Chip prices soared 5 times, Apple may be the biggest winner

According to media reports, the price of chips has soared by 5 times recently. Such a sharp price increase is causing domestic mobile phone companies to face the dilemma of profit or market share. The reason is that the continuous price increase of domestic mobile phones in recent years has caused consumers to use Feet vote.

Chip prices soared 5 times, Apple may be the biggest winner

In the past few years, domestic mobile phones have been challenging the price bottom line of domestic consumers for domestic mobile phones, trying to obtain more profits. After all, the domestic mobile phone market is now basically occupied by Huami Ouwei and Apple, which together account for the domestic mobile phone market. The share of the mobile phone market has reached 95%, other small and medium-sized mobile phone brands are increasingly marginalized, and the competition in the mobile phone market is no longer as fierce as before.

Under the situation that the domestic mobile phone market is stable, mobile phone companies have raised prices one after another. Among them, Huawei has raised prices most fiercely. Although Huawei has continued to raise prices significantly, before last year’s P40, the price of the P series was below 4,000 yuan, until last year. The price of the P40 exceeded 4,000 yuan, and as Huawei continued to raise prices, Xiaomi OV also followed suit.

But it was after Huawei broke the price of the P series to 4,000 yuan last year that the market taught it a lesson. In the domestic mobile phone market, data from an e-commerce platform shows that the Xiaomi Mi 10, priced at 3,999 yuan, sells more than the Huawei P40, showing that domestic consumers are priced below 4,000 yuan for domestic flagship phones; It is emphasized when the P40 series broke through 10 million, and the previous P30 was heavily promoted to sell 10 million in only 85 days, which shows that the sales of the P40 series are not as ideal as expected.

In addition, it can be seen from the data of domestic mobile phone sales that consumers are disgusted with the continuous price increase of domestic mobile phones. In the era of fierce competition, the sales of mobile phones in the Chinese market used to be close to 450 million units, and the sales of mobile phones in the Chinese market in 2020 There are only 308 million, and the higher peak period has shrunk significantly.

In this case, it reminds that domestic mobile phones need to be more reasonable in the pricing of their flagship mobile phones. However, the skyrocketing chip prices are bound to put huge pressure on domestic mobile phones. If they do not raise prices, they can only digest the rising mobile phone costs and reduce profits. ; but if the price is raised, it may lead to a loss of market share.

In the face of rising chip prices, Apple is estimated to be the most calm. Compared with the single-digit net profit margin of Android phones, Apple’s net profit margin exceeds 20%. In this case, even if the cost of chips rises, Apple is under pressure. Also smaller, its lucrative profits are enough to absorb rising chip costs.

If Android phone companies are forced to raise prices, it will be more beneficial for Apple. Data from the first quarter of last year showed that after the Huawei P40 exceeded 4,000 yuan, Apple’s shipments in the domestic market increased by 11%; since the fourth quarter of last year, due to the well-known problems facing Huawei, Apple has become the biggest winner. Shipments in the domestic market surged by 94%. This means that if the price of domestic mobile phones is raised again, it will only benefit Apple more.

In general, the price of chips has skyrocketed, and domestic mobile phones will face the test again. Either they can only bear the decline in profits without increasing the price of mobile phones, or the price increase will lead to a decline in market share; and for Apple, whether it increases or not. At present, there is no Android mobile phone company that can compete with it in the high-end mobile phone market.

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