The decline in the sales of operators' channel terminals is significant, and the low-end mobile phone industry chain is suffering from shocks.

Electronic enthusiasts eight o'clock: Market research organization GfK recently released relevant data on the Chinese mobile phone market in the first quarter of 2017. According to the report, with the outbreak of online and 4G switchovers, the upgrade of smartphone users has become the driving force behind market growth.

However, the momentum of this change from the first quarter, the momentum is not strong enough.

According to the information issued by the Securities Daily reporter, Founder Securities (8.43 +1.20%, BUY) sent to investors yesterday, the operator channel terminal sales fell significantly, and the operator channel is an important channel for domestic mobile phone sales. Based on this, it is difficult to drive the growth of mobile phone sales, and wary of the risk of low-end mobile phone industry chain demand.

Although China Telecom’s quarterly report has not yet been released, the “Securities Daily” reporter has analyzed the China Mobile’s quarterly report and China Unicom’s (7.47 +0.00%, buy) quarterly report, and the operator channel terminal sales have indeed declined significantly.

China Mobile's quarterly report showed that terminal sales declined due to the expansion of mobile phone market sales. In the first quarter, terminal sales revenue was 23.1 billion yuan, down 10.7% from the same period of the previous year.

China Unicom's quarterly report also showed that the company's operating costs decreased. China Unicom said that it was mainly due to the reduction in the cost of sales communication products, which was a significant drop of 30.7% over the same period last year.

This is mainly due to the significant year-on-year decline in sales of communications products. According to the first quarter data disclosed by China Unicom on the Hong Kong Stock Exchange, the revenue from sales of communication products in the first quarter of 2017 was 7.579 billion yuan, compared with 10.365 billion yuan in the same period of 2016.

Analysts who did not want to be named said that when they communicated with the "Securities Daily" reporters, the mobile phones they purchased were mainly low-end and low-end. "If the amount of low-end and mid-range mobile phones does not come, the corresponding industry chain will be affected, such as the demand for electronic components such as mobile phone antennas.

Wang Yang, research director of research institute IHS Technology, also told the Securities Daily that the demand for replacement has slowed down this year after the surge in demand. “This year’s market demand is not strong, not only the operators’ channels, but also other channels.”

According to IHS research data, the mobile phone market grew by only 3% in the first quarter of this year compared to the first quarter of last year. “Huawei, OPPO, and vivo are still rising compared with the same period of last year, and others are falling. Some small brands and even some second-tier brands are slowly out.”

The suppliers of these out-of-print brands are likely to be affected. Wang Yang told the "Securities Daily" reporters that mainly second-tier suppliers may be affected.

According to GfK forecast, the retail sales of China's mobile phone market slowed down in 2016 compared with 2016. In 2017, the growth of retail sales in China's mobile phone market was much higher than that of retail sales, and the average market price continued to rise.

Another research firm, Trendforce, pointed out that the first quarter was the traditional off-season. In the first quarter, global smartphone demand was sluggish, and buying momentum was not as good as expected. Major manufacturers have revised down the production volume in the first quarter, especially in China. Overall, the number of smartphones produced in the first quarter of 2017 was approximately 307 million units in 2017, with a quarterly decline of 23%.

Affected by the uncertainty of China's mobile phone telecommunications subsidy program and the sluggish market buying momentum, the inventory level of finished products in the first quarter of China's smart phone brand manufacturers has increased slightly by one to two weeks compared with the past. Therefore, major manufacturers have revised down the first quarter. Production targets and stocking targets to adjust the stock level.

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