Product News
Product News
Product News

The evolution of connector industry has reached the stage of concentration and acceleration.

2019-08-29 17:20:16 .

Since this year, affected by the global market environment, the automobile and mobile phone market, which has long been highly regarded, is also declining. For this reason, the connector industry has also received a certain degree of impact, and even some enterprises believe that this will lead to the whole industry to set off a repeat elimination competition, merger and acquisition restructuring will rise, industrial concentration will intensify.

The evolution of connector industry has reached the stage of concentration and acceleration.

Automobiles and mobile phones have been an important market driver in components industries such as connectors, but this year's performance is not so "beautiful".

China's smartphone market has gone through a downturn in 2017, and the first half of 2018, which is expected to be high, has yet to rebound. According to Counterpoint Market Pulse, sales of smartphones in China fell 10% in the first half of 2018 from a year earlier.

According to the information provided by the First Research Institute of Mobile Phone, since July this year, all small and medium-sized mobile phone manufacturers have cut their sales in an all-round way, falling by more than 60%. Many connector companies have to go overseas to find a market, but the global market is also declining, the overall situation is not a single.

By November, negative news such as Apple's cut-off, Foxconn's cost reduction, and Jinli's $20 billion supply chain fund arrears hit confidence in the industry as a whole. Therefore, the research institute expects that by the end of the year, small and medium-sized mobile phone factories may be facing a wave of bankruptcy.

In this regard, industry insider A said that Huawei Yu Chengdong had said before that in the future, there will be less than five mobile phone manufacturers in the world, which seems to be a little verified. At present, the market of Huawei, millet and OV is still growing. The concentration of mobile phone brand will inevitably lead to the improvement of the concentration of mobile phone connector manufacturing industry, and the market of large connector factories will certainly grow in the future.

Some industry insiders said that in the previous period, their company also wanted to invest a batch of imported CNC equipment, but now it seems to be cautious, and this year's payment is also difficult to collect.

As for automobiles, according to UK reports, the global trade tension has led to a decline in Chinese automobile sales and caused unease among the world's leading automobile manufacturers. Volkswagen's sales in China fell 10% in September (about 277,800 vehicles), while Jaguar Land Rover's sales in China fell 46% in September.

According to the data of China Automobile Industry Association, automobile production and sales have declined for four consecutive months since July. In October, automobile production and sales decreased by 10.05% and 11.7% respectively compared with the same period last year.

But connector industry B is still optimistic about the automotive market, he said, the automotive sector should just start changing, and there must be new applications. Because although car sales have declined, the number of mid-and high-end cars has increased, and electronic equipment such as pre-loaded vehicle navigation should be increased. But the industry is closed and is now being consolidated. But he still appealed to connector companies to "get tired of apples and replace them with steelmakers."

Therefore, the industry continues to have new momentum. However, according to industry personage C, the concept of the Internet of Things, such as smart door locks, smart home and so on, has not yet started, it is difficult to stimulate the growth of consumer electronics.

Influenced by the market environment, according to two companies that make connector basic materials, the sales situation was good from January to October this year, but the consumption of certain types of materials decreased significantly in November. Not only domestic enterprises, but also Japanese major factories such as Sumitomo's sales revenue dropped by 10%, and sales of some products dropped by 30%. That is to say, the international market is not optimistic.

In view of the current situation, some professionals put forward that there are too many connector manufacturers in China, most of them are small and have no advanced R&D capability, and it is a big probability event that they can not survive. He suggested that large-scale mergers and acquisitions should be carried out through association organizations, shutdown and transfer, improve quality and efficiency, and upgrade and transform.

In this regard, Shenzhen Connector Industry Association believes that this is in line with the direction of industrial development. The evolution of connector industry has reached the stage of accelerating the promotion of concentration.

About Us

JI-TECH ELECTRONIC LIMITED  was established in 2002, After years of development, the company has grown into a mature enterprise integrating multiple .....


Apply scope

Contact Us

  • 2/F,Building E,Zhuao Industrial Park,No.7 Nantai Road,Gushu,XiXiang Town,Baoan District,ShenZhen,China
  • 86-755-86655016