Weak smartphone market will affect machine tool companies

Abstract In 2007, the first generation of iphone was officially released, reshaping the definition of mobile phones. The mobile phone has changed from the original function machine to a "micro computer" that integrates entertainment, photography and communication. As a result, people’s desire for consumption of mobile phones has been stimulated again. wisdom...

In 2007, the first generation of iphone was officially released, reshaping the definition of mobile phones. The mobile phone has changed from the original function machine to a "micro computer" that integrates entertainment, photography and communication.

As a result, people’s desire for consumption of mobile phones has been stimulated again. The smart phone industry has become an important battlefield for economic and technological development, and has become one of the most important user areas in the industry. A large number of high-speed and bed for processing metal or glass casings are used in the mobile phone field. A large number of tools and jigs are purchased by mobile phone manufacturers, and automation equipment that is gradually increasing in pressure from labor costs is also purchased by manufacturers.

Driven by the smart phone industry, the machine tool industry has made great strides.

But after more than a decade of continuous rush, the smartphone market has been weak. One fact that has to be faced is that the Chinese and global smartphone markets have been in a state of pessimism for the past year.

According to data from the research firm counterpoint, China's smartphones are close to saturation, and the penetration rate of Chinese smartphones has exceeded 95%. In this increasingly weak market, it is very difficult to seek rapid growth.

As a result, the weakness of smartphones has affected machine tool manufacturers.

According to Bloomberg News on the 21st, due to the sluggish sales of the new iphone, Foxconn, which is the Apple assembly plant, will cut the cost of 20 billion yuan in 2019 to cope with "a very difficult and competitive year."

In addition, a machine tool manufacturer said that the company's large number of machine tools sold to Foxconn have been sold as second-hand machine tools.

It’s not just Foxconn that has been affected. So far, the total order of Japanese machine tools has declined for three consecutive months. The main reason for the decline is that the machine tool orders in China are in a downturn, and the main supply target for Japanese machine tools is China's 3c electronics industry.

In the past year, machine tool manufacturers who used mobile phone manufacturing equipment as their main business felt a lot of pressure, and this pressure did not end. There are indications that the smartphone industry is likely to continue to headwind in 2019.

From the bankruptcy of Gionee to Samsung's closing of the Tianjin manufacturing plant, all kinds of deeds have shown that the competition in the mobile phone market will be more intense in the future, the winners will remain, the laggards will be eliminated, and the past dividend market is gone forever.

In this context, as an important upstream of the smart phone industry, companies that supply machine tools for mobile phone manufacturing are also facing a serious test.

First, because of the decline in mobile phone sales, manufacturers will no longer need so many machine tools. Although the demand for machine tool equipment in the mobile phone market is still there, the past demand will be gone. Therefore, after the equipment demand declines, machine tool manufacturers have to make major adjustments to find new growth points.

Secondly, in the context of the continuous upgrading of smartphone products, the accuracy requirements for machine tools for manufacturing parts will also increase. This undoubtedly puts a test on the technical accumulation and innovation ability of machine tool manufacturers. In the past, the market for machine tool enterprises with single equipment performance and price-based advantages will become smaller and smaller.

Finally, outside the smartphone market, external factors such as overcapacity, semiconductor market deterioration, and Sino-US trade wars have brought more or less negative impacts on machine tool companies.

In short, the future situation is not optimistic. For machine tool manufacturers, it is the most important thing to make timely changes before the problem comes.

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