According to the operation and statistics of electronic information manufacturing industry in the first half of 2016 released by the Ministry of industry and information technology recently, China produced 966 million mobile phones in the first half of 2016, a year-on-year increase of 23.3%; Among them, 690 million smartphones, an increase of 14.7%.

Well, the truth of the shortage of components in the mobile phone industry, which everyone yelled about at the beginning of the second quarter of this year, has finally come out. That is, since the end of last year, everyone has been singing bad about China's mobile phone industry every day, resulting in manufacturers' over conservative estimates of the market. When the mobile phone production capacity has increased by more than 20%, the material preparation of the upstream supply chain is obviously insufficient.

Of course, you can also say that the Taiwan earthquake, the Huaying pass, Samsung's process change affect the yield, or the in \ on cell LCD in the panel factory in the mainland affect the production capacity, which makes the panel supply in the Chinese market in short supply; Or the operator increased the purchase volume and let the customized machine eat the stock of the big brand factory. China Mobile said that it was my fault!

In fact, it is basically true that the whole supply chain was shocked by Apple's reduction of some supply chain orders and inventory clearing in the fourth quarter of last year. Moreover, the inventory of the whole industrial chain was indeed high at that time. Many display module factories piled up a large number of fhdlcd displays, and the inventory time exceeded one quarter. In addition, there was speculation around the spring festival that Huawei also followed apple to reduce orders in the supply chain, and exaggerated the figure to 20% of the order reduction, which frightened the upstream enterprises. Huawei finally refuted the rumor that it did not reduce orders, and the shipment volume was still growing rapidly, but it had been delayed for one or two months, and it was too late for the supply chain to respond.

Taiwan panel manufacturers who first received rumors of Apple's reduction of orders were the first to act, and Huaying made it clear to shut down a generation 4.5 line. At that time, in addition to the slow growth of its main customers ZTE and Coolpad, the impact of the cleaning storm in Huaqiangbei market on its business should not be ignored.

Other Taiwan production lines that mainly supply mobile phone panels in the mainland market either quietly stop production of LCD and turn to the development and test line of OLED, or upgrade the production of in \ on cell LCD touch screen, which significantly reduces the production capacity and lengthens the delivery time.

Not to mention South Korean manufacturers, Samsung not only did its best to produce OLED display, but also took the display capacity from BOE to produce low-end mobile phones. LGD began to upgrade the production of in \ on cell LCD touch screen as early as the fourth quarter of last year, and the actual shipment also decreased.

The first time the market felt out of stock began with the 4-inch screen. At that time, many employees thought that apple produced se mobile phones, which led the industry to follow the trend and produce small screens, resulting in a short-term supply bottleneck. In fact, this judgment is also very correct. The supply of Se mobile phones is still tight, which has something to do with the shortage of panels.

However, with the Taiwan earthquake, when some brand manufacturers began to count the supply chain, they found that not only the 4-inch screen was out of stock, but many main distribution models released in the third and fourth quarters of last year were out of stock. Among them, Xiaomi's e-commerce sales publicity is the most important, resulting in the most obvious shortage of goods in the supply chain. Even in order to get upstream resources, Lei Jun God had to announce that he came back and was personally responsible for the supply chain.

Xiaomi's action has clearly told the industry that the upstream supply chain is obviously out of stock, but it is too late for upstream enterprises to work overtime at this time. First of all, in order to improve the competitiveness of products, we have used the in \ on cell LCD touch screen on the released mobile phones. In order to reduce the cost, we have also changed all the 4.7-inch display screens to 5-inch display screens. The change of process, the increase of process, the compromise of yield, the increase of size and so on have quickly submerged the little capacity added by the panel factory.

In the first quarter, the panel factories concentrated on the decline of year-on-year shipments, shrinking revenue and negative profits. In addition to numbing the market downturn, most of the panel factories also increased the number of self-made display modules and reduced the supply to small and medium-sized module factories in order to improve the performance in the first half of the year, As a direct result, some small and medium-sized display module manufacturers and third line mobile phone brand manufacturers often faced the dilemma of no material online in the second quarter.