We recently came across a report that reveals China is experiencing a production crisis, resulting in a significant drop in smartphone manufacturing in the country. The production has fallen by as much as 7.5% year-on-year. However, a new report circulating online suggests that China will soon recover and regain control over the lost production. It is predicted that the country will pass the bottom in the fourth quarter of this year.
Chinese production department to regain control soon!
According to the IT Home‘s report, Tianfeng International analyst Ming-Chi Kuo took to Medium Platform this morning, publishing an article titled “New Xiaomi is ready to go: the mobile phone business has regained growth beyond expectations, and the automobile business is facing a new trend.”
According to Ming-Chi Kuo, the current Chinese mobile phone industry “will pass the bottom and is expected to resume growth.” During the recent Mid-Autumn Festival and National Day holiday, mobile phone sales increased significantly, with a 15% year-on-year gain. Mobile phone shipments are predicted to “regain growth” quarter on quarter and year on year in the fourth quarter of this year.
The source reports that due to a significant decrease in the price of production, manufacturers are no longer hindered by price competition, which has increased the production volume of each brand. He estimates that Xiaomi will ship between 40 million to 45 million mobile phone units in the fourth quarter of this year, with a quarter-on-quarter and year-on-year growth rate of approximately 14%. This growth rate is significantly better than the single-digit growth rate in the industry.
Ming-Chi Kuo predicts that Xiaomi’s mobile phone shipments will climb by double digits in 2024 and that profits in the fourth quarters of this year and next year will exceed market forecasts.
Xiaomi’s competitive advantage over ordinary Chinese companies, according to Ming-Chi Kuo, is in its global layout, and it is expected that when the global Android mobile phone market recovers, it will benefit significantly from replicating its past growth model in the Chinese market in emerging markets. “In other words, Xiaomi is expected to be another Chinese brand that will significantly benefit from emerging markets after Transsion .”