Electronics

The domestic mobile phone market is already a red sea. In order to expand the territory, many mobile phone manufacturers have already extended their tentacles overseas.

The growth of mobile phone business in overseas markets has promoted the increase of ZTE's overall consumer business. In the first half of this year, ZTE's consumer business revenue rose 16.5% year-on-year. When I was surveyed by an agency on August 30, one of the reasons for the growth of consumer business was the growth of mobile phone revenue in overseas markets, which increased by nearly 40% year-on-year.

Lenovo's overseas smartphone business has also achieved good results. In the first quarter of 2022, in the Americas and Europe-Middle East-Africa markets, Lenovo's sales in these two regions increased by 8% and 1% year-on-year, respectively, benefiting from the steady growth of smartphones and other businesses. Among them, in the field of smartphones, the North American market and the Latin American market are Lenovo's most advantageous markets.

However, some people are happy and some are worried, not all companies' smartphone business is smooth sailing overseas. Since the beginning of this year, Xiaomi Group's performance in overseas markets has been very dismal. Xiaomi's financial report shows that in the second quarter of 2022, the company's overseas market revenue was 34 billion yuan, down 22.0% year-on-year, accounting for 48.4% of revenue, down 1.3% year-on-year.

In recent years, Xiaomi Group has been performing well in overseas markets. The interruption of this high growth may be closely related to its frequent attacks in overseas markets. In January of this year, the Ministry of Finance of India accused Xiaomi India of tax evasion and issued a fine of 6.53 billion rupees (about 550 million yuan). Rupee (equivalent to RMB 4.806 billion). Following the Indian market, in July this year, Xiaomi was fined 3.2 million euros (equivalent to 21.76 million yuan) by the Italian anti-monopoly agency AGCM. A series of events have impacted Xiaomi Group's overseas business to a certain extent.

Unlike Xiaomi, although it has not been frequently attacked by local regulators, Transsion Holdings, which has been deeply involved in the African market, has not achieved outstanding results, and there has been a situation of increasing revenue but not increasing profits. In the first half of 2022, the company achieved revenue of 23.109 billion yuan, a year-on-year increase of 1.11%; net profit was 1.654 billion yuan, a year-on-year decrease of 4.23%.

When domestic mobile phone companies go overseas, which markets are still worth exploring? According to the analysis of senior people in the mobile phone industry, looking at the world, the current mobile phone market in Latin America is still worthy of Chinese mobile phone companies.

He believes that in terms of brands, among the top brands, Xiaomi, OPPO, and vivo are currently based in the Chinese market, India and South Asia are the secondary markets, and Europe and Southeast Asia are the third markets; Honor is currently the main market. The share is also in China; in terms of other brands, realme mainly focuses on the Indian and South Asian markets; Transsion focuses on the African market. On the whole, although some manufacturers have extended their tentacles to the Latin American market, the local market share of domestic mobile phones is relatively low, which is worthy of continued cultivation by mobile phone manufacturers.