On the evening of April 16, 2018, according to foreign media reports, US Commerce Department officials revealed on Monday that US companies were banned from selling components to China Telecom equipment manufacturer ZTE in the next seven years because of violations of US sanctions. Reuters reported that ZTE pleaded guilty in the US federal court in Texas last March, acknowledging the sale of US goods and technology to Iran in violation of sanctions.
On the morning of April 17, according to an announcement issued by ZTE, due to the significant events that ZTE Corporation may have a significant impact on the stock price and no public disclosure, the company will suspend trading on April 17, 2018, after the company publishes relevant announcements. Resumption of trading! At the same time, ZTE's suppliers in the United States also suffered, among which fiber optic equipment manufacturer Acacia shares fell 35%, the lowest in two years. The company's 30% revenue in 2017 came from ZTE, in addition, Oclaro fell 15.18%!
Subsequently, a spokesperson for the Chinese Ministry of Commerce said: China has noticed that the US Department of Commerce has announced measures to adopt export controls for ZTE. The Chinese side has consistently required Chinese companies to abide by the host country's legal policies and conduct legal and compliance operations in the course of overseas operations. ZTE has conducted extensive trade and investment cooperation with hundreds of American companies and has contributed tens of thousands of jobs to the United States. It is hoped that the US will properly handle it according to laws and regulations, and create a fair, equitable and stable legal and policy environment for enterprises. The Ministry of Commerce will pay close attention to the progress of the situation and take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
Chuan Zhongxing will sell mobile phone business: Huawei OPPO Xiaomi participates in the negotiation
On May 9, some media said that according to the participants in the negotiations, ZTE is promoting the sale of mobile phone business. The above sources indicate that in addition to ZTE, there are government-related departments in addition to ZTE. The reason behind this is because the chip is banned. ZTE terminal has not commented on this yet.
It is said that the parties currently involved in the negotiations include Huawei, OPPO, Xiaomi and other companies. These potential participants are very hesitant about whether to take over: the value of ZTE's mobile phone business is not well known. Coupled with the chip ban, the future of ZTE's mobile phone business is full of uncertainty.
From the perspective of ZTE's mobile phone business, not only the main shipments are from overseas markets, but more importantly, the core chips such as processors are from the United States. According to the mobile phone report, after ZTE’s US ban, not only ZTE’s mobile phone has suffered a lot of shocks, and even the Nubian mobile phone brand has also been implicated, leading to Nubian’s turn to the MediaTek camp! According to industry sources, "Nubia has adopted a lot of Qualcomm chips and transferred to MediaTek. The underlying software of Android system in Nubian is also limited, and this low-level software can not find a good alternative. of!"
It is understood that at present, ZTE's mobile phone business is dominated by overseas markets. According to ZTE's mobile phone, from the perspective of third-party data, ZTE is ranked fourth in the United States, Canada, and Mexico, fifth in Spain, third in Australia, and eighth in global shipments. However, ZTE's mobile phone is still based on the mode of cooperation with operators, and it has not exerted its strength in the open market. At the same time, due to fierce competition, the Chinese market is also in a downward trend.
ZTE is also seeking change. ZTE announced in March this year that it will establish a ZTE terminal China company to strengthen the expansion of its mobile phone business in China. ZTE Terminal China will be responsible for mobile phone operations in China. From the original operation department to this operation as a subsidiary, it also means that ZTE Terminal China will have greater management rights. ZTE said it will support its products, channels, brands and talents.
From the perspective of the supply chain, after ZTE’s US sanctions, many domestic A-share listed companies have had a clear relationship with them. According to the incomplete statistics of mobile phone reports, BOE A, Xinwei Communication, Zhuoyi Technology, Crystal Optoelectronics, III An Optoelectronics, Guangku Technology, Jiangfeng Electronics, and more than 10 companies such as Hetai, Xinleieng, Sifang Jingchuang, Xingwang Ruijie, Huaxin New Materials, etc. directly said that the company has no business contacts with ZTE!
In addition, Oufei Technology, Jinsheng Intelligent, Ziguang Guoxin, Guangxun Technology, Lianchuang Electronics, Guanghong Technology, Huagong Technology, Lixun Precision, Changying Precision, Chunxing Seiko, Shennan Circuit, Sunlord Electronics, Shanghai Bay Ling, Hudian, Shanghai Xinyang, Key Innovation, Sega Technology, Wanma Technology, Zhongshi Technology, Runjian Communication, Zhongfutong, Invic, etc., although the company has business dealings with ZTE, but the business to the company The performance of the performance is not big!
North American market: domestic mobile phone brand "can not be expected"
In recent years, with the development of smart phones, in the economically developed North America (mainly the United States and Canada), the smart machine market has an absolute advantage. According to previous statistics from Rising Sun Data, the share of smartphones in 2013-16 mobile phone shipments is growing. In 2016, North American mobile phone shipments were about 200 million, of which smart phones accounted for more than 90%. Less than 10%. With the development of technology, the replacement of functional machines by intelligent machines is only a matter of time. In an economically developed region such as North America, the market share of functional machines is less than 10%. It is ahead of the global market and has opened up global functions. The curtain of the market has fallen.
According to Rising Sun Data, North American smartphone shipments increased by 4.52% in 2016, an increase over the global level. This is mainly due to the development of smart phones to the current stage, the change consumers become mainstream, the consumption level of people in North America is higher than other regions, and the mobile phone replacement upgrade will be faster and faster than other regions.
Domestic mobile phone performance in the North American market: slow growth, is the lowest share of China's smart machine
In 2016, China's branded smart phones accounted for about 21% of the market share in the North American market. The share of Chinese brands in North America is the lowest. Since the emergence of smart phones, Chinese brands have been catching up, and market share has improved in all regions of the world. North America is one of the hard-to-conquer fortresses. So far, there are already three Chinese manufacturers in the top five brands in the world. However, their performance in North America is far from matching the identity of the top five brands of global smartphones.
Source: Rising Sun Big Data (This research brand includes mainland China brands with more than 30W of global smartphone shipments and Taiwanese brands HTC, ASUS, ACER, the same below)
North American smartphone shipments: Top10 accounts for over 95%, and the market is highly concentrated
According to the Rising Sun data, the North American smartphone market is highly concentrated, and the Top10 brand accounts for more than 95% of the market. Apple, Samsung and LG account for more than 75% of the market. The users in North America are relatively mature, and with the strict patent protection policy in North America, mobile phone brands rely more on the operator's sales policy. So far, few Chinese brands have established themselves in the North American market.
According to Rising Sun data, the best performance of Chinese brands in North America is ZTE, which accounts for about 8% of the market. In the TOP10 of North American smartphone shipments, Chinese brands include Coolpad, TCL, and Lenovo. TCL and Lenovo shipments come from the acquisition of Alcatel and Motorola brands, and Chinese brands still have a long way to go in expanding mature markets.
According to Rising Sun data, there are more than 10 Chinese manufacturers entering North America. In 2016, they shipped about 40 million smartphones in North America, less than half of Apple’s shipments in North America, and the best among Chinese brands. It is ZTE, followed by TCL and Lenovo. In other regions, Huawei has a market share of only about 1% in North America.
ZTE is one of the few domestic brands that can be among the top in the North American market. According to Rising Sun Data, in 2013, ZTE shipped about 1500W in North America, accounting for about 8% of the market.
Different from Huawei, ZTE has established a good long-term cooperative relationship with operators such as AT&T. In addition, ZTE has become a sponsor of some NBA teams, further enhancing its popularity in North America and establishing a good brand image. In the month, ZTE has also been removed from the blacklist by the US government. After eliminating the uncertainties, ZTE will have a greater advantage than other domestic manufacturers by virtue of good carrier cooperation.
Huawei's shipments in North America in 2016 were about 180W, with a market share of only about 1%. Unlike other markets in the world, the US smartphones in the North American market are mainly sold through operator channels, and their Huawei technical standards and There are some differences in the North American market. To get support from operators, Huawei needs to make adjustments in hardware.
In addition, Huawei's lack of brand recognition in North America and US concerns about Huawei's network device security and patent restrictions have made Huawei unable to obtain support from US carriers. This is why Huawei cannot succeed in North America. Huawei's smart terminal business is blooming all over the world. To gain recognition in the North American market, it takes a long time to build brand trust.
Regarding the US market, according to Huawei’s director and senior vice president Chen Lifang, “With regard to the US market, the company has always believed that the market does not choose us, and the complaints are meaningless. Do what you can, and give more time and energy to recognize us. Customers, do a good job, wait until the market needs us."
According to the statistics of Rising Sun, in 2016, TCL shipped about 1000W in North America, and Lenovo shipped more than 400W. However, the shipments of these two manufacturers mainly came from the brands Alcatel and Motorola, and domestic brands are marching. The first problem in the international market is the patent issue. TCL and Lenovo solve the patent problem through acquisition, and then open the North American market through the carrier relationship of Alcatel and Motorola in North America for many years.
The acquisition accelerated the internationalization of TCL and Lenovo's smartphones. However, the original brands of the two companies have not been well developed. TCL has basically not shipped in North America. Lenovo's North American market is less than 1W, and it can be seen that despite its own association. PC has a certain popularity in North America, but the brand awareness of smart phones is still relatively low, and there is no consumer awareness.
According to reports from Reuters, Xiaomi mobile phones will also enter the markets of other European countries such as Austria, Denmark, Ireland, Italy and Sweden. In 2017, Xiaomi made his debut in Europe, and hinted that it will enter more European countries. The Wall Street Journal has previously reported that Xiaomi will officially enter the US market at the end of 2018 or early 2019. Lei Jun, Chairman and CEO of Xiaomi, said: "We have been considering entering the US market. We plan to enter the market by the end of this year or early 2019."
Xiaomi once installed Xiaomi TV, TV box and other products in the Wal-Mart store in the United States; in November 2017, Xiaomi also began selling headphones, charging treasures, 360-degree cameras and programming robot kits on Amazon. Selling millet products on the three channels.
Regarding the OPPO's actions in the North American market, it is said that OPPO is preparing to return to the European market and the North American market this year, but this does not include the US market. The continued struggle between Huawei and the US government continues, and Trump's tough attitude toward China. Forcing OPPO mobile phones to abandon the US market, even if they want to enter the US market in the future, they have to wait until Trump steps down. This time may be 1 to 7 years. Although many people want to see OPPO enter the US market, this possibility is now very small, and OPPO mobile phones are not a big brand in the US North American market, OPPO's main position is still in the Asian market.
North America is not only a huge market, but more importantly, many technological innovations are applied from the United States. For example, Apple has always been a leader in the smart machine industry, leading mobile phones into the era of touch screens, and leading smart phones into the era of fingerprints. All major regions are blooming everywhere, and the expansion of the North American market is the next target. Although the high-end market in Europe and America has entered relatively difficult, it has been recognized by the high-end market in Europe and America, which has greatly helped the reputation and sales of the global market! From Huawei, Xiaomi and OPPO, if you can successfully win the ZTE mobile phone business, then it will undoubtedly help its mobile phone business in the US market!
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