Shulou(Shulou.com)11/24 Report--

Research firm TechInsights said on October 7 that the 5G smartphone market is expected to return to growth in 2024, with global 5G smartphone penetration reaching 72 per cent and 5G millimeter wave smartphone penetration reaching 7.3 per cent.

With the increase in penetration, the 5G smartphone market may usher in a golden era of blowout development. The global 5G smartphone market is expected to surge and will reach $162.9 billion in 2023, with an annual compound growth rate of 124.89%, according to a report released by international market research firm Research And Markets on October 6.

According to Research And Markets, Lenovo is one of the major players in the 5G smartphone market. At present, Lenovo Group mainly develops its smartphone business through the Motorola brand. In recent years, the brand continues to increase its overseas market share and has excellent market performance.

What is noteworthy is that Lenovo's smartphone business is expanding. Lenovo has announced that it has completed the acquisition of FCNT, a major Japanese smartphone maker, whose main products are arrows-branded phones. With the completion of the acquisition, Lenovo Group will accelerate its attack on the global market, including Japan, mainly with the dual-brand mobile phone business of FCNT and Motorola, with a view to ushering in a new growth space under the rising tide of the 5G smartphone market.

It is expected that the annual compound growth rate is nearly 125%. The development momentum of 5G smart phones is strong.

Since last year, due to the impact of macroeconomic uncertainty, the global smartphone market demand has shrunk, and the industry is generally facing greater pressure. However, with the steady recovery of the economy and the active promotion of destocking in the smartphone industry chain, the global smartphone market is showing a recovery this year, especially driven by the increase in 5G smartphone penetration.

According to Canalys data, global smartphone shipments of Q1 and Q2 in 2023 are 270 million and 258 million respectively, although the growth rate has not returned to growth, but its decline has narrowed for two consecutive quarters since Q4 in 2022. In particular, 5G smartphones are showing strong vitality against the trend. According to a report released by TechInsights, Q1 global 5G mobile phone shipments increased by 3.9% year-on-year in 2023. Q2 shipments increased 2.3% year-on-year.

TechInsights predicts that the global 5G smartphone market will continue to grow in 2024. In terms of brand performance, TechInsights predicts that brands such as Apple and Samsung will lead the global market, while Motorola, owned by Lenovo, will lead the North American market with the former.

Research And Markets predicts that the global 5G smartphone market will grow at a compound annual growth rate of nearly 125%, highlighting the strong development trend. The Research And Markets report points out that increased disposable income, increased consumer awareness of increased use of mobile devices, a surge in demand for high-speed data connections in integrated Internet of things applications and the expansion of OTT platform subscriptions will drive the expansion of the 5G smartphone market in the future.

In terms of market segments, according to the Research And Markets report, North America and Mexico are expected to become the regions with the fastest growth in the 5G smartphone market during the forecast period; regions such as India and Vietnam will help 5G smartphones open an incremental market with the launch of 5G networks; and the Asia-Pacific region, driven by accelerated economic growth and the development of digital technology, has the largest global market share, with China accounting for the highest share.

The development of the Chinese market should not be underestimated, and it accelerates the development of 5G mobile phones at the policy level. According to the "Action Plan for steady growth of Electronic Information Manufacturing Industry 2023-2024" jointly issued by the Ministry of Industry and Information Technology and the Ministry of Finance, China will strive to account for more than 85% of 5G mobile phone shipments in the mobile phone market by 2024.

Lock in the "3-year Plan", Lenovo acquires FCNT plus layout

Driven by better market expectations and policy support, the 5G smartphone market has broad prospects for development, which brings growth opportunities for smart device manufacturers represented by Lenovo Group. As the world's leading ICT technology enterprise and smart device leader, Lenovo Group's mobile phone business is very competitive and has a clear leading edge in North America, Europe, Latin America and other regions.

According to the ranking of global smartphone manufacturers in the second quarter of this year released by Canalys, Motorola handset shipments of Lenovo Group ranked fifth in the European market, unchanged from the previous quarter, up 12% from the previous quarter, and market share continued to increase compared with the previous quarter. In Latin America and Brazil, the key market in the region, the market share continues to occupy the second place.

In particular, it is worth mentioning that in the smartphone segment of the folding screen mobile phones, Lenovo Motorola moto razr 40 series mobile phones are widely recognized, the market performance is very eye-catching. According to the TechInsights Q2 global folding screen mobile phone shipment report, Lenovo moto razr 40 series mobile phone shipments grew by leaps and bounds in the second quarter of this year, with a year-on-year increase of 2135%, the highest growth rate in the world. In terms of market share, the series ranks fifth in the world, second in North America, Latin America, Western Europe, the Middle East and Africa, and third in Central and Eastern Europe.

In addition to developing key markets such as Latin America and Europe, Lenovo Group has also launched an offensive in Japan, the main market in the Asia-Pacific region. The Japanese smartphone market is one of the largest and most advanced markets in the world, helping manufacturers to expand the Asia-Pacific market.

Lenovo Group has expanded the Japanese mobile phone market by acquiring FCNT, a local mobile phone manufacturer. FCNT mainly has the flagship brand arrows, and Lenovo said that the new FCNT will continue the brand tradition to maintain its place in Japan. According to IDC, FCNT ranked the fourth largest mobile phone manufacturer in Japan with 570,000 units shipped and 7.9% market share in the second quarter of this year.

With FCNT's strong market position and brand potential, Lenovo will accelerate its growth in the Japanese smartphone market in order to steadily advance its mobile phone business market strategy. Yang Yuanqing, chairman and CEO of Lenovo, has said that Lenovo has made a "three-year plan" for the smartphone business, that is, in the next three years, Lenovo wants to grow into the top three in the global market except China. In addition to North America and Latin America, Lenovo will vigorously expand its business in Europe, the Middle East and Africa as well as the Asia-Pacific region.

At the product level, Yang Yuanqing said: "Lenovo's mobile phone products have been fully strengthened in the past few years, especially in high-end products. Motorola's fourth-generation folding screen phones are expected to sell more than the previous three generations combined within 120 days after release, and there are also many star products on 5G products."

As an important part of Lenovo Intelligent equipment Group (IDG), mobile phone business is the key force driving the development of this business. Lenovo's results for the first quarter of fiscal year 2023 to the end of June this year showed that the activation of its mobile phone business reached the highest level in the first quarter of the decade, and the market position of high-end and 5G products was gradually strengthened.

At present, with the development of technological innovation such as artificial intelligence and the continuous improvement of 5G product penetration, the smartphone market is glowing with new phones. Lenovo Group will grasp the growth trend of 5G mobile phone market through continuous scientific and technological innovation and orderly market strategy, and open up new growth space with competitive products.

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