[Dynamic] Electronics industry: the consumer electronics sector is coming back to life.
A few days ago, the China Institute of Information and Communication issued the "May 2018 domestic mobile phone market operation analysis report", China Securities Daily has the following judgments and analysis.
(1) mobile phone shipments increased in May, and the marginal improvement of mobile phone industry.
According to the data of the Xintong Institute, in 2018 1-5, the domestic mobile phone market shipped 159 million units, down 19% from the same period last year. In May 2018, the domestic mobile phone market shipped 37.836 million units, up 1.2% year-on-year, up 10.47% year-on-year, ending a 14-month decline in monthly shipments. Among them, 35,981,000 smartphones were shipped, up 1.7% year-on-year and 10.14% year-on-year, accounting for 95.1% of domestic mobile phone shipments in the same period. Android accounted for 89.8% of smartphones. Mobile phone shipments data showed that the mobile phone industry has begun to improve at the same time. We believe that the report data released by the ITC is a measure of brand factory to channel link data, may be lagging behind; the terminal market mobile phone shipment data in the second quarter has warmed up, is expected to continue to improve the data released by the ITC.
(two) flagship model promotes marginal improvement and consumer electronics sector.
The second half of the year is the traditional peak season for mobile phones. Apple's new models are expected to be fully equipped with full screen, FaceID and double SIM cards in some models, which are expected to stimulate consumer demand for replacement. At present, Apple's new models are gradually being stocked.
The release of new models is an important push for the marginal improvement of the mobile phone industry. Huawei, OPPO and VIVO launched flagship aircraft in the first half of the year with a number of innovative features, such as Huawei P20pro with a pioneering Leica three-lens, millet 8 with dual-frequency GPS, infrared face recognition functions, to solve consumer pain points, enhance the willingness of consumers to change planes. We expect smartphone innovations to continue into the next models, such as the VIVONEX, which will be released on June 12, and is expected to carry full-screen, pop-up front-facing cameras and other features. OPPO will release its latest flagship findX on June 19, with face recognition and OLED screen features expected. The Android camp has launched a series of minimally invasive new consumer pain points, and it is expected that shipments will also be warmer.
We think that the worst time for mobile phone industry chain is over. In the field of subdivision, we propose to pay attention to the flagship and micro innovation related plates and targets. Apple's innovation penetration cycle under the components are expected to release this year, the relevant components business fundamentals are expected to improve, we recommend attention.
China Securities Daily believes that the marginal improvement of mobile phone industry brings investment opportunities to consumer electronics sector investment. The Android flagship carries a lot of innovative features, with the launch of Apple's new model in the second half of the year, and we believe that the marginal improvement in the mobile phone industry is expected to boost the consumer electronics sector. On the target, we are optimistic about Li Xin precision, LAN Si technology and Heli Tai.
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