In the first quarter of 2020, domestic mobile phone giants have launched the latest flagship phones: Xiaomi 10, OPPO Find X2, vivo NEX 3S 5G version, Huawei P40 ... Compared to the previous price, these domestic mobile phones Giants have set their flagship machine at more than 4,000 yuan. In addition to the increase in the cost of upstream raw materials during the epidemic, what other factors have led to the "collective price increase" of domestic flagship aircraft? It can be explored from upstream semiconductor prices, bullish chip costs and brand premiums in the 5G era.
The price of the domestic flagship machine in spring starts from 4,000 yuan
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Where is the mobile phone starting at 4,000 yuan? Foreign media Techinsights dismantled the hardware of the Mi 10 mobile phone. According to estimates, the hardware manufacturing cost of Xiaomi 105G is 440 US dollars (about 3085 yuan), of which the Qualcomm Snapdragon 865 chip cost is estimated to be 125 US dollars, more than 1/4 of the total cost of the machine, Lei Jun said "make friends" The selling price may really not be deceptive. Among the domestic mobile phone brands, in addition to Huawei's own Kirin 990 5G developed by themselves, the rest adopt the highest configuration Qualcomm Snapdragon 865 chip.
Affected by the epidemic, upstream semiconductor prices rose
Affected by the epidemic, the production capacity of major global electronic component manufacturers was affected. In the context of short supply, global semiconductor products started a price increase cycle. Taking DRAM as an example, according to the data provided by the website DRAMeXchange, the DXI index reflecting the DRAM market rose from 17,701 points on December 3 last year to 25,102 points on April 3, an increase of more than 42%.
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Driven by the strong market of 5G and IoT, the demand for memory has greatly increased, and the growth rate of NAND Flash products has risen across the board.
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According to forecasts, the price of NAND Flash flash cards in the second quarter of 2020 will continue to rise, and Enterprise SSD (Enterprise SSD) has also become the most obvious product out of all application categories. As Enterprise SSD's share of overall NAND Flash shipments continues to increase, its strong price also drove the overall average price of NAND Flash in the second quarter to rise by at least 5%.
In addition to the epidemic, there are chip prices and 5G equipment-driven price increases
At the same time, the price of chips is increasing year by year. Taking Qualcomm Snapdragon as an example, the price of the Snapdragon 855 is 8 dollars higher than that of the Snapdragon 845, an increase of about 16%; while the flagship Snapdragon 865 is priced at $ 125, which is higher than the Snapdragon 855 More than doubled. This will undoubtedly significantly increase the price of smartphones equipped with the latest chips.
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With the advent of the 5G era, the promotion of the top hardware of 5G mobile phones has also increased their costs. Lu Weibing, general manager of the Redmi brand, said after a press conference that the increase in the cost of 5G mobile phones is mainly concentrated on innovative technologies such as processors, radio frequency chips, imaging, screens, and fast charging. Cameras are also becoming the second largest cost of mobile phones. According to the Samsung Galaxy S20 Ultra (12G + 256G) material cost data previously announced by TechInsights, the camera accounts for 20% of the total cost.
In addition, affected by the epidemic, labor costs have increased. Taking Wuhan as an example, the logistics and labor costs during the epidemic were about three times higher than usual, and this part of the pressure will also cause the price of various parts of the mobile phone to increase. But this is a short-term impact. After all, the price increase of mobile phones has been increasing since a few years ago, but this year the price increase is more obvious.
In the final analysis, the price increase of the domestic flagship machine is due to the increase in the cost of chip development and 5G. In addition, domestic mobile phone brands are aiming at the high-end mobile phone market with greater profit margins, and the premium of high-end brands is superimposed. Under the trend of consumption upgrading, the epidemic factor is the one that has the shortest influence.
