Operators sound the charge for 5G terminals: With the "double clamp", the proportion of 5G mobile phones has increased significantly

2020 is the starting point for the substantial development of 5G. In 2019, many institutions were optimistic about the sales of 5G mobile phones in 2020, and predicted that the global sales would exceed 200 million units, and the sales of 5G mobile phones in the Chinese market would reach more than 100 million units.

However, with the outbreak of the epidemic, accompanied by panic and a decrease in the frequency of going out, the demand for changing phones among some consumers will be reduced. Many people in the industry believe that the epidemic has slowed down the development of terminals.

The domestic mobile phone market operation analysis report released by the China Academy of Information and Communications Technology confirms this trend. According to the data, in February, the total shipment volume of the domestic mobile phone market was 6.384 million units, a year-on-year decrease of 56.0%; in January, the total shipment volume of the domestic mobile phone market was 20.813 million units, a year-on-year decrease of 38.9%.

It is worth mentioning that under the double impact of the epidemic and the overall "downward" of mobile phone shipments, the proportion of 5G mobile phones has emerged and continued to rise. Comparing the data, it can be found that in February this year, the shipment of 5G mobile phones was 2.38 million units, accounting for 37.28% of the market; in January, the shipment of 5G mobile phones was 5.465 million units, accounting for 26.26% of the market.

It has to be said that 5G has become the key antidote to activate the development of the entire terminal industry. On the road to promoting the "upward" development of the 5G terminal industry, what are the established goals of operators as the absolute promoters of 5G terminal development? Under the control of the epidemic, how will operators work with all parties in the industry chain to regain their rhythm?

The operator's stated goal

As we all know, for 5G development, terminals must come first! For this reason, the three major operators have set 5G terminal development goals.

It is estimated that the overall mobile phone market sales volume this year will be around 330 million units, of which the 5G mobile phone market will be about 100-180 million units. China Unicom plans to sell 110 million mobile phones across all channels, including 33-60 million 5G mobile phones, and 100 million pan-intelligent terminals across all channels.

At the beginning of this year, China Mobile increased its 5G package user development target from 70 million to 100 million, and proposed to continue promoting the "5G+" plan in 2020 to cultivate new 5G value.

To this end, China Mobile has set two major goals: in terms of smartphones, it is proposed that more than 100 5G smartphone models will be launched in 2020, with sales exceeding 150 million in the overall Chinese market and more than 100 million in China Mobile's network; in terms of pan-intelligent terminals, it is proposed that more than 100 5G pan-intelligent terminals will be launched, with actual sales reaching tens of millions. Next, China Mobile will focus on enriching multi-dimensional tariff packages and business innovation to drive the sales of 5G mobile terminals and the popularization of 5G applications.

China Telecom has clearly adhered to the strategy of leading all-category terminals, through the coordinated promotion of standards, a connected capability platform, a full-category integration policy and channel integration sales, supplemented by full customer service, omni-channel sales and a full business platform, so as to achieve the development goals of 180 million mobile phones, 60 million 5G terminals, 40 million smart home terminals and 20 million IoT NB modules.

Join hands with the industry chain to regain the rhythm

Due to the impact of the epidemic, the growth pace of 5G smartphones was significantly suppressed in 2020. In January, 5G mobile phone shipments were 5.465 million units, and in February, 5G mobile phone shipments fell "cliff-like" to 2.380 million units.

If there had been no COVID-19 pandemic, according to analysts' forecasts, high-end 5G (3K+) during this year's Spring Festival could have driven a round of growth in overall 5G sales; the proportion of 5G terminal products (2-3K) in the second quarter accelerated; in the third quarter, the 2K+ market basically completed the 4/5G switch; in December, the price of most 4G mobile phones fell below RMB 1,000, and 5G accounted for more than 60% in the fourth quarter.

In order to boost industrial development, help industry chain partners overcome difficulties, and orderly guide the industry chain back to rhythm, the three major operators have made relevant commitments to 5G terminal industry chain partners at the first time, and helped upstream and downstream to resume normal operations and win the battle against the epidemic!

China Unicom has made five major commitments to its partners. It not only opens up two levels of authority, namely "headquarters centralized procurement + provincial self-procurement", which allows procurement before review; it also provides business conditions support, including but not limited to advance payments to suppliers, shortened payment cycles, and providing credit terms to channel dealers.

China Mobile not only opens up China Mobile's terminal marketing resources and capabilities such as credit purchase and surplus concession, shares China Mobile's online channel touchpoint resources, and establishes a green channel for terminal warehousing, but also actively cooperates with terminal manufacturers and channels to carry out terminal promotion activities, helps agency channels to carry out terminal sales, restores sales flow, and alleviates inventory pressure.

China Telecom has introduced a number of support measures. On the one hand, it has given confidence to the industry by simplifying all processes and providing financial support to channel dealers. On the other hand, China Telecom has strengthened cooperation with manufacturers, opened up free channel capabilities, and accelerated product launches and supply guarantees.

According to IDC's forecast, the overall sales volume of China's terminal market will decline in the first quarter, which is expected to exceed 30%-40%, and will show a U-shaped rebound in the later period. We have reason to believe that with the joint efforts of operators and all parties in the industry chain, 5G terminals will return to the original "fast pace" and develop in a healthy and orderly manner.