Mainland manufacturers have a serious absence of upstream components in the mobile phone market

Inject vibrancy of a huge mobile phone market to the entire mobile phone industry chain. In 2006, global mobile phone production will exceed one billion Chinese production in about 300 million to 400 million. More than 70% of the output value is created by the by phone upstream parts manufacturers.In this huge market, even though magically ran a Chinese enterprise - AAC Acoustics, but in the upstream parts industry in the entire mobile phone, the vast majority of parts manufacturers in the industry chain endings, making a small profit. struggling on the edge of survival and death.Shui Qing Mu Hua, research director ZHOU Yan Wu pointed out that due to the accumulation of technology and other aspects of the mainland factory upstream components in the mobile phone market, the absence of severe, 95% of the market occupied Europe, the United States, Japan, China Taiwan manufacturers.Market share is not optimisticPhone components can be divided into active components (semiconductor components and display), the passive components (capacitors, inductors and resistors), structure (cell phone case and the PCB), the functional components (electro-acoustic components, vibration motors, display, batteries, antennas) of four categories.Among them, semiconductor components include baseband, memory, application processor, power management, radio, camera modules, etc., probably account for more than 50 percent of the cost of handsets, and this part is dominated by U.S. and European companies, such as Texas Instruments, Qualcomm, Ericsson, NEC and Britain Feiling and so on."High threshold of the semiconductor component manufacturers, particularly European and American manufacturers occupy the absolutely dominant position in the field of RF and analog IC, but also gross margin areas with the highest average gross margin of between 30% and 40% gross profit margin of some of the analog IC up 70%. "the industry veteran who requested anonymity said.ZHOU Yan Wu said that the field of passive components and the structure is dominated by Taiwan and Japan, the Japanese swept the high-end products, China Taiwan is responsible for the low-end products, functional components, in addition to AAC company unique, is also basically the Japanese. South Korea and Taiwan, China division.Decline in profits"Too harsh industrial environment, intense competition and a direct result of the serious decline in profits." The Macat photoelectric (hereinafter referred to as "Macat") CEO Lee Lap-sun disclosed.Last year the previous year's domestic mobile phone collective big defeat, to further suppress the profit margin of mobile phone parts, so that the Macat this part of the business in serious difficulties. However, in the first half of 2004, Macat business income of 2.6 billion, only a cell phone camera projects a net profit of more than 2600 million.The Macat the phenomenon is not unique.In Shenzhen, Dongguan had a factory do a lot of mobile phone shell, the last two years reduced to a "black phones" tool to join the better quality units committed to the brand's domestic mobile phone manufacturers aware of the importance of quality owned and joint-venture factory.Real local Chinese companies to do the cell phone case, but not much of a certain size. "The the TSD mold workshop supervisor Yu Yabing disclose, TSD has three production plants, plastic mold, injection silk screen with all the production of mobile phone shell conditions. Currently producing 500,000 to 600,000 units a month cell phone case, most of supply Telsda phone.If a mobile phone output reached 300,000, while the price of mobile phone shell accounts for only about 1 yuan, if it is 500,000, the price will drop to about 0.5 yuan. "First Financial Daily" learned from multiple sources, in addition to semiconductor components, the profits of the vast majority of mobile phone parts has become a low-profit, gross margin below 10%."Our gross profit margin of around 5%." Yang Lin said of the resistor-capacitor the Xianghai company responsible person of the major suppliers for mobile phones, even to the level of resistance and capacitance, mainland manufacturers of quality is still slightly inferior to overseas manufacturers.New HopeHowever, this does not explain the bleak future of the mainland's local enterprises in the mobile phone upstream components, new hope is on the rise."Our cell phone batteries has been done in China NO.1 supplier of Nokia, Motorola, Samsung and other international brands." BYD (1211.HK) President's Office main Renwang Zhen said that success in business development, "kangaroo effective copy from the initial nickel-chromium batteries, nickel-metal hydride battery, lithium ion battery, and then expanded to the mobile phone parts. The so-called "kangaroo effective replication" refers to each new business is feeding out in front of the sterile bag.BYD battery from the phone successfully cut to the phone component manufacturing, mainly based on the accumulation of the original technology and customer BYD production of mobile phone components including LCD modules, plastic shell, keyboard, flexible circuit board, camera, vibration motor such as Nokia, Motorola, Samsung, Kyocera, Bird, Lenovo and other mobile phone brand suppliers.BYD mid-2006 performance reports indicate that as of June 30, 2006, operating income reached 5.683 billion yuan, including battery revenue of 1.922 billion yuan (33.8%), mobile phone parts revenue of 2.104 billion yuan (37%), Automotive revenue of 1.656 billion yuan (29.2 percent), mobile phone parts has become BYD business first business for the first time beyond the main business of its battery.