5G mobile phone prices are going down

Zhuan Zhuan Group today released the "2020 Second Quarter Mobile Phone Market Report" (hereinafter referred to as Q2 "Zhuan Zhuan Mobile Phone Market"), stating that with the launch of a number of mid- and low-end models in the new phone market, the price of 5G mobile phones has continued to "lower", and the 1,500 yuan mark has been broken; however, against the backdrop of a decline in overall shipments, 4G mobile phones that are constantly cutting prices for promotions still dominate the new phone market.

Data shows that in the second quarter of this year, the transaction volume of second-hand 5G mobile phones accounted for only 3.25%. In addition to the iPhone without 5G which is still the king, domestic 4G mobile phones such as Xiaomi, Huami, and OV are also hot-selling in the second-hand market.

The report pointed out that from the perspective of the entire new phone market, 5G phones are the undisputed protagonists, and prices have been falling again and again. Currently, the starting price of many 5G mid-range phones is below 2,000 yuan, and the actual selling price of some models has exceeded the 1,500 yuan mark. With the release of more mid- and low-end 5G chips and the application of corresponding models in the third quarter, the official starting price will also drop significantly.

At the same time, the price of 4G mobile phones continued to decline. Especially in the 618 e-commerce war in the second quarter, manufacturers and e-commerce platforms continued to reduce the price of new phones through discounts and subsidies in order to increase sales. The Q2 "Zhuanzhuan Mobile Phone Market" shows that throughout the second quarter, the prices of domestic main models in the new machine market generally fell by 100-400 yuan; in the second-hand mobile phone market, the transaction prices of 99% new second-hand main models also fell, such as the Xiaomi 10 5G version, which fell by 558 yuan in three months; in June, the price of second-hand mobile phones fell even more.

Analysts from Zhuan Zhuan's Strategic Research Department said that the second quarter is a stage of market recovery, and manufacturers hope that sales will return to normal. In addition, 618 is a traditional promotional node for mobile phones and 3C products, so they can just reduce prices to increase sales and boost market confidence. Price cuts in the new phone market will inevitably trigger a chain reaction in the second-hand market.

According to the Q2 "ZhuanZhuan Mobile Phone Market", the top 10 second-hand mobile phone models in the second quarter were all iPhones. Among them, the old models iPhone7, iPhoneX, and iPhone8 Plus occupied the top three positions. In addition, the release of the new iPhoneSE also boosted the search volume for iPhone SE. In the second quarter, the search volume for iPhone SE on the ZhuanZhuan platform continued to rank first, continuing the trend of the previous quarter, surpassing the iPhone X, iPhone8 Plus and other second-hand models that were usually very popular. It is worth noting that the classic model iPhone7 with a small screen has also become the second-hand "king" of the new season.

According to analysts from Zhuanzhuan’s Strategic Research Department, the main reason why iPhone 7 was able to “make a comeback” and replace iPhone X, which had been ranked first in second-hand market transaction volume for several consecutive quarters, is that while the price of iPhones in the new market has dropped and domestic mobile phones have taken a share of the market, leading to a short-term increase in demand for replacement phones, the demand in the sinking market has also gradually become strong.

In the 5G mobile phone market, the Q2 "ZhuanZhuan Mobile Phone Market" shows that since 2019, the prices of 5G mobile phones that have been launched one after another are mostly above 3,500 yuan. Due to the generally high prices and the impact of the epidemic, the 5G replacement wave has been repeatedly delayed. In the second quarter, Android manufacturers have launched 5G mid-range mobile phones, such as Huawei nova 7 series, Enjoy Z, Honor X10, Xiaomi 10 Youth Edition, Redmi 10X, vivo iQOO Z1, OPPO Reno4, etc.

The prices of new 5G phones have also been falling. Among them, Redmi 10X has lowered the official starting price of 5G phones to 1,599 yuan. During the 618 promotion, the actual selling price of some new 5G models has dropped to less than 1,300 yuan.

Data shows that the transaction volume of 5G mobile phones in the second-hand market only accounts for 3.25%. Among them, Huawei and Xiaomi occupy the top five in the 5G mobile phone transaction volume ranking. Huawei Mate 30 Pro (5G) is still the most popular 5G model; Xiaomi 10 (5G) and Huawei Mate 30 (5G) rank second and third respectively.

Analysts from Zhuanzhuan's strategic research department said that although 4G phones still dominate the second-hand market, more and more users are choosing second-hand 5G phones. With the continuous improvement of 5G network coverage, the optimization of mobile phone hardware configuration and the complete coverage of mobile phone prices in the middle, high and low end, the opportunity to buy 1,000 yuan phones will soon come.

In addition, from the perspective of the Q2 "ZhuanZhuan Mobile Phone Market", the hot cities for second-hand mobile phone transactions are still Shenzhen, Guangzhou, Dongguan, Chongqing and Beijing. Among them, Beijing's ranking has dropped from the first place in the previous quarter to the fifth place. Analysts from ZhuanZhuan's Strategic Research Department said that first- and second-tier cities still dominate transactions, but at the same time, the potential of low-tier cities is constantly bursting out, among which third- to sixth-tier low-tier cities are still the main cities for purchasing mobile phones. Among them, male users prefer iPhoneX, while female users are more inclined to buy the small-screen iPhone 7. Analysts from ZhuanZhuan's Strategic Research Department said that the small screen configuration of iPhone7 is more suitable for female hands, and with high cost performance, it brings female users a better user experience.