5G phone replacement wave is coming, and 9 industry chain companies are expanding production

According to China Securities Journal, as the 5G replacement wave is approaching, mobile phone industry chain companies are busy raising funds to prepare for expansion. According to incomplete statistics, since the beginning of this year, 9 mobile phone industry chain companies including Shuobei, Sanhuan Group, Xinwei Communication, Changying Precision, and Guanghong Technology have issued plans for fixed increase or revised plans for fixed increase, and plan to raise more than 18.8 billion yuan in total. Among them, 5G-related projects are one of the investment directions for fundraising.

According to the data of "Domestic Smartphone Shipments in February 2020" released by China Academy of Information and Communications Technology, the total shipments of the domestic mobile phone market in January-February 2020 were 27.197 million units, a year-on-year decrease of 44%, including 389,000 2G mobile phones, 18.964 million 4G mobile phones, and 7.845 million 5G mobile phones. In February, the total shipments of the domestic mobile phone market were 6.384 million units, a year-on-year decrease of 56.0%, including 43,000 2G mobile phones, 3.960 million 4G mobile phones, and 2.380 million 5G mobile phones.

Although the domestic mobile phone market has declined due to the impact of the epidemic, 5G mobile phones have shown a trend of surpassing 4G mobile phones, and the proportion of 5G mobile phones in overall shipments is increasing. In February 2020, 16 new models of domestic smartphones were launched, a year-on-year decrease of 61.0%, including 1 2G mobile phone, 4 4G mobile phones, and 11 5G mobile phones.

The 5G mobile phone replacement trend will stimulate an increase in shipments. iMedia Research predicts that global 5G mobile phone shipments are expected to reach 401.3 million units by 2023. With the arrival of the replacement trend, the smartphone market is gradually warming up, and shipments are expected to rebound significantly.