020: The company has made steady progress in a number of businesses and maintained a firm
and optimistic outlook
 From the supply side, the company's main supply chain is located in China, with a small part coming from
Japan and South Korea. The most severe time of the epidemic has passed in these regions, and the supply
basically returns to normal
 From the perspective of demand, the penetration rate of mobile phones in Africa is still improving, and the
withdrawal of some white-brand competitors under the influence of the epidemic will further consolidate the
company's leading position. In addition, switching from functional phones to smart phones will drive the
average price of mobile phones up. In India, the company's mobile phone sales are expected to rebound
rapidly after the factory has resumed work and the epidemic situation is gradually under control. The main
reason is that the epidemic situation may lead to the downgrade of local consumption, and the price
segment of the company's products will become more competitive due to the rise of competitors due to
exchange rate fluctuations, GST tax reform and other factors
28
Simmtech Confidential
END.
29
Simmtech Confidential